Santa Clara Family Health Foundation

Rules to Consider Bill that Limits Nonprofit Political Spending

A gut-and-amend state Senate bill that would restrict nonprofits from spending taxpayer cash for political purposes has elicited opposition from K-12 and community college associations, various local governments—including San Jose—and the nonprofits that get money from them. That and more at Wednesday’s Rules and Open Government Committee meeting.

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The Redemption of Cindy Chavez

In what may turn out to be one of the most expensive races ever for a local county office, Cindy Chavez has captured the District 2 Supervisor seat held by her disgraced former ally, George Shirakawa, Jr. The victory places the largest county government in the global home of leading edge technology—from Teslas to Google Glass—firmly in the hands of an old-fashioned political machine; a classic one that delivers votes, wins elections, rewards its followers and dispenses benefits. Over the next two years, the board will vote on billions of dollars in employee compensation contracts—the county spends $3 billion a year on salaries, benefits and pensions—for the members of the unions who returned the former San Jose city official to public office.

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Family Health Fiasco: King Broke Law by Asking Campos for Endorsement

The Santa Clara Family Health Foundation was created to help raise money to pay for poor children’s health insurance premiums. In recent years, however, the tax-exempt organization has also acted as a political entity, helping the South Bay Labor Council and Working Partnerships USA fund local tax measures through year-round planning and coordination. While there are some allowances for tax-exempt organizations to get involved in issue campaigns, nonprofits and public agencies cannot play a role in individual candidate campaigns. Kathleen King, executive director of the Health Foundation, has not always followed this rule.

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Family Health Fiasco: Kathleen King Wanted Better Push Polls for Measure A

Push polls are a common occurrence in campaign season. They are designed to leave voters with a more positive or negative reaction to topics and/or individuals after answering questions. Political consultant Rich Robinson recently wrote a column on San Jose Inside about his distate for the leading questions, which are often asked without proper context, he argued. Based on email records obtained through a court order last week, it can be said that Kathleen King, executive director of the Santa Clara Family Health Foundation, does not share this opinion about push polls.

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Family Health Fiasco: Board of Supes President Lets Organized Labor Write His Letters

Kathleen King expressed concern earlier this year to Working Partnerships USA policy director Bob Brownstein that the city of San Jose would stop funding the Children’s Health Initiative (CHI) after Measure A passed in the 2012 election. As executive director of the the Santa Clara Family Health Foundation, King realized this would have an adverse effect on the foundation’s ability to continue operations. A plan was then set in motion to tap trusted elected officials.

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Family Health Fiasco, Part I: Foundation Funded Political Campaigns, Not Kids

A public agency created the Santa Clara Family Health Foundation more than a decade ago to fund the county’s groundbreaking children’s health care initiative, one that would guarantee that every child who needed a doctor’s attention would be seen. For the past three years, however, low income kids’ health insurance premiums have taken a backseat to personal ambition as Health Foundation officers ran for office, funded their $200k annual compensation packages and diverted money to pay for political consultants, mailings, public opinion polls, phone banks and ballot initiatives. All this transpired behind a shroud of secrecy that was lifted last week by Judge Carol Overton, who rejected SCFHF’s hard-fought legal battle to keep its activities out of the public’s view. Documents obtained as a result of last Friday’s superior court ruling show clearly that the Health Foundation repeatedly broke state laws by using a public agency’s funds and property to operate political campaigns in close coordination with local labor leaders.

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Judge Orders County to Release Health Foundation Documents

Metro and San Jose Inside scored a legal victory Friday with Judge Carol Overton’s ruling that the County of Santa Clara must release documents on the political activities of the nonprofit Santa Clara Family Health Foundation. The documents, handed over to Metro on Friday, shed new light on how a recent ballot initiative was passed, and how the South Bay Labor Council interacts with local nonprofits to advance its agenda.

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Rules to Look at Renting Space at City Hall, Nonprofit Health Care Investigation

Parts of City Hall, left a bit empty after layoffs and the Redevelopment Agency’s closure, may soon be open to anyone looking to lease a slice of the swanky 18-story downtown centerpiece. Proceeds from the market-rate rents will go right to the city’s general fund, according to a memo going before the Rules and Open Government Committee on Wednesday. Other items include the Pete Constant-Johnny Khamis memo asking the city to investigate how public funds were used to fund a county sales tax measure carried out by organized labor.

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Board of Supervisors to Discuss Funding Nonprofits, Lowering Tax Threshhold

The Santa Clara County Board of Supervisors on Tuesday will consider granting a fair chunk of change to a nonprofit trying to set itself up as a small business support center. This comes on the heels of greater scrutiny regarding public funds going to entities that are not required to disclose their financial dealings. Also on Tuesday’s agenda, the Board of Supervisors will consider supporting a change to the state Constitution that would lower the percentage of votes needed to raise local taxes.

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Cindy Chavez’s Conflicts of Interest

While on its executive committee, prospective county supervisor candidate Cindy Chavez helped move hundreds of thousands of dollars out of a local health nonprofit, according to copies of board minutes obtained by San Jose Inside. At a pivotal meeting last June, Chavez voted to approve a budget that included a line item in which one of her employers, Working Partnerships USA, had a financial interest—and to fund a political campaign that was largely run by her other employer, the South Bay Labor Council. The two transactions totaled $400,000, more than a quarter of the Santa Clara Family Health Foundation’s budget.

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Councilmembers Constant, Khamis Call for Investigation of Health Care Nonprofits

Two members of the San Jose City Council are calling for an investigation into whether city funds were illegally used in local campaigns. Councilmembers Pete Constant and Johnny Khamis are asking the city manager and city attorney to “investigate whether any city funds that were provided to either Santa Clara Family Health Foundation or VMC Foundation were used to fund any campaign activities in any manner,” according to a memo released Thursday. The memo notes that the city has given the foundations more than $6 million in the last three years.

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