John DiStaso's Granite Status: Ayotte, Lynch hit back at 'attack group'

Thursday, Mar. 18, 2010

THURSDAY NIGHT UPDATE

BINNIE, CARNEY: WE'RE NOT INVOLVED. A veteran GOP consultant and a spokesman for Republican Senate candidate Bill Binnie said Thursday they had nothing to do with the "HandsOffNH" program being launched against former Attorney General and GOP Senate hopeful Kelly Ayotte and Democratic Gov. John Lynch by the Virginia-based Americans for Job Security.

Bryan Lanza, Binnie's campaign manager said also said Binnie did not contribute to the effort.

"The first we heard about it" was what the Granite Status report earlier today, Lanza said.

David Carney, a nationally-known GOP consultant based in Hancock, said he is a consultant for Americans for Job Security, but had nothing to do with the anti-Ayotte and anti-Lynch effort focusing on an attempt last year to use $110 million in medical malpractice premium funds to help balance the state budget (see earlier items below).

"I have never met Bill Binnie," said Carney, who worked in the 1980s with top Binnie consultant Paul Collins in the first Bush White House and, previously, former Gov. John H. Sununu's office.

"It's not about Kelly Ayotte," said Carney. "It's about public officials trying to take private property and making the public aware of their secret dealings.

"Politicians should be held accountable for their actions," said Carney. "Not one word in the AJS communication is wrong. The arrogant ruling class should get a grip. The First Amendment allows folks to speak out, and nowhere do the politicos get to pick who or when folks can speak up."

On Thursday afternoon, Republican U.S. Senate candidate Kelly Ayotte today called the pro-business Americans for Jobs Security an "outside shady organization" that is distorting her role in an effort last year to use $110 million in medical malpractice funds to balance the state budget.

The Granite Status earlier today reported that AJS was launching a Web site, web advertising and a mass mailing criticizing Ayotte and Gov. John Lynch for their role in the state's failed attempt to tap the Joint Underwriting Association's medical malpractice premium fund to balance the budget (see our item below). The move was banned in by the state Supreme Court.

AJS called it a private property rights issue, with its president Steve DeMaura saying, "The people of New Hampshire deserve to know the truth about John Lynch and Kelly Ayotte's unconstitutional attempts to take private property."

Ayotte said this afternoon, "This is an outside group which, from what I understand, has a demonstrated record for false and sleazy attacks, and they are distorting my record. It is an outside shady organization."

One of Ayotte's GOP Republican primary opponents, Ovide Lamontagne, came to her defense, sort of.

Lamontagne said Ayotte "has a lot to answer for concerning her role in the JUA matter, which involved the unconstitutional theft of $110 million in private funds" and her explanations "have only raised more questions."

But he also said he was disappointed that an out-of-state organization is getting involved in the New Hampshire race, and should "butt out."

Lamontagne said that just as "party bosses and Washington elites" should stay out of the race, so should "out-of-state groups who try to influence with neither accountability nor disclosure."

Lynch spokesman Colin Manning also responded to the AJS attack.Manning emailed the Status:

"The JUA was established as a government run and government subsidized malpractice insurance program for doctors. The doctors who paid their premiums, got the benefit of the insurance."

Manning wrote, "The governor agreed with the attorney general, the insurance commissioner and the Legislature that any surplus funds rightfully belonged to the taxpayers of New Hampshire. The Governor also agreed with the two Supreme Court justices who in the dissenting opinion wrote that the majority misapplied New Hampshire law, ignored critical evidence and expanded the role for judicial view of economic legislation."

Manning continued, "Clearly, this out-of-state attack group doesn't have its facts straight, referring to the private accounts of doctors, nurses and health care providers. That certainly does not describe the JUA."

Also today, veteran GOP strategist and web expert Patrick Hynes, who operates the Now!Hampshire political web site, confirmed he is a member of the AJS board of directors, but said he had nothing to do with the group's effort in New Hampshire.

In response to questions raised about his possible role in the AJS effort by state Democratic National Committeewoman Kathy Sullivan on the progressive BlueHampshire.com site, Hynes said, "The first I heard about this was in the Granite Status."

Hynes said, "The board has an advisory role in terms of keeping the books and the financial aspect of the group, which is the responsibility written on the charter. We don't have a role in the day-to-day or strategic operations.

"I didn't have any decision-making authority in this at all," said Hynes who added, referring to the Senate primary, "I don't have a horse in this race."

Regarding the AJS "HandsOffNH" effort, Hynes said, "Generally speaking, I'm in favor of any organization speaking out about issues they care about."

