GOP, Dems trade shots over Balukoff bookkeeping

BOISE (AP) - The Idaho Republican Party accuses the Democratic candidate for governor of possibly violating campaign finance law by having the Idaho Democratic Party pay for his staff, but a spokesman for Boise businessman A.J. Balukoff says they're only doing the same thing Idaho Republican campaigns have done in the past.

At issue is a contract between the Balukoff campaign and the Idaho Democratic Party. The contract simply is for bookkeeping, Balukoff spokesman Mike Lanza told the Idaho Statesman.

State law prohibits a political party from contributing more than $10,000 in an election cycle to a candidate. That includes in-kind contributions such as paying for a candidate's staff.

"If they are paying for his staff, then they are violating the law by exceeding the legal contribution limits," Idaho GOP Executive Director David Johnston stated in a release Friday. "If they are advancing the campaign the money by paying for the staff then that should be reported as a loan."

GOP campaign finance attorney Jason Risch likewise called it an "abnormal shuffling of funds."

"I have never seen this done before, but it's clearly not within the intent of the campaign disclosure law which is designed to promote transparency," Risch said.

Lanza said the Balukoff campaign has had more transparency than Republican campaigns have shown in the past.

In 2010, Lanza said, Lt. Gov. Brad Little paid wages thru ADP Payroll Service and Gov. Butch Otter did the same through Veritas Advisors, a lobbying and campaign consulting group. GOP Sen. Russ Fulcher used a similar system in the primary, he said.

The only difference is Balukoff is using the party infrastructure for payroll bookkeeping, Lanza said.

Idaho Democratic Party spokesman Dean Ferguson said the party vetted its contract with the campaign with attorneys and certified public accountants and is confident it is legal.