Jere Nash: A Tate Reeves win in Lt. Governor's race is "good for us Democrats."

WDAM-Senator Billy Hewes comments on Tate Reeves being caught in Pay to Play scandal

While on the campaign trail Friday, in Purvis, State Senator Billy Hewes commented on recent reports involving State treasurer Tate Reeves campaign funds.

Hewes said, "The states business is not for sale."

Hewes said, "If elected, those cozy money relationships will be no more."

"If somebody is going to be controlling money interests in the state, they shouldn't be able to take it and tie it to where there are campaign contributions that are given in return. Years ago there were some problems with the Public Service Commissioners, there were some indictments and we prohibited them from doing that. We don't want that same situation to occur anywhere else in state government. There needs to be a very clean severance there."

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Treasurer Tate Reeves Campaign funded by those who profit from state contracts he awarded.

Lieutenant governor candidate Tate Reeves has vowed to "stand up to all of those people who want to borrow, borrow, borrow and say 'Enough is enough'" to reduce state debt.

But Reeves, while serving as state treasurer, has received hundreds of thousands of dollars for his campaign coffers from lawyers, consultants and bankers who make millions in fees from government borrowing, often from non-bid contracts that Reeves helps negotiate.

A Sun Herald analysis of his donations shows dozens of lawyers and executives from a handful of firms that make money from government borrowing through legal, consultant and other fees on borrowing have contributed more than $400,000 to Reeves' campaign war chest during his two terms as treasurer. In the same period, these firms have collected more than $48 million in fees.

Mississippi law limits corporate campaign donations to $1,000 a year. It's common for many employees of a firm to make individual donations, which have no cap.

Reeves said there's nothing untoward about such campaign donations. He said the small number of firms qualified to handle government borrowing are also some of the largest in the state and their officers donate to many campaigns. He attributes questions about his role in state borrowing or his campaign finances to "my opponent's campaign (being) in desperate mode right now and trying to be relevant."

"I have been very independent as state treasurer," Reeves said. "I'm beholden only to the taxpayers."

But his opponent, state Sen. Billy Hewes of Biloxi, says he believes such campaign funding is "a bit disturbing."

"That may explain (Reeves') reluctance to take any ownership in his role in bonds and borrowing for our state," Hewes said. "If you're going to criticize something, but then if there's a connection or tie-in with the manner with which his campaign is financed by folks who've benefitted from his transactions, then he needs to talk about that."

Hewes' campaign finance records show he's received nearly $40,000 from officers with the same firms.

"But the difference is, I don't control any contracts," Hewes said. "I don't control where the moneys are placed. I don't ever take money where strings are attached."

Reeves said he doesn't have sole control over such contracts, either. As treasurer, he is one of three on the State Bond Commission, along with the governor and the attorney general. The commission has to approve state borrowing and 

contracts with the lawyers and consultants who help.

Attorney General Jim Hood and others familiar with the state's borrowing systems said his office and the governor's typically defer to the treasurer's on the mechanics of borrowing.

As the state's chief financial officer, the treasurer also represents the executive branch on other entities that borrow millions, including the Mississippi Home Corp., Development Bank and Business Finance Corp., according to Reeves' state treasurer website.

When governments in Mississippi borrow money, the fees associated with the deals often appear to be higher than similar fees paid by private corporations.

For instance, a recent bond issue of $350 million for Chevron had bond-counsel and financial-advisor fees of $200,000. A recent issue of $162 million for Mississippi Department of Corrections facilities had bond-council and advisor fees — from some of the same companies — of more than $925,000.

"There does seem to be a difference in fees, and on the surface a lack of competition," said J.K. "Hoopy" Stringer, former state fiscal officer and head of the Department of Finance and Administration under Gov. Haley Barbour.

Reeves said differences between fees paid by government and businesses when they borrow are likely because large corporations "might have a lot of on-staff lawyers that do that kind of work."

In recent years, much of the state's borrowing has been through negotiated deals rather than competitive bid, although legal and other fees in many instances are capped by federal regulations for tax exempt bonds, Reeves said.

"That's been the case since the financial meltdown in 2008," Reeves said. "We went to the Legislature and asked them to give us the authority to do that, negotiated deals, and the Legislature approved it I would envision at some point in the near future it would make financial sense to do competitive transactions again."

Max Arinder, director of the state legislative watchdog group, the PEER Committee, said that about a decade ago some lawmakers were calling for studies and possible reform in the fees paid to lawyers, consultants and banks on borrowing. He said these efforts were dropped and PEER hasn't been called on to look into such fees since.

Reeves' campaign donations — he had nearly $2 million in cash on hand at last reckoning — have shattered records for a Mississippi treasurer or lieutenant governor candidate. For the last several years, his bankroll grew so large that it prompted speculation Reeves was running for governor.

Reeves has said his campaign finance success is proof he has broad support in his run for lieutenant governor.

"Not only have we now received contributions from all 82 counties in Mississippi, but we continue to break records for a race for lieutenant governor in Mississippi," Reeves said in a recent statement that he has repeated at campaign functions.

