Potential fundraising violations could wipe out Ritz’s campaign cash

More than a fourth of the contributions received by Glenda Ritz’s campaign for governor came during this year’s legislative session — a potential violation of Indiana’s campaign finance laws.

Ritz, who raised about $30,000 during the first half of the year, received 28 donations totaling $8,150 during the legislative session, which ran from Jan. 6 and April 29.

State law prohibits candidates running for statewide office from accepting campaign contributions during the session in odd numbered years, when lawmakers craft the state’s two-year budget.

An Indianapolis Star review of Ritz’s campaign finance filings also found that her campaign for superintendent of public instruction received more than $82,000 in contributions during the 2013 legislative session, mostly from the Indiana Democratic Party and PACs affiliated with the Indiana State Teachers Association.

The Democratic Party emphasized that its contributions were in-kind donations for Ritz’s transition into public office, not campaign cash. And it noted that the Indiana Republican Party also had contributed in-kind services of about $2,400 to Gov. Mike Pence during the 2013 legislative session, according to campaign finance reports.

The penalty for violating the law is a civil fine of up to twice the amount of any improper contributions that were received, plus any costs incurred by the state’s election division. In Ritz’s case, that could be up to $180,000 — more than the $112,220 her campaign currently has in its bank account.

The Indiana Election Commission generally requires a formal complaint to be filed before it will take enforcement action. No complaints had been filed as of Friday afternoon.

Ritz, a Democrat who is currently the state’s schools chief, told reporters Friday morning that her campaign had made a “clerical error” on this year’s campaign finance report and would be filing an amended report soon.

Ritz campaign spokesman Pat Terrell said the 2015 contributions in question were actually received before the legislative session, but weren’t deposited until after the session began. He said he didn’t have enough information to immediately address questions about the 2013 contributions.

Ritz’s explanation may not be enough to satisfy the law’s requirements.

“The critical moment is when the check or cash is deposited into a bank account,” said Bradley King, co-director of the state election division.

Ritz already lags her Democratic primary opponent John Gregg in fund raising. Gregg, a former Indiana House speaker, raised more than $1.7 million during the first six months of the year. The man they are trying to beat, Republican Gov. Mike Pence, raised more than $1.6 million.

Political observers have said Ritz’s inability to raise even two percent of what her top primary opponent raised is a major problem for her campaign.

“Of course it’s a concern, just because of the cost of running a statewide campaign,” Terrell said. “Dollar bills don’t vote. I think there is some value to clearly having a strong grassroots campaign. But that doesn’t offset the need to compete on TV with the governor as well.”

He said he expects Ritz, who launched her gubernatorial campaign just last month, to post better fund-raising numbers in the future.

Her run for governor comes after a high-profile battle during the legislative session with Pence and his fellow Republicans who control the General Assembly, who considered stripping her of her automatic position as chairwoman of the state board of education.