When he’s on the stump, Republican congressional candidate Jesse Kelly doesn’t mince words about federal stimulus spending and earmarks.
“It must stop now,” says Kelly, who promises to not seek any federal earmarks if he defeats Democratic Congresswoman Gabrielle Giffords in November. “This is bribery with taxpayer money, and it’s a disgrace.”
Kelly dismisses any notion that federal spending helps the economy.
“Government is not a job-creator,” Kelly said last week at a debate with his fellow Republican candidates, including state Sen. Jonathan Paton and political newcomers Brian Miller and Andy Goss. “It is a job-crusher.”
But for Don Kelly Construction, the firm where Kelly manages pipeline projects, government funding would appear to create quite a few jobs.
Kelly himself estimates that close to 90 percent of the firm’s work comes from government contracts worth tens of millions of dollars. And around the country, the firm—which is owned by Kelly’s father, Don Kelly—frequently bids on public-works projects funded by both stimulus dollars and federal earmarks.
Here in Pima County, Don Kelly Construction has recently done work on a Pima County sewer-pipeline project that was worth roughly $11 million to the company. While most of the funding for the project came from local bond dollars, $2 million came from stimulus funds.
Jesse Kelly says Don Kelly Construction bid on the Pima County job before the federal government got involved in helping fund it. He says in that case, the federal government shouldn’t even be taking credit for contributing $2 million to the project.
“That doesn’t sound like a stimulus project to me,” Kelly says. “It sounds like the same-old, same-old government taking credit for something they didn’t do.”
But a review of projects around the country shows that Don Kelly Construction—which was founded by Don Kelly in the late 1990s, according to Jesse Kelly—isn’t shy about bidding on contracts that are paid for by federal earmarks or stimulus funds:
• Don Kelly Construction won a $30.7 million contract to build an 11-mile segment of pipeline for the Lewis and Clark Regional Water System in May 2008, according to the project’s Web site. The massive water-delivery system, designed to provide water to 300,000 people in South Dakota, Iowa and Minnesota, is now set to receive $56.6 million in federal stimulus dollars. The project is estimated to cost more than $462 million, with the federal government set to pick up 80 percent of the cost.
In 2008, the project received a $26.5 million earmark requested by a bipartisan group of Midwestern lawmakers.
Kelly says the federal government’s commitment to provide funding for that project “stinks.”
“It’s not the federal government’s job to fulfill local government’s infrastructure work,” Kelly says. “Now, with that project, as with any project, they are publicly bid jobs. Privately owned companies such as ours, we go bid them, and were the money comes from, we don’t know.”
• Don Kelly Construction placed a bid on a dam river levee project in Hidalgo County, Texas, that will be funded with stimulus dollars. The project was solicited in May 2009 with a total price tag between $25 million and $50 million.
• Don Kelly Construction is listed as a bidder on a portion of the Lake Oswego Interceptor Sewer project in Oregon that is worth $1 million to $4 million. Sen. Ron Wyden of Oregon has requested a $50 million earmark for the project.
• The Pagosa Springs Sun in Pagosa, Colo., reported last September that Don Kelly Construction placed a $4.3 million bid on a sewer project, although the company did not win the bid.
Kelly says it would “absolutely” be better for his family’s company if the federal government did not fund these projects.
“What stimulates the economy is government getting out the way and letting businesses expand and stop punishing people for success,” Kelly says. “Our company was in low-level discussions about expanding into a paving operation. Well, guess what? Barack Obama gets elected, and he starts massively raising taxes. We aren’t expanding anything right now.”
But the Obama administration and the Democratic Congress have actually cut taxes, with more than 40 percent of the cost of the $780 million stimulus attributed to tax cuts, including a variety of business tax cuts. Asked what tax hikes he’s referencing, Kelly says the threat of not extending the Bush administration’s income-tax cuts for the wealthiest 2 percent of Americans played a role in the company’s decision to not expand.
Even though his family’s business continues to bid on projects funded through stimulus dollars and earmarks, Kelly says the stimulus was not good for the overall economy.
“The stimulus is not about Don Kelly Construction, and it shouldn’t be,” Kelly says. “It’s about the country as a whole. Even if the company itself—which is not my company—benefitted from these projects, that doesn’t make it right at all.”
He says he doesn’t know if the company is seeking other work funded by stimulus dollars or earmarks.
“I don’t have a clue,” Kelly says. “I’m sure we’re going after every single project that’s out there, so there may be more.”
This article appears in Feb 18-24, 2010.
Hey big spender! This guy’s answers sound just like Gabby Giffords. Another big government Republican who talks out of both sides of his mouth!!!! NO THANKS!!!!!!
