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Casino cash and judgment
Jul. 24, 2010 12:00 am
Gov. Chet Culver made a mistake when he solicited campaign contributions from groups actively seeking new casino licenses from the Racing and Gaming Commission.
The governor didn't break any laws. He's not under investigation, although three backers of the Fort Dodge casino project who contributed to Culver are under scrutiny.
Special prosecutor Lawrence Scalise is trying to determine whether $25,000 contributions from Steve Daniel, Jim Kesterson and Merrill Leffler Jr. were actually dollars funneled from casino developer Peninsula Gaming LLC. That would be illegal under Iowa law, which prohibits giving or knowingly receiving a contribution in the name of another person or group.
According to a story this week in The Des Moines Register, Culver also sought a contribution from a group seeking a license for a new casino in Lyon County. The group declined to contribute, but its leader, Daniel Kehl, had donated money to Culver in the past.
Culver and his backers contend that the governor did nothing wrong. They argue that he has no power to grant casino licenses and has no influence over the Racing and Gaming Commission. They also point to the fact that Culver has publicly favored casino expansion since he ran for governor in 2006.
But Culver does appoint commission members. And he did take the unusual step of writing a public letter to commissioners urging them to approve licenses for Fort Dodge, Lyon County, Ottumwa and Tama. It's tough to argue that a sitting governor is a non-factor in any major state government decision.
We think it's a bad idea for any state politician to solicit funds from a person or group petitioning the government for a decision of this magnitude. Casino licenses are worth millions of dollars, and the high-stakes ventures they endorse generate tens of millions of dollars in revenue. Legal or not, seeking to pump applicants for campaign donations in the midst of a sprint for licenses undermines public trust in the process.
We also think this episode should prompt Statehouse leaders to inject more transparency into the campaign finance disclosure system. Steps should be taken to make it easier for Iowans to know whether donors are working on behalf of interest groups or for businesses that have dealings with state government.
At the very least, donors' employers should be listed on disclosure forms that chart donations. If donors are lobbyists, Iowans should know. And a list of legislation they're seeking to influence should be only a mouse click away.
We understand that the pressure on candidates to raise the money they need to wage costly election campaigns is immense. Without money, candidates can't get their message out.
But a candidate's good judgment is also a valuable asset.
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