When elected officials provided their statements of
economic interest to the Oregon Government Ethics Commission last month,
the filing for Rep. Mike Schaufler (D-Happy Valley) included one
unusual disclosure—a trip to northern Alberta paid for in part by Shell
Oil.
Records show Shell Oil picked up the tab for Schaufler to inspect the Canadian tar sands, a prolific source of crude oil.
A
separate record, Schaufler’s campaign expenditure report, reveals he
charged another $2,859 for travel and lodging to his campaign account
for the trip. And that’s just one of hundreds of expenditures Schaufler
has made in recent years that have no direct connection to campaigning.
Schlaufler’s
profligate use of campaign funds for a wide variety of expenses—all of
them seemingly legal—suggests that Oregon’s highly touted 2007 ethics
law, which aimed at curbing lobbyists’ spending on lawmakers, was at
best a half measure. Although the 2007 reform made it harder to give
pricey gifts to lawmakers, it didn’t bar gifts disguised as campaign
contributions.
And after an
examination of numerous other lawmakers’ filings, it is clear that
nobody spends campaign dollars in Oregon like Schaufler.
“These kind of
expenditures shows that all the commotion about Oregon’s ethics laws is
irrelevant,” says Dan Meek, a public interest lawyer who authored two
2006 campaign finance reforms. “Any gifts the ethics law prohibits can
be given in the form of campaign contributions.”
The
Calgary trip marked Schaufler’s third foray to Canada in the past three
years on his campaign’s dime. (Schaufler explains he is first
vice-president of an economic development group that comprises five
Canadian provinces and five Western states. He does not draw a salary
for that work.)
Unlike most
lawmakers below retirement age, Schaufler, 51, does not have a job. In
fact, he has not worked outside the Legislature since 2004. That could
explain why he leans more heavily on campaign contributions than others.
“This [legislating] is all I do,” Schaufler says. “I have a passion for public service.”
The former union laborer and contractor says he is frugal, not wealthy (his wife is a dentist).
But Oregon’s lax
campaign-finance law allows him to use campaign contributions to fund
his daily expenses to an extraordinary degree (see box below).
State
elections director Steve Trout says those and other expenditures appear
to fall within statute, which says funds may be used for “any lawful
purpose.”
Meek says the law’s
breadth opens up legislators to “corruption,” but Schaufler is
unapologetic. “Everything I do is legal, reported and ethical,” he says.
“If you pay me and my
colleagues a living wage, not a fraction of these [campaign]
expenditures would show up,” he says. “But I’m not going to pay out of
my pocket to do this job.”
Lawmakers get paid
$21,612 a year in salary and a $123 “per diem” payment every day
(including weekends) the Legislature is in session. That adds up to
$19,680 a year for the long session every odd-numbered year. Schaufler
is not the first to point out that lawmakers’ pay is low. But since the
passage of a 2007 ethics law, Schaufler has elevated the creative use of
campaign funds to umatched levels.
“Schaufler’s level of
spending, especially on items that could be covered by his per diem, is
atypical,” says Janice Thompson of Common Cause Oregon.
State filings show,
for instance, that since Jan. 1, 2009, Schaufler has charged his
campaign nearly $6,000 for 91 separate visits to Magoo’s, a Salem bar.
Over the same period, he’s charged his campaign $2,434 for 68 visits to
another Salem bar called the Brick Bar & Broiler.
“I’m surprised it’s only 91 visits to Magoo’s,” he says. “I meet with people all the time on legislative business. And when I do, it’s paid for by my PAC.”
Since Jan. 1, 2009,
his campaign paid for 58 nights at the Phoenix Grand Hotel, totaling
$7,392. Schaufler says long Salem hours make commuting difficult.
“It’s just best to
stay down there sometimes,” he says, adding that this session he’s
saving money by renting an apartment—also with campaign money.
When the Legislature
is out of session, he “rents” a district office in his home for $400 a
month. That put nearly $5,000 in his pocket last year, which is allowed
provided he charges himself a fair market rate.
When Schaufler
charged his campaign for Salem bar tabs and hotel rooms, he was already
getting a salary and a per diem check from the state.
Meek
says that’s wrong. “It’s worse than double-dipping, because instead of
getting paid twice by the state, he’s getting paid by the state [salary
plus per-diem expenses] and by his campaign contributors,” Meek says.
“It may be legal, but it’s not appropriate.”
Schaufler says he’s a
model lawmaker—he’s never had an unexcused absence since first winning
election in 2002, and regularly returns part of the money lawmakers are
budgeted for office costs. And he adamantly insists his vote is not for
sale.
“I don’t pander or cater to any interest,” he says. “I’m better at that than anybody in the Legislature.”
What else did Rep. Mike Schaufler charge to his campaign account in 2010?

