Gov. candidates taking cash from companies with state ties

In a campaign where every candidate is championing ethics and reform, a review of early fundraising reports shows many of those seeking to be governor are taking money from companies receiving taxpayer dollars.

Thanks in part to sizable loopholes, the money is rolling in for governor candidates despite a new campaign finance law much heralded by politicians at the time as the end of "pay-to-play."

"Just because there is a big pile of cash, doesn't mean you should take it," said David Morrison, deputy director of the Illinois Campaign for Political Reform.

Among the donations at issue, Republican candidate Andy McKenna has received more than $13,000 from executives at companies that do business with the state, according to a review of campaign finance reports.

McKenna says his campaign staff is looking into whether the contributions violate the law, while it remains unclear what state agency - if any - will make a final determination.

The former head of the Illinois Republican Party declined to discuss the matter in any detail after a debate late Wednesday, and his campaign spokesman offered little more on Thursday.

"The McKenna campaign goes above and beyond what the law requires in terms of informing donors of campaign contribution prohibitions," spokesman Lance Trover said. "Having said that, if we find there are instances where someone inadvertently made a contribution they should not have made we correct it immediately."

The donations came from executives of four different companies that have state contracts of up to $750,000 for consulting, food services, financial services and construction with agencies that include the tollway and prisons.

Under the law, companies seeking or holding state contracts of more than $50,000 under a statewide office are not allowed to contribute to candidates for that office.

If a violation is found, the candidate will have to write a check for the donated amount to the state's general revenue fund. The company could lose its state business if three violations occur within 36 months.

It is up to the company to tell the candidate it has state business.

Rupert Borgsmiller, assistant executive director of the Illinois State Board of Elections, said his agency isn't in charge of policing the donations or checking to see if they come from state contractors.

When it comes to meting out punishment, Borgsmiller said that would fall to the various state managers who handle contract awards.

At the same time, there are a number of large legal loopholes that were adopted after the original law was signed in 2008.

Morrison says it is those loopholes that are making the pay-to-play ban weaker.

"I'm not going to say the floodgates are open, but there is a whole lot more water leaking through right now," said Morrison, whose organization originally championed the law.

One of those loopholes, Morrison says, appears to apply to companies that receive tens of millions of dollars for health-care services.

Gov. Pat Quinn received $20,000 on Jan. 6 from three such companies.

Quinn's campaign says those companies qualify under an exemption for entities reimbursed by the state for services or "purchase of care agreements."

Campaign spokeswoman Elizabeth Austin says the staff is reviewing the matter but is confident they are within the law.

Another loophole is for companies working on contracts administered by the state but paid for in part by the federal government for transportation projects. The exemption was pushed by the federal government, which feared a smaller pool of bidders would be available under the original law.

Republican State Sen. Bill Brady of Bloomington received $1,000 from a Highland construction company that has a $1.9 million transportation contract.

However, it remains unclear if the company is working under a federal contract. A company executive couldn't be reached for comment.

Brady campaign manager Dan Egler said, "Obviously the campaign will review them and take whatever actions might be appropriate and necessary."

Full campaign disclosure reports are not yet due for the primary. The Daily Herald reviewed smaller reports that are required for donations of more than $500 since Jan. 4. The primary is Feb. 2 and full disclosure reports are due Jan. 20.

Limits on all contributions, approved late last year, will not take effect until the 2012 elections.

Morrison says he expects that law to have a better impact on separating campaign cash from taxpayer dollars.

Illinois Comptroller Dan Hynes of Chicago is also running for governor in the Democratic primary against Quinn. Other Republican candidates for governor include DuPage County Board Chairman Bob Schillerstrom of Naperville, former Illinois Attorney General Jim Ryan of Elmhurst, Chicago conservative commentator Dan Proft, Hinsdale businessman Adam Andrzejewski.