Powell Zaps Steelman on Audit

Democratic candidate for State Treasurer Mark Powell is seizing on a state audit to criticize Sarah Steelman's management of the office she currently holds.

An audit released by Susan Montee revealed that leave taken by Deputy State Treasurer Doug Gaston to work on Steelman's campaign for Governor was not reported in a timely matter.

“This gross oversight by the current State Treasurer further indicates the need to have professional management of the treasurer’s office. The Deputy State Treasurer is paid more than $92,000 per year, is expected to be in the office working for the state, and is expected to be a financial professional, not a political campaign aide to the treasurer," said Powell in a statement.

Powell also criticized Steelman for making an "irresponsible" campaign promise in 2004 to bring "three billion dollars" back to Missouri. "[It] was an impossible promise to uphold and nothing more than political pandering to the banking industry and to the voters. It made for a good campaign line, and it got her votes, but there’s more to being the treasurer than talk and campaign promises. In all actuality, there was $2 billion invested in federal obligations in 2004, not $3 billion. Today there is $3.5 billion invested in those same federal securities, an increase of 75%, rather than the reduction promised by her," Powell said.

In other Treasurer's race news, Rep. Clint Zweifel is up with a new website for his candidacy for Treasurer. www.ClintforTreasurer.com features an interactive map allowing visitors to view endorsements Zweifel has received based on geographic region. Zweifel also offers a campaign blog. Zweifel is thought of as the frontrunner for the Democratic nomination for Treasurer.

Coonrod (Jokes) About Audits

"Holy cow! The county's going to be audited. But it was Christian County."

---Greene County Commissioner Dave Coonrod, joking with attendees during his welcoming speech at Jackson Days. He told an audience that he "feared" Greene County was getting audited, when it was really Christian County. Coonrod was certainly speaking in a joking mood when he later sucked up to State Auditor Susan Montee. "Can I get you a drink later?," Coonrod asked playfully with grin.

Scenes & One-Liners

***85th ANNUAL JACKSON DAYS***

"I have no idea. I'll probably be the last to know."

---Sen. Chris Koster, replying when asked how "things were going" in his campaign for Attorney General. In his speech, Koster acknowledged there were still many Democrats in the room he had not met. One politico observed that Koster was getting "a frosty reception." "You don't see a lot of people going up to him. Kind of feel bad," the Springfield Democrat commented.

"Five to eight points."

---Joe Carmichael, when asked what the spread was for Tuesday's Pennsylvania primary between Barack Obama and Hillary Clinton. The prominent Springfield Democrat who's supporting Obama predicted Clinton would probably prevail by that margin.

"She's got to win by at least 10."

---State Auditor and Obama supporter Susan Montee, chiming in to raise expectations for Clinton on Tuesday.

"I'm a House member and an anesthesiologist . . . not sure which qualifies to put you to sleep tonight, but . . ."

---Rep. Sam Page, candidate for Lieutenant Governor, opening his remarks to attendees during Saturday night's dinner.

"How about a Zweifel introducing a Temporiti?"

---State Democratic Party Chair John Temporiti, after receiving the Jackson Day microphone from Treasurer candidate Clint Zweifel. Temporiti then thanked Greene County Democrats for "fighting the good fight." He said the two to three point increase in turnout during the 2006 cycle in Greene County is now credited with sending Sen. Claire McCaskill to the U.S. Senate.

"I have spent a good portion of my first year hanging out in Springfield . . . We didn't make a bunch of mistakes in Springfield. We firmly stand behind our audit."

---State Auditor Susan Montee, defending her office's work on the Springfield audit that found large amounts of "wasteful spending" in several departments.

"You guys really didn't think you were getting rid of me, did you?"

---State Auditor Susan Montee, adding that she had audits planned in Christian County, Nixa, Clever and other areas of the Ozarks over the next year.

A Sleeper Issue?

AUDIT FINDS LOW INCOME HOUSING CREDIT "COSTLY AND INEFFICIENT"

BLUNT: REMOVE ELECTED OFFICIALS FROM COMMISSION

Rep. Page Critical of Oversight

A state audit released Thursday criticized the State Housing Commission's use of tax credit program designed to build more low-income housing. The audit could serve as a springboard to for the housing commission to become an issue in this election year.

Auditor Susan Montee called the tax credit program "costly and inefficient." Read the complete report HERE.

In response, Gov. Matt Blunt again renewed his call for the General Assembly to pass legislation removing all elected officials from the commission. The governor said a state audit released today reinforces a recommendation he received last year by a bipartisan panel he appointed to review the MHDC.

