Sali consultant now works only for cash

The owner of an Eagle, Idaho, consulting business that’s U.S. Rep. Bill Sali’s largest creditor is still working with the congressman and longtime friend but on a cash-only basis.

“It’s all cash up front,” said Lou Esposito, owner of Spartac, LLC, a general campaign consulting company started when Sali decided to run for Congress.

He said the new agreement stems from the $76,000 still owed to the company from the 2006 election campaign.

“Yeah, it’s because of the debt situation. We just made it to be a little more prudent,” Esposito said.

Spartac performed about $119,000 in services, including survey research, Web development and writing, and producing and directing commercials for Sali.

Esposito said Sali’s fundraising was going well until Democrats took control of Congress. Then the cash flow dried up.

Sali has put together a “good, solid” repayment plan and is committed to repaying his creditors, Esposito said, adding that the debt shouldn’t be a campaign concern.

“The issue people need to be looking at is where do the (candidates) stand on the issues and who will best represent the views and opinions in the 1st Congressional District,” said Esposito, who Sali once called the “CEO” of his campaign.

According to recent Federal Election Commission reports, Sali paid Spartac and two other consulting companies equal payments of $7,650 in January to help pay down his debt. The report also shows that the campaign paid Spartac $7,000 in March for campaign research and polling for the current re-election campaign.

Sali has $144,677 in total debt, of which about $76,000 is owed to Spartac and $46,045 to two other consulting companies in Virginia and Arizona. The remainder of the debt includes Sali’s personal loans and money owed to staff, including $7,000 to his daughter-in-law, Jessica Sali.

Campaign spokesman Wayne Hoffman said the creditors, including family and staff, understand the need for candidates to have debt.

“They are extremely understanding,” Hoffman said. “If you look at the finance report, some creditors are doing business in the ‘08 campaign. That’s an indication that things are going along.”

The finance report shows that Hammond and Associates of Alexandria, Va., has provided about $7,800 of fundraising services in 2008 even though Sali still owes the company $15,581 from the 2006 election. Bluepoint Consulting of Scottsdale, Ariz., is owed $30,464 from the 2006 election, and reports show that the company has done no work for Sali in 2008.