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06/04/2006Allen only politician in region with accountOther reps, senators don't have secret corporate accounts
Allen
TRAVERSE CITY — State Sen. Jason Allen is the lone politician among 10 northern Michigan state legislators to take money into secret accounts that operate outside Michigan campaign finance law. No other state representative or senator within the Record-Eagle's coverage area maintains the secret corporate accounts, the politicians said. Allen's hidden accounts were detailed in a May 28 Record-Eagle series (Editor's Note: see list of related stories below). "Corporate accounts more often than not exist to avoid disclosure, and I'm in favor of as much public disclosure as possible," said Rep. Matthew Gillard, D-Alpena. Sen. Michelle McManus, R-Lake Leelanau, last month told members of the Record-Eagle's editorial board she questioned whether it's "ethical" to take money from organizations that have an interest in legislation that is not publicly disclosed. "I guard my integrity and my reputation fiercely and I felt that was not a direction for me to take," McManus said. Contributions to corporate accounts are legal, but are not publicly reported like contributions to campaign and political committees. Rep. Howard Walker, a second-term Republican from Traverse City, said he doesn't need corporate accounts. Walker spent more than $91,000 of his own money on his two state campaigns. Allen, a Traverse City Republican considered a frontrunner to be the next leader of the Senate, set up an administrative account and a 501c(4) nonprofit organization that collected over $50,000 since 2003. Allen disclosed to the Record-Eagle contributions to his administrative account but not to the 501c(4). Both accounts are known as "corporate accounts" because they can accept corporate, union, and casino contributions banned from political and campaign committees. Tobacco, gambling and landfill interests made quiet contributions to Allen's secret accounts that totaled thousands of dollars. "This stuff clusters around the leadership, not just caucus leadership, but the chairs of important committees, people who have influence and people who push around the rank and file when it comes time to round up votes," said Rich Robinson, executive director of the non-partisan Michigan Campaign Finance Network. Besides Allen, first-term Rep. Kevin Elsenheimer, R-Bellaire, is the one other local member with a leadership role. He said he may consider setting up a corporate account in the future, but said he believes "there must be complete transparency for any accounts involving public figures." "People who are running for those leadership positions are expected to raise a lot of money," said Rep. David Palsrok, R-Manistee, who said he does not have such accounts. Instead, Palsrok said, he directs corporate donors to nonprofit organizations in his district. Republican state Sen. Tony Stamas of Midland, who like Allen is a prolific campaign fund-raiser, was the only legislator who did not respond directly to the Record-Eagle. His spokesman said Stamas does not have any type of "corporate" accounts. First-term representatives Gary McDowell, D-Rudyard; Darwin Booher, R-Evart, and Joel Sheltrown, D-West Branch, all said they had no interest in setting up any type of corporate accounts. "I have my hands full just trying to learn the job," Booher said. "I'm concentrating on that and spending time representing my district." See related stories:
See related editorial:
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