Austin Mayoral Candidates Under Ethical Investigation Amid Campaign Finance Violations

Austin Faces Ethical Scrutiny as Mayoral Candidates Go Before Commission

The city of Austin is gearing up for a heated mayoral campaign as ethical complaints against significant candidates move forward. The Ethics Review Commission has decided to hold a final hearing next month regarding complaints against Doug Greco and incumbent Mayor Kirk Watson. These complaints center on campaign finance violations, with some expected legal developments possibly impacting the proceedings.

Details of the Complaints

During a preliminary hearing that took place on Wednesday, the commission determined there were reasonable grounds to believe that both candidates breached the city’s campaign finance rules. This conclusion was based on separate complaints claiming both Greco and Watson received contributions exceeding the $46,000 threshold from donors who live outside designated Austin postal ZIP codes.

The commission, in an unanimous vote of 8-0, supported the complaint filed by former commission member Betsy Greenberg. Greenberg, who is endorsing fellow candidate Carmen Llanes Pulido, alleged Watson violated the rules during his 2022 campaign as well.

Legal Rush for Greco’s Challenge

This hearing was unique for two major reasons. First, Greco has pending legal action in federal court where he is challenging the city’s contribution caps from outside Austin. He argues that the limits infringe upon donors’ constitutional rights. Greco is pushing for an accelerated hearing and aims to secure a ruling by October 4, just ahead of the election.

Second, in a surprising turn, Ethics Commission Chair Michael Lovins denied Watson’s representative, renowned campaign finance attorney Jim Cousar, the opportunity to present paperwork supporting the claim that Watson’s campaign followed the rules. Lovins stated that such documents would only be allowed if the commission decided to proceed with a final hearing.

Cousar expressed his surprise at being denied the chance to present written evidence, noting, “I’ve never encountered a situation where the respondent was not given the right to provide a written statement and supporting evidence before a decision was made.”

Proposed Evidence and Responses

Watson’s campaign submitted documentation which included a summary of four spreadsheets related to the contributions. According to Exhibit A, donors outside city ZIP codes contributed $45,015, which is below the city limit, while Exhibit B indicated another $23,000 came from 60 donors. Greenberg’s claim specified that the latter figure put Watson over the allowable limit.

In a response to Greenberg’s complaint concerning Watson’s previous campaign, Exhibits C and D were provided to illustrate compliance with regulations, according to Cousar.

Proposed Changes to Contribution Rules

Greenberg has suggested that the city may want to modify its rules to require contributors to provide their residential addresses. This change would help determine whether donors actually reside in the eligible ZIP codes, ensuring fairer contributions.

Greco’s Stance Against Campaign Finance Rules

On the other hand, Greco is not disputing the claims related to contributions outside city limits; rather, he is challenging the regulations as unconstitutional. His attorney, Holt Lackey, stated that the limits unfairly favor incumbents and wealthy candidates who can fund their campaigns without restriction. Lackey explained that this poses a disadvantage for candidates like Greco, who is running a grassroots campaign.

Greco released a statement after the preliminary hearing, reiterating his belief that the rules are illegal. He emphasized that the current system benefits those in power while suppressing support for challengers.

Next Steps

Both candidates and their teams are now preparing for the final hearing next month. Meanwhile, Austin residents and potential voters are keeping a close eye on how these developments might impact the upcoming mayoral election.