COLUMBUS, Ohio — Ohio Treasurer Josh Mandel’s office has spent more than $1.3 million in taxpayer dollars on TV ads featuring himself and Ohio State University football coach Urban Meyer to boost an investment program for disabled Ohioans.
Critics say Mandel — a Republican who announced his run for U.S. Senate six months after the ads began running — dodged scrutiny of the self-promotional ads by spending less than $50,000 at each station, so the buys were not subject to external review.
Mandel’s office defended the ads as necessary to raise awareness of the new STABLE investment program, which allows people with disabilities and their families to contribute money tax-free for housing, education and other expenses, without affecting federal benefit eligibility.
“Treasurer Mandel is on the side of the taxpayers and is proud to be a national leader in helping people with Down syndrome, autism and other disabilities,” spokesman Chris Berry said in an email.
Berry said the office was transparent about the costs from the beginning.
But the cost breakdown given to reporters last June detailed only about half the actual costs of the TV commercials. The fact sheet said the office would spend $776,980 on TV ad buys; state expenditure records show more than $1.3 million has been spent.
During the same time, Mandel’s office paid Florida-based company Intuition LLC $1.2 million to manage the investment accounts.
What’s the program?
In 2015, state lawmakers unanimously passed a bill authorizing the treasurer’s office to administer STABLE investment accounts under the federal Achieving a Better Life Experience Act (ABLE).
The state budget provided Mandel’s office $2 million each in the fiscal years ending in 2016 and 2017 to implement and administer the program. The law requires the treasurer’s office to develop “marketing plans and promotional materials to publicize” the accounts.
More than 2,280 people have opened accounts since the program began June 1.
How did Mandel buy ads?
Typically, TV advertising campaigns are managed by an outside consulting firm. The firm buys the ads on behalf of the client and keeps a small cut.
Ohio Secretary of State Jon Husted did so for a series of pre-election public service announcements. The office wanted to pay Pierce Communications, a Republican media firm, $549,411 to buy ad time. The request went before the Controlling Board in July and was approved.
Mandel’s office chose to pay TV stations directly for ad buys in amounts less than $50,000 per fiscal year. Had they been over that amount, the spending request would have needed approval from the state Controlling Board, a legislative and budget office panel that oversees state spending.
Seven of the buys were within $1,000 of the threshold. Stations received one payment in June and a second payment in December, January or February, according to state records.
For example, WEWS Channel 5 was paid $60,244 to run the ad — $25,500 was paid in June, when the ad started running, and the rest was paid in December, after the ad finished running. Berry said multiple buys were made over two fiscal years because money had been appropriated for both years.
The Dayton Daily News ran a story on the ad buys, and Mandel responded with a detailed news release that listed five reasons the ad buys were appropriate and 11 PSAs Ohio officials have appeared in since 2007.
Berry said the office made an effort to spread money across the state and that paying stations directly saved the office money.
The office also paid Midwest Communications and Media, a Republican-led media firm, $45,000 to “assist with the earned and paid media strategy, media purchasing and reporting.”
Like the TV buys, the payments to Midwest and Lucas Nutter, who produced the ad, were made in two payments in two different fiscal years.
Where’s the oversight?
Rep. Jack Cera, a Belmont County Democrat and controlling board member, said it appears the treasurer’s office was trying to avoid the controlling board. Cera said it’s unlikely the request would have been denied but $1.3 million on advertising would have likely attracted media attention and questions from the bipartisan panel.
“The controlling board is where we get to question any of these things and it appears that they made an effort to keep everything under the threshold which makes me wonder,” Cera said.
Fellow board member Sen. Bill Coley, a Butler County Republican, said the board should investigate the spending, talk to treasurer’s office and make sure everything was done correctly.
Mandel is scheduled to testify before lawmakers Wednesday on the House Finance Subcommittee on State Government and Agency Review. His office has requested $2 million a year for the STABLE program, with $250,000 dedicated for promotional efforts.
When did the ad run?
The ads began running in mid-June 2016 and ended Dec. 4, three days before Mandel officially announced he is challenging U.S. Sen. Sherrod Brown. Mandel had been mulling a run for months and in January 2016 had revived his federal campaign fundraising accounts.
Berry said the STABLE ad had nothing to do with Mandel’s Senate bid and accused “liberal political bosses” of politicizing something that isn’t political. Berry said Mandel appeared in the ad because he is responsible for the program, and there are no plans to run the ad in the future.
“It is imperative that when individuals and families choose to invest their hard-earned money into STABLE Accounts, they have full faith and trust that their dollars are safe and secure,” Berry said. “By having the knowledge that the Treasurer of Ohio, who manages billions of dollars every year, is the STABLE Account administrator, participants can have the peace of mind that their investments are safe and secure.”
Berry noted other statewide officeholders, Republicans and Democrats, have appeared in public service announcements touting their office’s work.
Cera said elected officials — from the governor to county leaders — shouldn’t have their names and pictures on office materials and advertising. He said his wife once threw away an absentee ballot request from Husted’s office by mistake because she thought it was a campaign mailer.
“Taxpayers’ money should not be used to promote statewide candidates even if they’re already in office,” Cera said.
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