Enclosed is our fourth quarter report, detailing the key “impact stories” that we produced in the last three months of 2009. Details on network wide traffic and earned media can be found in our KPI Report.

I am also happy to report that we’re launching our sixth state program– The Florida Independent– by June 1, 2010.  This program is made possible thanks to a diverse array of supporters in Florida, including the John S. and James L. Knight Foundation, the Gulf Coast Community Foundation of Venice, and individual donors.  We are grateful for their support, and look forward to creating a valuable public resource for the people of Florida.

Meanwhile, here’s the quarterly highlights from Colorado, Iowa, Michigan, Minnesota, New Mexico, and Washington D.C.

Sincerely,

David

Civil Rights

Group Calls on State Leaders to Denounce Congressional Candidate’s Anti-Muslim Views

Prior to The Minnesota Independent’s reporter Chris Steller’s December 9, 2009 profile on 5th Congressional District candidate Lynne Torgerson, no media outlet had looked at the independent candidate’s controversial views on Islam. Her positions take on added significance since she’s running in the Minnesota district with the highest concentration of Muslims — and squaring off against the first Muslim to serve in Congress, Rep. Keith Ellison.

In an interview with Steller, Torgerson said, “I don’t want other cultures coming into the United States and chilling our freedoms.” Islamic teachings advocate the murder of non-Muslims, she charged, also claiming that the First Amendment is jeopardized by Islam’s goal to “Islamize the entire world.”Muslims” have teachings that are essentially criminal,” Torgerson said.

Steller also talked to state party officials about Torgerson’s platform and beliefs. An Independence Party official told Steller he ran for his party’s nomination in that district “to keep Lynne Torgerson from poisoning the IP brand.”

Steller’s story was picked up by Huffington Post, City Pages and Gawker, which called Torgerson the “most vile politician in America.”

A day after the profile ran, an incident was reported in St. Cloud, Minnesota — a city that has a long history of racial tensions — where fliers were found adhered to utility poles showing the prophet Mohammed and swastikas.

On December 11, the Minnesota chapter of the Council on American-Islamic Relations, a Muslim civil rights group, issued a press release citing Torgerson’s anti-Muslim rhetoric, quoting the Minnesota Independent’s interview with her, and linking the rhetoric to the St. Cloud fliers. The group called on state political and religious leaders to publicly denounce the statements Torgerson made to the Independent: “Our state’s political and religious leaders need to speak out strongly against anti-Muslim hate, just as they would speak out against any other form of intolerance,” the group’s communications director said.

“Torgerson takes on Ellison – and Islam – in 5th District” (12/9/09)

“Group links candidate’s anti-Muslim rhetoric to racist fliers in St. Cloud” (12/11/09)

Grassley Pressured to Take Stand on Anti-Gay Ugandan Bill

U.S. Sen. Chuck Grassley found himself wrapped up in Ugandan politics when an Iowa gay rights organization, One Iowa, chastised the Republican lawmaker for not taking a public stand against a plan that human rights activists fear would pave the way to the wholesale genocide of gay citizens in the African nation. Grassley’s office told The Iowa Independent’s Jason Hancock that the state’s senior senator was unfamiliar with the particulars of the Ugandan proposal and as such felt he needed ”more information.” One Iowa said that Grassley’s ties to the secretive fundamentalist group The Family, which includes a number of high-ranking U.S. politicians, gave him greater leverage with Ugandan legislators “pushing this horrific affront to human rights.” Grassley denied he has ties to The Family. The next day, he issued a statement to The Iowa Independent denouncing the Uganda plan as “un-Christian.”

“Grassley asked to denounce anti-homosexuality bill” (12/8/09)

“Grassley unfamiliar with plan to execute gay Ugandans” (12/10/09)

“Grassley finally condemns anti-homosexuality law” (12/11/09)

Albuquerque City Councilor Retracts, Apologizes for “Atheist” Slur in Campaign Mailer

Albuquerque City Councilor Don Harris publicly apologized for attempting to use his opponent’s religion against him in a piece of campaign mail, saying he had “learned a great deal,” from the experience.

In his campaign for re-election, Harris had sent out postcards labeling opponent Don Barbour as an atheist and attempting to paint him as too radical for office. The New Mexico Independent’s (NMI) reporter Gwyneth Doland’s original story on the mailers was picked up by several national Atheist blogs, whose readers sent a flurry of e-mails to Harris.

Harris responded to NMI’s coverage later that day, defending his decision by saying, “Mr. Barbour, in both the League of Women Voter’s questionnaire and in the Albuquerque Journal questionnaire commented that he was on the Board of a ‘church,’ obviously attempting to make himself look more mainstream than he is on such things.”

