2007Investigative Reporting

Lobbyists retained despite ban

State's two-year colleges have spent
millions since '03
By: 
Brett J. Blackledge
News Staff Writer
July 30, 2006

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MONTGOMERY - Some of Alabama's two-year colleges have spent millions of dollars on lobbyists and their firms since October 2003 despite a policy that prohibits the schools from hiring lobbyists, state records show.

Most of the lobbying firms hired by colleges are tied to former college administrators. One lobbyist was a close friend of fired Chancellor Roy Johnson and who started a consulting business after retiring from the system, records show.

Contracts and college finance records show that 15 campuses spent nearly $2 million from October 2003 through September 2005 on a total of 50 contracts to lobbyists and lobbying firms.

Although the contracts are with lobbying firms, some of the agreements state they are not for lobbying services. Most list their services broadly as consulting, research, grants development or strategic planning for that particular campus.

Andre Taylor, spokesman for the two-year system, declined to comment on the contracts, referring questions to the colleges that approved them.

State Board of Education member Stephanie Bell said she was concerned about the amount of money that was spent and that a select few firms seem to be used repeatedly.

"It has reached the point of being ridiculous," Bell said. "When you look at the amounts that are being paid, they are certainly out of line when you consider the Legislature is not in place full time."

Some colleges gave more than $410,000 in contracts to Jimmie Clements, a longtime friend of Johnson's, and to lobbying firms that hired Clements.

The colleges had contracts with Franklin Resource Group, a firm created by lobbyist Johnny Crawford. Franklin received nearly $340,000 in two-year college contracts from October 2003 through September 2005, finance records show.

Clements is listed with the state Ethics Commission as a lobbyist for Franklin Resource Group.

Several colleges had contracts with a company created by Clements. Clements' D.C. & Associates received $71,500 from October 2003 through September 2005, finance records show.

Mom-and-pop firm

Clements created the lobbying and consulting business with his wife, Dana Clements, who earns $81,496 a year as a top administrator at Southern Union Community College in Opelika.

Jimmie Clements met Johnson more than 30 years ago when Johnson worked for Clements, who was principal of Holt High School at the time. Clements led Johnson's political campaigns when he served in the Legislature from the Tuscaloosa area, and Clements and his wife followed Johnson to Opelika when Johnson went to work for the two-year system.

Clements and his wife worked with Johnson and his wife at Southern Union, where Johnson was president before becoming chancellor in 2002. Clements retired in 1996 to work full time as a consultant to two-year colleges.

He continued to receive payments from Southern Union, records show. Clements received nearly $50,000 in part-time salary and expense payments from Southern Union from October 2003 through September 2005, school finance records show.

Contract records show that immediately after Clements' contract through D.C. & Associates ended, some colleges signed contracts with Franklin Resource Group. At Snead State Community College in Boaz, former President Devin Stephenson canceled a contract with Clements' firm in January 2004 and weeks later signed a contract with Franklin, records show.

Johnson picked D.C. and Associates for a $2,000-a-month contract to review special-education programs at J.F. Ingram State Technical College at Deatsville, according to state records. A July 5, 2005, letter from Johnson to Ingram President J. Douglas Chambers directs Chambers to hire the firm to review the program to ensure its compliance with a consent decree.

Clements declined last week to comment, other than to say, "I have been told by my attorney if I receive any calls to have them contact him." Efforts to reach Clements' lawyer, Ron Wise of Montgomery, last week were unsuccessful.

Former Shelton State Community College President Thomas Umphrey, accused by state Rep. Bryant Melton of helping develop a plan for Melton to funnel state money for personal use through the Alabama Fire College Foundation, also received contracts from colleges and works with lobbying firms that received contracts, records show.

From October 2003 through September 2005, Umphrey received $67,000 in contracts with colleges for his firm, Thomas E. Umphrey & Associates. Umphrey also is listed in state Ethics Commission records with several lobbying firms that received more than $740,000 in contracts during the period, including Tom Coker & Associates, Southeast Consultants and Jackie Mitchell & Associates, records show.

