An apparently accidental campaign contribution is ruffling some feathers in the state Senate race in District 54.
Democratic candidate Paloma Capanna is pointing to a contribution from Auburn Memorial Hospital to state Senator Michael Nozzolio as an example of what she said are poor campaign finance policies and argument for publicly funded elections.
Hospital officials and Nozzolio representatives both say the contribution was a misunderstanding. The money was refunded, and Capanna is trying to make something out of nothing, according to the Nozzolio campaign.
The most current state election finance reports show that AMH cut a $2,500 check to the Nozzolio campaign in July 2007. Capanna told The Citizen Tuesday that she thinks it was not appropriate for her opponent to accept the contribution, especially because the nonprofit hospital filed for Chapter 11 bankruptcy protection only three months prior, she said.
“It is a very poor judgment call on his part,” Capanna said. “Certainly anyone in the community is aware of what Auburn Memorial Hospital is going through, and what its workers are going through.”
But according to Nozzolio aide Justin McCarthy, Nozzolio never used that money. In fact, he directed the money be returned as soon as he had learned of the contribution, McCarthy said in a written statement.
In a letter dated Jan. 22, Nozzolio's campaign treasurer informed AMH President and CEO Scott Berlucchi that the campaign was returning the $2,500 donation. Attached to the letter, a copy of which was provided to The Citizen, was a check for the same amount, McCarthy said.
“The campaign committee refunded the contribution ... more than five months ago,” McCarthy stated. “Ms. Capanna's statements are not true. She owes the hospital and Senator Nozzolio an apology.”
AMH has gained strong financial ground since filing for bankruptcy protection in April 2007. The hospital posted a $1.5 million gain over the past year through May. AMH also recently reached an agreement with a number of creditors in its bankruptcy case, allowing it to pay back $6 million of its $42 million debt if the payment can be made within three years.
The majority of that debt is owed to the federal Pension Benefit Guaranty Corp.
Hospital officials have predicted that the organization should emerge from bankruptcy by the middle of July.
Berlucchi said Tuesday that Nozzolio has had a lot to do with the hospital's turnaround. The state senator helped secure a $100,000 grant to go toward recruitment for the facility's maternity unit and more then $5 million over the past couple years for the hospital.
“Auburn Memorial Hospital is one of Nozzolio's biggest advocates,” Berlucchi said.
But Berlucchi said the hospital does not make campaign contributions. The fact that the check was sent is simply a “clerical mistake,” he said.
According to Berlucchi, the $2,500 accounted for a golf tournament hosted by Nozzolio. Four people - Berlucchi, chief financial officer John Baran, controller R.J. Cruz and hospital foundation board president Stephen Zabriskie - represented the hospital in the tournament.
Berlucchi said the participants were supposed to forward personal checks for the tournament, but somehow the donation was paid with the Auburn Memorial checkbook.
“We're doing $90 million worth of business every year,” Berlucchi said. “Occasionally, checks go places they don't belong and they get returned.”
Capanna said that she still believes this is an example of why corporate donations should not be allowed in state elections. If these four representatives from the hospital were in the fundraiser tournament, someone was paying the money to Nozzolio's campaign, she said.
“We're either looking at the campaign misrepresenting the source of campaign funds or the hospital misrepresenting the source of the funds,” Capanna said.
She added that the timing of the hospital's bankruptcy case adds another twist to the discussion.
“(Nozzolio) is certainly not vigorously overseeing what is going on with his campaign. His staff should be aware of the issues of the day,” Capanna said.
But McCarthy said Nozzolio is a strong proponent of financial disclosure during elections. The senator helped sponsor a bill in 1998 making campaign contribution data available on the Internet, McCarthy said.
“Instead of focusing on petty partisan politics and misinformation like Ms. Capanna, Senator Nozzolio is working around the clock to deliver positive results for people in his communities,” McCarthy said.
As for the tournament, Berlucchi said there is no connection between the timing of the event and the timing of the bankruptcy proceedings. Executives are invited to many similar events throughout the year, and it is a “breath of fresh air” when members of a management team can get out and work amongst themselves, he said.
