When I heard that Jesse Kelly had already spent $16,208.53 on a campaign that really isn’t fully underway yet, it made me wonder what that money went into. I know that money has to be spent on his initial round of literature and getting a consultant on board, but he isn’t running ads yet, right?
I was actually shocked at how little money went into local companies. He hired Red Creek Media out of Oro Valley and they did $2009.18 worth of consulting for him, but aside from a photographer, many services were contracted to out of state firms. He lists a firm out of Pennsylvania for his website (more on that later), a firm out of Virginia is listed at $500 for “advertising,” a place in Georgia is listed for $141.50 for “fundraising supplies,” and a place in Massachusetts charged him $439.64 for buisiness cards.
All of these services could have been contracted locally, and probably cheaper too. I talked to Albert Elías at Old Pueblo Printers and he told me that that amount would have bought 10,000 2-color cards at his shop. Yeah, not too many Republicans go to Old Pueblo, but I’m sure that other local Republican-owned shops like Print Well would have been about the same price.
You’d think that it would be a good gesture (and good politics) to spend money on local businesses and do something for the local economy.
An expense that jumped out at me was two charges totalling $4517.50 to a firm called Liquified Creative in Odenton, Maryland for “Branding Design.” I thought, “Geez, did he really pay $4500 on a logo?” I spoke to a couple of political consultants who couldn’t figure out a way to justify this expense. I went to Liquified Creative’s website, and according to them, their work includes “Extensive identity design and development which includes logo and stationery development.” Well, $4500 for a logo would be a bit much, but for the stationery too? Yeah, that is money well spent. Geez.
For Jesse’s sake, I hope some of this is just a case of a novice candidate making poor decisions. I find it funny that a guy would spend more than twice as much on his logo than on his campaign consultant, especially when that logo is placed next to the phrase “Fiscal Sanity” on his website.
Kelly’s web design was done at a firm in Pennsylvania, despite the fact that, once again, there are local firms that do that kind of work (heck, there are a bunch of recently laid off web desingers from the Citizen that would have been happy for the work.) But what’s even more interesting is that he didn’t pay for the work, it was “in-kinded.” The trouble is, the firm that did it is Tangeis, LLC. For those of you that need a reminder, that stands for “Limited Liability Corporation.” Corporations aren’t allowed to give in kind contributions to federal campaigns. Oops.
NB – Hat tip to the semi-anonymous corresponent who sent me the tip about the “in-kind.”
23 Comments
Interesting…but this just gives him free press and name rec that he doesn’t need. Why write about him, he is not a factor.
Jesse’s monetary donations are extremely incestuous.
He’s not even a candidate yet and he’s already breaking campaign finance laws.
Even Rick Renzi wasn’t that corrupt.
Looks like Gabby has her own issues with out of state spending. http://www.gilacourier.com/?p=2925
Jesse Kelly spent $16,000 from donations people gave him to run a campaign. Gabrielle Giffords spent $3,200,000,000 (Giffords pro-rata vote share of the “stimulus” bill), money the government did not have and put us tax payers in debt for it.
Jesse Kelly spent $5,000 out of state on his campaign. Gabrielle Giffords spent $2,600,000,000 (Giffords pro-rata vote share of the “stimulus” bill) some of which went overseas and bailed out foreign companies.
Who is the irresponsible spender?
Davis Williams, I’m sure you were just as appalled by Bush’s tax cuts and spending on his vanity war. Right?
““Kelly has already been willing to be more direct and articulate in his criticisms of Giffords than any of her previous rivals ever have been …” Daniel Scarpinato, Arizona Daily Star, July 26, ”
LOL
Jesse has also been selected by the 9/12 Group, as one of their endorsed candidates. He’s got the coveted Glenn Beck seal of approval!
Actually Donna a lot of us were appalled by the increase in the deficits under Bush. Especially his last year in office when he went all out to spend as much as possible on TARP and the bailouts.
If the wars in Iraq and Afghanistan were bad what is Obama doing to end them? How about closing GITMO?
Really, Than? Where were the protests? The tea parties?
And NOW you are worried about GITMO?
Well, I guess after 8 years of doing nothing to defend the Constitution you conservatives are rested and ready.
I thought Obama was worried about GITMO. I guess he’s too busy with his surge in Afghanistan.
So you’re against our presence in Afghanistan now?
Hmmm…where is the info on Giffords out of state spending? Is she irresponsible too. Of course she is. Jesse Kelly didn’t vote for a trillion dollar budget or the tax on Americans known as Cap & Trade.
http://www.gilacourier.com/?p=2925#comment-4447
Also, wasn’t it Giffords that spent taxpayer money to send out campaign literature and used a copywritten logo on her material without the artist’s consent or without paying him for the intellectual property rights to the logo.
Eli….I would watch the slander. A person who owns a business can donate their skills as a gift in kind as an individual.
