Mayoral candidate Charlie Hales was first to come forward this summer with limits on the size of the checks he’d accept ahead of the general election: No more than $600 from any one donor. He made the announcement after taking a few last-second major gifts under the wire—in part, he said, to pay off lingering bills from the primary.

Now comes word from the campaign of his beleaguered rival, Jefferson Smith—who later followed suit with a $1,000 limit—that Hales is hoping to change the rules by arguing a technicality.

Hales wrote Smith a letter (pdf) suggesting both campaigns drop the limits on supportive unions by letting them write checks “at a rate of no more than $50 per member.” The unions could use that money, reported as an “in-kind contribution” on Hales’ finance forms, to directly purchase things like airtime and mailers and door-knockers on behalf of the campaign. A union with, say, 100 members would be able to give Hales a contribution that amounts to $5,000.

One might also call it an independent-expenditure-lite: Letting unions do the heavy lifting and spend their own money as they see fit will free the campaign to spend its own money and put Hales somewhat off the hook for the messaging those groups provide.

Hales’ letter explains by noting his initial goal was to “limit the role of large individual or corporate contributions.” He argues that this will allow unions to empower working people to get more involved and have a voice. Of course, nothing’s already stopping those members from donating the $50 on their own—they’d even get a state tax credit for it, so it wouldn’t cost a thing. But the campaign has been hearing from union members who complain that they already pay dues that are supposed to be used to support candidates, and that they can’t afford the extra check.

“The big change here is that these folks have gotten more involved in our campaign,” Hales explains to me.

Asked, then, why not encourage members to give on their own and provide the tax form necessary to make it zero-cost for members who feel “shut out”: “We’re not going to ask them to go outside their union. That wouldn’t be very nice.”

Hales also suggests the change won’t help or hurt either campaign, since both candidates have received labor endorsements—even though three unions, including the well-funded and very large fire and police unions, have bolted Smith’s tent in recent days. Smith still has the Portland Association of Teachers and the American Federation of State, County, and Municipal Employees on his side. Hales has, among others, the International Brotherhood of Electrical Workers and the Service Employees International Union.

“He still has some large unions, and they’re free to do this as well,” Hales said of Smith’s recent defections. “This wasn’t about that. This was about the plea we’re getting.”

Smith’s campaign manager, Henry Kraemer, says nothing on Smith’s side will change and that Hales, of course, is free to change his own terms as he sees fit.

This isn’t the first time Hales’ campaign has done some seemingly hinky things to end-run their own rules. The O reported that he accepted maximum gifts from a “developer, his company, his wife, and his family’s horse barn.” Asked if voters might wonder, if Hales becomes mayor, whether this means he’ll be expected to change rules whenever he sees fit or they become inconvenient, he said that’s not what anyone should think.

“This is a set of restrictions we put on ourselves,” he said, “for reasons of good public policy and democracy. This is an innovation. With any innovation, you’ll have some adjustments.”

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Denis C. Theriault is the Portland Mercury's News Editor. He writes stories about City Hall and the Portland Police Bureau, focusing on issues like homelessness, police oversight, insider politics, and...

18 replies on “Hales Wants to Start Collecting Big Checks from Unions”

  1. Interesting given Jefferson demanded Charlie his the campaign limit at $500,then Jeff takes out of state $ and thousands in union $ and waits a full 45 days before setting his $1000 limit. Jeff is the frickin slime ball. He should give back the thousands he received from the unions since they have pulled their endorsements.

  2. Inarticulately put by Hales, but it actually is kind of a nice idea to have both campaigns encourage their union member supporters to use their $50 political tax credit in the race.

  3. On the bright side, it might be nice to have someone as slimy and underhanded as Hales when it comes time to negotiate contracts with the Police union. Sometimes a corrupt fucker can actually get things done effectively: see Mayor Daley and Meigs Field, for example.

  4. Jefferson was trying to work with Hales for months to set a limit. He even worked under limits during a portion of the primary when he was trying to get the other candidates to also set limits. Jefferson never demanded anything of Hales (or anyone else). He asked and challenged both Hales and Eileen Brady to do such limits in the primary and then asked again as soon as the primary was over.

