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The Advantages of Annual Financial Disclosure
Saturday, August 14th, 2010
Robert Wechsler
Here's a good followup to yesterday's
blog
post about a conflict of interest in Tucson. In that post, I
argued that annual financial disclosure makes it clear that an
official's basic interests are public information, and said, "The goal
of annual disclosure is to let the public know about an
official's basic interests, so that if the official does participate in
a matter where he has an interest, the public (usually an ethics
commission, the news media, or a gadfly) can stop him from doing so."
In Tucson, there don't appear to be annual financial disclosure requirements. There are, however, financial disclosure requirements throughout California. According to an article in the North County Times, a Vista City (CA) council member failed to disclose a loan from a developer who was trying to get the city to let him hook into its sewage treatment system. After the council member voted to allow the developer's request, the loan came to light. Now, the other four council members are asking him to resign.
This is another example of why annual disclosure is in everyone's best interests. Had the council member disclosed the loan, he would most likely not have voted on the developer's request. Filling out the form would have reminded him that the loan is considered a financial interest, and he wouldn't have thought he could get away with the vote.
The requirement of disclosure of interests, whether they will ever be in conflict or not, also makes the process less stressful for the official. At the time of a vote, there is a lot of pressure to help those who have helped you. At the time of filling out a form, there usually is no pressure at all. The official discloses the loan and then, if the lender comes before his board, the official simply says, "I was required to disclose the loan. And I'm not allowed to vote on your request." No choice, no pressure. It's just doing what you've got to do. You can do the responsible thing without going through an agonizing balancing of considerations or explaining it all to family members and business associates. That makes life a lot easier.
If only more officials could see it this way.
Robert Wechsler
Director of Research-Retired, City Ethics
---
In Tucson, there don't appear to be annual financial disclosure requirements. There are, however, financial disclosure requirements throughout California. According to an article in the North County Times, a Vista City (CA) council member failed to disclose a loan from a developer who was trying to get the city to let him hook into its sewage treatment system. After the council member voted to allow the developer's request, the loan came to light. Now, the other four council members are asking him to resign.
This is another example of why annual disclosure is in everyone's best interests. Had the council member disclosed the loan, he would most likely not have voted on the developer's request. Filling out the form would have reminded him that the loan is considered a financial interest, and he wouldn't have thought he could get away with the vote.
The requirement of disclosure of interests, whether they will ever be in conflict or not, also makes the process less stressful for the official. At the time of a vote, there is a lot of pressure to help those who have helped you. At the time of filling out a form, there usually is no pressure at all. The official discloses the loan and then, if the lender comes before his board, the official simply says, "I was required to disclose the loan. And I'm not allowed to vote on your request." No choice, no pressure. It's just doing what you've got to do. You can do the responsible thing without going through an agonizing balancing of considerations or explaining it all to family members and business associates. That makes life a lot easier.
If only more officials could see it this way.
Robert Wechsler
Director of Research-Retired, City Ethics
---
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