Franklin County Auditor drops bombshell that hasn’t been backed by attorneys | Opinion

Franklin County Auditor Matt Beaton’s recent financial bombshell that “unconstitutional” payments have been made to county commissioners since 2016 is not a firm legal opinion.

It is, instead, an interpretation of a post by the Municipal Research and Services Center (MRSC) that Beaton saw in January.

This difference is extremely significant.

While Beaton said no fraud has been committed, the way he presented his findings has unnecessarily thrown a considerable amount of shade at Commissioner Brad Peck and past commissioners.

Meanwhile, Franklin County Prosecutor Shawn Sant told the Herald this is not the first time the county auditor has cried wolf.

Sant would have preferred Beaton seek a legal review before making such a stunning claim in an email blast to the media and at a public meeting.

Now, citizens are left thinking there is wrongdoing when that hasn’t been confirmed.

The commissioners have asked Sant to review the matter, but it’s more complicated than many people realize. Sant said he is still waiting for documents he requested from the county, and it is possible additional reviews from state, federal and tax attorneys will be necessary.

“We have to do this right,” he told the Herald.

The MRSC is a nonprofit organization that provides legal guidance to local governments in Washington state. MRSC makes it clear the content on its website is for informational purposes only and is not intended as legal advice. And its post certainly wasn’t looking specifically at the Franklin County situation.

Yet that disclaimer has gotten lost in the fallout since Beaton announced his discovery at a public county commission meeting a few weeks ago.

Clarity on the issue wasn’t helped by a news release Beaton sent out last week emphasizing what he uncovered. The headline said the “unconstitutional pay increases for Commissioners” included “nearly $47K in questionable compensation” for Peck.

It’s a shame an allegation of this magnitude was made in public before county attorneys had a chance to review it. Transparency is important, but so is phrasing.

Beaton’s announcement and subsequent news release have led people in the community to rush to judgment, which isn’t fair. Already, citizens have jumped to their own conclusions and have insisted the commissioners pay back what they owe.

This issue dates back to 2016. Franklin County employee salaries are typically lower than the private sector and neighboring Benton County, so in order to compete, the commission opted to give employees a choice of taking cash in lieu of health insurance.

Providing this option is especially attractive to people who have health insurance through their military service or a spouse.

The commissioners — who at the time were Peck, Rick Miller and Bob Koch — voted for the benefit during their term in office. And that’s the possible problem.

Beaton said the vote itself is legal, but the timing of it is cause for concern.

Washington state law prohibits elected officials from giving themselves a pay raise while they are in office. When commissioners took a vote to give all county employees the option of taking cash instead of health coverage, it applied to them too.

Beaton contends that the money in question should be paid back. Although current Commissioners Clint Didier and Rocky Mullen have also opted to take the insurance instead of cashing it out, they each owe just $334.

Peck is a retired U.S. Air Force officer and has taken the cash in lieu of benefits since 2016, so he would owe nearly $47,000, according to Beaton. Miller would owe a little more than $21,000 and Koch owes about $20,000.

But Sant said a key legal question is whether converting healthcare benefits to cash is considered “salary.”

And the answer is not definite.

Sant said that money could be considered a taxable fringe benefit. If that’s the case, then the law and the constitutional issue regarding elected officials’ salaries may not apply. It’s going to take some legal research to figure this out.

Beaton’s job is to make sure the county is following laws and procedures, and his catch was a good one. The Washington State Auditor’s Office never brought up the issue, and it has audited Franklin County several times since 2016.

But there’s no secret he and Peck have had conflicts in the past — Beaton unsuccessfully tried to unseat Peck in 2016 and 2020.

With that kind of history, Beaton should have alerted county attorneys and the commissioners of his findings and then let it be resolved by someone more neutral.

Beaton’s take on this issue may be spot on, but we won’t know that until there is a legal review. It’s too bad that couldn’t have happened before damaging claims were made, especially since they may be deemed invalid.