“Last year I formed a bipartisan panel to conduct the first ever full government review of the state’s housing agency. This Blue Ribbon Panel suggested a change to remove elected officials from the Commission to remove the perception that politics may play a role in its decisions," Blunt said.

“Lt. Gov. Kinder and I have called for legislation to remove elected officials from the Commission and the release of an audit today stating there is a perception that ‘political influence impacts project selection’ reinforces the need for this change," he added.

“Making this aggressive change will allow the Commission to focus on its core mission of providing affordable housing to Missourians and eliminate any perception that politics are at play in the Housing Commission’s actions.”

Currently, the governor, lieutenant governor, attorney general and treasurer serve on the commission.

Montee's audit revealed that only 35 cents from every dollar spent on tax credits for the Low Interest Housing Tax Credit program goes toward constructing new housing. The remaining 65 cents goes toward administrative costs and other overhead that doesn't directly build more housing for Missouri's poorest citizens, according to Rep. Sam Page, who's running for Lieutenant Governor.

"With the next leadership the MHDC can be a wonderful program," Page said. "As lieutenant governor I'll be committed to using taxpayer dollars in a fiscally responsible manner to get the best value for our investment in affordable housing," he added.

"I want to encourage fair and open competition and accountability," he said. "Pay to play must end."

OA: Nixon Owes Taxpayers $8,600 for Car

MONTEE INFORMS OFFICE OF COST

Attorney General Jay Nixon must reimburse the state $8,618 for his use of a taxpayer-owned vehicle during political trips, according to the Office of Administration.

The request comes today from Commissioner Mike Keathley, who asked that Auditor Susan Montee look into Nixon's use of a state vehicle.

"Jay Nixon underpaid the taxpayers of our state by thousands of dollars and he should immediately pay what he owes for the political use of his taxpayer-funded vehicle," said Office of Administration spokesperson Rich AuBuchon. “Auditor Montee has provided a good review based on the limited information she acquired,” AuBuchon added.

"We cannot conclude with certainty that the state was fully reimbursed for the non-official use of a state vehicle and office staff from November 2004 through October 2007,” Auditor Montee wrote. “An exact amount cannot be determined due to inadequate records or lack of records. Although some of the assumptions used by your campaign staff to determine the reimbursement amount may be questionable, other methods may not produce results that are more reliable or acceptable because of lack of records,” the letter said.

Republicans are pouncing on all of this. “Jay Nixon lied to Missouri taxpayers about the amount of money that he had stolen from them to help finance his political career. Nixon provided a false number to the public and the media in a desperate attempt to cover up his malfeasance. And despite her best attempt to try and provide political cover for Nixon with her politically-motivated audit released just yesterday, Montee has been forced to bust Jay Nixon,” said Paul Sloca, spokesperson for the Missouri Republican Party.

Montee Audit Targets Blunt Vehicle, E-mail Policy

JEFFERSON CITY, Mo. (AP) A state audit of the governor's office released Thursday points out continued problems with political and personal use of state vehicles.

The audit from Democratic State Auditor Susan Montee recommends legislation be enacted to explicitly define when state-owned cars can be used by the governor for purposes other than official business.

But Republicans call Montee's audit "a taxpayer financed media release" for Jay Nixon's campaign for Governor. "In particular, Montee’s attempt to question the use of vehicles as part of the governor’s security detail is a transparent political attempt to try and counter Jay Nixon’s clearly illegal use of state vehicles for political events exposed late last year by the media," said Republican party spokesman Paul Sloca. “Susan Montee is clearly using her office and taxpayer dollars to support Jay Nixon’s political campaign which is pathetic.”

Obama Makes 1st Ad Buy in Missouri

SUBSTANTIAL BUY IN SPRINGFIELD MARKET
TO HIT AIR SATURDAY

"It was not an afterthought . . . it's an important part of the strategy."

You'll soon start seeing a lot more of Barack Obama in your living room.

The Obama campaign in Missouri announced a major television advertising buy in the Show-Me-State Friday morning that will blanket St. Louis and Kansas City -- as well as rural markets like Columbia and Springfield.

Obama supporter Sen. Claire McCaskill called it "a substantial buy" in the Springfield area during a conference call Friday morning with reporters. "It was not an afterthought," McCaskill said of the decision to run ads in Southwest Missouri. "It's an important part of the strategy."

The ads will hit the air Saturday. WATCH THE AD HERE.

"People want change in every nook and cranny of Missouri," McCaskill added.

