How Hall-Long's refusal to release audit findings sparked elections reform talks

Delaware law doesn’t require Lt. Gov. Bethany Hall-Long to release the audit performed on her campaign finances, but good government groups are hoping she’ll do so anyway in the interest of transparency.

The internal audit was launched shortly after Hall-Long announced her bid for Delaware governor in 2024, prompted by what the lieutenant governor said were “reporting issues that require attention.”

While Hall-Long has said the audit – and the campaign’s decision to openly acknowledge it – was an act of transparency, she continues to decline to release the audit itself, instead suggesting that the amended campaign finance reports filed late Friday “fully convey” the audit’s results.

Those reports revealed Hall-Long loaned more than $300,000 to her campaign over six years, hundreds of thousands of dollars more than the Committee to Elect Bethany Hall-Long reported in earlier filings.

These campaign-related expenses were paid for with personal credit cards, and improperly reported as expenditures in previous filings, Hall-Long’s campaign said. While the campaign said the expenses included television advertising, yard signs, campaign literature and consulting, the amended reports do not make clear what the reported loans were used for.

The continued gap in information surrounding Hall-Long’s campaign finance issues, along with a recognition that Delaware campaign finance law leaves gaps in reporting, has sparked conversations around campaign finance reform.

Delaware Common Cause and the Delaware Coalition for Open Government both expressed a desire for Hall-Long to release the audit but also noted that the lieutenant governor is simply following Delaware law.

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Hall-Long did not respond to multiple calls and texts for comment, and her campaign repeatedly did not respond to questions for this story.

State laws on campaign finance are silent on timing and proper protocol for filing amended reports to the Department of Elections, and Delaware only requires one annual year-end report during off-election years or when a candidate isn’t on the ballot. During election years, candidates on the ballot must file five reports, including the year-end report.

John Flaherty, former Coalition for Open Government president and a current board member, said Hall-Long doesn’t legally have to release the audit, which was initiated by the campaign and conducted by Dover-based certified public accounting firm Summit CPA.

“They announced that they were going to do an audit, and I would hope they’d release the results of that audit,” Flaherty said. “There is no harm in releasing what should be an effort to convey to the public that they have checks and balances in their campaign. They should release it in the spirit of openness and transparency.”

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Why Hall-Long should release the audit

Experts say the foundation of effective campaign finance laws is transparency and disclosure.

It’s not uncommon for candidates to loan money to their campaigns nor is it unheard of to use personal credit cards for campaign-related expenses, but receipts and bank statements provide the paper trail to ensure that proper accounting of those expenditures takes place, said Debbie Borie-Holtz, a public policy professor at Rutgers University.

A month after announcing the audit, Hall-Long’s campaign on a Thursday evening issued a statement that indicated accountants hadn’t found any “wrongdoings or violations.” Summit CPA had found that Hall-Long and her husband, Dana Long – who served as the campaign treasurer – had used personal credit cards and loans for expenses that weren’t “accurately reflected” in previous reports.

“While reporting errors were made, Summit has determined that Bethany and her husband lent more for campaign-related expenses over the course of prior campaigns than they were reimbursed for,” the Oct. 26 campaign statement reads.

If the audit shows no wrongdoing, good government groups have asked what the harm is in releasing the document.

“It’s unusual for candidates to openly admit they have issues internally like that, but once you have announced it, you would assume they would want to release (the audit) to allay any concerns their announcement may have generated,” Flaherty said.

Common Cause Delaware Executive Director Claire Snyder-Hall said they were encouraged by Hall-Long’s commitment to auditing her campaign finances because it’s “the right thing to do.

“It’s just our hope that she will share those results of the audit with the public right away,’ she said. “The audit confirms the campaign’s claim there is no wrongdoing, so sharing that would go a long way to rebuilding public trust.”

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Snyder-Hall added voters “want to know that their hard-earned money” donated to candidates are being spent on “legitimate campaign expenses,” which is why “campaign finance laws are so important.

“We are glad that the lieutenant governor has amended her campaign finance reports, and we encourage continued transparency,” she said.

What campaign finance reforms could benefit Delaware?

Delaware’s minimal reporting expectations are a sticking point for good government groups in the First State.

“I think that Delaware really does need to strengthen its campaign finance laws. There’s not enough enforcement,” Snyder-Hall said. “We need stiffer penalties for campaign finance violations, and we also need more frequent reporting.”

Flaherty, from the open government group, suggested that technology now could allow for campaign expenses and filings to be done in real-time.

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“We think the technology is there, and there should be a running tally of expenditures and contributions for all candidates,” he said. “To have it once a year, we are a little bit behind in that. I think the public has a right to know.”

The groups also expressed a desire for the elections department to improve the campaign finance website and an interest in exploring public financing options.

Got a tip? Contact Amanda Fries at afries@delawareonline.com, or by calling or texting 302-598-5507. Follow her on X at @mandy_fries.

This article originally appeared on Delaware News Journal: Why Hall-Long's campaign issues have sparked talks of elections reform