Hourly Update

Campaign finance panel settles Napolitano case

PHOENIX - A state commission ruled Thursday that Gov. Janet Napolitano's re-election campaign violated a campaign spending rule but agreed that her campaign won't have to pay a penalty. The Citizens Clean Elections Commission closed the case under a settlement requiring Napolitano to amend her campaign finance reports to list higher costs for consultants' work on the campaign's Web site and e-mail distributions. The commission acknowledged that Napolitano still disputes that there was a violation, and the commission's executive director said other candidates may have similar problems with their spending reports. The case started with a complaint by the state Republican Party. At issue was whether the Democratic governor had to report a monthly payment to consultants immediately or even before the consultants' started work, or later in the month when they were actually paid. Publicly funded candidates must have cash on hand to cover their spending commitments, and the commission says its use of the earlier date meant Napolitano's campaign at one point was short about $500 to pay the consultants.