Mississippi Today
Chris McDaniel, Lynn Fitch and the case of the missing $15,000
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Even if one were to believe erstwhile candidate Chris McDaniel’s incomplete, conflicting, shifting accounting of hundreds of thousands in secretive campaign donations, it still begs the question: Where did the $15,000 go?
It also begs the question: Why is Attorney General Lynn Fitch overlooking what appear to be flagrant violations of campaign finance law by McDaniel, instead only going after his out-of-state campaign finance chairman and less-clear allegations?
Longtime state Sen. Chris McDaniel’s failed run for lieutenant governor is one for the record books. Primarily, it saw record amounts of out-of-state, secretly sourced campaign money pumped into his campaign and related state PACs. It also saw allegations of flagrant violations of state campaign finance laws and reporting requirements, and has led to calls for reform by multiple statewide elected officials.
Mississippi law says a candidate or state political action committee can accept no more than $1,000 a year from a corporation.
McDaniel, running for lieutenant governor this year, created a state PAC that accepted $475,000 from a mysterious Virginia-based dark-money corporation, the American Exceptionalism Institute.
McDaniel’s PAC then funneled $460,000 of that money to his campaign. It made up the vast bulk of his bankroll as he kicked off his campaign early this year.
But his initial PAC reports appeared to obfuscate this. For starters, is showed the PAC had collected hundreds of thousands of dollars the year before it was legally created, with no sources listed for the donations. After multiple revised reports, it became clear the PAC had received $475,000 from AEI.
Eventually, after questions from Mississippi Today and complaints to the attorney general by his opponent incumbent Lt. Gov. Delbert Hosemann, McDaniel said he was returning the money to AEI.
Problem is, by McDaniel’s own accounting, his PAC only returned $460,000 to the corporation.
What happened to the other $15,000?
Mississippi voters will likely never know. His final “termination-amended” report for his PAC gave no accounting. And Fitch appears to have closed the book on that complaint.
And despite laws that require candidates to divulge the sources of campaign donations, they’ll likely never know the original source of the $475,000 from the American Exceptionalism Institute, which has pumped millions of secretly sourced dollars into campaigns across the country.
They’ll also likely never know all the sources of the total of nearly $1 million more pumped into a separate PAC that McDaniel’s Wisconsin based treasurer created in the eleventh hour of the 2023 race to run TV attack ads on Hosemann.
McDaniel has said he knows very little about the finances of his PAC or campaign, and as he faced questions about them over months, he often chalked problems up to “clerical errors” and provided few other comments.
But in a statement for this article, he refuted that $15,000 remains unaccounted for.
“As a candidate, I have no involvement in the financial operations of any committee or PAC,” McDaniel said. “But I’ve been advised that all the money from the (American Exceptionalism Institute) was refunded.”
McDaniel has refused to answer what he knows about AEI or why it would pump nearly half a million dollars into Mississippi’s lieutenant governor’s race. Little information on AEI is available online, and efforts by Mississippi Today — and several other media outlets over years — to contact the organization or find more details have been fruitless.
When he announced he was returning the money, McDaniel said he believes Mississippi’s corporate donation limit laws are unconstitutional and would fall to a legal challenge. But he said he did not have time or resources for such a challenge, so he was giving it back.
McDaniel has referred to the landmark U.S. Supreme Court Citizen’s United ruling in 2010, which held corporations and PACs can spend unlimited amounts on broadcasts and communications related to an election, provided they act independently of any candidate.
But courts have also upheld state limits or bans on corporate donations to campaigns or state PACs. Only five states allow unlimited corporate campaign donations, while 23 ban them. The other 22 set some restrictions on corporate donations.
Mississippi’s campaign finance laws are seldom enforced, and allegations of violations seldom investigated. The state’s laws regulating a politician’s campaign cash and reporting appear to fall under a special Oops Doctrine. If a campaign accepts an illegal contribution or makes a glaring omission or mistake on a report, it can typically avoid investigation or prosecution by giving the money back, amending reports or filing them later. Few other laws offer this escape.
But typically, these appear to be legitimate mistakes and oversights by large campaigns for far smaller donations. They are typically flagged by the campaigns themselves, the money returned promptly and the transactions duly noted on finance reports.
McDaniel’s PAC and campaign appear to have held onto AEI over-the-limit money for months, and its reporting was confounding. At one point, McDaniel’s PAC reported it returned $460,000 to AEI on the same day it received $237,500 from the corporation. His many amended reports have been difficult to follow.
