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Council Votes 5-3 (Price, Mungo, Austin dissenting) On Final Vote To Triple "Officeholder" Accounts ("Slush Funds") Incumbents Can Collect, Control & Disburse; Now Up To $75k Annually For Citywide Electeds (Incl. Mayor), Up To $30k Annually Per Councilmember; Sums Can Be Used For Community Events OR Given To Politically Active Groups


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(Feb. 4, 2015) -- As seen LIVE on LBREPORT.com, the Long Beach City Council voted 5-3 (Price, Mungo, Austin dissenting) on Feb. 3 to approve on a second (enacting) vote changes to LB's Municipal Code that will enable citywide electeds (including the Mayor) to triple the amounts they can annually collect, control and disburse in "officeholder" accounts.

Officeholder accounts can be filled from contributions (including those solicited by incumbents at fundraisers) from various persons and entities (including those with self-interests in helping helpful incumbents) and then disbursed by the incumbents to neighborhood groups or for community events OR given to favored politically active groups, all potentially helpful to the incumbents.

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The action follows a Jan. 20 initial Council vote in which all Council incumbents voted to increase the size of their officeholder accounts; the only disagreement was over by how much. The five member majority favored tripling them; the three dissenters favored doubling them; The net result will now enable all incumbents (including the dissenters) to solicit and accept contributions tripling the previous amounts they could amass, control and disburse.

Tripling the allowable "officeholder" sums, dubbed "slush funds" in editorials by both LBREPORT.com and the PressTelegram, will now let citywide incumbents (including the Mayor) collect up to $75,000 per year with Councilmembers able to collect up to $30,000 each per year.

Mayor Garcia is arguably the biggest beneficiary of the Council action as the most politically active and visible among citywide electeds. The proposal to triple the allowable sums advanced to the Council by its Elections Oversight Committee whose members (chair Gonzalez, vice chair Uranga, member Mungo) were chosen by Mayor Garcia.

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Councilmembers said nearly nothing prior to the Feb. 3. vote. Prior to the Council's initial Jan. 20 enacting vote, Council incumbents supporting the change said it would let them better support support neighborhood events and community events...and said (Gonzalez in particular) that the change simply brings Long Beach up to levels allowed in other neighboring cities. The officeholder accounts can also be given to politically active groups and causes that can help the incumbents and their allies, and used against challengers or others viewed as unhelpful.

In a December 16, 2014 memo to the Elections Oversight Committee, the City Attorney's office indicates that in addition to sponsoring district events and community events, LB incumbents could use the increased officeholder sums (like the current sums) to give money to a political party, ballot measure committee, PAC, and to buy political event ads; in addition, for the first time, they will be able to use officeholder funds to attend political events that aren't for candidates.

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The Council's action amends part of a LB ordinance originally enacted by a 1994 citywide vote of the people (Prop M) as LB's Campaign Reform Act. Prop M included no officeholder accounts, which the Council subsequently added without the voted consent of the public (over the opposition of a number of Prop M advocates.) The Council last raised officeholder account levels in 2007, supported by City Auditor Laura Doud, who argued at the time that the then-proposed increase would let Councilmembers use donated sums to support district events instead of tapping taxpayer resources.

No Councilmembers mentioned, either in connection with their Jan. 20 or Feb. 3 votes, LB's voter-approved Prop M which stated in its Findings and Declarations:

"Officeholders are responding to high campaign costs by raising large amounts of money in off-election years. This fund-raising distracts them from important public matters, encourages contributions which may have a corrupting influence and gives incumbents an overwhelming and patently unfair fund-raising advantage over potential challengers.

...The integrity of the governmental process, the competitiveness of campaigns and public confidence in local officials are all diminishing." [LB Muni Code section 2.01.120 (E)]

The Council action enables LB incumbents to solicit and accept sums for "officeholder expenses associated with holding office" under CA Government Code sections 89512-89519 but under the LB ordinance excludes uses under sections 89513(e) and (g) relating to loans to candidates, political parties or committees.) Although the ordinance specifies that officeholder expense funds can't be used or expended in connection with a future election for an elective city office, it doesn't preclude incumbents from giving funds to various groups and entities (including advocacy and political groups) whose support might prove useful to an incumbent in a future election.

Prior to the Feb. 3 Council vote, one public speaker, Larry Goodhue, ridiculed and opposed Council action, but there was no organized opposition. On taking office, the newly elected Council majority moved swiftly to increase the officeholder sums. They were met with silence from LB's politically active groups, including LB Repubs, independents and policy conservatives, who stand to be the biggest losers from the Council action which increases the ability of LB's incumbent elected Dems (Mayor and 8 of 9 Councilmembers) to disburse sums to groups and causes aligned against them. .



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