SOURCE: ORESTAR filings
Rep. Schaufler's spending of campaign contributions on these items illustrates the utter impotence of Oregon's laws about lawmakers taking gifts from those with financial interests in government actions.
Combined with the fact that the Oregon Attorney General and Secretary of State are not enforcing any of the campaign contribution limits enacted by Oregon voters via Measure 47 (2006), or any other contribution limits, this means that corporations, unions, and wealthy donors can provide unlimited funds to Oregon legislators (or any public officials), who can then not only fund their campaigns but also use the money for what any rational person would say are "personal expenses," including:
This means that corporations, unions, and wealthy donors have huge leverage over public officials in Oregon. Not only do they fund their campaigns, they also fund their personal recreation and even help pay their home mortgages. No wonder the donors get their way.
Oregon in 2008 had the highest per capita spending of campaign money for state House of Representatives races than any state other than Louisiana and Iowa. This article illustrates how some of those big bucks are being spent.
The problem with the spin on this story is that Schaufler IS one of the better legislators in the building. Except for his blind spot for public employee unions, Mike Schaufler is the least partisan, most practical person in the building who has a vote. He also has a point, we should pay legislators something that is reflective of the challenge of the job.
"...Shaufler IS one of the better legislators in the building." HAHAHAHAHAHAHAHA!!!!!!!!!! Thank you so much for the laugh!!! That made my whole day!
Politicians now serve their campaign contributors, not the voters. Often it's not what's in the the law that's the problem...It's what's NOT in the law. In this case there's nothing in the law that prohibits Rep. Schaufler's actions.
What's even worse is when taxpayer money is used by state agencies for campaign contributions. There is a problem with Oregon Electric Co-operatives which are state sanctioned monopoly power companies that are supposedly "owned" by the ratepayers. The ratepayers do not have the right to free and fair elections of board members...Meaning that the board can appoint anybody they want to their board and it cannot be legally challenged. Of course the boards have unlimited ratepayer money to defend any legal challenge.
Our state representative, Rep. John Huffman R-The Dalles is against free and fair elections for Oregon electric co-operative ratepayers. Why? It's because he's getting money from the Oregon Electric co-operatives!
Electric cooperatives are not state agencies. Yes, theare state-sanctioned monpoly power companies (nonprofit), but so are the for-profit power companies, such as PGE and PacifiCorp. Everything you write about the co-ops applies 100-fold over to the for-profit power companies. Ratepayers have zero right to elect their boards or even have access to their financial information. And the campaign contributions by the for-profit electric companies dwarf those of the co-ops. Since 2004, the Oregon Rural Electric Coop Assn (the body that makes political contributions) has contributed $236,757 to Oregon races. But PGE has contributed $779,395 and PacifiCorp has contributed $823,857. All of them are too much.
I think this article is a little picaune. And calling the price of eating at Magoo's a "bar tab" borders on false (unless you've got some reason to believe that the bills are for late-night binges).
I also think that you should recognize that the laws being criticized here are what require this kind of highly-detailed accounting. That kind of transparency is what makes it a good system -- people who think that going to Canada to see tar sands is a luxury trip can rant about that (see Dan Meek's suggestion that the trips are to Hawaii?). The rest of us can sit back and say "that's interesting," without getting up on a high horse.
Dan, everything you said is correct but at least the stockholders of investor-owned utilities have a right to access to financial information. The members or "stockholders" of Co-operatives do not have that right. Yes, there is ORS 62.440 but it contains a legal fees provision that effectively stops any inquiry. For more information see http://www.reformwascoelectric.com
Monopoly utilities are just another way for governments to extract money from the taxpayers without political consequence. Monopoly utilities using ratepayer money to buy politicians is a big-time conflict of interest and should be stopped.
Just look at what it has done to Rep. Huffman.
Eating at Magoos?...Food is not the draw...Magoos is a long established watering hole for Legislators and Lobbyists to schmooze each other...Really the food is borderline disgusting....so i imagine its all about the booze....and the Phoenix is conveniently located a block away....
Oh, that must mean private unions and polluting industries are not "interesets."
The trips funded with campaign contributions have often been to Hawaii. As the Oregonian reported on September 27, 2006:
Three Oregon legislators used campaign or personal money in May to fly to Hawaii, where they accepted $30,000 in campaign contributions from beer and wine distributors at the group's biennial conference.
The contributions more than covered the legislators' traveling costs.
. . . Paul Romain, director and lobbyist for the Oregon Beer and Wine Distributors Association, said he checked with the state Elections Division beforehand and was told lawmakers could use campaign money to travel to an out-of-state fundraiser for their political action committee.
"I found out that if they get a PAC contribution, yes, they can use their PAC money to go get that PAC contribution," Romain said. "It's the same thing as driving to Medford to get something. It just happens to be Hawaii versus Scappoose or Sunriver or some place like that."