Georgia Democratic party exec resigns; chairman denies financial crisis

Updated at 3:07 p.m. with new material below:

Original: The state Democratic party has problems.

On Saturday, the chief of staff of the party, Page Gleason, handed in her resignation. The letter announcing her decision included these lines:

I have dedicated my adult life to fighting for the Democratic Party and its ideals throughout the State of Georgia. The situation at the Democratic Party of Georgia, however, has made it impossible for me to continue serving effectively as your Executive Director.

…I strongly recommend that the Executive Committee and the By-laws Committee review the sections of the Democratic Party of Georgia by-laws…. A thoughtful review and additional wording would more clearly define the role each plays within the Party so that individuals who serve as State Chair, Executive Director, and members of the Executive Committee may effectively lead the Democratic Party of Georgia in the future.

Gleason’s resignation came a day after minutes of a wildcat meeting of the Democratic executive committee were circulated via e-mail. You may read the official minutes here.

Some attended last Wednesday’s meeting in person, at a local law firm. Others checked in by phone:

As calls came in, callers were asked to identify themselves. A number of callers hung up following this request. After several requests for identification, two callers were disconnected.

Attention was drawn to Russell Edwards, treasurer of the party:

Mr Edwards distributed a document showing cash balances for several months, beginning with February 2011, ending with February 22, 2012. A budget was not presented. He explained the dire financial situation of the organization. Upon review and discussion of the document it was generally agreed that the current financial approach was unsustainable.

Considering the current balances and previous revenue trends, funds are available for approximately 30 days of expenses. Discussion continued regarding monthly expenses, an explanation of the Call Center/Canvassing program, the lack of Executive Committee approval for new hires outside of standard budget, and other financial matters. Inquiries were made regarding hiring. Mr Edwards and Mr Hadley asked to limit discussion to specifics.

Ms Johnson and Mr Halpern urged candor considering the nature of the meeting. Further discussion continued concerning monthly expenses. The question was raised as to the employment of Tasso Knight (member of the Executive Committee) and the body agreed to table the discussion until those with direct knowledge of the hiring arrangements were present. It was noted by Mr Reilly, with agreement from the full body, that Mr Knight had served the party well for many years.

So we called Michael Berlon, chairman of the Democratic Party of Georgia. Berlon acknowledged that, “unfortunately,” Gleason did indeed resign. But Berlon said her departure was the result of other opportunities, and had “nothing to do” with any questions about the party’s financial outlook.

Which Berlon said was tolerable. He denied that the party was 30 days away from insolvency. “If our treasurer had picked up the phone and called me, he would have learned we were solvent through the Jefferson-Jackson Day dinner,” Berlon said. That’s in May.

Berlon said he had not talked to the party’s state treasurer in 14 months. Yes, in 14 months. If that sounds questionable, Berlon explains that the state treasurer really isn’t in charge of the party’s books. That duty is privatized, to an outfit called Political CFOs. The responsibility of the state party treasurer is to make sure that financial statements are reported to the proper authorities on time, he said.

Berlon acknowledges that Knight, political director of the state AFL-CIO, has received reimbursements as a lobbyist for Demcrats at the state Capitol – which apparently has emerged as an issue.

Berlon has been pre-occupied. He wasn’t able to attend the Wednesday meeting of the executive committee. And, over the weekend, he fell off of a ladder, probably separating his shoulder. He may have broken his left arm. (He’s right-handed.)

Previous to a conversation with Berlon, Democratic party spokesman Eric Gray couldn’t provide specifics, but acknowledged the financial pressure that his party was under.

“We all knew that it was a challenge when we didn’t have a statewide officer. Fundraising has not been easy,” Gray said.

New material: This afternoon, Russell Edwards, treasurer of the party, sent out a note that included these paragraphs:

First, it is false that Chair Berlon and I have not communicated in 14 months. The Chair and I, in fact, have traded many emails, communicated by phone, and have also communicated at official meetings where many of you all have seen us seated at the same table.

With regards to the current state of the DPG’s finances, it is true that the DPG currently spends more than it raises. This unsustainable situation should raise red flags since the DPG’s current cash on hand is $37,230.15, not counting the Senate and House Caucus accounts.

– The DPG must meet semi-monthly payroll this Friday of approximately $28,000.00.

– The due date of the DPG Visa credit card is tomorrow in the amount of $2,110.00.

– The due date of the DPG United Healthcare expense is Wednesday in the amount of $1,414.22.

