Kathleen King

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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Nonprofit Executives Respond to Cindy Chavez Conflict Allegations

On March 24, Metro/San Jose Inside reported that Santa Clara Family Health Foundation (SCFHF) executive board member and officer Cindy Chavez participated in a board decision to provide $250,000 in funding to the Yes on A committee, on which she and Kathleen King—CEO of SCFHF—constituted a majority of the three-member committee. The committee subsequently turned over a large portion of the funds to the South Bay Labor Council Issues PAC and Democratic Central Committee’s PAC. Because of Chavez’s obvious conflicts of interest—she headed up the SBLC at the time—and the importance of a countywide sales tax increase, which will be paid by all residents, Metro/San Jose Inside felt this was a matter of public interest.

On Friday, nine nonprofit executives wrote a letter to express their thoughts on recent articles. They worry that investigative reporting could make nonprofits “the target of unfounded accusations and public reproach.” Because we feel this is a useful debate to have, and because we want to give differing points of view the proper attention they deserve, we are running below the letter in full, in addition to its appearance in the comments section where it was submitted. —Editor

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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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Nonprofits Funded Labor Council Political Campaigns

Funds from two local non-profit health care foundations made their way to phone banks and mail campaigns of the South Bay Labor Council in 2012 after routing the money through a Measure A’s campaign committee. Both the VMC Foundation and the Santa Clara Family Health Foundation gave more than a quarter-million dollars each—a total of $539,000—to support an 1/8th cent county sales tax measure, Measure A. At least $90,000 of those monies were transferred to the South Bay Labor Council. An incestuous tangle of organizations, directors and consultants characterized the transactions, with common decision-makers on both the giving and receiving ends. None of the organization are willing to discuss how the funds were used and how decisions were made. Former San Jose vice mayor and South Bay Labor Council CEO Cindy Chavez currently heads up the nonprofit SBLC-linked Working Partnerships USA (WPUSA) and sits on the board for the Health Trust and Santa Clara Family Health Foundation.

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King Bows Out of Supervisors Race

The race for Liz Kniss’ soon-to-be vacant seat on the Santa Clara County Board of Supervisors just lost Kathleen King, a candidate many considered to be Joe Simitian’s main challenger after Margaret Abe-Koga bowed out in early January. In a letter to supporters Tuesday, King, a former mayor of Saratoga, cited personal issues as the reason for bowing out.

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County Supe Race Loses Abe-Koga

Considered the strongest challenger to Joe Simitian in the upcoming race for a seat on the County Board of Supervisors, Mt. View Councilmember Margaret Abe-Koga sent a letter to her supporters Thursday announcing she will bow out of the race and throw her support behind the current state senator. That leaves former Saratoga Mayor Kathleen King as Simitian’s lone competition.

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Shifting Into Reverse

After two terms in the state assembly and two in the state senate, Joe Simitian will say goodbye to Sacramento next year, courtesy of California’s term limits. The smart money is betting on a Simitian run for Congress, though Rep. Anna Eshoo will have to stand down first. Rather than take a vacation from public service, Simitian may return to the Santa Clara County Board of Supervisors.

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