Morning Crank: “Clearly An Undisclosed Pledge”

1. Last week, former mayoral candidate Cary Moon wrote her campaign a check for $207,000, bringing the total she contributed to her own campaign to nearly $400,000—the largest amount spent by any self-financed candidate in Seattle history.

The campaign for now-Mayor Jenny Durkan now argues that the contribution confirms what they predicted in two complaints they filed last year, alleging that Moon was engaging in a campaign-finance “shell game,” accepting a loan-on-paper from her campaign consultant Moxie Media with a promise to pay Moxie back after the campaign was over.

Shortly before the November election, the Durkan campaign filed a complaint with the Seattle Ethics and Elections Commission against the Moon campaign, charging that Moon had unlawfully contributed tens of thousands of dollars to her own campaign within 21 days of the election, in violation of a state law prohibiting candidates from giving more than $5,000 to their own campaigns within that period, or had promised to repay a large loan to her campaign during that period, which, they argue, would also violate a city election rule prohibiting vendors from extending credit to campaigns in a way that is outside the “ordinary course of business.” A week later, the campaign filed a separate, similar complaint at the state Public Disclosure Commission, charging that the campaign’s final report before the election “clearly indicates that Moxie Media is relying on Ms. Moon to cover debts that are clearly beyond the pace of their other fundraising efforts. The increase in debt by $77,459.18 [over the last two weeks of October] is clearly an undisclosed pledge from Ms. Moon and is over 15 times the amount that Ms. Moon can pledge during the 21 days before the election.”

According to the SEEC complaint, “A close look at the Moon campaigns [sic] filings indicates that one of two things, both illegal, is going on: either her campaign’s vendors are making tens of thousands of dollars in illegal in-kind donations to her campaign, or Moon is contributing (or promising to contribute) tens of thousands of  dollars to her own campaign in direct contravention of the 21-day self-contribution limit,” the complaint alleges.

The complaints zeroed in on tens of thousands of dollars campaign consultant Moxie Media spent in the final weeks of the campaign on up-front expenses like postage, which can’t be deferred until after the campaign is over. In the last two weeks of October, according to the Seattle Ethics and Elections Commission, the campaign’s debt increased by more than $85,000, to $186,000 (the election was November 7). This amount of last-minute debt, the Durkan campaign suggests, violates the spirit of the ban on late contributions. “If these actions by the Moon campaign and Moxie Media are acceptable, then there are essentially no limits to the amount that a campaign consultant can spend out of their own funds on media, mail or other paid communication buys on behalf of a wealthy candidate for whom they work, under the assumption that the candidate can reimburse them for all of those up front payments after election day, when campaign contribution limits (like the 21-day restriction on candidate self-contradictions [sic]) no longer apply,” the state complaint says.

Moon’s camp says the loan (or pledge) was completely within the normal course of business, and notes that Durkan’s own debt increased by about $45,000 in the same period, to $98,000. They also point out that the debt was hardly a secret—the campaign reported it on every election filing.

Moxie Media’s Lisa MacLean did not return a call for comment.

Although consultants are allowed to extend credit to candidates for 90 days, the complaint charged that the Moon campaign and its consultant, Moxie Media, were aware that the debt would ultimately be paid by Moon, not other campaign contributors. At the time of the complaint, October 25 of last year, the campaign was reporting more than $125,000 in debt, which was almost as much as Moon had raised from individual donors at that point in the race, raising questions about her ability to generate enough in donations after the election to pay back that debt without using her own money. By the end of November, three weeks after Moon had lost the election, campaign finance reports indicated her campaign was $206,000 in the red.

If the SEEC tosses the complaint, the Durkan campaign says, it will essentially be saying that there is are no limitations on campaign contributions by self-financed candidates, opening the floodgates for candidates to make massive loans to struggling campaigns in the hopes that a big last-minute financial push will make up for a lack of grassroots support. (The PDC will consider the campaign’s complaint, too, but on a much slower timeline because the agency is working its way through a huge backlog caused primarily by a single conservative activist who has filed dozens of complaints against local Democratic Party districts alleging various reporting violations.)

But officials with the SEEC and the state PDC say this is the direction the courts seem to be going already. In addition to Buckley v. Valeo, in which the Supreme Court ruled that limiting a candidate’s spending on her own campaign violated the First Amendment, there’s Family PAC v. McKenna, in which the Ninth Circuit district court ruled that a 21-day limit on large contributions to ballot initiatives (though not individual candidates) was unconstitutional.

The direction the courts are going, in other words, is in favor of unlimited spending and contributions by wealthy candidates to their own campaigns. This may mean more self-financed campaigns in the future, but it may also mean more laws meant to encourage candidates to raise their money from individual donors, like the initiative that provided each voter $100 in “democracy vouchers” to spend on city council campaigns this past election. There’s also the distinct possibility that Moon—a candidate whose consultant, Moxie Media, bragged was “well-resourced” before she had even declared she was running—was simply an outlier in Seattle politics: A progressive candidate with deep pockets who failed to win the imagination of the public (Moon received 1,088 individual contributions to Durkan’s 4,210) yet was able to eke out a second-place primary election finish in a very crowded (21-candidate) field. A big test for the viability of non-wealthy candidates will come in 2021, when democracy vouchers go into effect for mayoral candidates. Although vouchers do not include restrictions on self-financing, they do place other limitations on candidates, such as spending limits, in exchange for public funds.

2. At 10:00 this morning, the state Senate Health and Long-Term Care Committee will hold a public hearing on a bill, SB 6150, that would update the state’s current abstinence-first approach to opiate addiction and require the state Department of Social and Health Services (DSHS) to promote the use of medication-assisted treatment and other evidence-based approaches to opiate addiction. Currently, state law says explicitly that there is no fundamental right to medication-assisted treatment for addiction, that total abstinence from all opiates should be the “primary goal” of any opiate addiction treatment, and that if a doctor does prescribe medication, it should only be a stopgap measure on the way to total abstinence.

Overwhelming evidence has concluded that medication-assisted treatment with opiates is effective at saving lives, reducing the harm caused by buying and consuming illegal drugs, and reducing or eliminating the use of harmful opiates. There is still some debate about whether people should continue taking replacement drugs like suboxone for the rest of their lives—they are opiates, and do cause dependency—but there’s no question that punitive, abstinence-only policies result in more deaths and ruined lives than compassionate, evidence-based approaches like medication-assisted treatment, and it’s high time that state law reflected that.

The bill would also declare the opiate epidemic a public health crisis, seek a waiver from federal Medicare and Medicaid rules to allow opiate addiction treatment in prison, and develop a plan for purchasing and distributing naloxone, the overdose-reversal drug, throughout the state.

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2 thoughts on “Morning Crank: “Clearly An Undisclosed Pledge”

  1. It’s good to know that our new mayor isn’t above punishing the electoral opponent she defeated, a la Trump. Will we hear Durkan lead a chant of “Lock her up!” next?

    Like

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