The Kansas Meadowlark

Jan. 14, 2007
(updated Jan 23, 2007)


$200,000 from Democratic Governors' Association Spread Throughout Kansas in 2006
via Kathleen Sebelius' Bluestem Fund PAC


An Oct 3, 2006 Kansas Meadowlark report, Democratic Governor's Association Returning $100,000 to Kansas, explained how in 2005 the Democratic Governors' Association (DGA) gave contributions to each of the four Democratic Party Congressional District Committees, which in turn forwarded the money to the Kansas Democratic Party. So, if this worked once to get more money to the Kansas Democratic Party, why not use this scheme again?

While this scheme was not illegal, this scheme does get around certain contribution limitations, and does help hide what is going on.  In that 2005 case, much of the $120,000 given by George Tiller and in his clinic in 2002-2004 may have been returned to Kansas to prepare for the 2005-2006 election cycle via the DGA.  Since this scheme worked well, and the Kansas press simply ignores such political money  stories, the Democratic Governor's Association pumped even more money into Kansas this way last year.

The following diagram shows how the Democratic Governors' Association sent $200,000 to Kathleen Sebelius' Blue Stem Fund PAC in 2006, which Sebelius spread throughout Kansas to other Democratic Party interests, including:

  • the Kansas Democratic Party,

  • all four Democratic congressional district committees,

  • all statewide Democratic candidates, including herself,

  • eight Democratic county committees,

  • two State Board of Education candidates,

  • 32 Democratic State Representative candidates.

Unlike earlier years, there were no known contributions to DGA by Dr. Tiller in 2005 or 2006.


Money from Democratic Governors' Association Spread Throughout Kansas in 2006
via Kathleen Sebelius' Bluestem Fund PAC

Notes: 
  • See separate article with additional details about the four Democratic Congressional Committees
  • Dates in bold above are mentioned in the discussion below.
  • Dollar figures truncated (i.e., cents are ignored)

The Democratic Governors' Association is a 527 group, and files its 8872 reports with the IRS.  Anyone can view the various DGA 8872 reports of contributions and expenditures on this IRS web site:

In 2006, only $10,000 raised by the Democratic Governors' Association originated from a Kansas source:

In their most recent IRS 8872, the DGA reports only these three contributions to Kansas recipients.  These contributions totaled $200,000 and were supposedly sent during the 8-day period, 10/20/2006 through 10/27/2006.  (An earlier 2006 DGA contribution to a Kansas PAC is discussed below in the section "Shadow Group in Kansas Funded by Democratic Governors' Association?")

What is the "Bluestem Fund" PAC at 5217 NW Arroyo Drive in Topeka?  The Kansas Governmental Ethics provides this Statement of Organization for this PAC.  Kathleen Sebelius is the Chairperson of this PAC, which was formed in April 2000 for "general interest in ensuring a high quality Kansas Legislature."  The recent August 2006 update to the Statement of Organization shows Kim Gerety is now the Treasurer of this PAC, which is now a "leadership PAC."  Gerety works in the Governor's Office, apparently working on the Governor's Federal Grants Program.

Sebelius has used her Bluestem Fund in previous years for various purposes, and even received contributions from Dr. George Tiller or his clinic in 2000-2002

At the end of the 2004 election cycle, the Bluestem Fund only had a balance of $69.  Here is a summary of the activity of the Bluestem Fund over the 2005-2006 election cycle, and how important the Democratic Governors' Association was to the Bluestem Fund -- 80% of Bluestem's money was from the Democratic Governor's Association: 


Summary of Blue Stem Fund Activity, 2005-2006

Report Date

Raised

Spent

In the bank

Comments

Jan 10, 2006

$31,000

$240

$30,829

Initial balance Jan 2005:  $69.
Activity from 2005 only included raising funds from 8 labor unions during Dec 2005.

July 24, 2006

$0

$2,348

$28,481

PAC "moved" to Topeka from Lawrence with a new treasurer;  
$2000 to Paul Morrison

Oct 30, 2006

$63,000

$27,082

$64,399

$45,000 from DGA;
$15,000 from labor union

Jan 10, 2007

$155,000

$137,958

$81,441

DGA only contributor this period

TOTAL

$249,000

$167,628

         

80.3% DGA money;
18.5% Labor unions,
  1.2% other


The Bluestem Fund PAC treasurer, Kim Gerety,  files reports with the Kansas Governmental Ethics Commission 

The Oct 30, 2006 report included this $45,000 contribution received from DGA on Sept 24, 2006, which matches the Oct 20, 2006 entry in the IRS 8872:

BUT, this Sept 24, 2006 "receive" date is inconsistent with the Oct 20, 2006 "send" date (see IRS 8872 above) reported by DGA to the IRS. How can a check be received and reported before it's sent?  How can the $45,000 be reported in Kansas to the Kansas Governmental Ethics Commission in October 30, but not reported in the pre-election IRS 8872 that had a reporting period ending Oct 20?

