City Related

Dallas council members' control over development in their districts led earlier this month to the conviction of one council member and four associates for extortion.

Update: November 11, 2009 (see below)

Is there any worse way to skirt government ethics rules and misuse public money and position than via a charitable organization? And yet it happens again and again. This time it happened in Baltimore, according to the results of an extensive investigation by the Baltimore Sun.

Here are two interesting local government ethics case studies from matters in the news this week.

A Job Can Effectively Be a Gift

I've talked about legal defense funds in the past as a way to accept large gifts from those doing business with a local government, but I referred, tangentially, to only one local government legal defense fund, that of former Detroit mayor Kwame Kilpatrick. So I did some research and came up with a few other examples, which are worth knowing about if the issue arises in your city or county.

Updates: November 28, 2009 (see below, with December 23 correction)

When a local government official co-owns a company, is it enough to create a separate company owned solely by another co-owner to do business with the official's city?

Is political deal-making a government ethics violation? This is a tough area. Government ethics is about the conflict of personal and public interests. Political interests are generally left out of the equation unless non-political benefits are involved. In politics, you are allowed to put your personal interests first, at least until you win.

 A few days ago, I wrote a blog post about how several government officials in Wausau mishandled a conflict situation involving the purchase of property fixed up with an interest-free loan from HUD. Yesterday's The State of South Carolina covers two other HUD loan conflict situations in Columbia, which are being handled only a bit better.

One problem in government ethics is that when conflict situations are dealt with responsibly, there is rarely a record of them. They pass quietly, failing to end up in the newspaper, at an ethics commission, or in court. So generally we're stuck learning from the times when conflict situations are dealt with irresponsibly. One of these situations, in Wausau, Wisconsin, made it to court, and a decision this week by the U.S. District Court for the Western District of Wisconsin sets the facts out clearly (the decision is attached; see below).

The Facts

Update: February 2, 2010 (see below)

A recent New York Times article concerns a potential conflict in the city council speaker's office. But what is most interesting about the article is the bigger question it raises about differentiating between businesses and unions in pay-to-play laws.

Once again, a local government official's attempt to use a charity to get around campaign finance laws has blown up in his face. According to an article in the Atlanta Journal-Constitution, an Atlanta council member was fined $25,000 by a state court for failing to register a foundation (named after himself) and failing to maintain financial records for it.