This guy has A LOT of nerve. He’s been talking crap about others and calling himself a fiscal hawk. Turns out he’s another spoiled, entitled rich kid who’s daddy is trying to buy him a seat in congress with OUR TAX DOLLARS! Get a life!
WOW. This guys been going around saying he’s the TRUE conservative……..now we see he’s taken millions of stimulus dollars, what a joke this guy is….he is offensive to real Republicans! This guy should drop out immediately!
“I’m sure we’re going after every single project that’s out there, so there may be more.” WFT?!?!?! This guy talks in so many circles I’m getting dizzy. And I love that after talking himself up as a big shot at his company he’s now saying he has nothing to do with it. Is this guy the Republican nominee? If so Gabby’s going to have a blast.
Jesse is a good guy. And you’re wrong, he is a real conservative. I believe him that he didn’t know what his company was doing. I still support him. But I worry this really hurts his credibility. Hope he comes up with better answers.
Hey, commenters: 4 of 5 comments on here–all of which have a negative slant–have come from the same IP address. If this keeps up, all comments will be removed, and all accounts used to post them will be subject to suspension. Thank you.
This isn’t news. Everyone knows about the hypocrisy in the Kelly campaign. Just another politician willing to say or do anything to get elected. You’d think people would have learned by now after electing Obama. Look for substance!!!!
Seems to me Jesse Kelly has some questions to answer regarding his previous statements regarding earmarks and stimulus money.
Such arrogance! Just more of same – old politics as usual. Makes me sick! Can you say HYPOCRISY, Jesse?
This just makes me glad Jonathan Paton got in the race. At least we have a record to look at and anyone who was at the debate last Thursday knows Paton can defend it just fine. His history of transparency is one of the best, I read that the Arizona Newspaper Association gave Jonathan Paton a “freedom of information award” 3 years in a row.
I know who I am gonna be supporting from now on, Jonathan Paton.
This is disappointing. Giffords will have a field day if Kelly is the Republican nominee.
This is disappointing. Gabby will go to town with information like this. The fall campaign would be all about Jesse’s earmarks and the hypocrisy of slamming stimulus bucks while getting rich off of them. You have a tried and tested candidate in Jonathan Paton. Paton has Giffords running scared. Paton will take Giffords apart and serve CD 8 honorably.
All true about Kelly, except Brian Miller is the best candidate to take on Giffords. He’s the only candidate who values the constitution. GO MILLER! http://brianmillerforcongress.com
This is why I don’t call myself a “conservative” any longer. The word has come to mean: “Government is only great when it takes care of me!”
Frank Antenori in LD30 is the same way. He waxes about the big, bad government at all of those tea parties but neglects to mention that our federal taxes are paying his VA benefit, military pension and helping out with his Raytheon contract. And then there is that state paycheck he’s collecting for crusading against lightbulbs. The dude makes a living off of government.
Great article Jim. I’m grateful that you are taking this type of thing on – the voters in Arizona really need better info before we head into the next election.
Wildcatz
“This is disappointing. Giffords will have a field day if Kelly is the Republican nominee.”
Yeah, isn’t that what Brian Miller said at the debate and people booed him? When all is said and done, I think this primary is a fight between Paton and Miller.
You’ve got that right! We’re talking major hypocrisy, ignorance of history, economics and government, and what I have to call serious ignorance of the source of his personal income if he doesn’t know what his own family business is about. What a jerk! And you wonder how the state got in the trouble it is in under the control of like-minded “conservatives”, well there is the perfect answer!
“Yeah, isn’t that what Brian Miller said at the debate and people booed him? When all is said and done, I think this primary is a fight between Paton and Miller.”
Um, no, not quite.
I was at the debate, and folks booed Miller because he used the “final statements” phase at the end of the debate to bash both Paton and Kelly, neither of which had any chance to rebuke those statements since they had already given their final remarks.
It may have been “legal” for him to do that, but it was rude and struck me as desperate. I’ll also note that he spent most of the time slamming Paton, with only a few moments devoted to Kelly’s usage of stimulus money. Apparently, he knows who the real front-runner is, and it ain’t Kelly.
With all the federal taxpayer dollars being thrown around by Obama and Giffords, I don’t think ANY CONSTRUCTION business would be immune to bidding on a contract that includes those dollars.
Giffords herself is a recipient of stimulus funds. Those solar panels she had put on her roof included federal and local tax credits with her paying only about 1/4 of the cost!
