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Mississippi Today

Chris McDaniel, Lynn Fitch and the case of the missing $15,000

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mississippitoday.org – Geoff Pender – 2023-08-16 05:00:00

Even if one were to believe erstwhile candidate Chris McDaniel's incomplete, conflicting, shifting accounting of hundreds of thousands in secretive campaign donations, it still begs the question: Where did the $15,000 go?

It also begs the question: Why is Lynn Fitch overlooking what appear to be flagrant violations of campaign finance law by McDaniel, instead only going after his out-of- campaign finance chairman and less-clear allegations?

Longtime state Sen. Chris McDaniel's failed run for lieutenant governor is one for the record books. Primarily, it saw record amounts of out-of-state, secretly sourced campaign money pumped into his campaign and related state PACs. It also saw allegations of flagrant violations of state campaign finance laws and requirements, and has led to calls for reform by multiple statewide elected .

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Mississippi law says a candidate or state political action committee can accept no more than $1,000 a year from a corporation.

McDaniel, running for lieutenant governor this year, created a state PAC that accepted $475,000 from a mysterious Virginia-based dark-money corporation, the American Exceptionalism Institute.

McDaniel's PAC then funneled $460,000 of that money to his campaign. It made up the vast bulk of his bankroll as he kicked off his campaign early this year.

But his initial PAC reports appeared to obfuscate this. For starters, is showed the PAC had collected hundreds of thousands of dollars the year before it was legally created, with no sources listed for the donations. After multiple revised reports, it became clear the PAC had received $475,000 from AEI.

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Eventually, after questions from Mississippi and complaints to the attorney general by his opponent incumbent Lt. Gov. Delbert Hosemann, McDaniel said he was returning the money to AEI.

Problem is, by McDaniel's own accounting, his PAC only returned $460,000 to the corporation.

What happened to the other $15,000?

Mississippi voters will likely never know. His final “termination-amended” report for his PAC gave no accounting. And Fitch appears to have closed the book on that complaint.

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And despite laws that require candidates to divulge the sources of campaign donations, they'll likely never know the original source of the $475,000 from the American Exceptionalism Institute, which has pumped millions of secretly sourced dollars into campaigns across the country.

They'll also likely never know all the sources of the total of nearly $1 million more pumped into a separate PAC that McDaniel's Wisconsin based treasurer created in the eleventh hour of the 2023 race to run TV attack ads on Hosemann.

McDaniel has said he knows very little about the finances of his PAC or campaign, and as he questions about them over months, he often chalked problems up to “clerical errors” and provided few other comments.

But in a statement for this article, he refuted that $15,000 remains unaccounted for.

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“As a candidate, I have no involvement in the financial operations of any committee or PAC,” McDaniel said. “But I've been advised that all the money from the (American Exceptionalism Institute) was refunded.”

McDaniel has refused to answer what he knows about AEI or why it would pump nearly half a million dollars into Mississippi's lieutenant governor's race. Little information on AEI is available online, and efforts by Mississippi Today — and several other outlets over years — to contact the organization or find more details have been fruitless.

When he announced he was returning the money, McDaniel said he believes Mississippi's corporate donation limit laws are unconstitutional and would fall to a legal challenge. But he said he did not have time or resources for such a challenge, so he was giving it back.

McDaniel has referred to the landmark U.S. Supreme Court Citizen's United ruling in 2010, which held corporations and PACs can spend unlimited amounts on broadcasts and communications related to an election, provided they act independently of any candidate.

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But courts have also upheld state limits or bans on corporate donations to campaigns or state PACs. Only five states allow unlimited corporate campaign donations, while 23 ban them. The other 22 set some restrictions on corporate donations.

Mississippi's campaign finance laws are seldom enforced, and allegations of violations seldom investigated. The state's laws regulating a politician's campaign cash and reporting appear to fall under a special Oops Doctrine. If a campaign accepts an illegal contribution or makes a glaring omission or mistake on a report, it can typically avoid investigation or prosecution by giving the money back, amending reports or filing them later. Few other laws offer this escape.

But typically, these appear to be legitimate mistakes and oversights by large campaigns for far smaller donations. They are typically flagged by the campaigns themselves, the money returned promptly and the transactions duly noted on finance reports.

McDaniel's PAC and campaign appear to have held onto AEI over-the-limit money for months, and its reporting was confounding. At one point, McDaniel's PAC reported it returned $460,000 to AEI on the same day it received $237,500 from the corporation. His many amended reports have been difficult to follow.

