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Thursday, July 29, 2021

"SHE FOOLED ME." La Politica Rocked By Stapleton Scandal; House Leader Alleged To Have Stolen Nearly $1 Million From APS In Decade Long Scheme; Will She Resign? How Could Crime Go So Long? Where Was The Oversight? Plus: GOP Surprises With Weak Scandal Reaction; The Big News, Analysis And Context Are Up Next

Rep. Sheryl Williams Stapleton
Friday afternoon Rep. Stapleton announced she is resigning from her House seat. 

"She fooled me." That was a common refrain in La Politica Wednesday as law enforcement agents swooped down on the ABQ home of state House Majority Leader Sheryl Williams Stapleton seeking evidence that she stole nearly $1 million from her employer, the ABQ Public Schools. 

Veteran lawmakers and operatives seemed genuinely stunned at the scope of the alleged rip off and it's long lasting nature. The scheme allegedly went on for ten long years. They know Democrat Stapleton, the first African-American woman elected to the NM legislature, as a determined, driven politician who has climbed the ranks of leadership since first being elected in 1994. She had a couple of ethical lapses in that time but nothing prepared them for the political bombshell that exploded over the state Wednesday like a neutron bomb. "She fooled me." Several acquaintances confessed.

There were oversight failures on multiple fronts sure to have repercussions. APS Superintendent Scott Elder admitted the failure and apologized. “The internal processes failed to stop this fraud." 

Elder tipped off the Attorney General's office in April which then obtained search warrants, including for Stapleton's SE Heights home and APS headquarters. .

Search warrant here. Search warrant highlights here. Stapleton bio here.

But it wasn't only APS coming under scrutiny for the latest corruption shocker. What about the state Public Education Department (PED)? AWOL? And where were the last three state auditors, asked many observers. 

That office is charged with auditing the schools or approving of outsider auditors to do so. Dem Attorney General Balderas, who is in command of this investigation, served as Auditor when the scheme allegedly began in 2012. He was followed by Dem Tim Keller, now ABQ Mayor, who was followed by current Auditor Brian Colón. 

Keller did wave a red flag over APS in 2016 when the school system relocated the Internal Audit Unit to the Accounting Office which he said would weaken the unit. But no one apparently came close to suspecting Stapleton of the racketeering and money laundering which the AG says she engaged in. 

Perhaps that's a sign that she kept the illegal operation close to her vest and that the circle will not expand much beyond her. Still, previous APS Superintendents and others will come under close scrutiny and grilled on what happened. 

During a previous APS finance mess, it was proposed that the school system, with a budget of well over $1 billion when federal funding is included, hire an Inspector General to supervise the cash flow as is done in New York and LA.

One concern: If Stapleton was indeed conducting a rogue operation, are others going unnoticed and that brighter lights would expose? 

THE POLITICS IN PLAY

Alright, let's get to what you want to know--the political impact. 

Will Stapleton resign and when? 

If, as expected, the AG files official charges against her, the odds of a resignation go way up. With 26 years of legislative service she would be entitled to a state pension of about $26,000 a year plus a pension from her $78,000 APS job that would be in the $60,000 range. If she is convicted of a felony those pensions are rescinded. We are checking to see if the law now allows pensions that are collected before a conviction to be revoked if a public official is eventually convicted. 

However, she is known for digging in and a trial or plea bargain could be many months away. If she stays, the end could come in the June 2022 Democratic primary for her House seat. Not to say that her trial could not end in an acquittal but that trial could be a year or more away.

What happens to her leadership position? 

In the chaotic aftermath of the search warrant raid no one really knows. House Dems are still digesting the news and feeling the shock waves. But there is one possible solution floating. 

That would be to have the House Dem Caucus tap outgoing State Rep. Daymon Ely as a temporary House Majority Leader. That would spare the Dems the unenviable task of picking an immediate replacement for Stapleton and dealing with infighting. Ely could keep the position through the the November '22 election, the theory goes. 

On the other hand, ambitious House members may want a permanent replacement and soon. There's little question that the party must soon strip Stapleton of her title to minimize the political fallout. 

What happens to her House seat if she resigns? 

She represents District 19 in the uber-liberal House District 19 in the ABQ SE Heights. If she resigns the Dem controlled Bernalillo County Commission will name her replacement. There would sure to be a crowded field of progressives applying. Dem Party Vice-Chair David Montoya is one of the first to say he is in the race.

Can the Republican Party take advantage of the scandal?