For example, a graphic artist could create artwork, a photographer could take pictures, a web master could build a web site, or a taxpayer could pay for a campaign mailer (or wait…it was Giffords that did that) Perhaps one should wait to see if the FEC thinks there was a violation instead of some blogger.
only individual citizens can donate or in kind.
Again, I would virtually ignore this race and I certainly wouldn’t cover his stunts. He has no chance of winning and any attention just gives him a slightly better prayer.
Focus your attention on picking up seats in the state legislature. Those who live in safe seats like Aboud’s should be donating to candidates like Cage who can knock off Melvin for us. Or someone in District 30 perhaps?
Perhaps a fact check is needed. LLC stands for Limited Liability Company (not corporation), which is a partnership (unless treated as a corporation for tax purposes). Partnerships are allowed to make in-kind contributions to campaigns.
Suzanna,
The FEC’s site is very clear about this. Individuals are solely allowed to make contributions. To be legal, the campaign simply must correct the filing. The FEC will only investigate if a complaint is filed.
http://www.fec.gov/pages/brochures/citizens.shtml
Corporations and Unions
The law also prohibits contributions from corporations and labor unions. This prohibition applies to any incorporated organization, profit or nonprofit. For example, the owner of an incorporated “mom and pop” grocery store is not permitted to use a business account to make contributions. Instead, the owner would have to use a personal account. A corporate employee may make contributions through a nonrepayable corporate drawing account, which allows the individual to draw personal funds against salary, profits or other compensation.
EXACTLY THE MEDIA WE NEED … ANOTHER ONE WHO GOES OFF HALF-COCKED AND REPORTS ALLEGATIONS WITHOUT CHECKING FACTS.
Definition of libel:
An untruthful statement about a person, published in writing or through broadcast media, that injures the person’s reputation or standing in the community. Because libel is a tort (a civil wrong), the injured person can bring a lawsuit against the person who made the false statement. Libel is a form of defamation , as is slander (an untruthful statement that is spoken, but not published in writing or broadcast through the media)
Hey Citizen,
I understand the abbreviated “citizens guide” on FEC law is easier for you to read. But for someone who purports themselves as the authority you should refer to the documents the big boys use.
However I will provide you the link to the “easy” version on partnerships:
http://www.fec.gov/pages/brochures/partner.shtml
Please take the time to review partnerships with respect to campaign contributions. Additionally you may want to review the FEC law in its entirety so next time you play election law attorney you have the facts straight.
James Lewis,
A LLC is not a partnership. The LLC consists of members not partners. Firmly grab your ears and pull your head out of your ass.
Citizen Dick
from the FEC guide – if the LLC is filing taxes as a corporation, it can’t donate.
Contributions from Limited Liability
Companies
Corporation or Partnership Status
For purposes of contribution limitations and prohibitions,
a limited liability company (LLC) is treated either
as a corporation or a partnership.
An LLC is considered a corporation if:
It has chosen to file, under Internal Revenue
Service (IRS) rules, as a corporation; or
It has publicly traded shares. 110.1(g)(3).
An LLC is considered a partnership if:
It has chosen to file, under IRS rules, as a partnership;
or
•
•
•
It has made no choice, under IRS rules, as
to whether it is a corporation or partnership.
110.1(g)(2).
If an LLC is considered a corporation, it is prohibited
from making contributions to political committees,
although it is permitted to establish an SSF.
(See Section 6, “Prohibited Corporate and Labor
Contributions”). If an LLC is considered a partnership,
it is permitted to make contributions to
political committees, but it is subject to the contribution
limits for partnerships outlined in Appendix E.
110.1(g).
Single Member LLC
If a single member LLC does not elect corporate tax
treatment, it may make contributions; the contributions
will be attributed to the single member, not
the LLC. 110.1(g)(4).
Notifying Recipient Committee
An LLC must, at the time it makes a contribution,
notify the recipient committee:
That it is eligible to make the contribution; and
How the contribution should be attributed
among members.
This requirement will prevent the recipient committee
from inadvertently accepting an illegal contribution.
110.1(g)(5).
Citizen Dick,
I am happy to see you learned from my last post and the link I provided. If you actually read your last posting of the applicable statute you would know, and I will paraphrase:
“…a limited liability company (LLC) is treated either as a corporation or a partnership.” “If an LLC is considered a partnership, it is permitted to make contributions to political committees.”
So you should now understand the following:
FACT: LLC stands for limited liability company (NOT corporation)
FACT: Not all LLC’s are corporations
FACT: LLC’s may be deemed “partnerships” and eligible to contribute to campaigns
It is inaccurate to say that LLC stands for “Limited Liability Corporation”. It is also inaccurate for you to state only individuals may contribute. It is at the very least a misrepresentation to infer a contribution from an LLC is necessarily illegal.
There is no shame in you or RRR admitting you were wrong. The code and statutes applicable to business formations and campaign finance are very intensive and can be confusing even to trained professionals.