–The DPG also has a bill due to Political CFOs [a bookkeeping firm] this Wednesday of roughly $3,750.00.

– Next week, the DPG has a rent payment due for its headquarters of approximately $5,500.00.

The above expenses amount to $40,774.22.

All of this information has been verified by our accounting firm, Political CFOs.

My forthcoming semi-annual treasurer’s report will shed more light. At last week’s Executive Committee meeting, I pointed out the situation with balance sheets produced by the DPG’s accounting software that I thereafter collected from the attendees considering the sensitive nature of the situation. I have daily access to this system and have been accessing it regularly throughout my tenure as treasurer.

That being said, it’s not as if the present situation cannot change. We have an upcoming Jefferson Jackson dinner for which we have received pledges.

- By Jim Galloway, Political Insider

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238 comments Add your comment

DagnerMouse

February 27th, 2012
12:42 pm

Clinton surplus? Sure, keep yourself in ignorance and spout more bs. I understand it’s easier than educating yourself properly on the issues, after all. http://www.craigsteiner.us/articles/16

liberalefty

February 27th, 2012
12:42 pm

@uga

where my jock sniffers attttttttttttttt!…lol

UGA 1999

February 27th, 2012
12:44 pm

liberalefty….”nthe”? What are the words you are making up? We ALL know that you are good at making up things.

UGA 1999

February 27th, 2012
12:45 pm

liberalefty….”(W)here (are) my jock sniffers at(?) lol.

I am starting to see why you guys have the lowest IQ and SAT scores in the country. You prove my case everyday. Great job!

zeke

February 27th, 2012
12:47 pm

dawg, are you into alchemy? you have to have source product to refine and as that report indicates were are importing more than producing as it relates to crude. yes we get yields from refining and natural gas, bios, etc….

also, i have yet to see your sources (75%) and yet to really understand your point….yes usa has refinery petro capabilities but you still need crude source

you seem the be quick with the one liners (so many that maybe you can spend some time explaining)…..how bout you producing some sources so we can all understand why it is 100% on obama for rising prices and not global supply v. demand.

i’ll provide one last report to you today….while the usa govt puts out a lot of reports, and tries to put the best foot forward it still points out under method C that as of 2010 we were dependent on foreign crude to the tune of 62% meaning we contributed 38% (almost 2:1)

http://www.eia.gov/oog/info/twip/twiparch/110525/twipprint.html

isaiah crowell

February 27th, 2012
12:50 pm

uga

youre my favorite jock sniffer…lolol.ololo

UGA 1999

February 27th, 2012
12:50 pm

Zeke….And in order to have gasoline you MUST be able to refine your crude oil into a finished product. Again look at the amount of oil Obama is refining and sending overseas while we all suffer from paying $4 per gallon. Did you watch the video link I produced a few minutes ago?

UGA 1999

February 27th, 2012
12:52 pm

isaiah crowell (liberalefty)….Great job using google to ensure the correct spelling of my name….

(Y)ou(’)re still my favorite jock sniffer….

YOU STILL CANNOT GET IT RIGHT! DUMB DUMB DUMB!

liberalefty

February 27th, 2012
12:53 pm

uga

u still whining about gas?…get A a mule

zeke

February 27th, 2012
12:57 pm

dawg, no i did not see it as i was away, i’ll view it and comment later today or tomorrow if need be.

UGA 1999

February 27th, 2012
12:58 pm

liberalefty…..(U) still whining about gas?

NOPE, I am not whining about gas at all. I am complaining about gas prices and the moron in the oval office. Get a clue. Educate yourself. Rise up! You can do it!

ragnar danneskjold

February 27th, 2012
12:59 pm

Leftism is a hard sell in Georgia.

zeke

February 27th, 2012
1:06 pm

dawg, wish i could discuss further, but video i saw was just political sqawking
and not truly related to what i thought we were debating….but i have to go now

Voter Looking For A Handout

February 27th, 2012
1:15 pm

Yalls promised to take care of us moochers if we voted for yall. Yall never said we had to support ya wit money. Wez is poor. The only money we have is what yall steal from them greedy, working publicans.

DPG Executive Director Resigns

February 27th, 2012
1:32 pm

[...] The AJC‘s Jim Galloway has the details here. [...]

Alabama Communist

February 27th, 2012
2:23 pm

More Breaking News On AFL-O Democrat Lobbist Falling Off Ladder After Getting Expense Check From Party………….A Lawyer for the Lobbist.. said today ” The Check he got was drawn on a Bank in Panama and was return with a note attached to it..Claiming The CIA had frozen the account and he would have take it up with the Newt Gringrich Campaign..”