Facts on solar installation at Congresswoman Giffords’ Tucson home:
System specifics:
9 panels with 25-year warranty
Covers about 150 square feet
Produces about 2 kilowatts of electricity
Cost:
Total project cost, including materials and installation: $12,544
Rebate from Tucson Electric Power Co.: $6,210
Cash outlay from Congresswoman Giffords: $6,334
Rebate on 2010 income taxes from state: $1,000
Rebate on 2010 income taxes from federal government: $1,900
Final net cost to Congresswoman Giffords: $3,434
Does Jesse even listen to himself! What a hypocrite! He wants to go to Washington DC to represent us? We already have someone in DC that says one thing and does another! We don’t need another one! Haven’t you ever heard actions speak louder than words?
“I don’t have a clue,” Kelly says. That about says it all.
Ladies and gentlemen this is a straw man being created by political opponents. Do Not fall for it!
Let’s get this straight. Don Kelly Construction is a construction company which bids on construction projects and, if and when they are awarded those contracts, completes the project and gets paid for the work. I am a contractor and this sounds exactly like the way my business works.
Don Kelly Construction did not vote for any stimulus bill, did not request or vote for any earmarks, and has ZERO control over how projects are funded that it bids or is awarded.
The argument that Jesse Kelly is being hypocritical is a Red Herring. Is Senator Paton is a hypocrite since he voted in the Arizona legislature to accept stimulus dollars for the state? Are teachers, police officers, and firefighters that oppose the stimulus being hypocritical by continuing to teach or serve since, if you believe the claims of the Obama administration, many of their jobs remain due to the stimulus package? Of course not, because none of these people, including Mr. Kelly and Mr. Paton, had a vote on the matter.
Mr. Paton should not punish Arizona, nor should Mr. Kelly shut down his construction company, and we certainly don’t expect teachers and firefighters to quit their jobs because of mistakes made in Washington. The only one in CD8 that owns the responsibility for creating the stimulus package is Gabby Giffords. She had a vote.
Umm… nice try Nidan… but your argument still isn’t making sense. How can you compare teachers and firefighters getting stimulus to a politician personally benefiting to the tune of millions of dollars??? Moreover, Mr. Kelly is either “clueless” (as he says in the story) or lied when he told the Red Star that they had only bid on one project. According to this story there’s a bunch. Mr. Kelly’s arguments contain one inconsistency after another. I think electing him would be like handing the keys to the candy store over to a child. Brian Miller is a grown up.
Strawman? How is personally benefiting from Stimulus money, and taking donations from many co-workers and family members who also benefited from stimulus money a strawman.
Jesse Kelly’s campaign was built on $11,060 of his own cash, and then received many donations from Don Kelly employees, and people with the last name Kelly. Then the money started rolling in and he remained the monetary front runner because people saw he could “raise” money. I have no problem with EMILY tactics, but if those donors all personally benefited from stimulus money, and the candidate benefited from stimulus money. You cannot campaign against the Stimulus bill.
There is a significant difference between keeping your government job because of different government money and taking contracts as a private company from Stimulus projects.
This is not a straw man by political opponents, these are real concerns about a conservative candidate who smells like pork-bacon-ham sandwich.
The stimulus may not help the economy, but it apparently DOES help the Kelly family! I have a REAL problem with a candidate who, right out of the gate, tells the government (and his expected constituents) to classicly “do as I say, not as I do.” SO, if the Kelly family is sopping up stimulus money like gravy, how much of the stimulus money is then finding its way into the campaign coffers of the Jesse Kelly campaign? If this ISN’T hypocritical, then what exactly is? Jesse Kelly is setting himself up for an incredible fall. Gabby’s probably sad that the revelation came out so early. She was hoping to use it in the Fall.
Paton’s the guy to take Gabby out!
How many straw men can you buy with $787 billion … or is it $832 billion? There’s lots of cash being thrown around by the Obama Administration… Jesse Kelly and crew want to get as much as possible. But when he then says the stimulus is wrong, well, it all just doesn’t seem to hold water.
So, the Obama Administration, indirectly, bailed out the Kelly family business and the Jesse Kelly campaign. Gabby will turn that into a beautiful campaign ad.
Hey Sonoran17, In the 3rd quarter, Brian Miller put $12,500 in to his own campaign. Frankly the fact that both Kelly and Miller put a fairly large sum of their own money in to their campaigns is a positive.
Nintzel, a known liberal and Giffords supporter. He writes a hit piece on Kelly, so what else is new?
Primaries SHOULD be about the issues and the issue is Giffords was against the stimulus and then for it after a bunch of pork was added to it – then she voted YES. Now there is a pulled-pork sandwich!
Kelly opposes the stimulus spending as should any republican.
