TUESDAY, MARCH 30, 2010
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RNC expense report renews criticism about Steele’s spending and leadership
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marketing firm has earned more than $160,000 from the RNC and other Republican committees, ac- cording to campaign disclosure records. The RNC’s expenses, first high- lighted by the Daily Caller, set off another round of GOP infighting over Steele, whose combative style and frequent pratfalls have earned him friends and enemies.
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The chairman angered many par- ty insiders by releasing a book this year without notifying Re- publican leaders; he stumbled into another controversy this month after the leak of an RNC fundraising document featuring crude caricatures of President Obama and other Democratic leaders.
Steele also has come under fire for his management of the organi- zation’s finances. The RNC had
more than $22 million on hand when he arrived last year, but is down to less than $10 million, de- spite raising a record $96 million during that time, records show. The February report to the Fed-
eral Election Commission lists $17,000 for private jet service; more than $35,000 for upscale hotels; and more than $43,000 in expenses, not including airfare, for the committee’s winter meet- ing in Hawaii. Such reports in-
clude a range of spending, includ- ing Steele’s airfare as well as ex- penses incurred by staff members and outsiders. “The RNC’s role, and thus the chairman’s role, is to raise money, fund candidates, recruit candi- dates and voters into our cause,” said John Weaver, a GOP strat- egist and former adviser to Sen. John McCain (R-Ariz.). “Setting policy, choosing sides and crazy spending does not fall under his
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job description.” Mark DeMoss, a major RNC do- nor during George W. Bush’s pres- idency who heads a Christian public-relations firm in Atlanta, said that spending so lavishly dur- ing an economic downturn is “mind-boggling.” “Virtually the entire country — from big busi- nesses to small business — had to make cutbacks,” he said. “To think the Republican Party wouldn’t do the same thing, I think, suggests
either a tone-deafness or just that they don’t care, which would maybe be worse.” But others defended Steele and
his financial record and pointed to GOP success in recent elec- tions in Massachusetts, New Jer- sey and Virginia. “You do have to spend money to raise money,” said Dick Wadhams, chairman of the Colorado GOP. “I’ll give Chairman Steele the benefit of the doubt on spending on major donors.”
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An RNC investigation of the in- cident found that the Voyeur par- ty was attended by a group of young Republicans who had been at an official party “Young Eagles” event at the Beverly Hills Hotel the same night, according to an internal memo obtained by The Washington Post. The Young Ea- gles is an RNC program to culti- vate 30-to-40-year-olds as major future donors. The request for reimburse- ment was then submitted on be- half of Brown by an unidentified RNC staffer who “was aware that this activity was not eligible for reimbursement and had been previously counseled on this very subject,” according to the memo, which was written by the com- mittee chief of staff, Ken McKay. The staffer was fired because of the incident, the memo said. RNC spokesman Doug Heye
said Monday night that “appro- priate personnel actions have been taken, and accounting and reimbursement processes are be- ing revised to ensure that such an action cannot reoccur.” He also said Brown would return the pay- ment. “We recognize the difficul- ty this incident has caused and assure our members and sup- porters that any necessary and proper remediation is being im- plemented immediately,” Heye said. The Democratic National Com-
mittee said that its chairman, Timothy M. Kaine, usually travels on commercial flights and does not generally use limousine or town-car services. “We think their extravagant spending and their high burn rate speaks for itself,” spokesman Brad Woodhouse said. But Heye noted that paying for high-end hotels and other accou- trements is standard practice for both political parties when woo- ing wealthy donors. He said most of the expenses for the private jets and car services for Steele de- tailed in the February reports were related to the start of televi- sion advertisements in the South and Midwest.
Brown, the chief executive of
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Dynamic Marketing, which has offices in California and the Dis- trict, did not respond Monday to telephone and e-mail messages. He has contributed $10,000 to GOP candidates and committees since 2007, and wrote on Twitter last Oct. 26 about attending a Monday-night football game at FedEx Field with Steele. Voyeur attracted celebrities such as Lindsay Lohan and Leo- nardo DiCaprio to its fall open- ing. Club managers did not re- spond to telephone messages left Monday.
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Staff writers Philip Rucker and Chris Cillizza, research director Lucy Shackelford, and research editor Alice Crites contributed to this report.
EPA calls BPA a ‘chemical of concern’
The Environmental Protection
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Agency announced Monday that it is formally listing Bisphenol A — a chemical found widely in con- sumer goods — as a “chemical of concern.” The chemical is added to plas- tics to harden them and has been used in soda cans, baby bottles and food containers. It is so wide- spread that 90 percent of Amer- icans show traces of it in their urine. In recent years, studies have linked BPA to heart disease and cancer in humans and to ab- normal development in animals. In January, the Food and Drug Administration said it had con- cerns about the chemical’s effect on human health. The EPA’s decision to add BPA
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to the “chemicals of concern” list does not trigger any new reg- ulation. But the agency also or- dered manufacturers to test the chemical’s impact on animals and the environment. The EPA will also test to see how much BPA leaks into the air and water from facilities where it is made or into dumps where it is disposed. The American Chemistry Coun-
cil, a trade group, responded that studies have “affirmed that BPA is not a risk to the environment at current low levels.”
— David A. Fahrenthold
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