    While it was being worked on for the general, Hales’ campaign comes out an announces limits outside of the work that was being done by others between the two campaigns. The people who were working on getting those limits – the same limits on all things – approved by both campaigns felt blindsided by the Hales campaign’s actions.

    Jefferson then did a poll of its supporters to see what limits they felt would be right – I was one of many who answered that poll. They then set the limits according to what those people thought the limits should be – and at no time has he suggested going back on that commitment to keep the limits on contributions. While there have been multiple reports of the Hales campaign getting busted for taking larger contributions and then having to give them back, I have yet to hear the same of Jefferson’s.

  5. Drunk, that’s not what Hales wants. Campaign watcher, Smith was the first to set campaign limits, offered them twice to Hales and was refused. While Hales staff “negotiated” a deal, he and the rest of his staff moved forward the following day to undercut them and pretend to be the leader on the issue.

  6. Both of these guys are full of it on their “campaign contribution limits,” which are a a mere facade because they both built up war chests with donations that would have violated their pledge if they made it upon entering the race. Mr. Smith took in huge donations (including corporate donations and out of state donations from individuals in excess of $10,000) just before announcing his “campaign limits” and even has taken apparent “household donations” which exceed his $1,000 cap and out of state donations through the present.

    Also, Mr. Smith has continued in his troubling behavior pattern of evading the full truth and providing ever changing explanations of troubling events in his past and lets not forget his violent tendencies and intimidation tactics that are still on display through the recent past. His latest misstep in sending a whining, sometimes incomprehensible email to the Oregonian at 1:30 a.m. is more proof that he is not fit for public office. You don’t have to vote for Hales, but Portland citizens absolutely should not vote for Mr. Smith. Instead, research and write in a candidate.

  7. Charlie Hales is the most honest candidate ever to run for mayor of Portland and Jefferson Smith is a girl-hater who never even passed the bar.

  8. So, Hales essentially doesn’t get what “Solidarity” means. And I look for the unions who supported him in good faith to reconsider, with his suggestions that undermine the expression of that tennent.

  9. Babygorilla, check your facts–smith capped donations at $1000 the day he entered the primary. He also never took out of state organizational money, and actively discouraged IEs. Unfortunate that you would make things up.

  10. Torridjoe: Nice caveat with the “out of state organizational money.” The fact remains that he took money well above his supposed “cap,” particularly from out of staters well after his September 2011 entrance into the primary. Here are some facts for you. Straight from Orestar.

    On 5/11/2012, Mr. Smith received $20,000 from Rob McCay, an out of stater. On 2/1/2012, he received $6,000 from Megan Hull, an out of stater, On 6/17/2012, he received $5,000 from out of stater Paul Rudd. On 4/27/2012, he received $4,500 from Ava Decker, another out of stater. On 7/5/2012, $4,000 from out of stater John Lesowski. On 4, 10/2012, Mr. Rudd flipped him another $2,500, with Megan Hull kicking in another $2,500 on 6/27/2012 and $2,500 from out of stater Courtney Hull on 5/4/2012. $2,500 from Joseph Perko (guess what, not an Oregonian) on 6/18/2012. $2,000 more from Courtney Hull on 7/31/2012.

    Unfortunate that you would post a bald face lie that is easily refuted with cursory investigation (hmm, kind of like a couple of current candidates for mayor).

  11. Babygorilla: Unlike when people are taking money from out-of-state corporations and organizations, this was an instance of getting donations from friends and family who live out-of-state. Big difference. They’re supporting someone they know and who they think will be a good candidate, not someone who they’re trying to buy an election for so that they can get something later.

  12. Ms. Simonis: The claim by Torridjoe was that Mr. Smith capped donations of over $1,000 the day he entered the primary. The actual verifiable facts prove that that claim is completely false (or Mr. Smith lied when he made that cap). And no, I don’t really care if the donors are corporations or BFFs, out of state money should have no business in the Portland mayoral race and he should have refused the donations. And if his so called “pledge to cap donations” came later, it is entirely disingenuous because Mr. Smith (like Mr. Hales) already built up his battle chest.

    Write in! Don’t support a tax / vote cheat or a petulant and violent man child who can’t seem to tell the whole truth or manage his own affairs.

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