Newsom stages rally under cloud
of unpropriety and preferential treatment

From the office of Supervisor Chris Daly

June 12, 2007

Potential Ethics Violation: Newsom Using Public Resources for Electioneering Purposes

Today, the Office of Supervisor Chris Daly acquired documents that indicate the Mayor's Office may have exercised undue influence to secure public space in front of City Hall for a Wednesday budget rally.

Documents show that the Mayor's Office applied for authorization for the "Mayor's Budget Rally" on Thursday, June 7th. Documents show that Supervisor Chris Daly's Office applied for the rally space a day before, on Wednesday, June 6th, and the Supervisor's Office received voice confirmation on that day that they had appropriately secured the space. On June 7th, Supervisor Daly's Office was notified that the steps were booked by the Mayor's Office. These facts create the very strong appearance that the Mayor's Office used their position improperly to trump Supervisor Daly's rally. Supervisor Chris Daly said,"I am very concerned about the cloud of impropriety surrounding the Mayor's budget engagement. Documents show that we appropriately reserved space for our budget rally first. Fair is fair."

Today, Supervisor Daly issued a memo to the Ethics Commission raising serious questions about possible improper use of public resources by the Mayor's Office. Daly cited Newsom '07's emails, website, and phone calls that make it seem as if tomorrow's "Mayor's Budget Rally" is an official Newsom '07 campaign event. Public resources, including staff time, are prohibited from being used for electioneering purposes. Supervisor Daly's memo also questions whether Newsom 07 campaign funds can be appropriately used for office holder purposes and whether they count as "qualified campaign expenditures."

In the wake of these revelations, Supervisor Daly cancelled Wednesday's Budget Hearing which has become a main focus of the Newsom '07 campaign. "I want to ascertain whether public resources were inappropriately used for electioneering purposes and whether Newsom '07 is appropriately engaging the legislative process before making crucial decisions in this year's budget process," said Daly.

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