The Idaho Republican Party charged in a press release sent out late Friday night that Democratic candidate for governor A.J. Balukoff may be violating campaign finance laws by the way he handles his campaign payroll. The Idaho Democratic Party responded on Saturday with its own press release, saying the party has a contract with Balukoff’s campaign to manage payroll services and there’s nothing in the deal that violates campaign finance laws. “IDP’s contract has been carefully vetted by CPAs as well as compliance experts. We are fully confident in its legality,” party spokesman Dean Ferguson said in his release.
The GOP release suggests that “Balukoff isn’t paying for his staff,” and instead they are being paid by the party while Balukoff donates funds to the party to cover the costs. Jason Risch, attorney for the Idaho GOP, termed this an “abnormal shuffling of funds” and said he thought it could mean the Democratic Party was exceeding the $10,000 limit on contributions to a candidate, “including in-kind contributions such as paying for a candidate’s staff.”
“The purpose of campaign finance disclosure law is to bring greater transparency in campaign finances so Idahoans may see what candidates and political organizations are doing,” GOP executive director Dave Johnston said in the release. “Engaging in confusing money shuffling schemes that appears to violate campaign finance law also violates the spirit of the law – which is to provide greater transparency.”
Ferguson maintained the payroll contract actually provides greater transparency, is fully reported, and that Republican candidates also have contracted out payroll services for their campaigns.
Both sides also took the opportunity to fire a few shots at each other. The Democrats’ release said, “The statement from the IRP seems to be part of an orchestrated smear campaign launched by Republican career politicians, and their lobbyist infrastructure, because they cannot defend Idaho’s rank as last in income, last in education investment, and 2nd in minimum wage jobs.”
The GOP release said, “Balukoff, being a certified public accountant, should know better. However, he is the same candidate who presided over a school board election in Boise that was riddled with shady practices. Finding shady schemes in his finances reports is not a surprise.”