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Audit Says Shelley Mishandled Vote Funds

By Tim Reiterman and Nancy Vogel, Times Staff Writers

SACRAMENTO — Secretary of State Kevin Shelley mismanaged millions of dollars in federal funds intended for voter education and new election machines, a blistering state audit concluded Thursday.

The report asserted that Shelley used some of the $46 million from an election reform program to pay contractors who attended partisan political events and wrote speeches for him. At the same time, counties were waiting months for their share of money to buy sorely needed voting equipment.

State Auditor Elaine M. Howle's findings not only confirm many allegations raised in recent news reports but for the first time demonstrate the depth of management problems attributed to the state's chief elections officer — and the state's potential liability for his lapses.

The 70-page assessment concluded that no one was in charge of California's efforts to implement the sweeping reforms adopted by Congress after the 2000 presidential election. It portrayed Shelley's office as poorly run, willing to bend the rules and overwhelmed.

Auditors also suggested that the state elections office may have paid too much for services such as legal advice, information technology and voter outreach. Shelley repeatedly circumvented state regulations by awarding dozens of no-bid contracts, some to his Democratic political associates.