As NMI reported, the “church” that Harris put in quotes was a Unitarian Universalist congregation, for which Barbour had been the choir leader. Harris also impugned Barbour for having made statements explaining “why a Unitarian congregation is better off with some atheists and humanists,” and for contributing to a scholarship for Darwin Day.

Soon afterward, FriendlyAtheist picked up on the story, quoting from the original post. Blogger Hemant Mehta encouraged his readers to write to Harris, and they did.

On Election Day, Mehta announced in a follow-up post that many readers received a similar response to their e-mails from Harris, in which the Councilor, on his way to a comfortable re-election, apologized. Two days later, Mehta reported that Harris had written, saying: “I will not bring up Atheism in any future endeavor, as I have learned a great deal from this experience.”

In an interview with NMI about the experience, Harris again apologized for the slur. “I was reminded that the decisions that one makes when running for office and being in office are not simple ones, and they can have unexpected consequences,” he said.

“ABQ City Councilor Don Harris attacks challenger on religion” (10/5/09)

“ABQ City Councilor Harris responds to NMI on “atheist” attack on challenger” (10/5/09)

“ABQ City Councilor Harris apologizes for ‘atheist’ mailer” (10/28/09)

Drug Policy

New Mexico Expands Medical Marijuana Program After The New Mexico Independent Reveals Shortage

After The New Mexico Independent’s Marjorie Childress broke the news last summer that the state’s only non-profit medical marijuana supplier was sold out, continued reporting on the topic through the fall spurred the state’s Department of Health (DOH) to approve four new suppliers.

After Childress’ initial reporting on the shortage, the state Department of Health denied that the state was neglecting the needs of patients.

A spokesperson from the Drug Policy Alliance disagreed, saying: “It seems as of right now, there are a significant number of patients who aren’t growing their own and can’t obtain it from any legal source. The intent of the law isn’t for them to have to rely on the black market.”

In October, Childress reported that the state’s sole provider would not deliver to the southern part of the state for fear of arrest by border patrol agents, leaving more than 100 patients without access to the drug. DOH sources said they were working to solve the problem by approving more providers. But the pace was glacial.

Then, on November 2, the New Mexico Drug Policy Alliance began circulating via e-mail a letter to Secretary of Health Alfredo Vigil. The letter urged him to license at least six new medical marijuana producers.

On November 9, the DOH announced approval of four more producers.

“New Mexico’s one medical marijuana producer is all sold out” (8/31/09)

“Medical marijuana program may need revision if shortage goes on” (9/11/09)

“More medical marijuana non-profits are imminent for New Mexico” (10/9/09)

“Medical marijuana regs ease, but border questions linger” (10/23/09)

“N.M. approves four new medical marijuana producers” (11/9/09)

Economy

Leading Financial Literacy Nonprofit Severs Hidden Ties with Subprime Lender

The Washington Independent’s reporter Mary Kane’s coverage of fair lending issues resulted in a significant policy change at the nation’s leading financial literacy organization, JumpStart. During the course of reporting on the growing need for financial literacy services nationwide, Kane looked into the non-profit, which is considered the premier group of its kind in the U.S., endorsed by financial leaders like SEC Chair Sheila Baird and Federal Reserve Chairman Ben Bernanke. JumpStart partners with federal agencies and private companies to provide classrooms across the country with materials. It also maintains an educational website which lists its “partners.” One of its partners, CompuCredit, is a notorious subprime lender that recently settled a $114 million lawsuit with the Federal Trade Commission and FDIC over deceptive practices. In addition, one of JumpStart’s regional directors, Bill Cheeks, also does business with CompuCredit. When Kane flagged the issue, spokeswoman Laura Levine said “No one’s called it to our attention as a problem. Now that we’ve talked about it we will look into it further.”

In a followup story on November 2, 2009, Kane confirmed with JumpStart that they had decided to create a conflict-of-interest policy specifically to address the kind of questions raised by her reporting. The coalition’s governance committee also “is going to look further into CompuCredit in particular,” she said, and “we’re going to continue to deal with issues regarding the suitability of partners on a case by case basis.”

“Financial Literacy Coalition Teams Up With Subprime Lender” (10/2/09)

“Ties Run Deep Between Subprime Lenders, Financial Literacy Groups” (11/2/09)

Federal Unemployment Benefits Extension Added to Senate Bill

On November 6, 2009, President Obama signed a bill to extend unemployment benefits by 14 weeks nationwide, with an additional six weeks for states with unemployment rates over 8.5 percent. The Washington Independent’s Congress reporter Mike Lillis discovered a major flaw in the legislation. People claiming jobless benefits would first apply for the 14-week assistance, and only after exhausting that could they apply for the additional six weeks of benefits. However, because a protracted debate over Republican amendments held up Senate passage of the bill for six weeks, it was impossible for people to apply for the second round of benefits before the December 31 application deadline. Thus an important provision of the bill, and one on which hundreds of thousands of Americans were relying, was negated due to a delay and poor math.