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READ MORE: Chris McDaniel's reports deny accurate public accounting of campaign money

Mississippi Today first raised questions about McDaniel's campaign finances in February, and Hosemann filed his first legal complaint with the attorney general's office in March. For months, AG Fitch's office's only response was, “We are looking into it.” This prompted calls for investigation and enforcement. Secretary of State Michael Watson at the Neshoba County Fair called for lawmakers to give his office campaign enforcement authority. He said, “When people do not do their , I will stand in the gap for Mississippians” — a clear dig at Fitch.

Amid this pressure, just days before the primary election, Fitch announced she was investigating the separate PAC run by McDaniel's campaign treasurer. The Invest in Mississippi political action committee was created in July by Wisconsin political operative Thomas Datwyler, who McDaniel also listed as his campaign's treasurer. Datwyler has a history of running afoul of Federal Election Commission campaign finance rules with several congressional campaigns.

Datwyler's PAC ran ads against Hosemann late in the race, fueled by at least $885,000 in donations from out of state super PACs. Hosemann's campaign had filed another complaint late in the race that the PAC-to-PAC donations were an attempt to dodge the $1,000 corporate donation limits, and that the PAC cannot claim it is independent of McDaniel because it's run by his campaign treasurer.

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READ MORE: Out of state PACs dump dark money into McDaniel's lieutenant governor's race

In a statement announcing the investigation, Fitch said, “The people of Mississippi should be able to expect that those who participate in our electoral process will not seek to exploit this careful balance and step over that line, and in this instance, there is evidence to suggest that has occurred here.”

Fitch did not mention McDaniel in her announcement of the investigation, but a spokeswoman for her office later indicated the office was also investigating another complaint raised by Hosemann.

READ MORE: Fitch says she's investigating PAC run by Chris McDaniel treasurer

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But the spokeswoman also said another earlier complaint had been looked into and closed. This, the Hosemann campaign confirmed, was the original complaint about McDaniel's PAC, the campaign and the $475,000 AEI donation.

Fitch's office has declined comment on why it would not pursue the original complaint, where the unaccounted-for $15,000 went. McDaniel appears to have acknowledged violation of the campaign donation limit laws, saying repeatedly he would likely win a legal challenge of the law.

Many political observers have surmised Republican Fitch is loathe to go after complaints about McDaniel for fear of angering his conservative base in the state GOP. Fitch's office has faced some complaints of failing to fulfill responsibilities of the office, instead focusing on big headline-grabbing national issues and cases.

READ MORE: Chris McDaniel, Lynn Fitch show that Mississippi might as well not have campaign finance laws

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In a statement, Hosemann spokeswoman Leah Smith said: “When our opponent received $475,000 from the corporation and returned only $460,000, we contend a violation of the campaign finance laws occurred. It was impossible to determine what happened with those funds because accounting was so poor throughout, in addition to all of the other violations. We anticipate a number of legislators will be enthusiastically interested in reform this year and our office is, too.”

McDaniel, who after his defeat for lieutenant governor will be vacating his state Senate office in January after 16 years, was once himself a vocal champion for campaign finance reform and more transparency for voters of the source of politicians' money. His latest campaign's legacy, it appears, may be an invigorated push for reform.

In his victory speech on primary election night, Hosemann said: “When you have this much dark money pumped into a race — almost $1 million in the last — it screams for reform. We are going to listen to those screams.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

PSC axes solar programs in light of EPA funds, advocates file lawsuit

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mississippitoday.org – Alex Rozier – 2024-05-15 12:10:31

Advocates from some of the state's conservation groups — such as Audubon Delta, Mississippi Sierra Club and Steps Coalition — spoke out Wednesday against a recent decision by the to suspend several solar programs, “Solar for Schools,” less than two years after the previous commission put them in place.

“This is particularly disappointing because the need for these incentives in the state of Mississippi is significant,” said Jonathan Green, executive director of Steps Coalition. “Energy costs in the South, and in particular the region known as the Black Belt, are higher than those in other parts of the country for a number of reasons. These regions tend to have older energy generation , and housing that has not been weatherproofed to modern standards. For many low- to moderate-income in the state of Mississippi, energy burden and energy insecurity represent real daily economic challenges.”