WEownTHISstate

February 27th, 2012
3:00 pm

The state dem party out of money. Wow, who’s been in charge?, one of the KING (if you will excuse the expression) clan? Can’t you shake down, Delta, Coke or UPS for contributions? If any of your freeking party ACTUALLY worked may you could get some cash that way. I

So Lame

February 27th, 2012
3:05 pm

If any of your freeking party ACTUALLY worked may you could get some cash that way.

This line is so tired and played out. But let’s continue pretending that all the white people in America are gainfully employed and productive citizens. Yeah, life works better for some when the create an alternate version of reality.

RICHandgladOFIT

February 27th, 2012
3:05 pm

The dude probably JUMPED OFF THE LADDER in an attempt to end it all and could not even do that right.

Jaymes

February 27th, 2012
3:10 pm

GA Democrats having problems, huh? Not a Shocker!! These are problems that existed for over a decade. Tell ya what… continue to ignore the problems, don’t focus on serious efforts to organize the state with a modern message, and continue to change faces while keeping with the wisdom that lead to your demise in ‘02. Let’s see if those ideas will eventually bear fruits. Well, at least you maintain a commitment to recycling. Unfortunately, wisdom is in recycling materials, NOT ideas. (I’m setting my timer to mark the time before you return to the disastrous arrogance of Bobby Kahn)…

midtownatl

February 27th, 2012
3:13 pm

I continue to be amused about the state flag issue. The Democrats think they won, because the Confederate Battle Flag was removed from the state flag. But they were snookered. Our current state flag is an exact replica of the Stars and Bars, the official flag of the Confederate States of America. Democrats just don’t know their history. It’s probably because US History is no longer taught in public schools.

RICHandgladOFIT

February 27th, 2012
3:20 pm

SO LAME, it’s you and your kind that can’t handle the truth, There are two types friend – TAKERS and PRODUCERS. Democrats at the bottom (not the top) are nothing but TAKERS.If I was a leach and moocher I would not want to hear it either. Now GET A JOB, and don’t lie and say you have one!!

Out Raged at DPG

February 27th, 2012
3:48 pm

What a bunch of crooks on the Demopcratic Party of Georgia Executive Committee, I never give them a dime until every one of them resigns. CROOKS I tell you. CROOKS.

RICHandgladOFIT

February 27th, 2012
4:14 pm

The GAULLL of the state Democratic Party – INDEED!!! Get Jessie JAKSON or Reverend Alton SHARPTON, down here to really screw things up.Tell either of them that a white guy looked at a poor black welfare sister the wrong way. They will be down here in two seconds protesting at the Capital.That should be good for a few dollars for the SDP (that would be the STATE DEMOCRATIC PARTY), for you Democrats.

ALLmanALLthe time-SISSY

February 27th, 2012
4:18 pm

“Sheepdog” you sound like a complete waste of time, I bet your boyfriend say the same thing.

suggs

February 27th, 2012
4:24 pm

There are two kinds of people in this country. Those that work for a living and those who vote for a living.

Rural Georgian

February 27th, 2012
4:26 pm

Go Fish Georgia, congestion free interstates, a successful water plan for Atlanta and the rest of state, wonderful schools, etc… yeah, I’d agree with any of you who are truly happy with our one party state. Democracy works best when there is no one to object.

hank reardon

February 27th, 2012
4:27 pm

Leftism is a hard sell to people who can think for themselves.

Jimmy Carter

February 27th, 2012
5:30 pm

Why does treasurer Russell Edwards wait until the bills are due TOMORROW to sound the alarm TODAY? Russell Edwards: WHAT A COMPLETE AND TOTAL IDIOT!

Newtschmoot

February 27th, 2012
5:38 pm

GAWD! Just when you think it can’t get any worse…….. Bobby, please come back!

ole gal

February 27th, 2012
6:52 pm

While I think Ms. Gleason started this teapot tempest for her own power hungry designs on Democratic leadership, I think Mr. Berlon needs to clean his house of the OFA (Organizing for America) players whose sole purpose in life is to raise money for a Obama at the expense of the party, the local candidates and organizations (State and County Parties).