The ad will focus on the issue of healthcare. McCaskill said the topic of healthcare was chosen because "people in Missouri are ready to take a pitchfork" about the rising cost. Specifics on the size of the buy were not available in the conference call with McCaskill, and State Auditor Susan Montee. Details are forthcoming, but McCaskill promised "people will see these ads a number of times in the next few weeks."

"The Obama camp was the first in the state to have offices and staffers, and now it's the first to start running ads as well," noted Montee.

Both John Edwards and Hillary Clinton are making visits to St. Louis Saturday. The Obama campaign has not yet announced a visit, but McCaskill promised reporters he'd be here.

"If Barack Obama does not appear in Missouri between now and February 5th, I'll buy everyone on this call dinner," McCaskill said.

Duly noted, Senator:)

Make sure to check back here in a bit to see the ad Obama will be running.

DEVELOPING . . .

POWER PLAY: CU Audit Raises Legal Questions

ICY AUDIT STINGS CITY UTILITIES
Tension Filled Room
Targets Include Subsidies, Spending, Salaries
Auditor Montee Calls Spending "Unconstitutional"
CU Wants Finding Removed
"City Utilities opinion is they've done nothing wrong ever."

City Utilities customers may be paying too much for some utility services as a result of subsidization of other departments and spending that may be unconstitutional, according to an audit presented by Susan Montee Tuesday night.

You can watch my KY3 News @ 10 report and read the full audit report HERE.

City Utilities vigorously defended its financial decisions and said they contribute to the quality of life in the Springfield area. The Utility also called the unconstitutional finding "serious" and requested it be removed from the public report. "To make such an allegation without substance or evidence casts unfounded doubt on legitimate business activities," reads the Auditee's Response.

The Auditor said $259,000 in spending on picnics, and donations to other entities like community groups and schools is a clear violation of the Missouri Constitution. Montee said the Attorney General may ultimately have to resolve the disagreement.

Customer Ed Marble called CU "a good utility," but called its response to the audit "pathetic." "I think the main thing I saw was CU not being open with financial disclosure," Marble said. Montee said the main difference between this audit and the audit of the city is "the willingness to work on recommendations." She said the city seemed more willing to embrace change than the utility.

Former CU Board Chair Virginia Fry said she didn't understand Montee's response. She said the utility is always looking for ways to improve. But General Manager John Twitty declined to name any specific recommendation CU would be immediately willing to adopt. Twitty will appear live on Ozarks Today Tuesday morning to talk more about the findings.

"Mixed Bag"

CU AUDIT RELEASED AT 6:30 P.M.

Burlison: "Some are real problems, some are trivial"

The final portion of a three-part audit of the City of Springfield by the state will be released tonight at 6:30 p.m. at the City Utilities Auditorium.

This audit will focus solely on City Utilities. Libertarian City Councilman Doug Burlison tells the KY3 Political Notebook that citizens can expect "roughly a mixed bag of results." Burlison has seen the audit, but not had time to comb through all the details.

"Some of the issues raised are indicative of real problems, some are trivial and may not be real problems," Burlison said in an interview.

Burlison couldn't say much about the details, but he did say this probably was a unique experience for the state auditor's office. "This probably is a first for them in auditing a utility this size. Their utility experience has probably mostly been with smaller cities," Burlison said.

According to CU spokesperson Joel Alexander, this is the first time City Utilities has ever been audited by the state.

City Attorney Defends Springfield Projects

"If you want to make sure you never lose money, you don't do it."
Wichmer Responds, Finnie Not Talking

City Attorney Dan Wichmer defended the city's policy and financing decisions for major projects that were criticized in a state audit released Thursday.

Former City Manager Tom Finnie declined KY3's request for an interview.

You can watch KY3's Cara Restelli's report HERE.

Top City Projects, Big Contracts Are Target of Montee's Audit

Financial decisions made to develop some of Springfield's top downtown projects were the target of a highly anticipated state audit released Thursday.

In a 70-page report, State Auditor Susan Montee said the city has made decisions that have required "a significant amount of resources, and accumulated a significant future liability for the city."

"A considerable amount of city funds have been spent as a result of poor planning and poor oversight," Montee wrote.

Montee is recommending the city hire its own internal auditor to help resolve financial problems and better plan for the future. The city appears to be embracing the recommendation.

You can watch my full report on the audit on KY3 News @ 10.

To read the executive summary of the audit report, click here.

To read the full 70-page audit report, click here.

