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The Honolulu Advertiser
Posted on: Thursday, August 6, 2009

Election funds transfer opposed


By Derrick DePledge
Advertiser Government Writer

Hawaii news photo - The Honolulu Advertiser

U.S. Rep. Neil Abercrombie

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Hawaii news photo - The Honolulu Advertiser

Mayor Mufi Hannemann

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Mayor Mufi Hannemann's allies have asked the state Campaign Spending Commission to block U.S. Rep. Neil Abercrombie, Hannemann's rival in the Democratic primary for governor, from moving more than $900,000 in federal campaign money to that race.

Hannemann's campaign committee argues that the move would be illegal because Abercrombie collected the federal money during campaigns for Congress, not under the state's campaign finance guidelines.

Abercrombie is seeking to transfer the federal money as surplus or personal funds. Barbara Wong, the commission's executive director, has recommended against the transfer.

The commission has discussed the matter for several months and will meet again Tuesday. If the commission does not issue an advisory opinion by Aug. 24, Abercrombie — by default, given the time limits for such decisions under state law — will be able to transfer the federal money.

The Abercrombie campaign accused Hannemann yesterday of a double standard. The mayor has moved $659,000 left from his 2008 mayoral race to his governor's campaign account, as allowed under state law. Combined with the $583,000 Hannemann raised in June, the mayor has reported $1.2 million in total fundraising, a healthy edge over Abercrombie, who reported raising $486,000 since March.

But Abercrombie would be on par with Hannemann if the congressman is allowed to transfer the $918,000 in his federal account.

"The mayor transferred funds from his previous campaign into his gubernatorial account and now he's trying to stop Neil Abercrombie from doing the same thing," said Laurie Au, a spokeswoman for Abercrombie's campaign. "The mayor wants to have a double standard."

The challenge by the Hannemann campaign shows that the mayor is not willing to cede a potential fundraising advantage to Abercrombie.

It could also be an early sign of the potential intensity of a primary between the two prominent Democrats.

No other Hawai'i political candidate has tried to transfer federal campaign money to a state campaign. Abercrombie's attorneys have argued that state law does not expressly prohibit such a transfer.

Lex Smith, an attorney for the Hannemann campaign, said the committee has filed a petition with the commission for declaratory and injunctive relief under the state's administrative rules.

"We don't think the law allows the transfer of funds in a federal campaign fund to a state race," he said. "The basic reason is that funds that are collected in a federal campaign, the collection is not done within the rules that apply to state campaigns."