Campaign Finance PhotoAs West Virginia Republican Party Chairman Doug McKinney continues his push to hire an executive director and relocate the Party’s headquarters to a large home on Kanawha Boulevard many supporters and Party faithful are asking how the Party can afford such expenditures.

In fact, there was a teleconference meeting of the West Virginia Republican Party’s Financial Resource Allocation Committee (FRAC) last evening and the two main topics discussed on the call was the hiring of an executive director and relocating the Party’s headquarters to a property very near the intersection of Kanawha Boulevard and Greenbrier Street in Charleston, WV.

According to the latest Federal Elections Commission (FEC) report, the West Virginia Republican Party has almost $14,000 cash-on-hand. That number sounds great except the Party has averaged $15,836 in monthly expenses over the previous six months. It’s very likely at the end of this month the Party will have very little cash-on-hand.

So where will the West Virginia Republican Party find the money to pay a $40,000 annual salary and the lease or payment on a house on Kanawha Boulevard in Charleston, which will likely be at least twice as much as the $800 a month rent the Party pays now.

The only option available is using the $90, 047.02 investment CD that was acquired from the sale of the Party’s headquarters in South Charleston.

You can learn about how the West Virginia Republican Party came to own the dank dismal building which is known as the Ronald Reagan building by reading Chapter 3 in Gary Abernathy’s book Elephant Wars. Thanks to Google Books you can read the whole timeline by clicking here.

The problem with spending the $90,000 CD is that it might not be permissible under current election law. Since the State Party purchased the building in South Charleston the law has changed regarding campaign contributions and how corporate contributions can be used.

On November 6, 2002, the Bipartisan Campaign Reform Act (BCRA), also known as McCain-Feingold Act, was enacted which prohibits political parties from raising corporate campaign contributions for their political efforts.

Just before the BCRA was enacted the West Virginia Republican Party used corporate contributions to purchase the Ronald Reagan Building.

According to Abernathy’s book, financing for the Ronald Reagan Building was made possible with $112,000 ($100,000 from Don Blankenship, $10,000 from Jim Reed, and $2,000 from two unnamed corporate sources.) in corporate contributions. These were corporate contributions from a company or business, not personal contributions, this is an important distinction.

On November 6, 2002, just a few days after the West Virginia Republican Party purchased the Ronald Reagan Building, campaign finance laws changed and corporate contributions are now not permitted.

Today, the West Virginia Republican Party could not use corporate contributions to purchase a new headquarters.

Knowing this information the State Party and Chairman Doug McKinney should request an opinion from the FEC regarding the $90,000 CD.

Can the corporate money be used? Can the money be used to buy or lease another office for the WVGOP? Can the money be used to pay the salary of an executive director? These are all questions that need to be answered and soon.

If McKinney refuses to request a written opinion from the FEC and chooses to spend the corporate dollars obtained as a result of using the CD the State Party could face a steep punishment.

In other cases, the FEC has levied political organization and groups with very large fines  for using corporate campaign contributions the wrong way.

There is a lot at stake if McKinney spends the money without seeking guidance from the FEC.

As money available to the Party dwindles and McKinney looks for extra cash laying around  it’s coffers let’s hope he does the right thing and contacts the FEC for some guidance on what he can and cannot do.

Bookmark and Share