AJS president Steve DeMaura also said group board members "have no day to day control of the organization. They serve in a oversight role."

GUINTA CALLS OUT CAROL. GOP 1st District House candidate Frank Guinta today called on Democratic incumbent Carol Shea-Porter to hold a "real and open town hall" on health care after the House vote on the issue.

"This process has been filled with backroom deals, and a complete manipulation of the rules. The voters deserve to right to be heard," Guinta said.

Guinta's campaign last week launched a web site with a petition asking Shea-Porter to a vote against the bills now pending on Capitol Hill. The campaign says that 850 New Hampshire residents have signed on."

The full Granite Status from March 18th continues below

TWO PEAS. The fiscally conservative, pro-business group Americans for Jobs Security is wrapping Republican former Attorney General/Senate candidate Kelly Ayotte and Democratic Gov. John Lynch in the same pod and targeting both on the $110 million Joint Underwriting Association debacle.

The Granite Status has learned that today, Virginia-based AJS, whose president is former state GOP executive director Steve DeMaura, will launch a major "educational" effort blasting Ayotte and Lynch for a playing "integral roles" in "one of the largest money grabs in New Hampshire history."

And that would be the attempt to use the JUA medical malpractice fund to help balance the state budget, a move that was slapped down hard by the state Supreme Court.

Ayotte has denied having a direct role in the effort, saying she passed a Lynch request for an legal opinion to an assistant attorney general, who concluded it would be legal, and then "didn't weigh in one way or another" on the decision to include the money in the budget.

But Lynch has stressed he relied on the opinion from his "former attorney general" that the state had a strong case, an opinion the court obviously did not agree with.

AJS, a 501(c)6 trade association, can't endorse or advocate for or against any candidate, but DeMaura said it is focusing on the property rights issue.

He said the effort will include a new Web site, HandsOffNH.com, devoted entirely to Lynch and Ayotte, asking, "Are you sure you're not their next target?"

It will include a petition and will urge visitors to call Lynch and Ayotte "and tell them that stealing private property to balance the state budget is wrong. Tell them you'll be watching that they don't try again."

DeMaura said AJS will couple the new site with "a lot of internet advertising and thousands and thousands of direct mail pieces," adding, somewhat ominously, "This is our initial effort."

He said, "A lot of people don't understand Kelly Ayotte's role in this. What she has said publicly does not align with every other public statement out there. She really was an integral part of the scheme to take the money from doctors and nurses and health care organizations. What's next?

"It's important for people to know her position on private property rights and her apparent belief that what's yours is mine," De Maura said.

As for Lynch, DeMaura said his role is clear as the final decision-maker in the so-called "money grab."

.

THE EARMARKS ISSUE. Trying to show he's a fiscal moderate, Democratic U.S. Senate candidate and Rep. Paul Hodes continues working to make earmarks a trademark issue.

Hodes announced in January he'll no longer propose earmarks. Last week, when the House Democratic leadership decided to ban earmarks to private companies, Hodes said it didn't go far enough and sponsored a resolution to change House rules to ban all earmarks.

This week, he has sent "Dear Colleague" letters to all House members, saying that House Republicans recently voted to impose a moratorium on earmarks among their own members, "and I commend the Republicans who are willing to observe this moratorium. It is a step in the right direction."

But he says that the only effective ban on earmarks is a full-fledged ban by both parties and he asks for bipartisan support for his resolution.

Whether his move has any "legs" on Capitol Hill, or back home, this election year remains to be seen.

Yesterday, Hodes called for a congressional probe of big insurance company executive compensation.

.

BIG PICKUP FOR BINNIE. Republican U.S. Senate candidate Bill Binnie is set to announce the backing of a former key member of the state GOP establishment who's been pretty much on the outside for a number of years now.

Bruce Keough, a former state senator, former chairman of the state university system board of trustees and 2002 candidate for governor, is Bill Binnie's new campaign chairman, overseeing its "operational and organizational activities," according to a campaign source.

Portsmouth attorney John Lyons remains the campaign's state chair, which, we're told, is more focused on building the grassroots effort.

The wealthy Binnie surely isn't hurting financially, but Keough also has the ability to raise big money for the candidate if necessary.

Keough, who, like Binnie, is a successful businessman, said he did not know Binnie before Binnie announced his candidacy.

He said Binnie's grasp of economic and fiscal issues impressed him both in private conversations and at a recent Portsmouth Rotary Club forum that also featured Ayotte and Ovide Lamontagne.

He said he also likes that Binnie is new to politics and seems to be running his own show, not depending on the advice of professional campaign consultants.

