Posted: Saturday, May 11, 2013 3:22 am

Associated Press

BOISE, Idaho (AP) — Republican U.S. Sen. Mike Crapo’s campaign said Friday it lost $250,000 after a former campaign manager loaned the money to a friend who contends somebody else later stole it.

Crapo, who said he learned of the loan in 2010, two years after it was made, is amending his Federal Election Commission campaign finance reports for the third quarters of 2008 and 2009 to reflect the loan.

Until now, it hasn’t been reported separately in Crapo’s public FEC filings, a potential violation of the agency’s rules.

The loan was approved in 2008 by ex-Crapo campaign manager Jake Ball, who submitted his resignation Thursday as district director for Republican U.S. Rep. Raul Labrador. The money went to an Idaho-based company, Blueberry Guru, an investment company that’s now defunct.

Ball has known Blueberry Guru owner Gavin McCaleb for 16 years.

Crapo said Ball gave the money to McCaleb’s business, which reinvested it in a real-estate venture in California and Nevada. Crapo didn’t give details of the recipients of the money, but his lawyers say they’ve disappeared.

“The loan was never repaid,” Crapo said. “According to Gavin McCaleb… Blueberry Guru handed the funds over to a third-party venture that absconded with the money.”

Crapo, who sits on the Senate’s Banking and Finance committees, said he has approved other, federally protected investments in the past by the campaign, but had no knowledge of this transaction until it was brought to his attention in 2010.

It’s been a difficult year for Crapo already since his driving under the influence arrest in December in Virginia followed by his January guilty plea.

He lost his driver’s license for a year.

Ball’s last day in Labrador’s office will be May 31. He said Labrador would have allowed him to stay on, but elected to exit to pursue a personal business venture.

He said he didn’t try to keep the loan secret.

“We never generally discussed investments,” Ball said, of why Crapo was never told of the transaction. “He trusted me to place cash and I did.”

He said he regrets the campaign lost money, but calculated in 2008 that he’d done sufficient due-diligence on his investment with his friend to conclude that the transaction was appropriate.

“I saw what Gavin was going to do on his end, I saw how the funds were going to be held, and I evaluated it to be safe,” he said.

Crapo’s Washington, D.C. lawyer Stephen Ryan said Ball is “embarrassed” by his poor business judgment, extending a loan to a friend without telling his boss.

“Mr. Ball made an error of judgment, there’s no evidence he intended to benefit personally in any way,” Ryan said, adding he’s uncertain how the FEC will proceed. “The FEC may want to take action against someone, they may want to investigate.”

An FEC spokeswoman in Washington, D.C., declined to comment on the case.

Ryan said Crapo was in a transition period between two campaign treasurers in 2008, a situation that afforded Ball authority as sole signatory to withdraw the $250,000 from a bank and lend it to McCaleb without another campaign official scrutinizing the transaction.

McCaleb, who declined comment Friday, is listed on his website as a real estate salesman in Boise with 10 years of experience flipping houses.

He sought federal bankruptcy protection in 2011. The case was closed in 2012.

Crapo said he’s sought to resolve the matter since learning of the loan in 2010, including referring the case to the FBI and the U.S. Attorney’s office. He said they concluded their investigation without filing charges.

Hired later, Ryan told the campaign that further efforts to recover the lost cash were neither cost-effective nor likely to succeed, in part because McCaleb is broke.

“He’s bankrupt,” Ryan said, adding McCaleb “took people’s money and invested it. Based on our experience, he didn’t do a very good job.”

Crapo now has $3.4 million in his campaign treasury, according to his most recent FEC filing, a figure that now reflects the $250,000 loss. He faces re-election in 2016.

First and now: We absolutely must hire a political director to help candidates and activists. One of the greatest tools we have is our Votebuilder database, which connects voters to candidates. The political director’s job to help everyone use that database.

If you haven’t joined our Dem Drive, please join now. Small contributions make a big difference. Big contributions make up for those who can’t afford to help right now. If a tiny percentage of Idaho Democrats contributed, the IDP would have enough money to be as competitive as we need to be. Competitive candidates win elections.