Reeves and Hewes have sparred in recent weeks over state borrowing. Reeves has said the Legislature, where Hewes has served for 20 years, has borrowed billions of dollars. Hewes has said that Reeves, as treasurer and one of three on the state board that oversees state bonding, has signed off on billions in debt himself.

www.timesunion.com

Ramsey: A morning with Tate Reeves

Treasurer and Lt. Governor Candidate Tate Reeves visited The Clarion-Ledger editorial board, and since I was there, I popped in for a listen.

A few observations:

1. Reeves, who I like and respect, kept talking about his positive campaign, but then turned around and attacked his opponent, Billy Hewes, on comments he had made about Reeve’s record.  In about 10 seconds, Reeves went from “Watchdog” to “attack dog”

2. He mentioned his opponent started off the race negative.  Not necessarily — if you count Hewes’ excellent “going through the drive-thru ad” earlier in the year. But Hewes (who was getting waxed in early polls because of poor statewide name recognition) came out negative, blaming Reeves for not stopping bonds that the Legislature Hewes was a senator in had passed.  Yes, I know — it’s confusing.  It’s not that unusual for a way-behind candidate to come out negative. It’s just interesting to me, if Reeves is still so far ahead, why is he using so much energy to attack back.  Makes you wonder if he’s worried.

3. Reeves did not like a question he got from a member of our Reader Editorial Board about long-time Republican Godfather Billy Mounger supporting Hewes. If he could have shot lasers out of his eyes, I think he would have.

Tate isn’t flashy, but he’s solid. No doubt he is intelligent and capable.  He has a ton of campaign cash at his disposal. And he’s obviously still the front runner. But it will be interesting to see what the next five weeks or so brings until the August 2 primary.

Salter: Reeves-Hewes race perhaps most interesting in 2011

Rare is the Mississippi election cycle in which the race for the state No. 2 spot draws as much or more attention than the governor's race, but in 2011 that just might be the case at least in the Republican primary.

In the Republican primary for lieutenant governor, state Sen. Billy Hewes of Gulfport was officially joined by State Treasurer Tate Reeves of Rankin County this week.

Reeves' formal entry into the race is no big surprise since Reeves made a substantial impact at the 2010 Neshoba County Fair in terms of presence, production value and attendance during his speech.

With no Democrat emerging as yet as a challenger to the GOP nominee, all political eyes are on the Hewes-Reeves tilt in the GOP primary. While there is a race with some of the same political dynamics in the Republican gubernatorial primary between incumbent Lt. Gov. Phil Bryant, Gulf Coast businessman Dave Dennis and Pearl River County Supervisor Hudson Holliday, the Hewes-Reeves race differs in that neither is a political newcomer.

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PERRY/The GOPers eye Lt. Gov.

By BRIAN PERRY

Three Republicans appear likely to enter the race for lieutenant governor in 2011. Senator Billy Hewes of Gulfport announced in fall 2009 he would seek the seat. Auditor Stacey Pickering of Laurel says if and when current Lieutenant Governor Phil Bryant announces he will not seek reelection, that Pickering would shortly afterward announce his intentions. Treasurer Tate Reeves is widely rumored to have decided on a run for this spot, but has not made any official announcement.

Senate District 49 in Harrison County first elected Hewes in 1991 when he won a three-way Republican Primary without a run-off and went on to beat Democrat Phillip Allen with 75 percent of the vote. In every subsequent primary and general election, Hewes was reelected without opposition (1992, 1995, 1999, 2003, 2007) - the only exception being the 1999 primary where Hewes won with 82 percent.

Hewes, an insurance agent and real estate broker, currently serves as President Pro Tempore of the Mississippi Senate, the top leadership position below lieutenant governor. Hewes faces a challenge to increase his name identification statewide, but benefits as the Gulf Coast's "native son" in the race - expecting a sizable share of that region's abundant Republican primary votes. His latest campaign finance report lists more than $670,000 cash-on-hand: well on his way to the war chest necessary for campaign efforts.

Reeves provides one of my favorite examples in breaking the rules of political predictions. I can remember numerous times sitting on Pete Perry's (no relation) Neshoba County Fair cabin porch engaged in the political parlor game of predicting who would be in what office next. Pete always challenged everyone to write their predictions down on a piece of paper and seal them in a box and open them ten years later to see how wrong we all would be. We've never done it - too much like work for Neshoba - but in the years preceding 2003, no one would have written down the name "Tate Reeves."

But in 2003, Reeves came out with a fundraising juggernaut in the three-way Republican Primary for Treasurer. Despite little experience in GOP politics, Reeves led the first primary with 48.6 percent of the vote over a state legislator and a former transportation commissioner and won the run-off with 69 percent of the vote. He went on to win the general election with 51.8 percent over Democrat Gary Anderson and Reform Party candidate Lee Dilworth. Reeves raised more than half-a-million dollars in his first political campaign in a down ticket race. He easily won reelection in 2007 with 60.5 % of the vote facing only perennial candidate Shawn O'Hara. Reeves most recent finance report lists nearly $1.2 million cash-on-hand.

In 2003, Pickering took 52.2 percent of the vote in a three-way Republican Primary in Senate District 42 in Jones County. He defeated Democrat Randy Ellzey in the general election with 58.8 percent of the vote. In 2007, he raised nearly half-a-million dollars to win election as State Auditor facing no primary challenge and defeating Democrat Mike Sumrall in the general election 55 percent to 45 percent. Pickering often serves as a visiting preacher on Sundays.

Read more at the Madison County Journal Online