The PSC voted 2-1 at its April docket meeting to do away with the programs, reasoning in part that new funds through the Reduction Act would be available to the state. About 10 days later, the Environmental Protection Agency awarded $62 million to the state, through the Hope Enterprise Corporation, to help low-income Mississippians afford adding solar power to their homes. The funds are part of the Biden Administration's Solar for All program, one of the several recent federal initiatives aimed at reducing greenhouse gas emissions.

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The PSC decision ended three programs the previous commission put in place to encourage wider adoption of solar power through the two power companies it regulates, Entergy Mississippi and : “Solar for Schools,” which allowed school districts to essentially build solar panels for in exchange for tax credits, as well as incentives for low-income customers and battery storage.

Last Friday, the Sierra Club filed lawsuits in chancery courts in Hinds and Harrison counties against the commission, arguing the PSC broke state law by not providing sufficient reasoning or public notice before making the changes. Advocates also argued that new going to Hope Enterprise won't go as far without the PSC's low-income incentives.

The programs were part of a 2022 addition to the state's net metering rule, a system that allows homeowners to generate their own solar power and earn credits for excess energy on their electric bills. Mississippi's version is less beneficial to participants than net metering in most states, though, because it doesn't reimburse users at the full retail cost. Mississippi's net metering program itself is still in tact.

Northern District Commissioner Chris Brown said that, while he supported efforts to expand solar power, he didn't think programs that offer incentives from energy companies were fair to other ratepayers.

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Solar panels on the roof of the performing arts center at North Forrest High School. Credit: Mike Papas / Forrest County School District

“It's the subsidy that we take issue with,” Brown said at the meeting. “It's not the solar, it's not the helping the schools. We just don't think it's good policy to spread that to the rest of the ratepayers.”

Brown and Southern District Commissioner Wayne Carr voted to end the programs, while Central District Commissioner De'Keither Stamps voted against the motion. All three are in their first terms on the PSC. Brown's position is in line with what the power companies as well as Gov. Tate Reeves have argued, which is that programs like net metering forces non-participants to subsidize those who participate.

Robert Wiygul, an attorney for the Mississippi Sierra Club, countered that argument during Wednesday's press conference, saying that net metering actually helps non-participants by adding more power to the grid and reducing the strain on the power companies' other infrastructure. Moreover, he said, the PSC hasn't offered actual numbers showing that non-participants are subsidizing the program.

“Look, if the commission wants to talk about that, we are ready to talk about it,” Wiygul said. “But what we got here is a situation where these two commissioners just decided they were going to do this. We don't even know what that claim is really based on because it hasn't been through the public notice and hasn't been through the public comment process.”

While no schools had officially enrolled in “Solar for Schools,” which went into effect in January of last year, Stamps told Mississippi Today that there were places in his district getting ready to participate in the very programs the PSC voted to suspend.

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Mississippi Public Service Central District Commissioner De'Keither Stamps, discusses current agency operations across the state during an interview at district headquarters, Friday, Feb. 23, 2024, in Jackson. Credit: Vickie D. King/Mississippi Today

“My issue was we should have talked to the entities that were going through the process to (understand what they were doing) to participate in the programs before you eliminate the programs,” he said.

Several school districts in the state are already using solar panels thanks to funding from a past settlement with Mississippi Power. there told Mississippi Today that the extra power generated from the panels has freed up spending for other educational needs. During the public comment period for the 2022 net metering update, about a dozen school district superintendents from around the state wrote in to support the initiative. Ninety-five school districts in the state would have been eligible for the program because they receive power from Entergy Mississippi or Mississippi Power.

Former commissioner Brent Bailey, who lost a close reelection bid in November to Stamps, was an advocate for the schools program that the PSC created while he was there. At the April docket meeting, he pleaded with the new commission to reconsider, arguing that the new federal funding won't have the same impact without those programs.

“My ask is to at least give this program a chance, see where it goes, and hear from stakeholders that have participated,” Bailey said. The solar programs, he added, weren't just about expanding renewable energy, but taking advantage of a growing around solar power as well: “We can just stand by and watch it go by, or we can participate in this and bring economic development to the state.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Crooked Letter Sports Podcast

Podcast: In or out (of the NCAA Tournament)?