Click to donate anywhere from $5 a month to $1,000 a month.

These elections matter. So, remember school Board elections will be May 21.

Find more information on who is running in your area, check with your county clerk’s office.

StateImpact Idaho is running a great series on this issue.

Only if we keep voting for him …

Popkey: Resigned to its dysfunction, Risch loves the Senate
By DAN POPKEY — Idaho Statesman

Idaho Sen. Jim Risch celebrated his 70th birthday Friday, content in his likely re-election in 2014 to another six years where he can fine-tune his expertise on the Middle East and North Africa.

“You know, I really enjoy this job. I really like this job,” Risch said last week, saying it’s a breeze compared to the seven months he served as governor in 2006. “Governor will wear you down. You can’t do that job permanently. This you can do ad infinitum.”

Home for a Senate recess that included a visit with the Statesman editorial board, Risch was remarkably passive about the failure of Congress to deal with the country’s problems, starting with a $16 trillion debt.

“I can’t explain to you how dysfunctional it is back there,” Risch said, predicting it will take a catastrophe for the national legislature to tackle its responsibilities. “They’re really not bad when it comes to crisis. If there’s a war, if there’s, you know, like the Dust Bowl in the 1930s, those kinds of crises seem to bring people together.”

Rather than stick his neck out like his Idaho GOP colleagues — Sen. Mike Crapo and Reps. Mike Simpson and Raul Labrador — Risch has avoided leadership on the debt crisis or immigration.

The biggest splash of his four-plus years came last month, when he was the voice of Republicans vowing a filibuster aimed at stalling votes on gun legislation, a sure-fire base builder for re-election.

Risch also is proud of employing a temporary block of President Barack Obama’s nomination of Sally Jewell as Interior secretary. The tactic was meant to persuade the administration to embrace Gov. Butch Otter’s plan to keep sage grouse off the endangered species list.

“If you’ve got a low tolerance for frustration with the governing process this isn’t the job for you,” Risch said. “You’ve got to learn to do the best you can, get what you can and move on.”

Risch touts his role as the top Republican on the Foreign Relations Subcommittee on Near Eastern and South and Central Asian Affairs, which tracks North Africa and the Middle East. That’s meant a lot of overseas trips for the senator and his staff.

On Syria, he says, “the president does not have good options,” because supporting the rebellion against Syrian President Bashar Assad will mean “you’re going to be having to sidle up to al-Qaida and some others that are not-so-savory characters.”

The last Idaho senator to take such an interest in foreign affairs was Democrat Frank Church, who chaired the full committee and led the passage of the Panama Canal treaty. Church, after 24 years, was defeated in 1980 in significant part because Idahoans thought he’d caught “Potomac fever” and lost touch with Idaho.

Risch’s conservative voting may inoculate him from such a malady. But to hear him wax eloquent about life in the Senate makes one wonder if he risks being branded as a dilettante.

With his wife, Vicki, at his side, Risch boasted about her membership on the board of Ford’s Theater, where the couple entertain themselves “relatively frequently.” Last year, Mrs. Risch chaired the luncheon for Michelle Obama, organized by Senate spouses. Their condo is on Pennsylvania Avenue, Risch said, allowing the pleasure of spectating at various misguided protests.

Despite the failure of the Senate to agree on matters vital to the nation’s future, everybody gets along just swell, Risch reports.

“You hear about this toxic atmosphere,” he said, but it’s not like that when senators and their spouses get together. “We talk about our kids, we talk about sports. … Socially, the people are incredibly, incredibly civil to each other.”

Risch brushes off criticism the Senate takes too much time off from Washington. “There’s nothing happening when we’re back there and there’s nothing happening when we’re not back there. What’s the difference?”
He chortles at the toothless threats of Majority Leader Harry Reid, D-Nev., to make the Senate work weekends. Said Risch, who spent about two decades as a leader in the Idaho Senate: “Can you imagine if I would have stood up on the floor as the majority leader and said, ‘We’re going to work this Saturday’ and then not do it?”

