On Tuesday, the commission voted on the annual service agreement between Vanderburgh County and the Evansville Regional Economic Partnership (E-REP), which provides economic development services to the city, county and region.
The Vote was 2-1, with Justin Elpers and Mike Goebel supporting the measure, and Cheryl Musgrave voting against. Vanderburgh County will be paying E-Rep $25,000 monthly, or $300,000 annually, max in this agreement.
E-REP was represented through attorney Mike Schopmeyer who shared accomplishments made possible by the organization, such as the expansion of I-69 and securing and growing local universities.
This year, E-REP is restarting the political action organization J-PAC, which would lobby on behalf of business in the region.
According to the agreement, “…via its separate affiliated registered J-PAC entity to recruit and endorse candidates for State and Local Offices, but not candidates for County Board of Commissioners, County Council, Mayors or City or Town Fiscal bodies.”
This addition made the routine agenda item a point of sometimes terse discussion, because Commissioner Cheryl Musgrave believes tax dollars will be used for political purposes.
The full discussion can be heard below
While J-PAC is under the umbrella of E-REP, according to E-REP CEO Lloyd Winnecke, the political action committee is supported by private donations only. While E-REP is a public organization, J-PAC is not.
However J-PAC will use E-REP staff and equipment to gather dues to support the organization, called the “dues check-off.”
“It's wrong to allow direct or indirect use of taxpayer funded staff and equipment to be used for political candidates or purposes,” said Musgrave before voting against the support.
Musgrave said this check-off program is the same as elected officials stuffing envelopes and fundraising using public facilities, staff and time.
“So it’s no different from that,” she said.
“That’s a grotesque mischaracterization,” countered Schopmeyer.
As a concession, Schopmeyer agreed to outsource their filings and to not use public facilities, but the dues check off will remain in house. He said this process likely costs about $1,000.
E-REP has technically never had a political action committee before, but it was part of the Southwest Indiana Chamber of Commerce, an entity combined with the Growth Alliance for Greater Evansville and the Economic Development Coalition in 2021 to create E-REP.
Shopmeyer said the political action committee is being brought back because it’s an important election year. He said organizations like law enforcement associations or even the bar association can have political action committees, so their interests can be mainly dealt with at the state house.
“Because in Indiana, as we all know … we don't have home rule. And it's really important that we have a voice at the state.”
Musgrave disagreed with these comparisons.
“Taxpayer dollars go to the Bar Association? How many taxpayer dollars go to the Bar,” asked Musgrave.
In a news release, she pointed to a specific bylaw in the E-REP which disallows political activity:
“Section 5.6 Endorsement and Politics. No individual or agency of this Corporation shall be permitted to use the Corporation in such a way as may be construed to give endorsement to any private or corporate enterprise or promotion for profit. The name or influence of the Corporation shall not be used directly or indirectly in support of any person who is a candidate for political office.”
Schopmeyer maintains that tax dollars will not be used for political purposes, and that the political action committee is essential, and again, it's technically a separate entity.
“As a political action committee, none of the $300,000 you're contributing go in any way whatsoever towards J-PAC,” he said. “And that's a political action committee just like labor unions have political action committees.”
He said J-PAC is usually involved in endorsements, not funding campaigns.
In the end, Musgrave said “absolutely not” during roll call for the vote.
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