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.

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.

The Santa Clara Family Health Foundation, a local nonprofit that helped bump up the county’s sales tax last fall, doesn’t want the public to know about its secret political activities. And now it’s lawyering up to quash Metro/San Jose Inside’s public records act requests.

A number of local elected officials have recently shown signs of unstable and unacceptable behavior in public life. All of these extreme actions indicate people dealing with mental-health related issues. That does not mean they are all mentally ill. Then again, the absence of a diagnosis is not the same as being “not sick.”

Unfunded retiree healthcare benefits threaten to take a $1.7 billion bite out of the Santa Clara County budget, a drastic uptick from the $425 million liability seen a decade ago. This and other matters will be on the Board of Supervisors agenda for a three-day budget workshop starting Tuesday next week.

On January 22, five weeks before former Supervisor George Shirakawa Jr. was charged with 12 criminal counts, Cindy Chavez met District Attorney Jeff Rosen for lunch at P.F. Chang’s in downtown San Jose.  Not only did Chavez throw down the race card and lobby Rosen “not to do anything,” South Bay Labor Council’s new executive Ben Field also lunched with Rosen and echoed the message.

On Monday, a press release sent out by the Office of Pubic Affairs announced that County Executive Jeff Smith, “consistent with his word,” launched a webpage dedicated to “Reform Efforts.” This should solve everything.

Two years ago, District Attorney Jeff Rosen cleverly cushioned the effects of county-mandated pay cuts for some of his senior prosecutors through an accounting loophole. After his top supervisors were disproportionately affected by the cuts, he started giving them “admin leave” so they could collect vacation time for a payout down the road to replace lost wages. The slick move, legal under county policies, got the attention of County Executive Jeff Smith, who’s now asking Attorney General Kamala Harris to investigate. The question is: What’s really happening here?

Santa Clara County owes the city of San Jose nearly $7 million that was wrongfully diverted to county employee retirement accounts, according to a ruling handed down Friday by a Sacramento Superior Court judge. The ruling found that beleaguered county finance officials ignored “a half century of construction and application of California law governing allocation of tax increment financing.”

County Executive Jeff Smith admitted Friday that significant “culture problems” exist within the county and an internal investigation has been launched into finance officials who may have covered up their role in facilitating crimes committed by former county Supervisor George Shirakawa Jr. Meanwhile, Supervisor Dave Cortese told San Jose Inside that the Board is keeping close tabs on Smith’s “response and accountability.”

When Teresa Alvarado announced that she was running for George Shirakawa Jr.’s vacated county supervisor seat, County Executive Jeff Smith helpfully forwarded the email to Working Partnership USA’s executive team: Bob Brownstein and Cindy Chavez. The forwarding of memos by Smith highlights the cozy relationship between the County of Santa Clara and Working Partnerships USA (WPUSA), the organization led by longtime labor union executive and current supervisor candidate Cindy Chavez. WPUSA is joined at the hip to the powerful South Bay Labor Council (SBLC), with whom it has historically shared offices, facilities, equipment, political objectives and allocated employees. Last year, SBLC led the effort to raise county sales taxes by $500 million over the next ten years and to increase San Jose’s minimum wage by 25 percent. It also endorsed 70 candidates for political office. Working Partnerships has been the recipient of at least $518,163 from the cash-challenged county in the past two years, performing a grab bag of services. Newly released documents obtained via a San Jose Inside public records request show the county’s contracts represented about 15 percent of Working Partnerships’ revenues for those years.

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.

George Shirakawa has a reputation for missing important deadlines. It then comes as little surprise that the county supervisor under investigation for his misuse of county funds ignored Friday’s due date to reimburse roughly $12,500 in charges. If that wasn’t bad enough, Shirakawa also ignored an extension he was given to Monday, according to County Executive Jeff Smith.

While the District Attorney’s Office and Fair Political Practices Commission continue their investigations into Supervisor George Shirakawa, the county has moved forward with updated policies on P-Cards and expenditures. Also, sources have confirmed with San Jose Inside that Teresa Alvarado, a potential candidate to replace Shirakawa if he is forced out of office, is moving to District 2.

On the same day the county released a second audit critical of P-Card purchases made by Supervisor George Shirakawa’s office, County Executive Jeff Smith provided his first extended comments regarding Shirakawa’s misuse of taxpayer funds.

Leave it to Larry Stone, the county assessor, to call it like he sees it when the vast majority of his fellow elected officials have danced around the issue of Supervisor George Shirakawa’s flagrant misuse of taxpayer money.