Please note the November 26 update on the bottom of this page.
Last year, political campaign services firm P2B Strategies announced that freshman state representative Kurt Daudt was joining the firm as a senior political adviser.
Now that he's Minority Leader, will he stay in that role? Given the potential for conflicts of interest and other ethical issues, perhaps Representative Daudt and P2B Strategies might rethink the arrangement. With his selection as leader of the minority caucus, the need to govern may conflict with a role as a paid campaign strategist.
While Bluestem doesn't know of any law forbidding the dual role, the complications of leading at a time when voters want an end to bickering and partisan division for the sake of electoral gain might make a prudent individual forgo the lucre of the partisan fee in favor of the larger public service.
It's a judgment call.
The company's website notes Daudt's value as an adviser (before elevation to Minority Leader):
P2B Strategies is proud to announce that State Rep. Kurt Daudt has joined our team as Senior Political Adviser. Kurt is an Assistant Majority Leader in the Minnesota House and has an impressive resume of political experience ranging all the way from local elections to statewide elections for Governor. Prior to his election to the Minnesota House, Kurt served six years as Isanti County Commissioner and as a Township Supervisor before that.
The payments by Republican candidates for the Minnesota House to P2B Strategies are listed below. Please note that while Daudt could possibly have received a consulting fee from the firm--owned by veteran political hand and House spouse Gregg Peppin and Dax Bennett--he was not leading the caucus or the campaigns. (Update: a reader notes in the comments that Dax Bennett works at the House as well)
Yet because payment to the Crown legislator and now Minority Leader-- by the firm are not subject to public disclosure, the arrangement could pose temptations for special interests or ambitious and well-heeled candidates. Will they re-think this arrangement? Especially in that there is no disclosure in Minnesota when a firm performs "public affair" work.
Here are the amount paid by Republican House candidates to P2B Strategies in 2012, as indicated by the pre-general election reports filed with the Minnesota Campaign Finance and Public Disclosure Board.
Expenses Paid to P2B Strategies by 2012 MNGOP Endorsed Minnesota House Candidates
District Candidate Amount
1A Fabian* $5032.72
1B Kiel* $4330.03
2A Hancock $1331.50
3B MacDonald $1960.43
4A Reimche $8126.95
5A Howes $11992.34
8B Franson* $6092.28
9B Kresha* $6846.61
11B Wiener $2829.78
12A Dutcher $316.35
17A Miller $5388.60
18B Gruenhagen* $1672.20
20A Woodard* $5485.86
20B Wermerskirchen $2917.71
24A Petersburg* $3793.11
30B Fitzsimmons* $623.98
32A Johnson* $13,360.40
32B Barrett* $3820.53
34A Peppin* $7028.03
34B Zellers* $899.69
35B Scott* $5713.41
36A Uglem* $6164.71
37B Sanders* $10195.62
38A Runbeck* $7606.00
39A Dettmer* $10663.39
41A Helm $6508.79
42A Bertsch $5590.31
48A Stensrud* $8778.63
48B Loon* $8825.83
49A Glahn $22830.54
49B Jacobson $20308.79
50B Bohnen $2758.57
52A Blum $7047.63
52B Tuschy $1343.82
56A Myrha* $6894.91
56B Peterson $22265.40
64A Ojeda $1798.87
By Bluestem's early morning calculation, that's just over $249,000. While that figuremight seem like a lot of money, readersshould bear in mind what P2B Strategies often does for candidates is procure lawn signs and campaign swag, buy advertising, and secure other services like parade planning. It's not pure profit by any means. (Nor are the books of the firm transparent, so Bluestem won't guess what the markup is).
It is possible that P2B Strategies provided more services for Republican candidates, as committees are allowed to prepay in the off year. For example, the committee for one-vote winner Mary Franson spent $1500 in 2011 to prepay for advertising for 2012.
Photo: Minnesota House Minority Leader Kurt Daudt, via the Twin Cities Daily Planet.
UPDATE: On November 26, 2012, Bluestem received this email from Peppin at P2B Strategies:
.
Hi Ms. Sorensen,
It was brought to my attention that in a recent post you commented on Rep. Kurt Daudt's employment status with P2B Strategies. We have been very pleased to have had Kurt as part of our team. However, due to his elevation to the position of House Republican Leader, Kurt will be serving the people of Minnesota and his legislative district in this new full-time role and is no longer on the payroll of P2B Strategies. We look forward to working with Kurt to help House Republicans regain the majority in 2014.
Sincerely,
Gregg Peppin
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Hmmmm.
Aren't Greg and Joyce Peppin owners of P2B along with House GOP employee Dax Bennett? (Her EIP lists her occupation as "Public Relations Management" and her employer as "self employed."
Since her campaign received $4,349 in public subsidies, and her campaign did $7028.03 worth of business with P2B, it sure looks to me that in the commingling of funds, they're diverting at least some government funds to themselves.
Posted by: James | Nov 14, 2012 at 09:34 AM
Hmmm. Collecting a public salary and then earning income on the side for helping keep your bosses in "business."
The financial dealings among elected officials, paid staffers and campaign operatives could use a broader airing, it seems, than plain old reporting forms can manage.
Thanks for opening the window some more.
Posted by: Charlie Quimby | Nov 15, 2012 at 07:26 AM