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Speaker Daudt’s Sweetheart Deal

This morning, DFL State Chair Ken Martin, held a press conference on House Speaker Kurt Daudt’s debt situation.  Here’s his remarks:

Thank you for joining us here today.

Last week we learned that debt collectors have sued Minnesota House Speaker Kurt Daudt three times in the past year over thousands of dollars in credit card charges, and that he also was late paying taxes for land he owns.

First, before I begin, let me tell you what this press conference is NOT about.  It is not about someone dealing with credit card debt or financial difficulties, many Minnesotans face similar challenges. This is also not about someone facing legal challenges, which again too many Minnesotans coming out of the Great Recession have to endure. 

This is about a powerful person using their powerful friends and influence to get out of their trouble.  While ordinary Minnesotans deal with issue like these daily without help from powerful friends, Speaker of the House Kurt Daudt used his connections and influence to get out of his financial difficulties.  If only other Minnesotans had the same opportunity. 

Real Minnesotans don’t have a lobbying firm in their corner to get them out of trouble. Real Minnesotans pay their bills or face the consequences. Real Minnesotans facing financial troubles are focused on feeding their families and keeping the lights on, not taking trips around the world, or driving a fancy Lexus like Kurt Daudt. 

Speaker Daudt has asked people to show empathy to him as he deals with these financial and legal troubles, which would be fine if he showed the same empathy to those in need facing challenges of their own. 

It reminds me of the parable, and I’m paraphrasing, of the Rich man who was approached by a poor person who was turned away, then by a homeless person who was turned away, then by a sick person who was turned away; then when misfortune befalls the rich man he turns to others for help but he has no one to turn to. 

When ordinary Minnesotans have turned to Speaker Kurt Daudt for help he has them turned away.  Steelworkers who were laid off and needed their unemployment insurance extended – turned away!  Students dealing with crippling college debt – turned away!  Communities who needed LGA and Broadband investments – turned away!  Our Communities of Color in Minnesota who are dealing with serious economic and social disparities – turned away! 

Now Speaker Daudt wants people to understand and empathize with his difficulties even though many questions remain as to the sweetheart deal he received.

What happened to Speaker Daudt’s debt? How much did he pay?

  • Thousands of dollars in outstanding debt, judgments against him were vacated with little explanation at the request of lawyers for the creditors who were suing him, lawyers from a firm that also employs lobbyists.

Did Daudt receive special treatment because he was represented by a powerful lobbying firm?

  • MPR News examined debt collection judgments entered on behalf of Capital One from January through June 2015.
    • Of the nearly 650 cases reviewed, only four were vacated, two of them were Daudt’s cases.
    • More than 500 are still active with the debt judgments hanging over the delinquent parties.

Who paid Speaker Daudt’s legal fees 

  • While facing more than $10,000 in debt suits against himDaudt traveled extensively in 2015 including trips to Turkey, Israel, Germany, and Italy. Some of that travel may have been covered by campaign funds for official travel, but others, like his trip to Turkey, Daudt claimed to have paid for himself.

Joining us today to talk about the challenges real Minnesotans are facing are Patrick Burke and Cliff Tobey.

With his new found understanding of the challenges Minnesotans face, it’s time for Kurt Daudt to take action.

  • Immediate passage of a no-strings-attached benefit extension for steelworkers.
  • Use a portion of the $900 million budget surplus to close the opportunity gaps for communities of color. This includes investments in early education, childcare and job training.
  • Commit to finding long-term solutions to crushing higher-ed debt.

We cannot afford for Daudt’s debt to be a distraction this session. Nor can Minnesota afford for a fortunate few to receive special considerations when so many are struggling. It’s time for legislators to come together and be the powerful friends that Minnesotans need to help them with their challenges. Kurt Daudt has powerful friends shouldn’t Cliff, Patrick and other Minnesotans who so desperately need government to get to work on their behalf. 

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