Risch is nostalgic about his 22 years in the state Senate, 5 1/2 years as lieutenant governor and brief stint as governor. He wishes he could click his heels and transport 105 Idaho lawmakers to Washington. “Put them in charge and they’d straighten this thing out in a couple few months,” he said. “They’ve got common sense. They can understand these things and they actually do stuff.”

What I find odd about Risch’s blithe spirit is how easily he’s adapted after a lifetime of making things happen.
“When you wake up in the morning and you’re governor they hand you a plate and it’s pretty full and they say, ‘Eat this.’ And you’ve got to eat what’s on the plate.

“That’s one of the differences with this job. You can do a lot more of what you want to do. There’s 100 senators, 435 congressmen; we all have our own ideas, our own passions in life. We all have our own interests and you can pursue them.”

Take a look at this snazzy map to see census figures for your county.

Published April 17 in the Idaho Statesman:

A flag flies over the Idaho State Senate while it is in session. At the conclusion of each session the flag is removed and awarded to a citizen of Idaho to show appreciation for service to the people of Idaho above and beyond the call of duty or for extraordinary examples of citizenship.

Hubris (pron.: /ˈhjuːbrɪs/), also hybris, from ancient Greek ὕβρις, means extreme pride or arrogance. Hubris often indicates a loss of contact with reality and an overestimation of one’s own competence or capabilities, especially when the person exhibiting it is in a position of power.

For the Greeks hubris was a crime; http://en.wikipedia.org/wiki/Hubris. Those who committed such egregious and heinous acts against the very liberties of mankind were prohibited from holding public office. Today, by public apathy, we reward (or at least fail to punish), public displays of wanton disregard for the public will (hubris), with continued terms in office – and other things.

Two years ago the flag was given to the Chairman of the Senate Education Committee, Senator John Goedde, for his work in bringing about the three bills that set off a political firestorm. The storm began when hundreds of people showed up to testify overwhelmingly against the three subject pieces of legislation in both the House and the Senate Committees. The bills passed through both committees with ease. The bills passed both Houses of the Legislature handily. Political back patting abounded, bills were signed into law. Hubris?

The firestorm continued with historical and overwhelming public outcries of “foul” and clear articulation of the public will as the votes were counted in referenda that voided the hubristic actions of the 2011 legislature with respect to education. The margins of the referenda were overwhelming mandates to involve the public and develop a plan for reform based on what we know to be effective in academic and fiscal results.

A task force was formed but they were not free to engage possibilities. They were encumbered by politics and inhibited by artificial barriers to protect egos; analogous to the old workhorse blinders put on animals so they would work only in the direction chosen by the driver without looking to the right or left. It was not the people’s mandate driving the Task Force. Suspicion is even more justified by the fact that few citizens showed up for an education Task Force “listening” session at Twin Falls last week. Either folks didn’t know their voice was expected or people are tired of talking to the void.

It should have been a slam dunk; (particularly for a historically large incoming legislative class fresh from their promises to listen to the people), to go back to the table in good faith and really reform education in meaningful and proven ways. Instead the 2013 legislative response was the passage of barely disguised reprints of the laws repealed last November. The bills were signed into law, more political back-patting occurred and 2013 has been called a good year. For whom?

The 2013 bills barely change the language of the legislation overturned by the referenda and do nothing about seizing opportunities for meaningful education reform or securing long term consistent funding. The bills do not stop the cost-shifting from the state to local sources of revenue; an act that by itself absolutely ensures inequity for our students across the state.

Just to make the point even more clear the legislature passed Senate Bill 1108 that will make it even more difficult for citizens to get a referendum placed on the ballot by the people. The bill was signed into law.

History proves that Idaho has not been encumbered by nuisance referenda in our elections, and that unchecked power results in tyranny. This hubris must end by listening in earnest to common-sense citizens trying to assert their common law responsibility and take a larger role in the direction of our state and central committees.

Please return the flag Senator Goedde.