READ MORE: Chris McDaniel’s reports deny accurate public accounting of campaign money
Mississippi Today first raised questions about McDaniel’s campaign finances in February, and Hosemann filed his first legal complaint with the attorney general’s office in March. For months, AG Fitch’s office’s only response was, “We are looking into it.” This prompted calls for investigation and enforcement. Secretary of State Michael Watson at the Neshoba County Fair called for lawmakers to give his office campaign enforcement authority. He said, “When people do not do their jobs, I will stand in the gap for Mississippians” — a clear dig at Fitch.
Amid this pressure, just days before the primary election, Fitch announced she was investigating the separate PAC run by McDaniel’s campaign treasurer. The Invest in Mississippi political action committee was created in July by Wisconsin political operative Thomas Datwyler, who McDaniel also listed as his campaign’s treasurer. Datwyler has a history of running afoul of Federal Election Commission campaign finance rules with several congressional campaigns.
Datwyler’s PAC ran ads against Hosemann late in the race, fueled by at least $885,000 in donations from out of state super PACs. Hosemann’s campaign had filed another complaint late in the race that the PAC-to-PAC donations were an attempt to dodge the $1,000 corporate donation limits, and that the PAC cannot claim it is independent of McDaniel because it’s run by his campaign treasurer.
READ MORE: Out of state PACs dump dark money into McDaniel’s lieutenant governor’s race
In a statement announcing the investigation, Fitch said, “The people of Mississippi should be able to expect that those who participate in our electoral process will not seek to exploit this careful balance and step over that line, and in this instance, there is evidence to suggest that has occurred here.”
Fitch did not mention McDaniel in her announcement of the investigation, but a spokeswoman for her office later indicated the office was also investigating another complaint raised by Hosemann.
READ MORE: Fitch says she’s investigating PAC run by Chris McDaniel treasurer
But the spokeswoman also said another earlier complaint had been looked into and closed. This, the Hosemann campaign confirmed, was the original complaint about McDaniel’s PAC, the campaign and the $475,000 AEI donation.
Fitch’s office has declined comment on why it would not pursue the original complaint, including where the unaccounted-for $15,000 went. McDaniel appears to have acknowledged violation of the campaign donation limit laws, saying repeatedly he would likely win a legal challenge of the law.
Many political observers have surmised Republican Fitch is loathe to go after complaints about McDaniel for fear of angering his conservative base in the state GOP. Fitch’s office has faced some complaints of failing to fulfill responsibilities of the office, instead focusing on big headline-grabbing national issues and cases.
READ MORE: Chris McDaniel, Lynn Fitch show that Mississippi might as well not have campaign finance laws
In a statement, Hosemann spokeswoman Leah Smith said: “When our opponent received $475,000 from the corporation and returned only $460,000, we contend a violation of the campaign finance laws occurred. It was impossible to determine what happened with those funds because accounting was so poor throughout, in addition to all of the other violations. We anticipate a number of legislators will be enthusiastically interested in reform this year and our office is, too.”
McDaniel, who after his defeat for lieutenant governor will be vacating his state Senate office in January after 16 years, was once himself a vocal champion for campaign finance reform and more transparency for voters of the source of politicians’ money. His latest campaign’s legacy, it appears, may be an invigorated push for reform.
In his victory speech on primary election night, Hosemann said: “When you have this much dark money pumped into a race — almost $1 million in the last week — it screams for reform. We are going to listen to those screams.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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Mississippi Today
Ocean Springs homeowners file appeal challenging state’s blight laws
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Ocean Springs homeowners on Wednesday appealed a federal court’s decision to dismiss their lawsuit against the city. The dispute stems from the city’s 2023 proposed urban renewal plan that would have permanently labeled some properties as “slum” or “blighted.”
While later that year the city voted against the plan after receiving public pushback, as the Sun Herald reported, the plaintiffs maintain that the state code behind the city’s plan violates their constitutional right to due process. They also argue that there’s nothing stopping the city of Ocean Springs, whose mayor, Kenny Holloway, supported the plan, from reintroducing the idea down the road.
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In January, U.S. District Judge Taylor McNeel granted the city’s motion to dismiss the lawsuit, saying the appropriate way to contest the urban renewal plan was by appealing to their locally elected officials.
“This is somewhat evident by how the Plaintiffs’ complaints to their elected leaders have resulted in their properties being removed from the urban renewal area,” McNeel wrote in his opinion. “In a way, the Plaintiffs have already won.”