At a recent section meeting of a local county party an OFA tout tossed around a rumor of $5 million of Democratic Funds available to that county party — an obvious lie — as that amount of money would have amazed and surprised the State Party, not to mention how exhuberantly happy Berlon would have been to see those kinds of funds loose in Georgia. The Truth is OFA has siphoned off funds and manpower from the State of Georgia for Obama. They did it during the last presidential cycle and they are doing it again. A friend reported to me that OFA invited him to a meeting and told him not to let the local county party know the date of the OFA meeting. He went to the OFA meeting where they confirmed his worse fears, their stated purpose was to draw money and manpower away from local races, recruit new people attending local meetings, get a mailing list of those people to be solicited by fund raisers for OFA, etc. If money ain’t flowing into Dem coffers at its ususal rate, look North to OFA, DC fro the cause, look South at the local OFA cronies and get a great big broom and dust pan and let’s clean house. This OLE GAL would enjoy making it a clean sweep — HOW BOUT IT BERLON.

Insider

February 27th, 2012
8:13 pm

I hear a big part of the problem is the committee, Melanie Goux and several other of her henchman came to the party over the last several years and have ran off the individuals who knew what they were doing. All you have to do is research who are making money off the party.

Goux owns Campaigns by Design (http://campaignsbydesign.com) and sits on the executive committee. How many Democrats have felt OBLIGATED to use her firm, ESPECIALLY since she site on the executive committee. CONFLICT OF INTEREST.

Many of her personal friends were also brought onto the committee (CONTROL), Berlon has little authority, its the committee that needs to be purged. RESIGN.

liberal dem

February 27th, 2012
8:43 pm

I just looked at Goux’s company web site, the list of clients are extensive; Mike Berlon for Democratic Party of Georgia Chair, Fulton County Democratic Party, Young Democrats of Georgia, Georgia for Democracy, Georgia WIN list, Georgia WAND, and Stacey Evans just to name a few.

How do you not have a huge conflict of interest. I make small donations and really did not like to read about new offices, and people on the payroll who should not be. What a mess. I will not be purchasing a JJ Dinner ticket this year unless we have a major change.

Hamilton

February 27th, 2012
9:00 pm

Ah, the fears of James Madison visited upon the fair state of Georgia. The now unrestrained partisan faction that calls itself the Republican party. Indeed, in Federalist 10, James said, “There are again two methods of removing the causes of faction: the one, by destroying the liberty which is essential to its existence; the other, by giving to every citizen the same opinions, the same passions, and the same interests.”

It has long been held that while parties are “evil” to liberty, they can be controlled by balance, as Justice Stevens suggested in California_Democratic_Party_v._Jones. Now there is no balance and really hasn’t been in the last six years.
Are you better off?

Hamilton

February 27th, 2012
9:18 pm

It’s awkward because it was written over 200 years ago, but the point is understandable. Another quote from Federalist 10:
“No man is allowed to be a judge in his own cause; because his interest would certainly bias his judgment, and, not improbably, corrupt his integrity. With equal, nay with greater reason, a body of men are unfit to be both judges and parties at the same time; yet what are many of the most important acts of legislation, but so many judicial determinations, not indeed concerning the rights of single persons, but concerning the rights of large bodies of citizens? and what are the different classes of Legislators, but advocates and parties to the causes which they determine? Is a law proposed concerning private debts? It is a question to which the creditors are parties on one side and the debtors on the other. Justice ought to hold the balance between them. Yet the parties are, and must be, themselves the judges; and the most numerous party, or, in other words, the most powerful faction, must be expected to prevail.”

Rabbit

February 27th, 2012
9:30 pm

Read this. The demise of the Democratic Party in Georgia will result in autocratic/dictatorial government in Georgia.

Glenn Koons, LB, Ca.

February 27th, 2012
10:20 pm

One wonders as in NC, if corruption is occurring in Ga.??? Dems have so much corruption on local, state and federal election times that one wonders why people resign or get caught up in scandals as say Chu and Holder on the Federal level?? Is it just that the Dem party is broke in Ga. or is something else percolating? Frankly, on so many state and federal issues, why any voter would bother voting Dem nowadays is a puzzle.From energy to finances, jobs, unemployment, debt-deficits, taxes-regs-spending, illegals, education scores, Dems seem to have made all of our problems far worse over the decades and in very un-American ways.

liberal dem

February 27th, 2012
11:41 pm

@ Glenn Koons, Corruption is stating it mildly in the Georgia Democratic Party. Looks like to many people had their hands in the cookie jar and now all the cookies are gone. The DPG is like the Old South it appears to be Gone With the Wind.