Gop-elections Board Agreement Dissolves

An agreement the Maryland Republican Party struck with the State Board of Elections unraveled in recent days, leaving uncertain how it will resolve what state officials contend was a violation of campaign finance laws.

According to elections officials, former Lt. Gov. Michael S. Steele's campaign account made an improper $75,000 contribution to the Republican State Central Committee by covering legal fees the party incurred during a redistricting fight several years ago. The party, which has run into financial difficulties, agreed last week to incrementally repay the money to Steele, now the national GOP chairman.

But the two parties walked away from the agreement. It would have allowed the state party to keep $15,000 of funds raised each month to help cover administrative expenses such as payroll and rent, but required the party to contribute 15 percent of funds raised above that amount to the Steele account until the total is repaid.

The parties have been in renewed negotiations since then, and a new agreement might be signed today, said Jared DeMarinis, director of the campaign finance division at the state elections board.

The dispute revolves around whether the party would have to turn over a percentage of their net or gross proceeds. "Their proposal at the 11th hour was unacceptable," DeMarinis said. He added that the state attorney general's office advised him not to accept last-minute revisions.

Maryland GOP Chairman James Pelura said that the party is reviewing the new agreement.

Pelura has been a controversial figure and resigned on Monday, though he remains in the post until the party's next convention in November.