Read more here: http://blogs.idahostatesman.com/former-sen-corder-blasts-gop-colleague-goedde-for-hubris-on-ed-reform/#storylink=cpy

The 2013 Idaho Legislature exceeded expectations. By that measure, it succeeded. Unfortunately, our expectations are so low for this annual GOP-controlled event that we can call it a success if they don’t accidentally burn down the Capitol.

Let’s look at how they exceeded our expectations.

In December, Idaho’s wealthiest corporate interests had convinced everyone that a $140 million tax shift from big business to homeowners was a virtual certainty. Fortunately, counties, cities, schools and Idaho Democrats crunched the numbers and got the word out. In the end, small and medium-sized businesses saw their personal business property taxes cut without severely harming communities.

That was certainly better than we expected.

The Legislature also birthed a small group of Republicans who stood up to rightwing radicals who are still fighting the Affordable Care Act. This minority of the majority joined Idaho Democrats to help create a state-run health insurance exchange, benefiting consumers and giving Idaho control over insurance options.

That small triumph for moderation was unexpected.

Of course, we always expect some truly awful ideas to emerge from the GOP fringe. And, I suppose it’s fair to credit GOP leaders, along with Idaho Democrats, for killing some terrible legislation.

They fleeced a bill that would have made it illegal for sheepherders to quit their jobs. They beat back a bill that could have banned children from school if they got into fights. They shrugged off an effort to force all Idaho children to read Ayn Rand.

That legislation should have never showed up in the first place. It serves as an example of this Legislature meeting our low expectations. They didn’t surprise us on the big issues either.

When voters rejected the Luna Laws last fall, they failed to reject the guys who passed the laws in first place. So, it wasn’t altogether unexpected that those same GOP lawmakers would continue the assault on schools, teachers and students.

We also have never really believed GOP leaders who claim to save money. They showed their true nature by refusing to debate Medicaid expansion—a policy that would save counties a half a BILLION dollars and deliver health care to 105,000 men, women and children who cannot afford it.

And, we never expected the GOP Legislature to respect our way of life. When they demanded title of federal public lands in Idaho, they took a step toward selling of our heritage of hunting, fishing and hiking.

Who knows? Maybe the problem isn’t the Legislature. Maybe the problem is people like me. When we set expectations low, it doesn’t take much to meet them. If there’s no motivation to achieve excellence, then excellence only comes by chance. From here on out, I pledge to set my expectations high; and, when legislators fall short, I will do all I can to replace them with better people.

–Larry Kenck

The Idaho Task Force for Improving Education will hold forums across Idaho this month. This group, appointed by the Idaho State Board of Education, will make recommendations for the 2014 Legislature.

Let them know you don’t want top-down mandates such as the failed Luna Laws. Tell them Idaho’s per student educational investment ranking of 50th in the nation is not acceptable. Tell them to stop playing politics with our children’s futures.

Be heard!

The first meeting is 6:30 p.m. Wednesday, April 10, at Nampa High School Little Theatre at 203 Lake Lowell in Nampa.

The second meeting is 6:30 p.m., Thursday, April 11, at O’Leary Middle School auditorium on 2350 Elizabeth Blvd in Twin Falls.

The full schedule is as follows:

• Wednesday, April 10, 6:30 p.m. Nampa High School Little Theatre, 203 Lake Lowell, Nampa.
• Thursday, April 11, 6:30 p.m. at O’Leary Middle School auditorium on 2350 Elizabeth Blvd. in Twin Falls.
• Monday, April 15, 6:30 p.m. at Meriwether Lewis Hall (MLH) Room 100, Lewis-Clark State College in Lewiston.
• Tuesday, April 16, 6:30 p.m. in the Lake Coeur d’Alene Room at North Idaho College Student Union Building in Coeur d’Alene.
• Monday, April 22, 6:30 p.m. in Tingey Auditorium, University Place on 1776 Science Center Drive in Idaho Falls.
• Tuesday, April 23, 6:30 p.m. at Century High School on 7801 W. Diamondback Dr. in Pocatello.
• Thursday, April 25, 6:30 p.m. in the Lincoln Auditorium, Idaho Capitol Building on 700 W. Jefferson in Boise.