There are two likely possibilities:

  • "clerical error" (almost anything in a report can be caused by "clerical errors")
  • the DGA wanted to avoid reporting the $45,000 to the IRS until after the election for some not-so-obvious reason.

The last two DGA contributions to the Bluestem Fund were received a few days after they were sent, which makes sense, unlike the Sept contribution.

Various DGA contributions merit additional comments and questions:

  • Congressional District Committees.  A separate article describes these committees.  Apparently, these committees were designed to transfer large amounts of money to the Kansas Democratic Party, Kathleen Sebelius, and Paul Morrison.
  • Contribution to Sebelius Committee. With her campaign account well-funded ($50,986 still in the bank at the end of the year), why did Sebelius pay her campaign account $823.80 on Dec 4, 2006 from her Bluestem Fund PAC?
  • Contribution to Paul Morrison.  The Bluestem PAC gave the maximum amount to the Paul Morrison campaign, and helped orchestrate larger transfers via the congressional district committees.
  • County Parties.  Crawford County (Pittsburg) is a bit of a Kansas anomaly with more Democratic voters than Republicans in that county. The $5000 sent to Crawford County in the 2nd Congressional District likely was part of a strategy to help voter turnout for Nancy Boyda for Congress.  The $1000 contribution to Labette County may also have been to help Nancy Boyda, since it's also in the 2nd Congressional Distict and Bluestem hadn't contributed directly to the State Rep 7 candidate representing Labette County. Why other counties were included or excluded is a bit curious.  Apparently, very liberal Douglas County had been left out earlier in the year, or had a special need, to get the 12/27 contribution.
  • Other statewide candidates and State Board of Education candidates.  Except for Sebelius and Morrison, none of the other statewide, or SBOE candidates were elected. 
  • State Representatives.  Apparently, Gene Rardin in District 16 wasn't seen as a viable candidate by the Bluestem PAC until after he won his election by 3 votes (which is still in dispute).  Vince Wetta only received a contribution of  $500 on 11/9 after winning the election.

Sebelius used the Bluestem Fund for certain transportation costs:

  • BP Gas, Topeka (10/31/2006), gas for "get out the vote", $3000
    [Assuming gas is $2.50/gallon, and one gets about 20 miles/gallon, this is enough gas to drive about 24,000 miles]
  • Kansas Air Center, Manhattan (12/4/2006), $776.  Why after the election?
  • Spicer Aircraft, Clay Center (12/4/2006), $400.  Why after the election?

These campaign-related costs are curious:4807, for 

  • Next Big Thing, Leesburg, VA  (11/3/2006), $4807 for "voter contact services".  [Perhaps "automated phone calls" like reported in the Kansans for a Democratic House report?]
  • Cooper & Secrest, Alexandria, VA $35,990 (12/5/2006).  Why after the election?
    [See separate article with additional details about the four Democratic Congressional Committees , which also paid huge amounts to Cooper & Secrest]

What is Sebelius' interest in Maryland, Minnesota and Michigan politics?  Here are some curious contributions made by the Bluestem Fund:

  • Maryland State Democrats, $4000 (11/3/2006)
  • Friends of Martin O'Malley, Baltimore, MD $6000 (11/3/2006)
  • Anthony Brown for Lt. Gov, Baltimore, MD $6000 (11/3/2006)
  • Minnesota Democratic-Farmer-Labor Party, $5000 (11/3/2006)
  • Graholm for Governor, Lansing, MI, $3400 (8/3/2006)

In 2006 Sebelius didn't spend all of the $200,000 from the Democratic Governors' Association, so she still has $81,441 for any special political projects she might have in Kansas.  


Shadow Group in Kansas Funded by Democratic Governors' Association?

The DGA, and left-leaning and far-left groups, will likely continue to target Kansas with the recent success of Democrats in Kansas.  In July 2006 the Washington Post reported about A New Alliance Of Democrats Spreads Funding -- But Some in Party Bristle At Secrecy and Liberal Tilt.  

An alliance of nearly a hundred of the nation's wealthiest donors is roiling Democratic political circles, directing more than $50 million in the past nine months to liberal think tanks and advocacy groups in what organizers say is the first installment of a long-term campaign to compete more aggressively against conservatives.

Tim Gill, one of the major Democratic donors mentioned in that Washington Post article, recently contributed $25,000 to a "Republican" PAC (which will be the subject of a future Meadowlark article):  

Democracy Alliance was formed last year with major backing from billionaires such as financier George Soros and Colorado software entrepreneur Tim Gill. The inspiration, according to founders, was a belief that Democrats became the minority party in part because liberals do not have a well-funded network of policy shops, watchdog groups and training centers for activists equivalent to what has existed for years on the right.

