Wed. Dec 11th, 2024

“The Perfect Storm For Corruption”: Michalyn Easter-Thomas and Memphis City Council Fast-Track Taxpayer-Funded Scheme- “Tell Shelby County That They Need To Go Ahead And Get It Done Next Week”

Public Affairs Staff on November 25, 2024

Memphis, TN – Memphis City Council Advances More for Memphis Ordinance: A Trojan Horse for Unlimited Political Contributions Financed by Taxpayers? On November 12, 2024, the Memphis City Council Committee took a critical step toward advancing the More for Memphis ordinance, setting up a first reading on November 26, 2024. The controversial plan, led by Seeding Success CEO Mark Sturgis, proposes creating a taxpayer-funded fiscal agent to manage philanthropic and public investments purportedly aimed at addressing economic mobility. However, glaring questions remain about the ordinance’s transparency, unverified funding claims, and deep ties to political donor networks.

Commissioner Brittany Thornton, a fearless advocate for grassroots democracy and transparency, has emerged as the voice of accountability in Memphis, unearthing the shadowy ties between political power and taxpayer funds in the More for Memphis scheme. At the November 18, 2024, Shelby County Commission meeting, Commissioner  Thornton pulled back the curtain on a potential conflict of interest involving Tennessee Prosperous, a C4 political donor organization linked to Seeding Success. Thornton revealed that many of the politicians voting on the More for Memphis ordinance have received campaign contributions from Tennessee Prosperous. These revelations raise grave concerns about whether taxpayer funds will be funneled through this initiative to indirectly support political campaigns, creating a pay-to-play power dynamic in Memphis politics.

 

Commissioner Thornton’s Warning: The Giant Behind the Curtain

In a moment of transparency, Commissioner Thornton explicitly named Tennessee Prosperous as the C4 affiliate of Seeding Success, calling into question the entity’s influence over Memphis’s political and policymaking landscape. Thornton stated:

“I know for a fact that a number of my colleagues up here have been funded by the C4 arm of this entity. So I can throw myself out there, because I know that I received a campaign contribution… Let’s not get amnesia now, because then it’ll make me go a little harder.”

Thornton’s remarks shed light on how Tennessee Prosperous has poured money into local campaigns, including those of establishment candidates in the most recent school board elections. She warned:

“When you see space being held to push here, it’s because we’re talking about formalizing a relationship with a giant… That close working relationship with Seeding Success and More for Memphis by default is very, very concerning to me.”

Thornton’s comments raise troubling questions about how this ordinance could concentrate financial and political power in the hands of a few well-connected elites while sidelining grassroots candidates and organizations.

 

Unverified Funding and Political Influence

Despite its bold claims of securing $100 million in philanthropic capital, no proof of this funding has been provided. Yet, the Memphis City Council Committee showed no hesitation in moving the ordinance forward. Chair Michalyn Easter-Thomas even encouraged Sturgis to expedite the process, stating, “Tell Shelby County to go ahead and get it done this week.”

Legal experts and watchdogs have slammed this rushed process, warning that it opens the door to potential misuse of public funds. The fact that a politically active donor network like Tennessee Prosperous is involved only deepens concerns about the ordinance’s true purpose.

 

One local law professor who spoke on conditions of anonymity remarked:

“This ordinance lacks transparency at every level, from its financial claims to its political connections. If taxpayer dollars are being used to indirectly fund campaign contributions through entities like Tennessee Prosperous, this is a clear violation of the public trust and possibly the law.”

 

Unlimited Political Contributions Financed by Taxpayers?

Tennessee Prosperous, as a C4 entity, operates with minimal disclosure requirements, allowing it to fund political campaigns without public transparency. If taxpayer dollars allocated through the More for Memphis fiscal agent are funneled to organizations like Tennessee Prosperous, it could create an unregulated pipeline of political contributions financed by public funds.

One public ethics analyst employed by Shelby County Government, who also spoke on conditions of anonymity explained:

“The overlap between Seeding Success, More for Memphis, and Tennessee Prosperous creates a perfect storm for corruption. Taxpayer dollars could end up being funneled into political campaigns with no accountability. This isn’t governance—it’s pay-to-play politics.”

 

The Role of the Memphis City Council

The Memphis City Council members who advanced the ordinance during the committee meeting include:

  • Rhonda Logan
  • Jerri Green
  • Pearl Eva Walker
  • Jana Swearengen-Washington
  • Edmund Ford Sr.
  • Michalyn Easter-Thomas (Chair)
  • Janika White
  • Yolanda Cooper-Sutton
  • Dr. Jeff Warren

These elected officials offered no resistance to the ordinance and failed to demand proof of the $100 million funding claim. Instead, they expressed unanimous support, with Chair Easter-Thomas pushing to expedite the process.

 

Joe B. Kent: The Ever-Present Watchdog Who Sounded the Alarm

Taxpayer advocate Joe B. Kent, editor of the JustMyMemphis blog, was the first to uncover the flaws in the More for Memphis ordinance. In his article, The Whaley Blotch, Kent exposed the initiative’s reliance on vague promises and lack of financial proof. His reporting also highlighted the potential misuse of public funds to benefit politically connected elites.

Kent attended the November 12 city council committee meeting and described it as an orchestrated charade and a rubber stamp. Many like Joe Kent feel the council’s actions reveal either gross negligence or outright complicity. Some contend they are essentially handing a blank check to a politically connected network

 

Ethical and Legal Concerns

The Memphis City Council’s actions may constitute multiple ethical and legal violations, including:

  1. Conflict of Interest: Council members who received campaign contributions from Tennessee Prosperous have a direct financial conflict in voting for an ordinance tied to this entity.
  2. Procedural Due Process (Fourteenth Amendment): Advancing the ordinance without transparency or public input denies taxpayers their constitutional right to fairness in government actions.
  3. Potential Misuse of Public Funds: Allocating taxpayer dollars to entities with political ties creates a high risk of financial abuse.
  4. Violations of Tennessee Open Meetings Act: If council members privately collaborated with Sturgis to craft this ordinance, they may have breached state transparency laws.

 

A Call for Oversight and Accountability

With the first reading of the ordinance scheduled for November 26, 2024, Memphis taxpayers deserve answers before it’s too late:

  1. Where is the proof of the $100 million funding claim?
  2. What financial ties exist between Tennessee Prosperous, Mark Sturgis, and council members?

 

Experts are urging federal and state oversight agencies, including the FBI, Tennessee Bureau of Investigation (TBI), and Department of Justice (DOJ), to investigate these conflicts of interest and the potential misuse of public funds.

 

As Commissioner Thornton warned:

“The people need to be prepared to talk about the power dynamics this creates in Memphis… $100 million, $400 million—whatever it turns out to be—it’s time for transparency and accountability.”

Memphis residents deserve a government that prioritizes their interests—not the political ambitions of a privileged few. This ordinance, and the forces behind it, must face the scrutiny they have long avoided.

 

Correction:
Carlisle, Smiley, Spinosa and Canale were not present in the committee.

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