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College 's regular season is in its last , which means baseball bracketology is a popular activity. needs to finish strong to become a Regional host. Southern Miss probably has already punched its ticket as a 2- or 3-seed. , playing its best baseball presently, needs victories, period. Meanwhile, the State High School softball tournament is this week in Hattiesburg, and the state baseball tournament to Trustmark Park in Pearl next week.

Stream all episodes here.


This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

Did you miss our previous article…
https://www.biloxinewsevents.com/?p=358148

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Mississippi Today

Reeves again blocks funds for LeFleur’s Bluff project in Jackson

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mississippitoday.org – Bobby Harrison – 2024-05-15 10:02:34

For the third consecutive year legislative efforts to direct state money to renovate LeFleur's Bluff in Jackson have been stymied, thanks in large part to Gov. Tate Reeves.

Earlier this , the Republican governor vetoed a portion of a bill that directed $14 million to the office of Secretary of State Michael Watson for work on developing and improving a nature trail connecting parks and museums and making other tourism-related improvements in the LeFleur's Bluff area.

It is not clear whether the could take up the veto during the 2025 , which begins in January, though, that's not likely. The Legislature had the option to return to Jackson Tuesday to take up any veto, but chose not to do so.

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Of the project, Watson said, “Our office was approached late in the session about helping with a project to revitalize LeFleur's Bluff. As Mississippi's state commissioner, I was more than happy to help lead this effort not just because it's a natural fit for our office, but also because I believe Mississippi needs a thriving capital city to retain our best and brightest. Investing state funds in state property on a project to enhance the quality of life in Jackson makes good sense.

“Unfortunately, some only it when it equates to campaign contributions. Sadly, through the line-item veto of the appropriation, Mississippians will once again wait another year for the to benefit from state investments for the greater public good.”

READ MORE: Gov. Reeves warns Mississippi: Challenge my vetoes, and it could jeopardize hundreds of projects

Various groups, such as representatives of the Mississippi Children's Museum and many other community leaders have been working on the project for years. The area already is the home of the Children's Museum, Museum of Natural History, Mississippi Hall of Fame and Museum and a state park.

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The issues with LeFleur's Bluff first arose in 2022 when Reeves vetoed a $14 million appropriation that in part was designed to redesign and create a new golf course in the area. Previously, there had been a nine-hole, state-owned golf course operated by the Department of Wildlife, at LeFleur's Bluff State Park.

In 2022, the LeFleur's Bluff project was one of literally hundreds of projects funded by the Legislature – many of which was tourism projects like LeFleur's Bluff. The governor only vetoed a handful of those projects.

When issuing the LeFleur's  Bluff veto, Reeves said the state should not be involved in funding golf courses.

Then last year $13 million was directed to the Department of Wildlife, Fisheries and Parks to spend on the LeFleur's Bluff project. But legislative leaders said state money would not go toward a golf course.

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Lawmakers opted to transfer the project to the Secretary of State's office late in the 2024 session, apparently in part because they felt the Department of Wildlife, Fisheries and Parks had not made enough of an effort to begin the project.

Lynn Posey, executive director of Wildlife, Fisheries and Parks, said that before moving forward with the project, “We felt like we needed to do engineering work and see what the situation was. We never got a chance to move forward” because the Legislature redirected the money.

Posey said an engineer's was needed because “it is a unique piece of land.” He said much of the land is prone to .

He said before that work could begin the Legislature switched the authority to the Secretary of State's office. Posey was appointed to his current position by Reeves, whose office had no comment on the veto.

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Lt. Gov. Delbert Hosemann said after the governor's veto, “Projects like the LeFleur's Bluff development are critical to the Capital City, the wider metropolitan area, and our state. Public parks add to the quality of life for our citizens. I am hopeful the individuals involved in this project, including those at the Mississippi Children's Museum, will continue their work to improve this state asset.” 

While the Constitution instructs the governor to provide to the Legislature a reason for any veto, Reeves did not do so this year when vetoing the money going to the Secretary of State's office.

On Monday, the governor also vetoed a portion of another bill dealing with appropriations for specific projects. But in this case, the veto was more of a technicality. The bill was making corrections to language passed in previous sessions. In that language were five projects the governor vetoed in 2022.

The language, as it was written, would not have revived those previously vetoed projects, the governor said. But Reeves said he vetoed the five projects out of caution. He did the same in 2023 when those five projects, which included money appropriated in 2022 for the Russell C. Davis Planetarium in Jackson, were carried forward in a bill also making corrections to previously passed legislation.

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This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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