Portland Mayor Ted Wheeler’s $150,000 loan to his own campaign wasn’t illegal, city auditor says

Bybee Lakes Hope Center opening

Portland Mayor Ted Wheeler at the Bybee Lakes Hope Center's grand opening and press tour, Friday, October 2, 2020. Beth Nakamura/Staff

Portland Mayor Ted Wheeler didn’t violate city election rules by loaning his reelection campaign $150,000, City Auditor Mary Hull Caballero announced Wednesday — four hours before the 8 p.m. ballot dropoff deadline.

In a statement, Hull Caballero noted that while Portland voters in 2018 approved campaign finance restrictions that included a $5,000 limit on candidates making personal loans to their campaigns, the Oregon Supreme Court in April deemed expenditure limits violated the First Amendment.

Because of that, and a similar precedent set by the U.S. Supreme Court, the auditor said she didn’t believe Wheeler’s loan to himself in September was a violation.

“I will always uphold the will of the voters to the greatest extent allowable by law,” Hull Caballero said. “I cannot, however, infringe on any candidates' free speech rights until the courts decide that the city’s regulations are not in conflict with Supreme Court precedent.”

The ruling stems from a lawsuit filed in September on behalf of Wheeler’s mayoral challenger Sarah Iannarone in response to Hull Caballero’s initial refusal to investigate an election complaint about the incumbent’s self-loan. The auditor gave the same explanation as a reason why she wouldn’t investigate the complaint. A Multnomah County circuit judge in October ordered her to investigate the complaint and deliver a ruling.

Recent polls have shown Wheeler and Iannarone near dead-even or the challenger ahead. Results from ballots counted in the mayor’s race will start being announced after 8 p.m.

-- Everton Bailey Jr; ebailey@oregonian.com | @EvertonBailey

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