by Julia Shumway, Oregon Capital Chronicle
January 8, 2025
State auditors have flagged several “minor” and “unintentional” apparent violations of state ethics laws after reviewing spending from Gov. Tina Kotek’s office.
The potential issues, first reported by Willamette Week, involved spending on parking, concert tickets and a catered meal for employees from a Salem brewery. Employees of the Secretary of State’s Audits Division began reviewing expenses following anonymous reports to the state’s government accountability hotline last March about misuse of state resources related to Kotek’s since-scuttled plans to create an office of the first spouse.
In a Friday letter to Kotek, then-deputy Secretary of State Cheryl Myers wrote that auditors found allegations in the original reports to be unfounded, but that auditors found several expenses that appeared to violate state policy and potentially state ethics laws and issued warnings to the governor’s office about the use of funds.
She said that auditors didn’t review all transactions from the governor’s office but looked at categories including prizes and awards, catering services, tickets and parking. Auditors shared the letter with the Oregon Government Ethics Commission. Commission executive director Susan Myers — no relation — confirmed via email that the commission received a report and is reviewing it to decide whether to open its own investigation.
Auditors flagged issues with monthly parking fees paid by the state for first lady Aimee Kotek Wilson and Annie McColaugh, the governor’s director of federal affairs. The state was paying $65 per month for Kotek Wilson to park in Salem and $315 per month for McColaugh’s parking in Washington, D.C., though state law prohibits public officials from receiving financial benefits, including parking reimbursements, that aren’t laid out in official policies.
They also found several issues with entertainment costs paid by the governor’s office totaling $615. State law allows state money to be used for entertainment costs in some instances, such as for an Oregon State Police trooper’s ticket cost to an event if the governor paid out of pocket and the trooper is on duty protecting her, but for the most part state employees need to pay for their own tickets.
Auditors flagged a June 2023 purchase of two $60 tickets to a Queen tribute concert in Portland, a June 2023 purchase of five tickets to the Portland Gay Men’s Chorus for $320, a March 2024 purchase of two $55 tickets for an orchestral performance at Salem’s Elsinore Theatre and a March 2024 purchase of three $21 tickets for a silent film at Salem’s Temple Beth Sholom.
“In these instances, these public officials appear to have avoided a financial expense they would otherwise have been responsible for paying, but for their status as public officials,” Myers wrote. “We recommend the Governor’s Office follow state policy by not paying entertainment expenses unless the public official is performing official duties.”
Another potential issue flagged by auditors was an August 2023 dinner reception at the governor’s mansion for employees, an apparently longstanding tradition that nevertheless appeared to conflict with state policies limiting state funds from being used on feeding employees.
The Oregon Accounting Manual issued by the Department of Administrative Services allows state funds to be used for “refreshments” — defined as drinks like coffee, bottled water and juice as well as snacks like fruit, pastries and cookies — at employee recognition events, but it doesn’t allow for full meals.
Kotek catered a $9,330 spread from Salem’s Xicha Brewing Company, including salads, skewers and a build-your-own tostada bar, to recognize employees of the governor’s office, Oregon State Police and the Department of Administrative Services. About 180 people attended, including employees and their families.
“We recommend the Governor’s Office follow state policy by only purchasing refreshments for employee recognition events,” Myers wrote. “Alternatively, the Governor’s Office could work with the Department of Administrative Services to update existing policies to align with current practices by defining specific additional instances where the state will purchase meals at official events.”
A spokesperson for the governor’s office did not immediately respond to a request for comment on Tuesday.
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