Arkansas Republicans File Ethics Complaint Against Hyde (UPDATE)

The Republican Party of Arkansas filed an ethics complaint against State Rep. Barry Hyde, D-North Little Rock, with the Arkansas State Ethics Commission.  The complaint is focused on Hyde’s financial disclosure reports for both his House of Representatives account and his new State Senate account.

“It appears Rep. Hyde has improperly used donations from his State House race to prepay for political services benefiting his State Senate campaign,” said Republican Party of Arkansas Chairman Doyle Webb. “Rep. Hyde needs to explain how he is purchasing campaign advertising with zero expenditures reported. The people of Arkansas deserve to know.”

It’s a tad complicated, but the complaint alleges that Hyde improperly spent funds from his House account for his Senate campaign.  Arkansas campaign finance laws allow for some transfer of campaign carryover funds, but these amounts are limited to no more than the official’s annual salary which in Hyde’s case is $15,869.

Campaign filings show that Hyde spent a little over $31,000 in December of 2010 to reduce his House account cash balance to below the carryover limit.  Part of these payments went to pre-pay for website design, newspaper advertising, and political consulting.  As a term-limited House member, Hyde is currently running for the State Senate in North Little Rock and the complaint charges that his senate campaign is now benefiting from these pre-paid expenses (such as the ad pictured below.)

This is not the first time Arkansas Democrats have had issues with their campaign filings recently.  State Treasurer Martha Shoffner has had numerous issues with her finance report and newly election Rep. Hudson Hallum, D- West Memphis, had issues as well keeping his disclosures secret until after the election.

Hyde currently is unopposed in the Democratic primary, but faces a general election campaign against Rep. Jane English, R-North Little Rock.

“Today’s ethics complaint is a serious allegation as I believe transparency in campaign finance and expenditures is important to earn the trust of Arkansas voters–only a few of whom, sadly, participate in the political process,” said English in a statement today. “Rep. Hyde must disclose how he is paying for his campaign for the Arkansas Senate.”

I have contacted Rep. Hyde and will post his response if/when he replies.

UPDATE – I spoke with Rep. Hyde on Wednesday afternoon.  He disputed part of the complaint but also agreed with part.

He maintains that the $12,000 paid to his political consultant and the $3,000 paid to his website designer in December of 2010 following the election were amounts that he owed for his 2010 election to the House.  Hyde pointed out that while he was unopposed in the general election and the primary, he had an opponent at one time – Republican Tony Brooks who withdrew after the primary, but before the general election.  He said it is not unusual to be billed after a campaign by his consultant.

Hyde did agree that he was in error to have used the amount he prepaid for newspaper ads from his House account for his Senate account.  In December of 2010, he prepaid $10,000 for ads to run in the North Little Rock Times and the Sherwood Voice.  Around October, the graphic was swapped out by his consultant for a State Senate logo instead of a House of Representatives logo.

Hyde said he is in discussion with the Arkansas Ethics Commission and the newspapers to try to rectify what he admits is a violation as best he can.  He plans to ask the newspapers to bill his Senate campaign for the ads that ran and use his prepaid amount from his House account only for ads listing him as a member of the House of Representative.

“Ultimately, the error was my mistake and it is my responsibility to make sure things are done correctly,” said Hyde.