We’ll have to wait and see Paton’s donations since he decided to work around the resign to run law and file AFTER the FEC filing reporting period.
Get your facts straight people! None of the projects were mentioned in the article were funded by stimulus money AT THE TIME THEY WERE BID. The stimulus dollars came later. The Pima County project for example, from the Pima County web site:”WHEREAS, after agreement on the GMP and execution of the Contract, COUNTY received WIFA funding for this project that includes funds provided under the American Recovery and Reinvestment Act of 2009 Pub L111-5(ARRA);”. Key phrase in the above being “after agreement on the GMP and execution of the Contract,”.
What is really going on here is that Mr. Kelly is looking like the front runner and a serious threat to Ms Giffords and that her supporters and the backers of the other three Republicans are searching for something to grab onto to pull him back.
By the way Madashell, Kelly is not a politician. He is campaigning to be one.
It’s only February, NidanGoju. I don’t think it’s fair to say that anyone is a “front runner” this early in the game. What is important about this discussion, however, and what your reasoning misses, is that while this may be typical protocol in the construction industry, other individuals in the industry do not come out lambasting politicians for big spending, voting for the stimulus, and putting their 10-month old child in debt. I have been open-minded in my quest to answer the question that the bumper sticker asks: Who is Jesse Kelly? As I learn more about him, I am realizing that we may never know who he really is due to his lack of candor. He told the Star there was one stimulus project; Mr. Nintzel’s article describes several projects. Kelly claims he is anti-establishment, “one of us,” but one of the first people he asked to endorse him was Senator McCain. He asked for Jim Click’s support not long after. The dichotomy between Kelly’s rhetoric and practice should cause any informed voter significant concern.
People who say “Jesse Kelly is not a politician” are seriously delusional. He is turning out to be remarkably good at saying one thing and doing another…and then trying to cover it up. Sounds pretty much like a politician as usual.
Say what you want about Jim Nintzel, but he is pretty darn good at spreading the coverage and the criticism around.
If Jesse Kelly really were the “front runner,” Gabby and her campaign would be resting pretty easy. Hint: THEY AREN’T!
The big difference I see between Jesse Kelly and the folks who have jobs that are in some way connected to stimulus money is THEY ARE NOT STANDING UP AND RUNNING FOR CONGRESS DENOUNCING STIMULUS, EARMARKS AND PORK SPENDING! You can’t have it both ways!
Actions speak louder than words!
JESSE KELLY IS SHOUTING OUT ANYTHING THAT APPEALS TO THE MAJORITY OF AMERICANS THAT MIGHT GET HIM ELECTED! He has learned the rhetoric well!
The fact that Don Kelly construction benefits from Obama stimulus money, as well as US Congressional earmarks, begs the question as to whether this type federal spending on construction projects will decrease, stay the same, or increase if Jesse Kelly becomes a US Congressman. Wannabet that it is the latter?
truthseeker “You can’t have it both ways!”
Your position precludes those people, if they would have decided to run, from running. Do you honestly believe that anyone that is in any way benefiting from stimulus money and could not truthfully take a position against the spending?
I will grant you that people like teachers and first responders do not have any control over where the funding comes from for their earnings. Much like Don Kelly Construction has no control over where the funding come from on the construction projects that they bid.
Don Kelly Construction, the company Jesse has said he’s said he runs, DOES have control over the projects they bid on. And there are projects mentioned in this story all over the country. Jesse’s company is actively pursuing them. If you are benefiting from stimulus money by seeking it out to line your own pockets, that’s different than a teacher being effected. Talk about a lame argument. Don Kelly Construction HAS total control over what they bid on. Ever heard of the FREE MARKET!!! DUH!!! At least we know the stimulus saved Jesse’s job.
Of course Kelly Construction has control over the jobs that it BIDS. The point was that they DO NOT have control over the FUNDING of those projects. But that was a very cleaver and skillful attempt to change the arguement Madashell.
Yes, I have heard of the FREE MARKET. It is a system where, in this case, projects are presented for bidding by a public or private entity and construction companies bid and complete these projects. This is what my contracting business does and is what Kelly construction has been doing, according to the article, since the 1990’s.
The problem here is not Kelly construction. The problem is with an over-spending and bloated Federal Government. And if someone, in this case Jesse Kelly, wants to do something to reduce it’s size and spending and keep more money in the private sector, I believe, in the long run, it will benefit us all. Those benefiting would include, as Mr. Kelly stated in the article, Don Kelly Construction by reviving the ecomomy and thus increasing the number of private sector projects that the company could persue. Sounds to me like he understands this. Regardless, any of the four candidates, and that includes Jesse Kelly, would appear to be better than the current representative at accomplishing the goal.