Chairman Pearce
It could and should but it is off to a very anemic start. This statement had the Alligators and Wall-Leaners scratching their heads:

Elected officials at all levels ask for and receive public trust. It's one of the most basic elements of successful self-governance. When that trust is violated by any elected official, it affects the public trust of all elected officials. The allegations against Rep. Williams Stapleton involve this public trust and as such must be taken seriously, but not all of the facts are out. We must wait for more information and for the investigation to take its course. If the allegations prove true, they are a disturbing violation of the sacred public trust.

Two of the three leading GOP candidates for the '22 Guv nomination--Zanetti and Dow—were quiet on social media about the sensational news but Jay Block hit the Republican mark, calling for Stapleton to resign. “The state is full of corruption. . . .These career politicians don’t care about us, just lining their pockets,” Block blasted. 

Analysts offered a variety of theories for the GOP's vanilla response. 

1. Maybe they feared being blasted as racists if they went after Stapleton hard. Better to wait. 

2. The scandal involves a private company's contract with APS and the GOP is all about privatizing education. The news disrupts that cherished GOP notion. 

3. What if the investigation widens into other contractors that could snare Republicans? So take it slow.

Take your pick. For whatever reason, the GOP again showed a lack of nimbleness that is essential if they're to have a shot at taking out MLG. 

One GOP consultant said the fresh scandal was a prime opportunity lost by the R's to hammer the state's Dems over this alleged corruption as well as allegations of bid rigging at CYFD.

What about the Governor? 

Her statement was actually stronger than the GOP's led by Chair Steve Pearce. She didn't break into a full run to get away from Stapleton but she did trot:

 I am deeply, deeply troubled by the reports about a law enforcement investigation into Rep. Stapleton. People are innocent until proven otherwise, and I know investigators will follow the facts wherever they lead. I await more information like all New Mexicans. But I will say that public confidence in government is seriously damaged by even the appearance of impropriety, or illegal activity, which is why public officials must always hold themselves to the highest possible standard of behavior. New Mexicans expect and deserve elected officials who, regardless of party, will put the people before themselves. Anything less violates a sacred public trust and must be dealt with accordingly.

Not earthshaking, but enough in light of the GOP holding their punches. And the hint of the beginnings of a push to ease out Stapleton came with the line, "damaged by even the appearance of impropriety."

Does this news give AG Balderas a reprieve from the ethics complaint filed against him over the PNM Avangrid merger? 

For a while but on the same day his agents searched Stapleton's home news came that the Public Regulation Commission staff has determined that Balderas must respond to the conflict charges he calls "frivolous." Over the short term the story could hibernate but the long term implications remain. The AG did make a good pivot away from his troubles with the Stapleton case.  

How will this impact the upcoming APS School Board election?

For the first time the school board voting will take place at a regular election--the city election November 2--instead of the traditional February time. The law was changed to increase voter participation and it will surely do that. And the narrative for that election is set. What will the candidates for the four seats on the ballot do to prevent future scandals that besmirch the reputation of the state's largest school system? The low-key election is suddenly higher profile with the media and public looking for answers.

Down the list of importance but still coming up: Will the Sheryl Williams Stapleton African American Performing Arts Center at the Fairgrounds lose her name? 

If she is convicted that could happen. Former Dem State Senator Manny Aragon lost the honor of having a building named for him at the Hispanic Cultural Central when he was convicted of corruption charges. 

THE SHERYL FILE

Stapleton turns 64 tomorrow on what will be one of her most unhappiest of birthdays. She was born in the Virgin Islands, moved to NY then Chicago and on to ABQ. Investigators are checking her Virgin Islands bank account as they explore money laundering charges. 

She holds a Ph.D in education, started out as an elementary teacher and worked herself up to a top administrative APS post. She is a formidable personality who fellow politicos are careful not to tangle with. She's politically savvy, too, having served a stint as state Dem Party Chair. The search warrant also notes that she may have used her powerful legislative position to direct funds to the education program she was allegedly looting for that cool million.

Who will Rep. Stapleton lawyer up with? Not known yet but Dem trial attorney Sam Bregman would seem a natural. Or maybe Bob Gorence, another aggressive advocate. Only those who can stand the hottest temperatures in the political kitchen need apply. (Ahmed Assed is quoted as her current attorney.)

We mentioned earlier this week that Democrats must be wary of corruption allegations when their majorities are this fat, or risk losses at the ballot box. Do we need to repeat that?

THE BOTTOM LINES

We led off the Wednesday blog with news that ABQ attorney Vince Ward was a leading candidate to become the next US Attorney for New Mexico. But Ward came with a statement in response to that report that he has withdrawn from the running. His explanation is now on the Wednesday blog. 

This is the home of New Mexico politics. 

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(c)NM POLITICS WITH JOE MONAHAN 2021