The Arkansas Ethics Commission has started an investigation of state Treasurer Dennis Milligan, after Little Rock attorney Matt Campbell filed a wide-ranging ethics complaint against him.
In a letter dated Wednesday to Campbell, commission Director Graham Sloan said that it's been determined that Campbell's complaint against Milligan in his capacity as state treasurer and a candidate for the post and in his former capacity as Saline County circuit clerk meets the requirements of the commission's rules.
"Accordingly, an investigation is being commenced," Sloan wrote in his 24-page letter to Campbell.
Milligan is a Republican from Benton. Campbell is a left-leaning blogger.
Campbell, who filed an ethics complaint that led to the resignation of Republican Lt. Gov. Mark Darr of Springdale last year, said he's "not trying to force [Milligan] from office."
He said he wants to hold Milligan accountable for "egregious violations" of campaign-finance laws.
"It needs to be a wake-up call for him if nothing else," Campbell said.
But Milligan's attorney, Byron Freeland of Little Rock, said there are many factual errors and incorrect legal conclusions in Campbell's complaint.
"We have a strong defense to this," he said.
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"There is nothing there that could cause someone to resign from office," Freeland said. "Most of these things are very, very minor, even if they were true."
In an amended complaint 107 pages long, Campbell alleged that Milligan illegally hired two spouses of state lawmakers; promised jobs in the state treasurer's office in exchange for campaign work to more than seven people; and used campaign carryover funds to repay a loan that was not reported in campaign documents or known to the campaign's treasurer.
Sloan said in his letter to Campbell that the commission is investigating Campbell's allegation that Milligan violated state law by hiring Jana Clark, the wife of state Sen. Alan Clark, R-Lonsdale, and Benny Speaks, the husband of state Rep. Nelda Speaks, R-Mountain Home, earlier this year as treasurer's assistants without the prior approval of both the Joint Budget Committee and the governor.
Jana Clark was hired at an annual salary of $63,239.90 and Benny Speaks was hired at an annual salary of $52,000, salary levels that required the prior approval of the budget committee and governor under state law, Campbell alleges.
Milligan's office has countered that prior approval wasn't needed because the two employees were hired for temporary, part-time, extra-help positions and are employed for 1,000 hours or less per fiscal year, and state law doesn't require approval for these types of part-time posts. Both employees were paid $25 an hour earlier this year, according to state records.
Legislative Auditor Roger Norman said Thursday that he requested an advisory opinion in a letter dated April 23 to Attorney General Leslie Rutledge about state law regarding a state agency hiring spouses of lawmakers because of the Arkansas Legislative Audit Division's audit of the state treasurer's office.
Rutledge, a Republican, wrote in an advisory opinion dated Aug. 28 that the budget committee and the governor are required to approve a state agency's hiring of spouses of legislators for jobs with an entry salary exceeding $37,649 a year.
Norman questioned whether the amount that a person would earn annually working full time should be deemed to be his "entry salary" under state law.
While Rutledge wrote that while she is "unable to give an unequivocal answer to the question concerning part-time work, in my opinion it is more likely than not that 'entry salary' refers to the amount a state employee initially earns working full time, or, with respect to a part-time employee, the amount he would earn in a year were he to work full time at the rate he is paid for his part-time work."
"Legislative clarification is warranted on this issue," Rutledge wrote in her advisory opinion.
Metro on 09/04/2015