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Wednesday, April 1, 2020  Spokane, Washington  Est. May 19, 1883
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Eye On Boise

Emails show Otter staff played key role in $1 million deal with big campaign contributor

In two recent political debates, Idaho Gov. Butch Otter said he recused himself from settlement talks with troubled private-prison operator Corrections Corp. of America before the state reached a $1 million settlement with the firm over fraudulent billing and understaffing; Otter said he “had nothing to do with” the settlement. But the Idaho Statesman reports today that emails obtained under the Idaho Public Records Law show Otter’s top staffers were directly involved in the negotiations with CCA, reviewed the settlement agreement before it was approved by the state Board of Correction, and urged lawmakers to support it. The Statesman’s full story, by reporters Rocky Barker and Cynthia Sewell, is online here.

Jon Hanian, Otter’s press secretary, told the Statesman that Otter meant he personally didn’t participate, and he wasn’t saying his staff didn’t. “Decision-making authority on the settlement itself resided with the (Corrections) Board/Department,” Hanian said. The emails document involvement in the deal by Otter's chief of staff, David Hensley; chief counsel, Tom Perry; and communications director and liaison to corrections Mark Warbis. In one email to state lawmakers, Warbis wrote, "The Governor's office believes the proposal accomplishes our goals of certainty, closure and fairness to taxpayers. It helps us to move forward with the transition to State control of the ICC in an amicable manner."

During the City Club of Idaho Falls debate on Oct. 9, Otter said, “I personally did not involve myself in the negotiations of the settlement with CCA because I had received money from CCA for my campaign. So I recused myself and let the professionals make that decision. I did not.” The Statesman reports that Otter has received $20,000 in campaign contributions from CCA since 2003.



Betsy Z. Russell
Betsy Z. Russell joined The Spokesman-Review in 1991. She currently is a reporter in the Boise Bureau covering Idaho state government and politics, and other news from Idaho's state capital.

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