Watchdogs: Acts legal but improper

By Larry Wheeler, Gannett News Service

November 12, 2006

Frank Kinney thought one way to keep federal money flowing to his growing government technology center was to keep campaign money flowing to the congressman most responsible for his $140,000-a-year job.

As executive director of Florida's Technology Research and Development Authority in Titusville, Kinney put his public employees and connections to work in 2003, generating contributions for Republican Dave Weldon, records show.

The Florida Commission on Ethics determined last month that Kinney probably broke state law by using his position to solicit campaign donations for Weldon, Rep. Tom Feeney, R-Oviedo, and others, including former House majority leader Tom DeLay.

Neither local congressman appears to have broken federal law by accepting the donations, according to campaign finance law experts who reviewed details of the case.

But the activity looks improper, government watchdogs said. And it offers a glimpse into the relationships between local projects, political influence and congressional spending that has drawn scrutiny in recent years.

"It totally smells bad," said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington, a nonpartisan group that targets government corruption.

The TRDA is a state agency that runs business incubators in Brevard County and works to transfer aerospace technology from NASA and local contractors to private industry.

But Sloan cited an April 2003 letter, written on development authority letterhead by employee Linda Lundy, that informs the Weldon campaign of a donation. And in a September 2002 e-mail exchange, Kinney reports to a Feeney campaign staff member that he raised more than $1,000 for the candidate.

"When Weldon and Feeney received letters like this, that should set off the alarm bells," Sloan said. "They should go back to the agency and say: 'You can't do this. It makes us look bad.' "

One of the documents included in the ethics report is a letter from a development authority employee telling Kinney that donating to the Weldon campaign would force her to skip paying some household bills.

Weldon and Feeney indicated they were not influenced by the donations that Kinney raised for their campaigns.

And Weldon agrees it is inappropriate for a campaign to accept contributions raised by employees of a federally funded agency such as the development authority, his spokesman Kurt Heath said.

But the representative "had no knowledge or information whatsoever about the alleged campaign activities of Frank Kinney or TRDA," Heath said.

$30 million

Since 2001, TRDA has received about $30 million in federal funds -- about two-thirds of the agency's total budget -- through a little-known NASA office called the Space Alliance Technology Outreach Program. The program is a pet project championed annually by Weldon and other lawmakers with space-industry interests in their districts.

The agency annually sends a grant to the Florida technology authority, according to NASA spokesman Dave Steitz.

The program is overseen by a single manager at headquarters in Washington and it exists only to send the development authority the money set aside by lawmakers.

The authority uses the money to pay space agency contractors such as Raytheon and Boeing to provide up to 40 hours of consulting services to small businesses looking for help with technical problems.

Weldon supports the program because it has a record of success in helping small businesses, Heath said.

NASA officials refused to release internal progress reports that track the outreach program's performance.

But Weldon is confident NASA's audits and internal checks ensure the grant is properly administered, Heath said.

It isn't clear from ethics investigation documents how much money Kinney raised for Weldon's 2003 re-election campaign.

Kinney told a Florida ethics commission investigator he thought he could ensure continued support of the program by helping Weldon and others raise campaign funds.

"Mr. Kinney explained that it is important for the TRDA to be involved in political activities because its budget is primarily funded by congressional and legislative (grants and contracts),' " according to the investigator's report.

Kinney and other employees worked during business hours and used office computers, letterhead and other resources to raise cash for Weldon and Feeney, according to the ethics commission investigation report and supporting documents reviewed by FLORIDA TODAY.

The ethics commission found probable cause that Kinney violated the state's "misuse of public position" law that prohibits public officers and employees from engaging in campaign activities while on duty or using the resources of their offices to benefit political campaigns.

Kinney also helped arrange a September 2002 fundraising event for Florida Democratic Sen. Bill Nelson at a hotel on Cocoa Beach, according to an e-mail included in the ethics report. There is no evidence in the report that Kinney raised money for Nelson.

"It appears he was one of the many thousands of people who donated to Sen. Nelson's campaign," said Bryan Gulley, a Nelson spokesman. "We have no knowledge at all of Mr. Kinney's activities or the allegations against him."

Feeney opposed

Also in 2002, Kinney raised $1,200 on behalf of Feeney, who represents northern Brevard County and Kennedy Space Center.

"Rep. Feeney believes that NASA appropriations must be free of earmarks that drain off much-needed resources," according to an e-mail response from Pepper Pennington, a Feeney spokeswoman. "(Feeney) has never accepted campaign contributions in return for political or personal favors."