Umphrey had a contract with Wallace State Community College in Hanceville for "working with the college for potential funding." Umphrey also had contracts with Ingram State for "resource development services."

Wallace State paid Thomas E. Umphrey & Associates $19,000 a year and Ingram paid the firm $24,000 a year, contract records show.

Umphrey's contract with Ingram indicates he was paid $2,000 a month to work with the college on potential funding sources, to be the president's representative at meetings and to work with the president on special projects. Umphrey submitted monthly reports that listed his activities, including attending legislative meetings and providing the president with an analysis of literature about funding sources.

Umphrey declined to comment when contacted last week, referring questions about his contracts to the schools.

Links to foundation

Clements and Umphrey have ties to the controversy at the Alabama Fire College Foundation, the nonprofit fund-raising group that is part of ongoing state and federal investigations. The two men, and some of the lobbying firms they work with, received contracts from ousted Fire College Director W.L. Langston, whose activities are under review by a federal grand jury, according to witnesses who have testified recently.

Melton, a Tuscaloosa Democrat and Shelton State Community College employee, has told investigators Umphrey suggested he send his legislative grant money through the Fire College foundation so Langston could give it back to him as scholarships for his daughter.

Melton has agreed to plead guilty to state and felony criminal charges after admitting he used the $68,000 in state money to pay personal debts, including gambling expenses. Melton also is cooperating with authorities.

It's not clear what services Umphrey and Clements, or the lobbying firms they represented, provided through their contracts with the colleges. In most cases, the consultants and the lobbying firms were not required to produce a written report or explanation of their services.

Coker's firm filed periodic billing-status reports with Langston, tracking legislation of interest to the Fire College. The report, typically a few pages, came with a form letter describing the material and a page with the bill listed and its status.

Ban imposed in '95

The state Board of Education has a policy that "expressly prohibits any institution under its authority, direction and control from paying with state funds for the services of a lobbyist on a contract or consulting basis."

State board members approved the no-lobbying policy in 1995 after a report requested by Bell showed that at least six campuses employed lobbyists or sent employees to Montgomery to lobby the Alabama Legislature.

Bell said she wants the board to revisit the issue and she believes the payments are evidence that campuses are violating that policy. "I think it's crucial to get to the bottom of it when they are in violation of a state policy," she said.

However, Leigh Hays, a spokeswoman for Shelton State, said the school is allowed to employ consultants to assist with governmental affairs and business relations.

Shelton State paid five lobbyists or lobbying firms during the two-year period, according to contract records. Hays said Coker's firm worked as an adviser to the college president on funding sources for special projects, and Southeast Consultants helped Shelton obtain grants from the Alabama Department of Economic and Community Affairs and other government agencies. Other firms kept the campus officials aware of federal initiatives and helped with strategy and program development, she said.

"Each of these consultants has been instrumental in helping Shelton State Community College raise needed funds and to secure contracts and grants at the federal, state and local level," Shelton President Rick Rogers said in a written statement.

"Most colleges and universities, at all levels, find that to be competitive in today's environment, consultants are valuable resources in identifying and obtaining additional funding opportunities," Rogers said.

Lobbyist Johnny Crawford confirmed he has contracts with three schools, but referred questions to school administrators, citing confidentiality.

Crawford's current contract with Snead State - like similar contracts at other colleges - expressly says his firm does not serve "in a lobbying capacity."

Snead pays Crawford's firm, Franklin Resources, $2,000 a month to "render advice relating to governmental policies and procedures, and to use its best efforts to keep Snead informed by new policies and events relating to the legislative and executive branches of state government," according to the contract.

Rep. Alvin Holmes, D-Montgomery, who has criticized state universities for hiring lobbyists, said taxpayer money should not be used to pay lobbyists.

"If they have done so, it is the worst form of throwing away state funds that I have ever seen," Holmes said.