City Council Candidate Alleges 2009 Campaign Finance Violations
Moore wants the city's election board to look at a law limiting campaign contributions from spouses, says Newton violated the law in 2009.
A candidate for Rockville City Council says that a city law limiting campaign contributions by candidates’ spouses is not being followed and that a sitting council member and political opponent violated the law during the 2009 election cycle.
“It is generally believed that candidates’ spouses are exempt from Rockville’s $1,000-per-camapaign limit,” Tom Moore wrote in a letter sent Monday to David Celeste, chairman of the city’s Board of Supervisors of Elections. “The City Clerk’s office has given such guidance in the past. A close reading of the Code, however, reveals that this is simply not the case [emphasis Moore’s]. Under current Rockville law, any contribution exceeding $1,000 from a candidate’s spouse to his or her campaign is illegal.”
The Board of Supervisors of Elections is scheduled to meet at 5 p.m. on Thursday at City Hall. Moore’s letter will be discussed in a closed session under a closed meeting provision for obtaining legal advice, Acting City Clerk Brenda F. Bean said.
Moore, the chairman of the city’s Compensation Commission and an unsuccessful candidate for council in 2009, said in an interview that he recently discovered the difference between the law and the practice while reviewing materials distributed to all candidates for city office. A review of campaign spending from the 2009 election turned up something more, he said.
“This is not a theoretical problem,” Moore wrote. “During the 2009 Rockville election cycle, now-Councilmember Bridget Newton reported total campaign receipts of $12,105.91. Of that, a total of $4,120.50 was provided by her husband, Fred Newton, in the form of what Councilmember Newton reported as ‘in-kind’ contributions to her campaign for items such as postage and campaign materials.
“Simply put, Fred Newton’s $4,120.50 in contributions to Bridget Newton’s 2009 city council campaign violated Rockville City law,” Moore wrote.
Reached Tuesday evening, Newton said that she was surprised by the allegation and had not yet seen the letter.
“If we did something it was a very innocent mistake,” she said.
Moore wrote in the letter that, “The violation was almost certainly inadvertent but is a violation nonetheless.”
The city code states that "Personal expenses of the candidate for filing fees, telegrams, telephoning, travel, and board, shall not be considered contributions if paid for by the candidate or his spouse."
It also includes a provision that "The contributions of a candidate or his spouse to the candidate's own campaign are not subject to the limitations," described in another subsection of the code, "but must pass through the hands of the candidate's treasurer and be reported as required in other provisions in this article."
The subsection of the code referred to as "not subject to the limitations" has to do with "volunteering time and personal vehicle" to a campaign, Moore argues in his letter. It does not refer to campaign contributions, he wrote.
The belief among candidates that spouses are exempt from contribution limits has been furthered by the city clerk’s office, Moore said in an interview on Tuesday.
“If you called the city clerk’s office on Monday morning and asked them, they would’ve said spouses are exempt,” he said.
Bean, who received a copy of Moore’s letter, said the line stating that the clerk’s office had said spouses are exempt from contribution limits “really jumped out at me.”
“No city clerk I’ve ever worked with has dispensed that information,” said Bean, a 23-year employee of the city with the city attorney’s office and then the clerk’s office.
Moore said that he did not review every candidate’s financial records.
“I didn’t do an extensive, exhaustive survey,” he said. “I looked at Bridget’s because she spent an extraordinary amount of money and I wanted to see where it came from and where it went.”
The $4,120.50 in campaign contributions from Fred Newton to his wife’s campaign appears in a Dec. 3, 2009 campaign finance report. The report lists the contributions going to pay for signs, cake, a website, T-shirts, a banner, postage and more than $2,100 for “campaign materials.”
Newton’s post-election report, filed in November 2010, showed $12,105 in expenditures for the 2009 election cycle.
Moore reported spending $6,302 for the 2009 election, including $3,295 for “campaign materials.”
Newton was the top vote-getter in the 2009 City Council election, garnering 14.9 percent of the vote (3,390 votes). Moore finished seventh in the field of 10 council candidates in 2009, garnering 9.62 percent of the vote (2,186 votes).
The top four vote-getters are elected to the council.
Click here to view the 2009 council election results and campaign finance reports.
Moore, a former litigator who now works for a legal consulting firm, said that he was not taking a position on whether the city should allow unlimited contributions from spouses.
“If we do have [unlimited contributions], we have to have better disclosure,” he said.
Candidates’ spouses should be required to file the same disclosure forms that apply to spouses of city employees and spouses of people serving on city boards and commissions, he said.
The first campaign finance reports for the 2011 election cycle—covering the period through Sept. 30—are due on Thursday. Elections for mayor and four council seats are Nov. 8. Newton is seeking reelection.
It is important that the city resolve the spousal contribution issue for this election cycle, Moore said.
“It has been suggested to me that given my own status as a candidate for Rockville City Council this year, I should perhaps leave this issue for others to bring to the Board’s attention,” he wrote. “I disagree. It is I, my wife, and my fellow candidates and their spouses who are at risk until this statute is corrected. I therefore believe it is properly my role to highlight this problem with Rockville’s code.”
Moore said he hopes the Board of Supervisors of Elections will act on his request. Moreover, he expects it.
“This is something that Rockville boards and commissions take very seriously,” Moore said. “I think there’s zero chance that they’re just going to blow it off.”
Tom Moore
11:50 am on Wednesday, October 5, 2011
I have corresponded with Councilmember Newton on my letter this morning. Sean clearly couldn't resist leading with the example I provided in the letter, but, as I told Ms. Newton, "You are not the focus of the letter. The point of the letter is not what happened last cycle; the point is that there is a serious typographical error in the Rockville Code that makes something illegal that everyone (including me, until I read the code closely) thought was legal."