Lillis’ reporting caught the attention of Senate Majority Leader Harry Reid, who acknowledged the flaw in the bill. A Reid aide wrote to Lillis, “It is true that we will need to extend the program before the end of the year in order for unemployed workers in high unemployment states to get access to the full 20 weeks of benefits.”

“I would expect that Senator Reid would move to extend the program before the end of the year,” the aide said.

A two-month extension of the application deadline for unemployment benefits was included in the defense spending bill that passed a cloture vote in the Senate on December 17. It won final passage in the Senate on December 19.

“Senators Slog While Unemployed Suffer” (10/26/09)

“Jobless Benefits Extension Stiffs High Unemployment States” (11/9/09)

“Reid Acknowledges Need to Extend Jobless Benefits Program” (11/10/09)

Energy

Public Commission Shuts Out Utility’s Lavish Expenses in Rate Hike Requests

In following hearings in Denver over Xcel Energy’s proposed rate hike, The Colorado Independent’s Dave O. Williams revealed the energy company’s lavish expenses that had previously gone unreported. This exposure lead the company to withdraw its request to be compensated for those expenses by ratepayers and caused the state utility commission to condemn the action and demand that utilities no longer ask consumers to cover its executives’ lush lifestyles.

Xcel, already in the process of shutting off power to thousands of Coloradans, was at the time petitioning the state for permission to raise its consumer rates for the third time in as many years. At the first public hearing weighing the rate increase, two activist groups asked how much of the increase would be used to cover executive packages. Williams obtained Xcel’s expense list and found that it contained $44 million in extravagances like corporate retreats and $15,000 dinners for its top staff. The energy company was effectively asking ratepayers to pick up its tab.

Williams broke that story, and it was picked up by Huffington Post and Denver Post while the hearings were ongoing. By this time Xcel said it would consider withdrawing the request if required, but such a thing had not happened before, and the commission had already let the expenses slide in earlier reviews.

Meanwhile, the two nonprofits — Clean Energy Action and Arapahope — circulated Williams’ work among members of the state Public Utilities Commission, which had been considering the hike. As a result, the commission upbraided Xcel execs in the next hearing, and Xcel withdrew its request for the $44 million.

The commission said that it wants all such expenses to be removed from any future requests for rate hikes.

The activists told Williams that he managed to do what only attorneys general had done in other states:

“Your stories really clearly had an impact on this whole wining and dining and the perk issue,” Glustrom said of ongoing Colorado Independent coverage. “… the commissioners all really spoke to that and said, ‘… we really question whether this is appropriate.’”

“Xcel Energy lops nearly $44 million off rate-increase request” (11/19/09)

“Xcel admonished by state but wins $128 million rate hike” (12/6/09)

Separation of Church and State

First Amendment Group Launches National Campaign on Controversial Public School Ministry

Andy Birkey’s reporting for the Minnesota Independent (MnIndy) regarding a Minnesota-based evangelical Christian punk band/ministry that performs at public school assemblies around the country, You Can Run But You Cannot Hide (YCRBYCH), has prompted a national advocacy group to issue an action alert over the band’s apparent violation of the constitutional principle of the separation of church and state.

Birkey’s reporting focused on how the group has received taxpayer funding – through fees ranging from $1,500 to $5,000 per school assembly – despite overtly religious content, and that many school administrators felt the group misrepresented its mission before their events. He also noted that YCRBYCH’s most prominent political supporter, U.S. Rep. Michele Bachmann, shares many of the views held by the group’s leader, Bradlee Dean, especially those pertaining to church/state separation. (At a 2006 fundraiser for the group, Rep. Bachmann said, “[Public schools] are teaching children that there is separation of church and state, and I am here to tell you that is a myth.”)

At its November 2009 fundraiser, which Bachmann participated in and gubernatorial candidate Tom Emmer attended, Bachmann reiterated her support for the group’s work evangelizing in public schools. “We can’t overlook the outright rejection of God in the public school classroom, and the outright scorn of Christianity in our public square,” she said. “Moral relativism is exalted and faith in Christ is derided.”