Binnie calls it "a great day for the campaign" because Keough's endorsement was "highly coveted."

As reported on UnionLeader.com, Binnie followed up his five television ad buys with his first radio ad this week, targeting the Democratic health care plan and pledging to sponsor a bill to repeal health care reform should it pass and should he be elected.

Campaign manager Bryan Lanza said the "significant, statewide buy" will continue until the bill is voted on by Congress.

.

JAYNE FOR KELLY. Ayotte, meanwhile, has picked up the endorsement of former GOP executive director and chair Jayne Millerick, who will be part of the campaign's leadership team.

Now a small business owner who lives in Bow, she founded Marcucci Consulting in 2001.

.

HEADING ASHOOH'S CAMPAIGN. Veteran campaign organizer and former legislative staffer Jay Flanders has found a home for the 2010 campaign cycle, as Republican 1st District U.S. House candidate Rich Ashooh's new campaign manager.

Flanders, who back in 2008 was listed as a supporter of Frank Guinta's Granite State Leadership PAC, will oversee the day-to-day operations of Ashooh's campaign.

Flanders managed former state Sen. Chuck Morse's Executive Council campaign in 2006, was a field director for Keough's campaign for governor in 2002, was deputy chief of staff to former state Senate President Tom Eaton and was a policy adviser to former Sen. Gordon Humphrey's campaign for governor in 2000.

He's also been involved in several state Senate campaigns and various grassroots initiatives.

He most recently directed the Josiah Bartlett Center for Public Policy's transparency project.

Guinta continues to build a grassroots organization with the release later today of the names of 50 more supporters, including former state Sen. Dick Danais, former Belknap County Commissioner and well-known marina owner Mark Thurston, state Rep. John Gleason of Derry and conservative activist Ellen Kolb of Merrimack. The campaign says it now has 450 "county co-captains."

Attorneys across the district have also received a fund-raising letter on behalf of Guinta written by prominent attorneys Robert Dastin, Susan Duprey and Jack Middleton.

Their two-page letter praises "our friend, Frank Guinta," and calls incumbent Democrat Carol Shea-Porter "a loyal foot-soldier for Nancy Pelosi."

.

"A RECIPE FOR MISERY." Shea-Porter isn't taking the constant GOP pounding lying down. A fundraising e-mail this week blasts the Republicans as cooking up "a recipe for misery, brought to you by the same people who ran the country into the ground and now want you to give them another chance."

Shea-Porter says, "In January of 2009, before we took over, America lost more than 750,000 jobs in one month" and "Wall Street had nearly destroyed Main Street."

She says that President Barack Obama and the Democratic leadership "have stopped the hemorrhaging, "but now they are trying to come back with the same package, their plan to privatize Social Security and Medicare."

She says they have "wrapped it in new paper, but it's the same plan."

.

A COUNCIL CANDIDATE? Former U.S. Postal Service New Hampshire/Vermont district manager Jim Adams of Pittsfield considered running for governor two years ago but decided against it.

Since then, he's become more active in the party and now says he's "very strongly leaning" toward running for the District 2 Executive Council seat held by two-term Democrat John Shea.

He said the GOP has "a good cadre" of candidates for governor and federal offices but believes the party should put up strong candidates for the council and legislative seats.

He said he expects to make a final decision within the next two weeks.

"I really feel that the special interests have gotten a front seat" at the Executive Council table, Adams told the Status. He said there should be more scrutiny and accountability by the council over the massive state expenditures it approves on a bi-weekly basis as well as plans for highway improvements and especially tolls, which he opposes.

"We need an executive branch of state government that is above reproach," said Adams. "I wonder if enough due diligence has been brought forward."'

.

A CHARLIE T-SHIRT. In the 2nd District, Republican Charlie Bass had a lighter approach to fundraising last week.

For just $20.10 (get it?) you could have owned your very own "Bass for Congress" T-shirt, but only if you were among the first 50 contributors as of 6 p.m. last Sunday.

As one astute Republican put it, "Geesh, Bill Binnie is giving away pullover jackets!"

.

MR. MOORE SAYS ... Bass primary foe Jennifer Horn is pointing to an analysis of the race written by Wall Street Journal editorial writer Stephen Moore, which says the primary "will tell a lot about whether Republican voters have forgiven GOP members of Congress who rammed through spendthrift budgets during the better part of the last decade. He says that Bass "often supported the largesse."

Moore contends, "Conservative New Hampshire voters and Tea Party activists are calling the race a 'battle for the soul of the Republican Party.'"

