Why Kane credit card reforms may be illegal

Nearly all of the limitations Kane County sought to impose on employees' credit card use are illegal, according to State's Attorney Joe McMahon.

Coroner Rob Russell's use of a county credit card to pay for $5,000 in promotional items fueled plans to new rules to limit their use.

Even after Russell reimbursed the county with a personal check, officials moved to limit card use.

Pending changes, now in the final stage, would cut the number of cards in circulation and put new caps on single transaction costs and monthly charges.

But a letter issued to county board Chairman Chris Lauzen's office late Tuesday says the credit card policy changes "impermissibly interferes with the day-to-day operations of the elected officials' offices. The proposed policy exceeds the statutory authority of the county board."

Specifically, McMahon said, any new policy that requires an elected official to get county board approval for which employees can have or use a credit card goes too far.

Likewise, any changes that restrict an elected official's ability to spend the funds allotted to the office through the county's budget also run afoul of the law.

"Once that budget has been set, how that money is spent is up to that individual officeholder," McMahon said.

The letter even goes as far as to say the county's financial policies, which are still in place, were ruled invalid by an Illinois Attorney General opinion.

That opinion says neither the county board nor the auditor have the power to approve or reject proposed purchases by county officers.

McMahon's office will work the county board to tweak the pending policy changes.

It's unclear if those tweaks will undercut the goals of the policy revisions.

The state's attorney's opinion prompted another I-told-you-so moment by Russell.

"I absolutely feel vindicated," Russell said. "When I used the credit card, I knew I had the authority to do it," Russell said. "And I only used it to make sure these local small businesses got paid. The only thing I've ever tried to do is run the office the right way."

Lauzen expressed frustration at the possible derailment of the credit card policy changes.

"I understand internal control statutes, but I also understand the duty of the people who are elected to this board," Lauzen said. "We've had an education in what the power of the purse really means unless we have the cooperation of other county elected officials."