Group urges end to complaint against Rossi

OLYMPIA – State campaign watchdogs on Thursday recommended dismissal of potentially damaging campaign finance complaints lodged by state Democrats against Gov. Chris Gregoire’s GOP challenger, Dino Rossi.

“Life is good,” Rossi said Thursday. “It proves we were telling the truth all along and Gregoire’s agents were lying all along to try to smear me and call me sleazy. Christine Gregoire owes us an apology for what they said.”

Gregoire, told of his remarks, said she’ll apologize as soon as Rossi stops being such a negative campaigner himself.

Democrats had hoped the probe would bloody Rossi, who lost to Gregoire by 133 votes in 2004. In June, the state party asked the state Public Disclosure Commission to look into whether Rossi illegally used his nonprofit, the Forward Washington Foundation, to finance an undeclared campaign and to evade the state’s reporting and gift-limit requirements. Rossi has since left the foundation, which had paid him an annual salary of $75,000.

After an extensive probe by two full-time investigators, the PDC enforcement staff has recommended that the complaint be dismissed by the full commission on Dec. 6. Deputy Director Doug Ellis declined to speculate whether the commission will concur.

A report released Thursday clears Rossi and says there is no apparent violation. A proposed letter dismissing the Democrats’ complaint is part of the packet. The investigators said Rossi became a true 2008 candidate only last month and that he didn’t misuse the foundation.

State law requires a declared candidate or one who is raising money and making campaign expenditures to register with the commission and to make regular detailed reports.

Democratic State Chairman Dwight Pelz, reached at the Democratic National Committee meeting in Washington, D.C., referred questions to an attorney.

“This decision is seriously wrong-headed,” Kevin Hamilton said in a statement released by the party. “The PDC staff and Republican Dino Rossi have created a huge loophole in the law that allows unregulated campaign activity.”