Community forums in Coeur d’Alene, Idaho Falls and Boise will be streamed on the web by Idaho Public Television at idahoptv.org

Those not able to attend one of the forums can provide feedback and comments via email at *protected email*

What we do here in the Legislature has real consequences for Idaho families. But this year we are pleased to report there seemed to be more willingness by our peers in the majority party to look at how policies affect the people of Idaho. The majority party showed that they could see past partisan politics, tone down the rancorous voices of some of their more vocal activists and weigh decisions more carefully. We would like to thank them for their friendship and collegiality as we found new allies for reasonable, moderate solutions to our common challenges.

The most visible moment of cooperation was in the House when 13 Idaho Democrats joined 28 Republicans (14 of them freshmen) to buck the status quo and support a state-run health insurance exchange. Democrats supported a state-based exchange to protect both Idaho consumers and jobs.

The effort to repeal the business personal property tax is another example of the Legislature acting responsibly. We listened to businesses because we know that we must have an economy in which they can grow, prosper and create jobs. But, in the past, our Legislature has forgotten to factor in the needs of Idaho families to have strong communities that can invest in schools, transportation, public safety and other services. We found a middle ground that supports our state’s top job creators—small and medium-sized businesses—while preserving the ability of local governments to make critically needed investments.

Other successes in this legislature occurred with less fanfare.

We commend the majority party for making meaningful, if incomplete, progress toward addressing the alarming ethical lapses of recent years.

Lawmakers agreed to stop spending tax dollars on an empty governor’s mansion.

We made a step toward gaining a better understanding of why human rights protections must be extended to all members of society.

We added five more seats to the WWAMI medical student program to help address the pending shortage of doctors in Idaho.

And we were pleased to see a respite in the erosion of teacher salaries.

Some ill-conceived legislation was cut short during the legislative process. A bill that would have criminalized the ability of sheepherders to quit their jobs failed. A bill that sought to use public dollars to fund private school scholarships failed.

We truly appreciate the better and more cooperative climate in the session. However, there were times when the majority party ignored a moderate and reasonable approach to legislating.

Atop that list is the disappointment of watching majority party members ignore the will of the voters and reinstitute Luna laws that were overwhelmingly rejected by voters last November. Rather than force this unpopular and unsound legislation back into law, it would’ve been much wiser to let the governor’s schools task force find consensus and seek input from teachers, parents and students.

The Legislature and governor fell short when it came to a bill that weakened our ability to use the initiative process. There was no reason to pass this legislation and it violated a basic principle that Idaho Democratic lawmakers share: we should preserve and protect our rights, not restrict our rights to participate and have a voice in our state government.

Also, the Legislature failed to take advantage of an opportunity to deliver half a billion dollars in savings to counties and property owners while extending health care access to tens of thousands of Idaho families. The majority party, fearing a backlash from their most extreme activists, refused to do the right thing and expand Medicaid. Idaho Democrats will work hard with the governor and with our colleagues to try to salvage this effort and save Idaho taxpayers as much money as we can. It’s disappointing that GOP leaders couldn‘t find the courage needed to do the right thing.

Other disappointments included taking a step toward privatizing our public lands by demanding title of federal public lands in Idaho.

The majority ignored truckers in northern Idaho who told the Legislature that the roads there are too winding, narrow and dangerous for bigger trucks.

The majority also ended this session on a sour note by extending the session an unnecessary extra week to have an internal fight—costing taxpayers $32,000 a day.

Further, and perhaps most troubling, the legislature failed to take steps toward developing a sound economic plan for our state, even as our families and communities suffer with minimum wage jobs.

Despite these disappointments, we leave this legislative session with a sense of optimism and committed to spend the months between now and next January reaching out to businesses, communities and families. We pledge to come back next year with a sound economic development plan for the state and work again to put our constituents and our communities first.