Tim Michels wants his family's construction business to keep seeking state contracts if he is governor, raising ethics questions

MADISON – Tim Michels wants his family’s construction business to continue to seek millions of dollars in state contracts if he’s elected governor, arguing he wouldn’t have a role in whether the firm gets any work.

The approach he plans to take could create ethical challenges for him because state law bars officials from taking actions that benefit them financially. The amount of money in question is huge — Michels Corp. of Brownsville has received more than $660 million in payments from the state in the last five years, records show.

Michels jumped into the Republican primary last week with plans to bankroll his campaign using the fortune he has amassed from his family business.

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Mac Davis, a former state senator and former judge who previously served on the state Ethics Commission, said Michels would have a difficult time navigating the state's ethics code if he is elected and maintains his ownership stake in Michels Corp.

State law requires governors to sign road construction contracts valued at more than $1,000. The requirement to approve those contracts is in conflict with the ethics code's ban on taking official actions that benefit oneself, Davis said.

"What are the governor's official duties? And I don't think he can delegate them," Davis said. "He can't say, 'Well, I just, on Michels' road contracts, I'll leave that to the lieutenant governor.' I doubt that works at all because he's made the decision to delegate it, so he's still in charge, so to speak."

A Republican, Davis said he is not backing anyone yet in the primary. Also running are former Lt. Gov. Rebecca Kleefisch, management consultant Kevin Nicholson and state Rep. Tim Ramthun of Campbellsport.

The winner of the Aug. 9 primary will face Democratic Gov. Tony Evers in the Nov. 8 general election.

Former Republican Gov. Scott McCallum said he thinks Michels could find a way to avoid conflicts with his family business if he's elected. He's endorsed Kleefisch but said the public should welcome candidates like Michels to the field.

"The last thing you want are just people that have been brought up in government who have done nothing in their life — so I see that as a positive, somebody who's had real work experience," he said.

McCallum noted Michels will have to publicly report his holdings during the campaign, which he said will help voters decide if they think he has any conflicts of interest.

"If his family business is bidding on something, he can abstain from being involved in that decision until it just comes to his signature," he said.

Michels told WTMJ-AM on Monday he was "stepping aside" from Michels Corp., which according to his campaign means he is no longer on its payroll. The campaign has given no indication that he has given up any of his ownership stake in the company he and his brothers have run for years.

In the radio interview, Michels noted that roadbuilding work for the state Department of Transportation goes to the lowest qualified bidder.

“The governor has no say in who gets DOT contracts,” Michels said. “And I’m stepping aside from the business today anyhow. I’m going to focus on leading Wisconsin and doing the right thing for all the people of Wisconsin.”

Asked whether the company would seek state work if he became governor, Michels said: “I certainly hope so. It won’t be my decision. It will be my brothers’ decision but again we bring value — we bring value to the taxpayers of Wisconsin.”

While state officials have little discretion in awarding construction contracts because they go to the lowest qualified bidder, governors can prevent or delay roadwork by putting off signing contracts.

Governors also have a large say in how much the state spends on roadwork every year in budgets they write in conjunction with lawmakers. The more spent on roads, the more opportunities for all contractors to win state work.

The state is spending more than $2.2 billion on road and bridge projects this year. Those jobs are being funded with a mix of state and federal money, with the state money largely coming from gas taxes and vehicle registration fees.

Michels' opponents see his business ties as a campaign issue.

"Wisconsinites deserve a governor who will make decisions because they’re best for our state, not because they’re best for their personal interests," said a statement from Kayla Anderson, a campaign spokeswoman for Evers. "Anyone running for governor, and especially a candidate whose business relies on state contracts, needs to give Wisconsinites a clear plan on how they’ll avoid conflicts of interest and protect taxpayer dollars.”

Courtney Mullen, a spokeswoman for Nicholson, released a statement that said Nicholson "makes his living in the private sector, completely separate from the Madison industrial complex."

"To get our society back on track, we need new leadership in Wisconsin — and it needs to be an actual outsider," the statement said.

Contact Patrick Marley at patrick.marley@jrn.com. Follow him on Twitter at @patrickdmarley.

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This article originally appeared on Milwaukee Journal Sentinel: Michels wants family business to seek state contracts if he's governor