He quotes former U.S. Rep. Chuck Douglas as saying, "Look, we all like Charlie, but the problem is he was there during the Bush era, supported the budgets and didn't vote to cut them." According to Moore, Douglas said that Bass' record would be a "burden in November."

Moore advises to "keep an eye on this race" as an "early indicator of whether the GOP grassroots can oust party heavyweights and whether the party is ready to turn aside the Republican old guard for a new generation of conservative leaders."

.

NOT SO SHARPE. Windham investment portfolio manager Brian Sharpe considered running in the 2nd District GOP primary for about a month, but now confirms to the Status he has decided against it.

"This will be a great year for the New Hampshire GOP, and I look forward to helping out as best I can," Sharpe e-mailed us. John Stephen's campaign is excited about getting Sharpe on board, perhaps in a finance committee role.

Sharpe cited his career responsibilities as his primary reason for deciding not to run.

"At some future date," he said, "I will be in a position to run a successful campaign."

Also in the 2nd District, Ann McLane Kuster today will announce plans to attend 30 house parties in the next 30 days and is seeking hosts among supporters.

.

DENNEHY MOVES ON. Veteran activist Chris Wood has taken over management of the Senate Republican Majority PAC, the political committee of the Senate minority that wants to become the Senate majority again. Wood succeeds Mike Dennehy of the Dennehy Group, who has moved on to work for several out-of-state campaigns, including independent Tim Cahill's run for governor in Massachusetts and Republican Les Otten's campaign for governor in Maine. Dennehy is also handling Chris Roy's campaign for Secretary of State in Vermont.

.

POLITE BUT DIRECT. U.S. Senate candidate Ovide Lamontagne earned a lot of chatter on the blogosphere and in political columns last weekend for his open Web letter taking John McCain to task for coming to New Hampshire to support Ayotte.

Lamontagne (who, by the way, backed Mitt Romney in the 2008 GOP presidential primary), said he was disappointed "that you have chosen to return to New Hampshire to involve yourself in the contested New Hampshire primary," adding, "You know better than most that independent-minded voters of New Hampshire decide for themselves who to support in a primary."

Interesting, and with Romney headed to New Hampshire in a couple of weeks, expect him to steer well clear of voicing any support for Lamontagne, or even contributing a dollar to his campaign.

He's expected to stay out of the primary entirely.

.

GOP FUNDRAISER. The state Republican Party has tapped U.S. Rep. Connie Mack to keynote its "Freedom Matters, Freedom Works" fund-raising luncheon immediately following the state committee's annual meeting on April 17 at Bow High School. Tickets are $25 or $200 a table.

Mack, whose real name is Cornelius Harvey McGillicuddy IV, is the son of former U.S. Sen. Connie Mack and the great-grandson of the late Baseball Hall of Famer Connie Mack who managed the Philadelphia Athletics for 50 years and owned the team for most of that time.

.

EVENTS ON TAP. Here's a quick recap of other upcoming visits and events:

--Minnesota Gov. Tim Pawlenty is scheduled to appear next Thursday, March 25, at the Manchester Republican Committee's Lincoln-Reagan Day Dinner at the Executive Court banquet facility.

The city committee is pushing ticket sales hard, offering the first 20 New Hampshire Young Republicans who attend the dinner half-price entry.

--Romney returns on April 7 to deliver a speech at St. Anselm College's New Hampshire Institute of Politics, followed by a book signing at Barnes and Noble in Manchester. The next day, he'll keynote a "Politics and Eggs" breakfast, co-sponsored by the New Hampshire Political Library and New England Council, at the Bedford Village Inn.

--Sen. Rick Santorum of Pennsylvania has been booked to keynote the Cheshire County Republicans' Lincoln-Reagan Day Dinner at the Keene Country Club on April 30.

--On the Democratic side, we reported last Friday on UnionLeader.com that Montana Gov. Mark Schweitzer has been tapped to keynote the party's 100 Club dinner on April 29 at the Grappone Center in Concord.

--The Manchester City Democratic Committee will hold its annual St. Patrick's Day Breakfast on Sunday, March 28, at 9 a.m. at The Towers Cafe at 1750 Elm St. Tickets are $25. Sen. Jeanne Shaheen is the featured speaker and the committee will honor Hillsborough County Attorney Bob Walsh.

--Rep. Mike Pence of Indiana of the House Republican Conference is scheduled to speak at the Hillsborough County Lincoln Day Dinner at C.R. Sparks in Bedford tomorrow and at an event for Americans for Prosperity and Cornerstone Policy Research at Sean Mahoney's Portsmouth home on Saturday.

.

John DiStaso is senior political reporter of the New Hampshire Union Leader.