“This is really a big to do about nothing,” Berlucchi said.
Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
Hospital officials and Nozzolio representatives both say the contribution was a misunderstanding. The money was refunded, and Capanna is trying to make something out of nothing, according to the Nozzolio campaign.
The most current state election finance reports show that AMH cut a $2,500 check to the Nozzolio campaign in July 2007. Capanna told The Citizen Tuesday that she thinks it was not appropriate for her opponent to accept the contribution, especially because the nonprofit hospital filed for Chapter 11 bankruptcy protection only three months prior, she said.
“It is a very poor judgment call on his part,” Capanna said. “Certainly anyone in the community is aware of what Auburn Memorial Hospital is going through, and what its workers are going through.”
But according to Nozzolio aide Justin McCarthy, Nozzolio never used that money. In fact, he directed the money be returned as soon as he had learned of the contribution, McCarthy said in a written statement.
In a letter dated Jan. 22, Nozzolio's campaign treasurer informed AMH President and CEO Scott Berlucchi that the campaign was returning the $2,500 donation. Attached to the letter, a copy of which was provided to The Citizen, was a check for the same amount, McCarthy said.
“The campaign committee refunded the contribution ... more than five months ago,” McCarthy stated. “Ms. Capanna's statements are not true. She owes the hospital and Senator Nozzolio an apology.”
AMH has gained strong financial ground since filing for bankruptcy protection in April 2007. The hospital posted a $1.5 million gain over the past year through May. AMH also recently reached an agreement with a number of creditors in its bankruptcy case, allowing it to pay back $6 million of its $42 million debt if the payment can be made within three years.
The majority of that debt is owed to the federal Pension Benefit Guaranty Corp.
Hospital officials have predicted that the organization should emerge from bankruptcy by the middle of July.
Berlucchi said Tuesday that Nozzolio has had a lot to do with the hospital's turnaround. The state senator helped secure a $100,000 grant to go toward recruitment for the facility's maternity unit and more then $5 million over the past couple years for the hospital.
“Auburn Memorial Hospital is one of Nozzolio's biggest advocates,” Berlucchi said.
But Berlucchi said the hospital does not make campaign contributions. The fact that the check was sent is simply a “clerical mistake,” he said.
According to Berlucchi, the $2,500 accounted for a golf tournament hosted by Nozzolio. Four people - Berlucchi, chief financial officer John Baran, controller R.J. Cruz and hospital foundation board president Stephen Zabriskie - represented the hospital in the tournament.
Berlucchi said the participants were supposed to forward personal checks for the tournament, but somehow the donation was paid with the Auburn Memorial checkbook.
“We're doing $90 million worth of business every year,” Berlucchi said. “Occasionally, checks go places they don't belong and they get returned.”
Capanna said that she still believes this is an example of why corporate donations should not be allowed in state elections. If these four representatives from the hospital were in the fundraiser tournament, someone was paying the money to Nozzolio's campaign, she said.
“We're either looking at the campaign misrepresenting the source of campaign funds or the hospital misrepresenting the source of the funds,” Capanna said.
She added that the timing of the hospital's bankruptcy case adds another twist to the discussion.
“(Nozzolio) is certainly not vigorously overseeing what is going on with his campaign. His staff should be aware of the issues of the day,” Capanna said.
But McCarthy said Nozzolio is a strong proponent of financial disclosure during elections. The senator helped sponsor a bill in 1998 making campaign contribution data available on the Internet, McCarthy said.
“Instead of focusing on petty partisan politics and misinformation like Ms. Capanna, Senator Nozzolio is working around the clock to deliver positive results for people in his communities,” McCarthy said.
As for the tournament, Berlucchi said there is no connection between the timing of the event and the timing of the bankruptcy proceedings. Executives are invited to many similar events throughout the year, and it is a “breath of fresh air” when members of a management team can get out and work amongst themselves, he said.
“This is really a big to do about nothing,” Berlucchi said.
Staff writer Christopher Caskey can be reached at 253-5311 ext. 282 or christopher.caskey@lee.net.
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