Three days after the fundraiser, the Madison, Wis.-based Freedom From Religion Foundation issued an Action Alert campaign around the group’s activities. “Parents and other concerned members of the public across the country should be on the look-out for this group invading a community near you.” The next day the group emailed supporters, citing MnIndy’s reporting and asking parents to alert them if a YCRBYCH event is planned in their children’s schools.

“Bachmann to raise funds for controversial Christian punk ministry” (9/30/09)

“‘You Can Run’ may be running afoul of the Constitution” (10/8/09)

“Bachmann’s punk-rock benefactor says Obama ‘unpatriotic to the max’” (10/20/09)

“Bradlee Dean chastises Obama for public-school assembly appearances” (11/5/09)

“With Bachmann’s help, You Can Run raises funds to bring Christ into public schools” (11/13/09)

“Gubernatorial candidate Emmer attends fundraiser for controversial ministry” (11/18/09)

U.S. Rep. Stupak Reverses Course on Giving Federal Coast Guard Property to Christian School

U.S. Rep. Bart Stupak (D.-Mich.) changed his proposed legislation that would have given several acres of Coast Guard property in Cheboygan, Michigan to the Cornerstone Christian School free of charge, after a report on the proposal by The Michigan Messenger’s Ed Brayton pointed out the land transfer would violate the First Amendment separation between church and state.

After Michigan Messenger first reported on this issue in August 2009, Americans United for Separation of Church and State contacted Stupak’s office to inform him that the legislation as written was unconstitutional.

Stupak then wrote to the group saying that he was changing the bill to require that the property be sold to the school at fair market value as required by the law.

The original bill language proposed that the land would be transferred to the private Christian school “without consideration,” meaning that the land would be given to the school without compensation.

As Peter Irons, a professor emeritus of law at the University of California at San Diego, told the Michigan Messenger in August, “Rep. Stupak’s bill would allow the government to provide a ‘gift’ to a religious group of property that is owned by all taxpayers, including those with no religious faith. This is precisely the kind of religious preference the Constitution forbids and the Supreme Court has ruled against in numerous cases.”

Stupak’s religious ties have recently garnered attention. The Michigan Messenger reported in recent month’s about Stupak’s membership in the shadowy Christian group that calls itself variously “The Family” or “The Fellowship.” Stupak lives at The Family’s now-infamous C Street house on Capitol Hill in Washington, D.C.

“Stupak denies knowledge of connections to mysterious ‘C Street’ house he lives in” (7/23/09)

“Experts: Stupak land transfer deal runs afoul of Constitution” (8/10/09)

“Stupak changes church school land swap” (10/22/09)

Transparency in Government

Advocacy Groups Campaign to Combat Norton’s Anti-Education Pledge

National political organizations took action after The Colorado Independent’s (TCI) editor, John Tomasic, reported that GOP senate candidate Jane Norton, while speaking to a small group of Tea Partiers in Alamosa, proposed abolishing the federal Department of Education.

Tomasic confirmed Norton’s remark with sources present at the event and went on to interview her campaign staff, who seemed unaware of the statement but said it was consistent with Norton’s small-government views. “She supports a return to a balance that has state and local jurisdictions as preeminent, empowering parents rather than bureaucrats,” her campaign manager said.

The day after Tomasic’s story ran, ProgressNow launched a campaign citing TCI’s coverage and entreating petitioners to “tell Jane Norton to get serious about education, not pander to extremists.”

Soon after, the Democratic Senatorial Campaign Committee also issued a press release citing TCI and noting that Norton’s quiet pledge amounted to the first policy statement of her campaign.

“Norton wins over Tea Partiers with call to eliminate Department of Education” (12/15/09)

Lt. Gov. Diane Denish Reimburses Federal Stimulus Funds Used to Pay for Political Work

Lt. Gov. Diane Denish’s office said her gubernatorial campaign would reimburse her government office after a public records request by New Mexico Independent (NMI) revealed that Denish had used federal stimulus funds to pay a contract employee to write press releases and perform other tasks related to political activities.

The funds were used to develop and circulate press releases and event materials, on letterhead from Denish’s campaign and from the state of New Mexico, announced Denish’s support of then-Democratic Presidential nominee John Kerry’s choice of John Edwards to be his running mate.

At least one good-government advocate said – and the lieutenant governor’s office agreed – that spending public money on politics was not appropriate.

After being shown one of the news releases in question, Denish’s chief of staff, Joshua Rosen, told NMI that public funds never should have been used for political work and that the campaign would pay back money spent on four days of work by a contractor.

NMI later confirmed that the funds were returned the day after the story ran, as reflected in Denish’s fourth quarter filings from 2009.

“Lt. Gov. spent public money on political news releases” (11/10/09)