Rodriguez says she’s staying in gov race after firing campaign manager in finance disaster 

On Sunday at 9:30 p.m., the Rodriguez campaign released a statement saying that the candidate had fired her campaign manager, Kara Spencer, “after discovering serious mismanagement and inaccuracies in campaign finance filings she prepared.”

Rodriguez said at the press conference at her campaign office in Madison that she became aware something was wrong when a statewide ad did not start to run on TV last Tuesday. The campaign had put out press release announcing it was making a $1 million ad buy. 

Rodriguez said she became concerned and started asking questions when the ad did not run. She said that on Wednesday she was notified by her media team of an unpaid invoice. 

“I was given excuses by my campaign manager that did not make sense. By Thursday afternoon, I saw that the total cash was far lower than I had expected,” she said, adding that she wouldn’t be able to give a specific number because her books were still being reconciled.

Rodriguez said she brought in a team of political communications, legal and compliance experts to analyze her reports. They found “double counting of contributions that inflated how much money we had raised” and “a significant failure to report certain expenses that had been paid.” 

According to Wisconsin’s campaign finance website, Rodriguez’s January report was submitted at 2:13 a.m. — after the Jan. 15 deadline. It was then amended at 3:23 a.m. and then again at 5:01 a.m.

Rodiguez’s final campaign finance report uploaded that evening included a number of duplicate payments. According to a review of the campaign finance reports by WisPolitics, there are  at least $275,000 in duplicate donations.

In January, Rodriguez reported raising $618,284.

Rodriguez said her campaign manager had worked with her for several years and in compliance for her whole career.

“As we are trying to make sure we have a lean campaign, it made sense for her to do the compliance report since that was her expertise, and that was one thing I had full trust in,” Rodriguez said, adding that Spencer had given her reports on a regular basis about the finances and everything looked fine until last week. 

“I cannot tell you what was in her mind about why she did what she did. I will tell you that when you work with somebody for as long as I have, it was an enormous shock that this happened,” Rodriguez said. “It took me a little while to believe that these reports were erroneous, but once I was able to look within the system to look within the bank accounts, to look at the reports that were filed, it was clear that these were egregiously in error, and that she needed to be let go.” 

Rodriguez said she had had a conversation with Spencer, but did not provide details on her reaction. She said Spencer’s termination notice was addressed by a lawyer.

“I am hurt, angry and deeply disappointed by someone I trusted to run my campaign,” Rodriguez said, adding it was a breach of her trust as well as her supporters’ trust. 

Rodriguez argued that her press conference and willingness to answer questions was a show of her commitment to accountability and transparency, which makes her a good candidate for governor.

In recent weeks, momentum appeared to be building behind Rodriguez’s campaign after she finished first in a straw poll conducted at the Democratic Party of Wisconsin Convention. Last week, Milwaukee County Executive David Crowley dropped out of the race and endorsed her, as did  former Wisconsin Economic Development CEO Missy Hughes, who dropped out and endorsed her in June.

“I think we still have that momentum. I think we’re still moving forward. This is a bump in the road for the campaign, but we are going to be as honest and transparent as we can be,” Rodriguez said at the press conference inside her Madison, Wisconsin, campaign headquarters Monday. “That is why I am standing here in front of all of you in front of all of these cameras in front of all of these microphones and telling you when I see something that is an error.” 

Rodriguez said the analysis of the report is still underway, but they are working to see whether there are any additional discrepancies. Her campaign has also contacted the Wisconsin Ethics Commission, which administers and enforces Wisconsin law pertaining to ethics and lobbying, to report the discrepancies and make a plan to correct the mistakes. 

The firing and revelation about her January report comes just ahead of the next campaign finance report deadline on July 15. 

Rodriguez said she will report having about $200,000 cash-on-hand and that she has raised nearly $1 million over the course of the campaign. She said she plans to continue her campaign and that her ad will go up on TV next week. During the press conference, Rodriguez surrounded herself with supporters holding signs and cheering.

“I know who gets hurt when people like me decide it’s not worth the fight. I intend to put my heart and soul into this race over the next month, and until November, every single day of it. There are people who get knocked down, and don’t get back up. I’m not one of them,” Rodriguez said. 

Democratic opponents critical

The rest of the Democratic primary candidates in the race were highly critical of Rodriguez Monday afternoon. Joel Brennan, a former head of the Wisconsin Department of Administration, was one of the first to speak out, saying in a statement ahead of the press conference that she needed to answer several questions to be transparent with Wisconsinites. 

“How is this not disqualifying?” Brennan asked.

Brennan told the Wisconsin Examiner in a phone interview Monday afternoon that the issue is one of competence and accountability and the “buck stops” with the candidate when it comes to campaign finance. 

“We are ultimately accountable for everything that’s got our name on it, and there is nothing more important in that than managing the resources we have because those resources come from voters in the state of Wisconsin, they come from family, they come from close friends, they come from networks, they come from allies and advocates and people who we need to represent,” Brennan said. “If you can’t manage several hundred thousand in a campaign account, how are you going to be able to demonstrate to people that they should trust a $110 billion budget for the state of Wisconsin?”

Brennan questioned why Rodriguez did not have the infrastructure to ensure there were checks in her finances. He said that he knows on a “day-to-day” basis how much money there is in his campaign.

Brennan said Rodriguez did not provide direct answers to key questions, but instead provided “some self congratulations for standing up in front of a bank of cameras” to address problems that were “created under her watch” and she was “expecting to be congratulated for doing that — like that somehow is courageous.”

Brennan stopped short of calling for Rodriguez to end her campaign, saying he doesn’t make that decision for anyone. However, he said Democrats should be spending time talking about issues that matter to people.

“If we are spending our time talking about missed deadlines when it comes to campaign, being unable to track down hundreds of thousands of dollars of campaign contributions, we will never get to the point where we can talk about Donald Trump, about Rep. Tom Tiffany, about the harm they’ve done to Wisconsin, and what we’re going to do for people to make their lives better in our state,” Brennan said. “The stakes are high when it comes to healthcare that people can’t afford. The stakes are high related to utility costs that are out of control and housing challenges that people face, whether they’re renters or homeowners, and where we are in public education.”

The firing is not the first controversy to disrupt Rodriguez’s campaign for governor. She also faced criticism from her opponents for saying she would negotiate the state’s budget “behind closed curtains” and recently for taking corporate PAC money from WE Energies after voting for a Republican-authored tax break for the company. 

Jalen Knuteson, spokesperson for state Sen. Kelda Roys’ campaign, highlighted those instances in a statement, saying that the “public is getting far too familiar with hearing Sara Rodriguez apologize.” 

“This recurring pattern shows that Rodriguez is unprepared for the rigors of a general election or governing,” Roys said. 

Darby O’Connor, spokesperson for former Lt. Gov. Mandela Barnes, said in a statement that Rodriguez “only noticed hundreds of thousands of dollars missing when she didn’t see her face on TV.” 

“This level of gross mismanagement of finances and staff is unheard of in professional politics,” Barnes said.

State Rep. Francesca Hong said she was “staying focused on our campaign,” but that her campaign has “shown we’re a campaign focused on transparency and accountability.”

“Especially with the next finance reports coming out this week, I think it’s vital that everyone running for this position is creating a standard of trust, honesty and accountability,” she added.

The gubernatorial primary is scheduled for Aug. 11 — less than a month away. The winner will face U.S. Rep. Tom Tiffany, the presumptive Republican nominee, in November.

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