I don’t think Ms. Giffords has a whole helluva lot to worry about regarding this stooge!
Sound like Candidate Jesse Kelly is more like Rep. Gabrielle Giffords … the two seem to have the same morals and ethics. I talked to Jesse and he seems to be an individual that will say anything and do anything to get elected. He’s one candidate that should not be trusted!
People who take stimulus bucks aren’t precluded from running. Hell, they can even hypocritically scream about stimuli and earmarks and government power. It’s just amusing to watch the crocodile tears from that candidate’s campaign and supporters when he’s caught dead to rights.
Tucson Hiker has it right: Gabby is probably pulling for Jesse harder than Don Kelly!
I love that the Jesse Kelly supporters are not arguing that the STIMULUS is good because it create jobs and improves infrustrature. Great plan for victory in November: Use the Obama-Pelosi talking points!
I hope Giffords brings up the stimulus!
The Pima County pipeline and the Lewis and Clark Regional Water System projects mentioned in the article were done deals PRIOR to The American Recovery and Reinvestment Act of 2009’s passage. These are great examples contradicting the claims that the Act is “creating or saving jobs” and stimulating the economy when, in these cases, it has done nothing but stimulate Federal Government spending. The jobs on these projects and their effects or the economy would have happened without the Recevery Act.
So I would encourage Ms. Giffords to bring it up. This would be a slow hanging curve that Kelly, Paton, Miller, or Goss could knock out of the Park!
Thank you, Jim, for the excellent reporting.
Conservatives like Kelly who rail against federal government imply that things would somehow be better if there were less federal government, but in an Arizona without federal support, things would be much, much worse. Arizona takes in far more than it contributes to the federal pot. Read Regan’s article on Tucson in 1864, ‘The City of Mud Boxes’, to see how things were in Arizona when there was no federal support. The 19th century, before progressives rebelled against free-reigning big business, was pretty miserable for most people. That is the era conservatives like Kelly idealize and wish we could return to.
His family should donate every dollar earned by stimulus $$ to poor nonprofits that are dying out here in never never land.
This is amazing to me how unaware is this WRITER and his readers? Google stlmulus. Surely, you can do that, or are you too lazy? Do your readers use electricity, computers,banks, just to name a few (schools)? There are hundreds of companies that you work for and do business with that have accepted Stimulus money. We don’t like or approve of it. Many are not aware of who are receiving it, which affects just about every individual….THAT IS WHY THIS ARTICLE AND DISCUSSION IS A MOOT POINT.
So by your comments against Jesse and Kelly Construction, are you condemning Boeing for taking tax dollars to provide defense structure to our country, military personnel for keeping their government funded paychecks . . . etc? Kelly Construction does not have to lobby for federal stimulus/earmark pork to legitimately bid on federal infrastructure projects. The infrastructure is part of the federal mandate via the Commerce Clause. Fighting to get earmarks/stimulus money would be very Reid/Pelosi/Rangel-ish, but that is neither what Jesse nor Kelly Construction is doing.
I think Jesse Kelley is one of the biggest phonies to come along in a long time. But, after reading this article I do have some new respect for him, because at least he’s honest –
“I don’t have a clue,” Kelly says.”
We assume that Jesse is a credible man that has set his sites on becoming a Congressman. It appears that he speaks with reasonable intelligence and his spoken thoughts and ideas are in fact where the country, through this district, should be headed. If he is elected, and I believe that he will be, I will be very disappointed if he does not stick strickly to his spoken word. His spoken word comes from the people and from his forums. I do NOT want the younger Republicans of the country to turn on a dime and then push to have there ” new ” ideas approved. Stick to what you support now and continue to support our ideas and you will have my continued support.
He should NOT have to disassociate himself from his family’s business just to prove a point about how a construction business is competively run. The nay sayers should read and study about how
very difficult it is to stay in his fathers or any other construction company’s business when the problems with the competitive bidding system are just as difficult, if not more difficult today to stay in business where you still have all of the lo-ball contractors that will take jobs under cost, with the intention of ” making it up” with change orders. Read about the business and you will soon find out what an intense business it really is.
Jesse deserves to run and Jesse deserves to win, hopefully wih his families support, both spiritually and financially.
GET WITH THE PROGRAM FOLKS……………….by Brian P. Bissonnette Sr.
Gabby is nothing more than a Pelosi ass kisser and has voted with her over 90% of the time. She chickened out and canceled a town hall meeting in Green Valley and moved it to DM AFB so attendees could be pre-screened and she would not have to answer for her votes for Obamacare, the bailouts, etc.