Korenstein Says 2 Challengers Broke Funds Law

Los Angeles school board member Julie Korenstein on Thursday charged two of her opponents with violating the state’s new campaign financing reform law.

Parke K. Skelton, Korenstein’s political consultant, mailed letters Thursday to two challengers, Barbara Romey and Gerald Horowitz, demanding that they return certain contributions they received from supporters last year. He contended that the donations were accepted legally last year, but are now illegal because of Proposition 73--the campaign reform initiative--which took effect Jan. 1.

Romey and Horowitz’s representatives vigorously denied the charges and accused Korenstein of seeking publicity. Horowitz also charged Korenstein with illegally keeping a contribution from Los Angeles County Supervisor Ed Edelman.

Sandra Zien, Horowitz’s campaign director, said her candidate “feels it’s a shame that the opponent is more concerned about funding than she is about resolving the Board of Education-teacher conflict.”

In the letter, Skelton urged Romey to return a $2,000 contribution that she received in December from Los Angeles City Councilman Hal Bernson. Although she was free to accept the check last year, the new law does not permit her to use that money in 1989 for her campaign, Skelton said.

Skelton also accused Romey of covering up the donation by listing her old political action committee as its source. In the letter, Skelton charged that this “constitutes a transparent attempt to launder a contribution and disguise its real source.”

But Romey defended the contribution and said a ruling by the state Fair Political Practices Commission in September allows her to spend Bernson’s money in the current campaign. She said Bernson’s contribution was not hidden--rather it was reported on her old political action committee’s finance statement. She later transferred the money to her new committee.

“There is no question about it,” Romey said. “We follow the law.”

Skelton also accused Horowitz of carrying over a 1988 contribution from Bernson. But Dwight Ham, Horowitz’s treasurer, said the money will be kept in a segregated account that cannot be used for campaign purposes.

The campaign wanted to return Bernson’s check, but was advised by the Fair Political Practices Commission that it had to be kept in a separate account, said Greg Smith, a Horowitz political consultant. If the candidate loses the election, the money could be given to charity, and if he wins, he can use it for board expenditures, Smith said.

Meanwhile, Smith accused Korenstein of breaking the law by carrying over a 1988 contribution from Edelman, but Skelton said the contribution was returned this year.

Ham said he believes the controversy was caused by the complexities of the reform law. “It’s a new law, and there are still a lot of people scratching their heads as to the interpretation,” Ham said.

Eight people are challenging Korenstein in the April 12 election.