This online Guide to the Political Left discusses the "Shadow Democratic Party":

The so-called "Shadow Democratic Party," or "Shadow Party," is a nationwide network of more than five-dozen unions, non-profit activist groups, and think tanks whose agendas are ideologically to the left, which are engaged in campaigning for the Democrats. Its activities include fundraising, get-out-the-vote drives, political advertising and covert operations (including opposition research and media manipulation). The Shadow Party was conceived and organized principally by George Soros, Hillary Clinton and Harold McEwan Ickes -- all identified with the Democratic Party left.

This Guide to the Political Left gives a long list of organizations, including the Democratic Governors' Association, which are likely to push the left's agenda:

As of 2004, an alphabetical list of Shadow Party groups included the following: Air America Radio; America Coming Together; America Votes; American Constitution Society; American Federation of Labor - Congress of Industrial Organizations; American Federation of State, County and Municipal Employees; American Federation of Teachers; Anshell Media; Association of Community Organizations for Reform Now; Association of Trial Lawyers of America; Band of Progressives; Brady Campaign to Prevent Gun Violence; Campaign for a Progressive Future; Campaign for America's Future; Center for American Progress; Clean Water Action; Communication Workers of America; The Constitution Project; DASH PAC; Defenders of Wildlife Action Fund; Democracy for America; Democratic Governors Associations; Democratic Legislative Campaign Committee; Democratic Senatorial Campaign Committee; Dog Eat Dog Films; EMILY's List; Environment 2004; Gore/Lieberman Recount Committee; Hotel Employees & Restaurant Employees International Union; The Human Rights Campaign; INdTV; International Brotherhood of Electrical Workers; Joint Victory Campaign 2004; Laborers International Union of North American; League of Conservation Voters; New Democrat Network; The Media Fund; Media Matters for America; The Million Mom March; Moving America Forward; MoveOn.org; Music for America; National Association for the Advancement of Colored People; NARAL Pro-Choice America; National Education Association; National Grassroots Alliance; National Jewish Democratic Council; National Treasury Employees Union; New American Optimists; New Democrat Network; Partnership for America's Families; People for the American Way; Phoenix Group; Planned Parenthood; Pro Choice Vote; Service Employees International Union; Sheet Metal Workers International Association; Sierra Club; The Thunder Road Group; United Food & Commercial Workers Union; United Progressive Alliance; USAction; Vagina Votes; Voices for Working Families; Vote for Change; Young Voter Alliance; and 21st Century Democrats.

Following these groups and what they may be doing in Kansas, or anywhere, will not be easy:

New groups are constantly being formed in the Shadow Party, while others vanish. To determine how many groups exist in the Shadow Party at any given time is difficult. Even more daunting is try to determine the purpose of each group. In some cases, groups seem to have no function other than to transfer funds from one 527 to another, perhaps in order to obscure the money trail.

A possible example of one such "shadow" organization that existed for about  eight months in 2006, and has terminated itself, is The Kansans for Common Sense Committee PAC..  The Statement of Organization for this PAC indicated Constance L. Shidler is the Chair and Treasurer of this PAC, which was formed for "fiscal responsibility, public safety and common sense government."   Shidler, a Democrat, is a former Treasurer (2003) for Moore for Congress, former Treasurer of the 3rd District Democrats PAC (2005), and a contributor to Howard Dean for President, Sebelius for Governor and the Kansas Democratic Party.

Where did this PAC get its money?  In May, the Democratic Governors' Association sent them $45,000:

Why doesn't the DGA's address here match the address from the IRS 8872 above?  What's the difference?
  • 1401 K Street NW, Suite 200, Washington, DC  20005
  • 430 S. Capital Street, SE, Washington, DC 20003

How did any of these expenditures address "fiscal responsibility, public safety and common sense government" in Kansas? 

The "cc" name in the above termination letter is curious: Craig Varoga.  What did Varoga "do" for Kansas "common sense" in 2006?  

Varoga is now the National Campaign Manger for Tom Vilsack for President campaign:

Craig Varoga:  Principal partner of Varoga Rice & Shalott, a Houston-based political consulting firm he co-founded in 1995.  General consultant for Iowa Victory 2004, the Democratic Coordinated Campaign in Iowa.  National field director for Clark for President, Inc. starting in mid-Nov. 2003.  Managed the Texas Truth Squad in 2000 for the Democratic National Committee and the Gore-Lieberman campaign.  National director of state research in 1996 for the Clinton-Gore re-election.  Varoga has managed campaigns throughout the country for Senate, Congress, lieutenant governor, state treasurer and mayor, and served as communications director for U.S. Senator Harry Reid.  Graduate of Princeton University and native of Pittsburgh, PA.


efg

K a n s a s M e a d o w l a r k @ g m a i l . c o m