The City said it was pleased that none of the findings suggest financial mismanagement or missing funds. "I'm pleasantly surprised," said Councilman Doug Burlison, who led the charge for the audit as a private citizen. "It could've been a lot worse, but we all now know we have problems that we need to address, so I think it was worth it," Burlison added.

City Spokeswoman Louise Whall released a statement saying the city will move quickly with the Auditor's recommendation for an internal auditor position. "The Council will hire an internal auditor on a contract basis for the short term to specifically address recommendations in the audit. From there, Council will determine the best way to structure the position for the long term," Whall said in a statement.

The following are some of the main findings in Montee's audit:

• The city paid $693,000 to demolish and design the Heers building without soliciting bids.
• The terms in the city's agreement for the College Station project do not appear to be adequately protect the city's investment.
• The city has spent more than $3 million dollars on a police/fire training facility that still does not exist.
• The Jordan Valley Ice Park has a $6 million dollar deficit. It was projected to be self-supporting but it is not.
• Some city employees have received over $100,000 for unused leave time on retirement.
• City contracts with the former City Manager, former City attorney and City lobbyist were not always followed, documentation for work was vague and not always adequate.
• The city has not developed a proper plan to refund bonds for the crime lab.
• The city should perform a cost benefit analysis of its city owned vehicles. 25 city vehicles were driven less than 1,000 miles a year. Consolidation of services is needed.
• Better controls are needed on the city's 450 purchasing cards issued to various employees. Excessive spending and unnecessary purchases were found. The Parks Department assigned fuel cards to employees who do not use or need them.

Ron Davis, over at Chatter, called it "a definite black eye" for former City Manager Tom Finnie. Davis also takes aim at Mayor Tom Carlson, who was a no-show for the audit's release.

Haven't been able to track down any other reaction from the blogosphere as of yet . . . Let me know if you do . . .

Your Tuesday Political Attacks

Blunt on Nixon.

The G.O.P. on McCaskill.

The Dems on Blunt.

• CARGATE . . . The Governor's office sent out a release letting us know that Mike Keathley of the Office of Administration is asking State Auditor Susan Montee to audit Jay Nixon to find out the extent of his political use of a state vehicle. "The Attorney General admitted using state vehicles for personal and political purposes for three years, while conceding that he did not reveal this fact to your office for your audit of the July 1, 2003 to June 30, 2006 time period," Keathley wrote in a letter to State Auditor Montee. "Even with that admission, your office refused to audit this issue."
• FEED ME PORK! The state G.O.P. is slamming Sen. Claire McCaskill for bragging about not requesting federal earmarks. They claim her failure to do so is costing Missouri Sheriff Departments critical anti-meth funding. “Claire McCaskill is more interested in protecting her own political interests rather than protecting the interests of our members of law enforcement who continue to wage an intense battle against this deadly and highly addictive drug," said the G.O.P's Paul Sloca. Wait, I thought bringing home the bacon meant protecting your political behind? I'm confused.
• LET ME SHOW YOU (TOO) THE DOOR . . . No release on it, but it appears Gov. Matt Blunt got rid of his chief counsel today. Henry Herschel is gone. Rosenbaum has the details. But it looks like the Big Muddy blog had wind of it first. The Dems couldn't help but gloat. “You don’t usually clean your house, unless your house is dirty,” said Jack Cardetti, Missouri Democratic Party spokesman. “Matt Blunt needs to stop blaming others for his administration’s failures and start being open and honest with the people of Missouri. That starts with releasing the backup tapes that contain the emails he has so stridently attempted to keep hidden."

Audit Report Due Thursday

A state audit on the city of Springfield will be unveiled this Thursday, Dec. 6th.

"This document will give Springfield residents an opportunity to seethe true financial and infrastructure picture of the city", said Libertarian Tom Martz, one of the audit's chief petitioners.

"A lot of people worked very hard to make this audit a reality, and now we get a chance to prove its critics wrong," added Keith Rodgers, chairman of the Greene County Libertarian Party.

Rodgers is urging people to attend the presentation of the audit, read the report, and follow-up by calling on their elected representatives and non-elected city officials to do more than just offer solutions.

"The people who run Springfield need to act on the responses given by the Auditors' recommendations. Had this had been done in the past, perhaps the million-plus dollars missing from the Municipal Court might have not been missing in the first place," Rodgers said.

The audit hearing by State Auditor Susan Montee will be held at 7:00 p.m. at the Springfield City Council building, on 830 N. Boonville in Springfield.

G.O.P. Wants Montee to Get Car Money From Nixon

The Missouri Republican Party wants to make sure Democratic State Auditor Susan Montee ensures that Attorney General Jay Nixon reimburses the state for using a state vehicle during some political work.

