Mystery group gave $83,000 to state reps

10 Democrats benefit, Republicans cry foul

Kevin Vaughan, Rocky Mountain News

Monday, January 30, 2006

A little-known group of anonymous donors funneled more than $83,000 to 10 state representatives in 2005 - all of them Democrats and all but one in districts that have been targeted by Republicans in November.

According to financial disclosure forms, the contributions from the group, Research and Democracy, went to pay for what was described as constituent "communications" or "contact" - including mailings and surveys.

Republicans and campaign-finance reform advocates are crying foul over the donations because there's no way to identify the group's financial backers.

"We're certainly concerned about it," said Rachael Sunbarger, spokeswoman for the Colorado Republican Party. "There needs to be transparency in this process."

Pete Maysmith, of Colorado Common Cause, called the contributions "troubling."

"Whether it's a mysterious, shadowy nonprofit or anybody else, we just don't think anybody should be contributing money into legislative accounts," he said. "It's yet another example of the problem when we don't know where the money is coming from."

Even some Democrats have said they are uncomfortable with the practice. Democrat Mike Feeley, a former Senate minority leader, said the contributions represent a new avenue in the long-running battle to rein in donations to politicians.

"We constantly, in an effort to do good, tinker around the edges of campaign-finance reporting," he said. "It doesn't work. There's always someone who's more clever."

The donations, listed in annual disclosure statements by elected officials in January, are legal. They were listed by the various legislators as anywhere from about $4,300 to more than $12,000.

The contributions were "in-kind" - in other words, for services provided on behalf of the legislators as opposed to money they could actually spend.

Rep. Mike Merrifield, D-Manitou Springs, said he never saw the more than $11,000 that was spent on his behalf but that he was advised by House Majority Leader Alice Madden, D-Boulder, to report it.

Told that Republicans raised concerns about the spending, Rep. Bernie Buescher, D-Grand Junction, laughed.

"I'm shocked," he said.

Buescher said the organization paid for two mailings in his district that asked constituents their thoughts on important issues.

He said he didn't see the mailings and that he simply got the responses mailed to him - about 600 the first time and about 400 the second time.

"It gave me good feedback about what folks were thinking," he said.

He said he knows nothing about the makeup of Research and Democracy.

Of the 10 legislators who reported contributions from the group, only Rep. Mary Hodge, D-Brighton, is in a district that has not been openly targeted by Republicans this year. But the GOP put a lot of effort into beating her in 2004.

Dana Williams of the Colorado Secretary of State's Office said Research and Democracy has not filed any paperwork and is not required to do so because it did not give money to an election campaign.

Rep. Buffie McFadyen, D-Pueblo West, listed the contribution under "office account." Those accounts are used by legislators to pay for legislative work and can be funded by donations.

An opinion issued by former Colorado Attorney General Ken Salazar concluded that donors to office accounts don't have to be registered with the secretary of state.

Other Democratic state representatives who received in-kind contributions from the group were Judy Solano of Brighton, Gwyn Green of Golden, Debbie Benefield of Arvada, Wes McKinley of Walsh, Jim Riesberg of Greeley and Morgan Carroll of Aurora.

Sunbarger, the GOP spokeswoman, said people have a right to know where the money comes from.

"I imagine their constituents would like to know where these legislators are getting their money from and how they are spending it," she said.

And though Sunbarger said she didn't know who was behind Research and Democracy, she pointed the finger of suspicion at "a liberal group, probably from Jared Polis, Pat Stryker or Tim Gill - the typical billionaires behind the Democrat legislature."

Polis, who made his fortune with Internet businesses; Stryker, a Fort Collins heiress; and Gill, a software guru, have contributed heavily to Democratic Party causes in recent years.

Polis and Gill could not be reached for comment. Al Yates, spokesman for Stryker, said he knew nothing about the group. Stryker was out of town.

Rutt Bridges, a Denver entrepreneur and think tank head who is often mentioned in the same sentence with Polis, Stryker and Gill, said he knew nothing about the group, either.

"Research and Democracy doesn't ring a bell to me," he said. "I like what they're doing, but sorry."

So who is Research and Democracy?

Answering that question is difficult because the group is shrouded in mystery.

A trade name filing lists the group's address as the home of a Boulder woman, Karen Boelts.

Boelts said Friday she was involved with the group at one time but dropped out because she had to deal with family issues. She said she never gave any money and that donors' names are private.

She referred calls to Ed Ramey, a Denver attorney who provided legal advice as the group was organized. He said he could not remember who he dealt with and that he has had virtually no contact with the group's leaders in the past couple years.

Ramey also said he knew nothing about where the group's money came from.

"I really can't help you with that," Ramey said.

Last year, the organization contributed $1,080 to The Colorado Walk, an effort that saw volunteers hoof it from Wyoming to New Mexico as part of a campaign supporting Referendums C and D on the ballot. According to secretary of state records, the contributions came in three installments: $540 on Aug. 1, $270 on Aug. 30 and $270 on Oct. 11.

Each of those filings listed the same south Denver address as the home of Research and Democracy.

A woman who owned the home at the time, Rita Winkler, said she did not know anything about the group but offered to get a message to its leaders.

"It's not me," she said.

The message was not returned.

Sen. Ron Tupa, D-Boulder, is fighting to ban cash contributions to the office accounts of legislators. And even though his bill would not prohibit the kinds of donations made by Research and Democracy, Tupa said he believes they are no different than direct money.

"Whether you take $5,000 in cold hard cash and then do a constituent mailing, or whether you accept $8,000 in in-kind contributions to do a mailing, it's effectively the same thing," he said. "It's clearly inappropriate."

But others don't see it that way.

Ramey, the attorney who helped Research and Democracy get organized, said he found it ironic that the group had come under scrutiny as the result of disclosures about its spending.

"Here is one organization that is abiding 100 percent by the spirit as well as the letter of the law regarding disclosure," he said. "And I think that may be more unique than we can imagine."

A group called Research and Democracy made contributions valued at $83,976.03 to 10 state legislators in 2005. Here's how those lawmakers reported the donations:

Rep. Judy Solano, D-Brighton, $12,317.25, for "constituent communication."

Rep. Gwyn Green, D-Golden, $12,282.30 for "constituent mailings."

Rep. Debbie Benefield, D-Arvada, $12,223.50, for "mailings encouraging communication between Deb and her constituents."

Rep. Michael Merrifield, D-Manitou Springs, $11,167.71 for "mailings."

Rep. Bernie Buescher, D-Grand Junction, $8,055.55 for "constituent mailings."

Rep. Wes McKinley, D-Walsh, $6,869.52 for "encouraging communication between you and your constituents."

Rep. Buffie McFadyen D-Pueblo West, $6,080.12 for an "in-kind donation to office account for constituent services and constituent communications."

Rep. Jim Riesberg, D-Greeley, $6,012.29, for "constituency contact."

Rep. Morgan Carroll, D-Aurora, $4,620.78 "paid for constituent mailing to district asking citizen opinions in survey form to give feedback from district to me on public policy opinions in my district."

Rep. Mary Hodge, D-Brighton, $4,347.01 "constituent communication encouragement."