CTU Officers Broke the Law Loaning Dues Money to PAC for Brandon Johnson
in a rapidly unfolding we have confirmed through sources what multiple sources and news outsets have confirmed that the $419,000 transfer of union dues money was illegal under State Election law. What was illegal is that the Union is not a bank therefore the CTU loan to the PAC violated how much can be donated to a Political Action Committee. If this was a real loan from a real bank then it would have been ok.
But it was not it was a scam to get around campaign finance limits.
the loans were never approved by CTU Delegates.
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CTU loan may have violated state law
Wednesday, Feb 22, 2023 - Posted by Rich Miller
* We discussed this Tribune report yesterday about a recent $415,000 loan made by the Chicago Teachers Union’s operating fund to its campaign funds…
“The loan to the CTU’s Political Action funds simply moves money from when we collect it (after the 2023 municipal election) to the time we need it (during the 2023 municipal election),” said an email bulletin to members Feb. 12. “The loans will be repaid with political funds we collect between the end of February and the end of June.”
Campaign finance records show the transfers aren’t without precedent. The CTU contributed around $323,000 in 2015 to the CTU-led Chicagoans United for Economic Security super PAC, which is a committee allowed to raise and spend unlimited funds advocating for or against certain candidates. The union separately gave around $570,000 that same year to then-Cook County Commissioner Jesús “Chuy” García’s unsuccessful campaign for mayor. […]
Boyle and Alison Eichhorn, a fellow delegate and former union trustee, claim that only a fraction of the money the union transferred in 2015 — to help a candidate it’s no longer endorsing — has been repaid. Four years later in 2019, the Chicagoans United for Economic Security super PAC transferred around $72,000 back to the union, campaign finance data show. Boyle said a repayment plan for the remainder of the loan was included in the CTU budget that year, but that no budget since then has reflected any payments.
* From a lawyer pal, who is backing a different mayoral candidate…
The loan that CTU took from its operating fund to its political action committee is illegal. There may be no caps on in the mayoral race, but there is a cap on the CTU PAC. Only a loan from a financial institution is not considered a contribution under the campaign finance law.
(B) “Contribution” does not include:
(f) a loan of money by a national or State bank or credit union made in accordance with the applicable banking laws and regulations and in the ordinary course of business, but the loan shall be listed on disclosure reports required by this Article; however, the use, ownership, or control of any security for such a loan, if provided by a person other than the candidate or his or her committee, qualifies as a contribution………
(Source: P.A. 96-832, eff. 1-1-11.)
The remedy is the [committee] must return the contribution or donate it to charity.
The statute is here.
* I sent all this to Matt Dietrich at the Illinois State Board of Elections. His reply…
Since this was described as a loan from the CTU operating fund to its PAC, it would fall under contribution limits. Your lawyer friend is right that only bank loans are not subject to contribution limits. So it appears to be a potential violation, but we won’t know for sure until we notify the committee and give them 30 days to take corrective action. Then, if they don’t do that, we will assess them and see what kind of defense they offer if/when they appeal.
I’ve reached out to CTU for comment.
…Adding… More from Dietrich…
Also, we sent them a letter seeking clarification on Feb. 9, the day the A-1 with the $140,000 was filed. I didn’t know that when I sent the earlier reply.
https://capitolfax.com/2023/02/22/ctu-loan-may-have-violated-state-law/