“Notwithstanding the Attorney General’s assertion that his car use was allowable, he is making what he would call a voluntary restitution. You are to be the taxpayer’s watchdog. It is axiomatic that no one audits themselves. Your minimum duty is to act independently to verify that the past political use of the Nixon car is fully reimbursed, and isn’t being understated by Nixon and his campaign. You should immediately investigate the methods that will determine reimbursement amounts, what usage is reimbursed, what timeframe reimbursement will cover and many other questions that cannot, and should not be left to self-auditing by a state official, and certainly not by someone who broke the law, in every literate opinion except his own,” Jared Craighead, executive director of the Missouri Republican Party, said in a letter to Montee today.

“This clear case will define your standards. If you choose to be a sightless umpire for your own party, you will be complicit in the abuse of bilking taxpayers to fund politics. Please fulfill you constitutional duty and protect the taxpayers of Missouri,” Craighead concluded in the letter.

Montee Reveals Audit

State Auditor Susan Montee revealed her state audit on Springfield's municipal court.

Watch my Ky3 News at 10 report HERE.

Kids Influenced Montee's Endorsement

The power of an 18-year-old on mom.

Susan Montee said her decision to endorse Sen. Barack Obama for President Tuesday was based in part on her kids.

Montee said her teenagers are big Obama backers. "I've never seen young people respond to a candidate like this before," Montee said in a interview with the KY3 Political Notebook today.

Montee, who was an Edwards delegate in 2004, said she struggled with this decision, but said Obama brings something special to the race.

"It's a different feeling with him," Montee said. "It is so fresh and exciting. Part of it is his style. I like his approach, his inclusive nature he tries to bring to every issue," she added. "He's not a typical party-line Democrat."

Montee pointed to an answer Obama gave in last night's CNN-YouTube debate as an example. The question was whether the candidate would agree to meet with leaders from Iran, Syria, Venezuela, and other U.S. rivals. "Hillary said before she met with those people, she'd want to make sure and put out feelers," Montee said. "Obama's first approach was, 'Of course, we're going to meet with everybody,'" she added.

Montee said there's no question Sen. Clinton is "very polarizing," and that Obama could turn out to be a stronger general election candidate.

"He appeals to a whole different voter than we're going to be able to get to the polls, than everybody else," Montee said.

Montee will chair Obama's Missouri Women's caucus. She said she traveled to Chicago last week to meet with campaign staff and talk about potential events around the state. "Of course it's going to be tough to get the candidate early on, but we know we're getting his wife a couple of times," Montee said.

So will Montee begin a trend and free up other Democratic politicos to endorse the Senator from Illinois? Montee said many Democratic friends of hers remain divided. She cited a recent straw poll taken at the Boone County Democratic Picnic. The results: Obama-26 votes, Clinton-25 votes, Edwards-25 votes.

When I asked Montee why Clinton continues to top Obama in poll after poll, she replied, "They're not polling my kids."

The Montee Surprise: It's Obama

State Auditor Susan Montee has endorsed Barack Obama for President.

We had guessed she would've picked Hillary Clinton.

But Montee told the St. Louis Post-Dispatch, "I believe we need a new direction and new ideas. Barack Obama represents a lot more…The approach that he brings is more about bringing people together…We haven’t had anyone who can so many people together in a long time…"

Montee To Endorse for President Tuesday

Missouri's State Auditor Susan Montee will become the first statewide Democratic official to endorse for president tomorrow.

She'll do it in Kansas City at 10:30 a.m at the Thomas Restaurant.

She'll also announce the formation of a statewide women's organization to support that candidate.

So who is it, Hillary or Obama?

My uneducated guess is Hil'.

But Jo Mannies over at the Post-Dispatch has a source who says Montee recently talked to Bill Richardson.

Step up with predictions.

Montee's Ebenezer Audit

A 10-year contract for the Fire Chief full of automatic pay raises.

Credit card charges for a home theatre system and fireworks.

Cash donations spent with no receipts.

Those are some of the findings in a state audit of the Ebenezer Fire Protection District.

Watch my KY3 News @ 10 report HERE.

State Auditor Susan Montee identified more than $100,000 of questionable charges. She says thousands of dollars have been misused and misappropriated. The former fire chief faces charges of stealing. His mother says the Fire Protection Board should share the blame.

Either way, residents are steamed.

"They stole from us. They stole from the people," says Mary Irvine. "It's not fair what they did, what all of them did."