Brannon: Campaign finance controversy "wrapped around an axles"
By BRUCE COLLIER
Walton County Commissioner Scott Brannon wants to set the record straight on what he considers to be an unfairly and unduly complicated set of issues regarding his campaign finances.
The Florida Elections Commission (FEC) has investigated a complaint that Brannon violated Florida law in certifying as correct a campaign treasurer's report that was allegedly "incorrect, false, or incomplete." The inquiry focuses on Brannon's 2004 campaign for the Board of County Commissioners (BCC). The complaint was brought by Guy Davidson, campaign manager for Brannon's opponent, former commissioner Lane Rees. Brannon defeated Rees in a sharply contested race.
Specifically, Brannon is alleged to have purchased television advertising time through the Petermann Corporation, and failed to report that expenditure on his 2004 campaign treasurer's report (CTR).
Brannon says that he did not report the expenditure on the CTR in question because at the time he filed the CTR, he had not yet received the invoice for the expenditure. Brannon had an agreement with Petermann under which Petermann would purchase media time, and that Brannon would not write any checks directly to television stations WMBB-TV and WJHG-TV. Brannon received a single all-inclusive invoice from Network Productions, a division of Petermann Corporation.
This, said Brannon, was Petermann's standard practice. Brannon never received individual, itemized invoices from the stations themselves.
"The commercials aired before the billing cycle of the TV station to Petermann started."
At the time the commercials began airing, Brannon had not yet received an invoice, but had an expenditure report due to be filed. Brannon believes that the airing of the TV spots prior to a report of expenditures led some to believe that "I was being granted some kind of credit, I was being... somebody was fronting this money."
Brannon said that he paid and reported the expenditure when he received the invoice from Network Productions. "The issue is the difference between cash and accrual accounting."
Brannon adds that he could not have reported an expenditure without an actual receipt.
"All money was accounted for, all bills were paid that I received."
Also, says Brannon, all funds used to pay for the ads came from Brannon's campaign account, that the account was not underfunded, and that Petermann did not "use his credit" to pay for the ads. "My personal bank records clearly reflect that the entire amount of the invoice was transferred from a checking account, mine personally, to my campaign account. And it was paid. Was it an expenditure when the ads were placed, or was it an expenditure when I received it? It would have been improper and not even followed policy to report something I didn't receive. Accrual accounting has been used in political races forever.
"This whole thing has gotten so wrapped around the axle, and so many other things into play."
The FEC staff recommendation is that there is "probable cause" to charge Brannon with violating the statute.
Responding to another newspaper's headline that he has accepted a $1,000 fine, "I have not formally accepted anything. That's totally misleading. I reported every expenditure as I have received them. I want to make the case clear to the people that I did nothing wrong."
Brannon has 20 days in which to decide whether to accept the decision and pay the fine, or to proceed further. He has not made up his mind.
"I've done nothing wrong," he said, "and there's nothing changed...."
Commenting on the recent consent agreement signed by the Walton Association of Voters on campaign finance law violations, Brannon said, "it's a system that's designed... it will wear you down to the point that you spend thirty to forty thousand dollars on a thousand dollar fine. So what do you think most people do?
"My attorney has handled clients all over the state of Florida and most of them pay the fine. Most of them don't have this media exposure, and they pay it."
He also noted that the complaint was brought by Guy Davidson, the campaign manager of the defeated candidate Lane Rees. "Did an ordinary voter and citizen file this thing? No."