Under Mississippi law, cities are not required to notify owners of properties that they label “blighted,” a distinction that doesn’t go away. On top of that, those property owners only have 10 days to challenge the designation, a limitation that doesn’t exist in most states, an attorney for the plaintiffs told Mississippi Today in 2023. In 2023, property owners whose land was labeled “blighted” in the Ocean Springs urban renewal plan didn’t know about the designation until months later.
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While Holloway, who also owns a real estate and development company, maintained that the city never wanted to forcibly take anyone’s property, a “blight” designation would have allowed the city to do just that through eminent domain.
The nonprofit Institute for Justice represents the five homeowners and church that filed the suit in Wednesday’s appeal to the 5th U.S. Circuit Court of Appeals.
“Mississippi governments cannot brand neighborhoods as slums in secret,” Dana Berliner, an attorney at the institute, said in a written statement. “Obviously telling a person about something when it’s too late to do anything is not the meaningful opportunity to be heard that the U.S. Constitution’s Due Process Clause requires.”
The nonprofit said it plans to make oral arguments in the New Orleans court later this year.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
As UMMC continues decade-long quest for cancer designation, former leaders say the medical center previously lacked commitment to cancer care
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Mississippi’s only academic medical center hopes to gain a national research designation that could improve outcomes for cancer patients in the state with the highest cancer mortality rate in the country.
The University of Mississippi Medical Center has sought National Cancer Institute designation since 2012, a process it then expected to take five years, the Jackson Free Press reported at the time. Over a decade later, the medical center is again in the early stages of readying itself for an application.
“This is the top priority of the University of Mississippi Medical Center, with staunch support from executive leadership,” said Patrice Guilfoyle, a spokesperson for UMMC.
Guilfoyle declined to say what has prevented the cancer center from reaching its goal over the past 13 years beyond citing changes in leadership and the COVID-19 pandemic. But Mississippi Today spoke with former faculty members who said UMMC previously closed a critical program and lacked the institutional commitment necessary to achieve the status.
The National Cancer Institute, a federal agency run by the National Institutes of Health, recognizes cancer centers that meet rigorous requirements for laboratory and clinical research and translate scientific knowledge into innovative treatments for patients. They also provide training for the next generation of cancer-care professionals and perform outreach to the community. Designated centers receive a support grant from the agency and have access to early clinical trials.
Studies have shown that patients treated at NCI-designated centers have lower mortality rates than people treated at non-designated cancer centers.
Cancer is the second leading cause of death in Mississippi, according to the Centers for Disease Control and Prevention. Mississippi’s cancer death rate is 25% higher than the national average.
Dr. LouAnn Woodward, vice chancellor for health affairs and dean of the UMMC School of Medicine, wrote in 2022 that gaining the designation was an “ethical imperative.”
She spoke again of its importance at a recent legislative budget hearing for the medical center.
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“With Mississippi’s health outcomes in cancer being as terrible as they are, we are committed to working towards this NCI designation,” said Woodward Jan. 14. “It is the thing that will change cancer outcomes in Mississippi.”
There are 72 NCI designated centers nationwide, but none in Mississippi, Louisiana or Arkansas. Cancer patients in Mississippi seeking care at a designated center must travel to Memphis, Birmingham, Dallas or Houston. The designation was first introduced in the 1970s as a part of a national initiative to increase Americans’ access to cutting-edge cancer treatment.
Achieving the designation will be a “long, heavy lift,” that could take as long as a decade, said Dr. Rodney Rocconi, who has served as director of UMMC’s cancer center since 2023. It will require the center to recruit faculty, expand its research capacity and demonstrate strong programming in community outreach and prevention.
The application process is like an “ultra marathon,” said Dr. Barry Sleckman, the director of the University of Alabama at Birmingham O’Neal Comprehensive Cancer Center, one of the nation’s first-ever NCI designated cancer centers and the only one in Alabama.
The state Legislature increased its appropriation for the cancer center to $9 million for the current fiscal year – a nearly $5 million increase. The additional funding is being used for research infrastructure, clinical trials and to recruit researchers.
UMMC has already made significant progress recruiting research faculty, according to Rocconi. In the past year, it has hired 14 faculty members of the 30 he estimates will be necessary to strengthen the center’s research programs and amass the requisite level of federal research grant funding for an application.
Many of the hired faculty members bring federal research grants with them, said Rocconi. A strong NCI designation application requires a cancer center to hold $10 million in cancer-related research funding, though some experts suggest twice that amount is needed.
UMMC falls short of that benchmark. UMMC currently has $3.8 million worth of active federal National Institutes of Health cancer-related research grants, one major source of peer-reviewed cancer research funding, according to publicly available data. Just $500,000 of that funding comes from the National Cancer Institute itself, the most coveted funding source for aspiring NCI-designated cancer centers.