Theresa Defino
5:22 pm on Wednesday, October 5, 2011
I wondered about this myself in November 2009 and was told by city staff that spouses are exempt. So it would be good to figure out what's really permitted and what's not.
Secondly, I think it is useful to point out that half of Ms. Newton's campaign funds in 2009 came from either herself or her husband's "in-kind" contributions.
Jeff Hawkins
8:16 am on Thursday, October 6, 2011
This is certainly a "head scratcher" !
Brigitta Mullican
10:19 am on Thursday, October 6, 2011
This issue of spouse contribution is ridiculous. When I retired and became a mayoral candidate in the 2005 City of Rockville Council Election, I advanced myself $5,000 (which I saved while working). It takes money to start a campaign. For five months I campaigned 100% of the time and delivered my campaign literature to homes in all of the Rockville neighborhoods. I walked to over 300 streets and was told by some residents that I was the first candidates to ever visit their street.
The lesson I learned from my campaigns is that my $15,000 campaign fund could not compete with my opponent who contributed almost $30,000 of his own money. To me it does not matter if the money was contributed by his wife. When two people are married their money belongs to both. If you want to get technical, a spouse can put money in a joint account and write a check to the campaign as a loan or a contribution. Let’s get real with this...it is a non-issue.
Brigitta Mullican
10:27 am on Thursday, October 6, 2011
Continued...
The two years I was a Rockville City Council candidate I reviewed candidates’ financial reports and I was amazed how little appeared in some campaign reports. I have personal knowledge and learned what it took to run my 2005 and 2007 campaigns. To this day I still wonder if some candidates withheld contributions or had in-kind services unreported. To bring that issue up now is fruitless.
God Bless Fred Newton if he contributes to his wife’s campaigns. I did not have that financial help. In the 2009 city election Rockville learned that personal contributions is a real advantage but is not the only factor in winning.
My real concern is how responsive my city council members are to my community and that our tax dollars are spent in a fiscally responsible manner.
Theresa Defino
11:39 am on Thursday, October 6, 2011
I can't agree with you, Brigitta.
How much the community invests in candidate through individual contributions is an important indicator of how much grass roots support he or she has. A candidate of means should not be able to self-fund his or her way into a seat, shutting out those who don't have those resources. As you note, you were left at a disadvantage.
If there is an error in the law or in the interpretation that should be investigated, as it appears it will be.
joe
12:51 pm on Thursday, October 6, 2011
Following this logic, those who get the most individual contributions will get the highest number of votes, given they have lots of support, be it grassroots and/or special interests.
Elections are all about votes, and to a much lesser degree, about money. We are talking about Rockville, for goodness sake, where 6,000 people vote! If people like a candidate, they will vote for that person, regardless of how much of their own money they spend. What people balk at is campaigns funded through hefty contributions from special interest groups, like developers, lobbyists and law firms that have developers that do business in Rockville as clients.
I applaud Ms. Newton for financing a campaign without developer money and for getting the highest vote count in every one of the 10 voting districts in the election.
I don't think we want to impose restrictions on anyone's ability to run for elected office.
Theresa Defino
1:27 pm on Thursday, October 6, 2011
Joe Jordan, you would be, as is your wont, twisting what I said. I look forward to seeing the newest filings from all candidates and won't be debating what happened two years ago.
Jeff Hawkins
1:27 pm on Thursday, October 6, 2011
Hey Joe,
Respectfully I think a spouse should or could qualify as a "special interest group" :), also I think if the voting public were aware that a certain candidate was given a large sum of money by their spouse, that action might sway some votes away from that candidate. Just a thought!
Brigitta Mullican
3:58 pm on Thursday, October 6, 2011
Receiving money from a spouse does not qualify as a "special interest group." In my mind every voter has special interests. I personal think highly of any spouse who supports their spouse's campaign. If there is no limit on how much a candidate can loan themselves, there should be no limit on a spouse's contribution.
Theresa Defino
4:47 pm on Thursday, October 6, 2011
What kind of spouse wouldn't support the candidate he or she was married to?! And I'm pretty sure Jeff was joking.
Jeff Hawkins
9:16 am on Friday, October 7, 2011
Brigitta:
As Theresa noted, it was an attempt at humor. Hence the "smiley face" after the words. Thank you Theresa.....
Online addict
4:25 pm on Thursday, October 6, 2011
Amen Brigitta! Any candidate who has that much support from their spouse is surely part of unified team! Team players are what makes any organization work better; great to hear such wonderful news coming from my neighbors in the North!
Need to get my a Newton button for my sojourns into Rockville!
Online addict
6:42 pm on Thursday, October 6, 2011
My bad, thank you Joe
Kavita Dawson
3:40 pm on Friday, October 7, 2011
Having known them for the 19 years I've lived in the City, the Newtons are two of the most upstanding, fair-minded, ethical people that I know. This whole issue is completely ridiculous and one has to wonder about the timing of this article. The Patch should be ashamed for publishing such garbage. Period.
Kavita Dawson
Tom Moore
3:55 pm on Friday, October 7, 2011
UPDATE: The elections board met last night and voted to recommend the change in the law I suggested in my letter. More here: http://rockville.patch.com/articles/candidate-calls-for-financial-disclosures
Peggy Wiese
3:27 pm on Monday, October 10, 2011
Having personally known the Newtons for the better part of my life, I find this ludicrous! They are the most above board and ethical people I know. There must be something better to write about!