Secretary of state loses bid for emergency funds
$66K sought to pay legal fees to Pearce campaign
SANTA FE — The state Board of Finance on Tuesday rejected a request from Secretary of State Maggie Toulouse Oliver for $66,516 in emergency funds to pay court-ordered legal fees to Steve Pearce’s gubernatorial campaign.
Pearce, a Republican, filed a lawsuit last year against Toulouse Oliver, a Democrat, after the secretary of state said he could use only a small portion of his federal campaign account — the maximum $11,000 allowed under the state’s campaign contribution limits — in this year’s gubernatorial contest.
A federal judge ruled in Pearce’s favor in November 2017, allowing him to transfer about $942,000 in his federal election account over to his gubernatorial campaign and putting the state on the hook for his legal fees.
In considering the secretary of state’s request, Gov. Susana Martinez and Lt. Gov. John Sanchez, both members of the Board of Finance, questioned Toulouse Oliver’s handling of the lawsuit. They also wondered aloud whether the situation amounted to an emergency.
“When we have the fires and monsoons and watersheds overflowing with debris … we’re going to pay the lawyers?” Martinez asked at one point during Tuesday’s meeting. “It concerns me to open this door.”
A motion to approve the funding request then failed, with only two members voting in favor — state Treasurer Tim Eichenberg and Adelmo “Del” Archuleta of Albuquerque. The other five board members, including Martinez and Sanchez, voted against it.
Toulouse Oliver said during the hearing that the Secretary of State’s Office does not have enough money in its budget to pay the court-ordered fees. She also pointed out that Pearce initiated the litigation and said she was merely trying to uphold the state’s campaign laws.
“Secretary Toulouse Oliver went to the state Board of Finance in a good-faith effort to request the necessary funds to pay the attorneys’ fees owed to Congressman Pearce,” spokesman Joey Keefe said.
After being rejected Tuesday, the secretary of state plans to ask lawmakers to approve the funding during the next regular session, which starts in January, Keefe added.
However, that will be two months after the November general election, and it’s unclear whether Pearce’s campaign might take steps to collect the money before then.
Pearce campaign spokesman Kevin Sheridan said Tuesday that the situation was avoidable and accused Toulouse Oliver of attempting to violate Pearce’s constitutional rights for partisan purposes.
“Her repeated delay tactics and overt politicization of her office were rejected outright by the court,” Sheridan told the Journal. “She alone is responsible for costing taxpayers this money, and one way or another, she will ultimately bear responsibility for how this is resolved.”
The total amount of legal fees owed to Pearce’s campaign is slightly more than $133,000, but that’s expected to be split between the Secretary of State’s Office and other state agencies involved in the lawsuit, including Attorney General Hector Balderas’ office.
Pearce will face Democrat Michelle Lujan Grisham in the Nov. 6 general election. Both candidates are forgoing congressional re-election bids to run for governor.