These federal grants could be reduced due to a recent Trump administration policy that would cut the portion of National Institutes of Health grant funding available for overhead costs. The change has been temporarily blocked by a federal judge.
Dr. John Ruckdeschel served as the director of UMMC’s Cancer Center and Research Institute from 2017 to 2020. He previously led Moffitt Cancer Center in Tampa to gain NCI designation in 1998 in seven years and helped the Barbara Ann Karmanos Cancer Center in Detroit regain its NCI status.
He hoped to do the same at UMMC, but retired in 2020 after becoming frustrated by what he said was the medical center leadership’s lack of support and funding aimed at helping the cancer center achieve the designation. The COVID-19 pandemic created another hurdle, one Ruckdeschel acknowledges was not the fault of the medical center.
“It is, in fact, difficult to see that there is a genuine institutional commitment to cancer care and cancer research at UMMC,” he wrote in his resignation letter in 2020.
The year he joined UMMC, the Legislature slashed its appropriation for the cancer center from $5 million to $4.25 million. Facing this financial setback, UMMC depended heavily on researchers’ grant funding to support the cancer center but did not invest sufficient resources to retain faculty members and keep an essential program open, Ruckdeschel said.
Grant funding rarely covers the costs of researchers’ salaries and laboratories, Ruckdeschel wrote in a 2020 article about UMMC’s strategy for achieving NCI designation. So if more scientists are hired – even if they bring federal grants with them – the institution must dedicate resources to the center.
“You have to make a pretty major commitment from the University,” Ruckdeschel said. “And they’ve just never been willing to do that.”
NCI-designated centers are required to have community outreach and engagement programming, which UMMC plans to house in the School of Population Health. The cancer center is currently in the process of hiring population health researchers who will direct outreach and engagement efforts, Rocconi said.
However, in 2021 medical center leadership shuttered a program that would have fulfilled that requirement. The program focused on increasing cancer screenings, researching disparities in access to preventive care and exploring variables that impact access to cancer treatment in Mississippi, said Michael Stefanek, the former associate director of the program.
The closure means community outreach efforts must be rebuilt from scratch, said Roy Duhe, one of the program’s former faculty members. “I saw no reason to close that program,” he said.
A community outreach and engagement program is one of the more difficult requirements of a National Cancer Institute application to satisfy because it is unlikely to be funded by grants and requires significant institutional financial support, said Sleckman, the director of Alabama’s NCI-designated institution.
Guilfoyle, a spokesperson for UMMC, declined to say why the program was eliminated, but said work to increase cancer screenings and research disparities in preventive care and access to cancer treatment are ongoing at the institution.
The cancer center has outreach programming for lung cancer screenings, telehealth and chemotherapy symptom tracking.
UMMC also plans to construct a new cancer center building – a five-story, 250,000 square foot facility – that will be housed on UMMC’s main campus and facilitate more collaboration between scientific research and clinical care. The medical center initiated a $125 million capital campaign last month and received its largest-ever donation of $25 million for the building.
“The main focus and the main priority of UMMC is towards cancer,” Rocconi said. “…Our patients and our state need it.”
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1967
On this day in 1967
Feb. 27, 1967
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Wharlest Jackson Sr., a Korean War veteran and treasurer of the NAACP branch in Natchez, Mississippi, became a Ku Klux Klan target after he was promoted to a whites-only position at his job in Natchez.
It was a promotion his wife, Exerlena Jackson, wanted him to turn down because of what had happened two years earlier to their friend, George Metcalfe, who received a similar promotion — only to be injured by a bomb when he started his 1955 Chevrolet. The Jackson family helped nurse Metcalfe back to health.
Wharlest Jackson had just finished his shift at the Armstrong Rubber and Tire Co. and was heading home. Four blocks later, the turn signal tripped the wire to a bomb that Klansmen had planted in his truck. The explosion killed him instantly, hurling the roof of his truck hundreds of feet.
His 8-year-old son, Wharlest Jr., ran to the scene and returned home with his father’s shoe.
“He was 36 and in the prime of his life,” recalled his son. “He had the right to life, liberty and the pursuit of happiness, and they took that away.”
Despite an FBI investigation, his killers were never prosecuted.
“A lot of people have tried to push my daddy’s death under the rug,” his son said. “We’re still trying to pull it out into the light.”
Wharlest Jackson Sr. is among 40 martyrs listed on the Civil Rights Memorial in Montgomery, Alabama.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
The post On this day in 1967 appeared first on Mississippi Today.
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