Financial woes, residency question become early focus in Missouri state auditor's race

The race to be Missouri's fiscal watchdog got personal early as the Democratic state auditor highlighted her Republican challenger's financial troubles and residency status.

Auditor Nicole Galloway, a certified public accountant and former Boone County treasurer, is the only statewide elected Democrat in Jefferson City. GOP candidates swept the statewide ballot in 2016 and, with Galloway and Sen. Claire McCaskill up for election, want to take full control in the midterm elections.

Galloway's main competition will be Saundra McDowell, who prevailed in a four-way Republican primary. McDowell is a U.S. Air Force veteran, former assistant attorney general and director of enforcement for the Secretary of State's securities division.

After the general election was set, Galloway's campaign issued a news release eviscerating McDowell for amassing debt "with a failed law practice and poor personal financial management" and noted that "unlike Galloway, McDowell possesses neither a CPA license nor a background in financial accounting."

"Saundra McDowell has demonstrated poor financial management of her personal and professional affairs since she first arrived in Missouri eight years ago," said Eric Slusher, Galloway's campaign spokesman and a former staffer in her office. "Missouri voters would be wise to closely scrutinize a candidate who has shown she cannot keep her own financial house in order before putting her in charge of the state's fiscal watchdog agency."

McDowell fired back last week.

"The attacks on my private life perpetrated by my opponent are wildly inappropriate, and I've responded to these claims many times before," McDowell said. "This race should be about the issues, not personal attacks, and I'm disappointed in my opponent for immediately making it about the latter."

Local ties, financial trouble

Galloway called attention to McDowell's failed Springfield law practice, orders to garnish McDowell's wages, and the rent she and her husband failed to pay while living in Springfield.

Galloway's critical news release also included a link to a real estate website posting for a large, pricey house near Lake Springfield where the McDowells used to live.

Legal documents show that when the McDowells couldn't pay their bills, the property owner took them to court, won a judgment for more than $30,000 in late rent and fees, and secured an order to garnish the McDowells' wages.

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More than $22,000 was still outstanding by July 31, according to garnishment records. A separate judgment issued against the McDowell's stands to cost them more than $21,000.

In a response, McDowell laid part of the blame at the feet of the former president.

"My husband and I did struggle to make ends meet earlier in our careers, like so many Americans did under President Obama's stagnating economy," Dowell said in a statement. "We have made every effort to pay off the debts that we owe, and we will continue to do so."

Missouri residency question

McDowell's "eight years" in Missouri that Galloway's spokesman referenced could prove significant because of Missouri's constitutional requirements for state auditors.

Under the Missouri Constitution, an auditor has to meet the same criteria as a governor, including the requirement to have been a Missouri resident for 10 years.

McDowell is an Oklahoma native who moved to Missouri in 2010 after meeting her husband at law school. However, she has said she established her "intent" to make Missouri her permanent home prior to Nov. 6, 2008.

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"My husband and I established intent for residency more than ten years ago, and any attempts to mischaracterize that as inadequate are ridiculous," she said.

McDowell told a News-Leader reporter at a GOP debate for auditor candidates that she had "a lot of evidence" about establishing her residency in a manner that would satisfy the Missouri Constitution; however, she said she was cautious to reveal that information because litigation might be filed regarding her candidacy. Her campaign did not respond to a request for comment this week.

The road ahead

The auditor's election will take place Nov. 6. On the same ballot, voters will weigh in on a proposed amendment called Clean Missouri.

Among its provisions, Clean Missouri would change how Missouri draws legislative districts by allowing the auditor to appoint a nonpartisan state demographer to help draw maps for statehouse offices. The auditor will nominate candidates for the approval of the top Republican and Democrat in the state Senate.

McDowell's victory was unusual in that her campaign didn't have very much money: She only raised about $17,335 through July. That's more than primary rival Kevin Roach, but two others raised much more: Paul Curtman pulled in $78,754, and David Wasinger gave his own campaign half a million dollars in 2017.

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Galloway was unopposed among Democrats this year. She raised over $1.5 million and has most of that remaining. Her campaign said last week that it "expects McDowell to seek the help of outside dark money groups in order to close the significant resource gap."

The decision to highlight McDowell's personal finances marks the tone for Galloway in her first contested campaign. Galloway was appointed Boone County treasurer by former Gov. Jay Nixon, was unopposed to win election, and then was appointed by Nixon to the state auditor's office after former Auditor Tom Schweich took his own life.

The November ballot will also feature Libertarian Sean O'Toole, Green Party nominee Don Fitz, and Constitution Party nominee Jacob Luetkemeyer; third-party candidates in Missouri are generally challenged not only by their major-party competition but in terms of fundraising and name recognition, as well.

The Missouri Press Association plans to host debates for the candidates in September

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