Money problems hang over San Luis Obispo County’s 4th District Supervisor race that’s hurtling toward a June 2 showdown between incumbent Supervisor Jimmy Paulding and Oceano business owner Adam Verdin.
Days after campaign finance disclosure forms revealed that Verdin returned controversial donations earmarked for the November general election to their respective donors, certain contributions to Paulding’s campaign are now under District Attorney scrutiny.
“Based on the filings presently available, South County Coalition appears to have reached the point at which it should immediately amend its Statement of Organization to reflect primarily formed committee status for support of Jimmy Paulding in the District 4 supervisor election,” SLO County DA Dan Dow wrote to South County Coalition Treasurer Dorothy Hines on April 22.
Dow alleged that the South County Coalition misclassified its committee and campaign reporting obligations as it was formed as a general purpose committee advocating for candidates in southern SLO County.
The coalition’s original campaign finance form shows that it spent more than $13,000 from Jan. 1 to April 18 for voter lists, printing, phone calls, graphic design, and professional services to support Paulding’s supervisor campaign.
The coalition also received contributions from SLO resident Ray Mattison and SLO attorney Don Ernst of Ernst Law Group amounting to $18,000 and $22,000, respectively, according to the campaign finance form.
“The close timing of those substantial contributions and the committee’s campaign spending in support of Mr. Paulding strongly suggests that the committee’s actual purpose and recent activity are directed toward supporting a single identified candidate rather than generally supporting multiple South County candidates,” Dow’s letter read.
“California law does not permit a committee to retain ‘general purpose committee’ status when, in substance, it exists to support a single identified candidate in a single election.”
Paulding told New Times he isn’t affiliated with South County Coalition and isn’t involved in its activities in any way.
‘The use of a single California committee to receive contributions and then pay for communications allocated in part to a federal candidate raises a significant issue as to whether federal election activity is being financed through an account and reporting structure not lawfully organized for that purpose.’
—Dan Dow, SLO County district attorney
“By law, my campaign maintains total independence from outside groups participating in the District 4 race,” he said. “I am incredibly proud of the grassroots, people-powered support behind our campaign, and I urge every South County resident to make their voice heard and get out to vote by June 2.”
Coalition Treasurer Hines said the group responded to Dow’s warning letter by filing amended forms and reports reflecting new contributions and expenses.
“Our collective reporting provides support for our status as a general purpose committee,” she said. “Our committee is about one month into its existence, and it was formed to support multiple candidates for both the 2026 primary and general elections, and beyond.”
But the group’s response didn’t alleviate the issue for Dow. His April 28 response to Hines stated that the DA’s Office is now even more concerned that the group is using a California political committee to receive contributions and spend on local, state, and federal election activity.
The coalition’s amended campaign finance form shows similar kinds of service support for three other Democratic Party candidates—30th District Assemblymember Dawn Addis, 37th District Assemblymember Gregg Hart, and 24th District Rep. Salud Carbajal, who’s a candidate in a federal congressional race.
Rules around elections in California are only for state and local races, not federal campaigns. They’re enforced by the Fair Political Practices Commission, the Attorney General, and district attorneys around the state. Rules for federal races are enforced by the Federal Election Commission.
“The use of a single California committee to receive contributions and then pay for communications allocated in part to a federal candidate raises a significant issue as to whether federal election activity is being financed through an account and reporting structure not lawfully organized for that purpose,” Dow wrote.
The DA’s letter informed the group that violations of the California Political Reform Act could result in a misdemeanor charge, with the law penalizing people up to $5,000 per violation.
South County Coalition has until 5 p.m. on May 3 to preserve all records of financial activity; identify every financial activity, communication, and in-kind service that benefited Carbajal and possibly other federal candidates; determine whether any Federal Election Commission filings were required or made; review whether funds received through a state committee were used in any way to support federal electoral activity; and determine whether its California filings remain accurate and complete.
Dow’s letter was also copied to Paulding and Verdin. Verdin told New Times he didn’t complain to Dow about the issue, but his campaign had widely mailed a news release on April 17 alleging “dark money” was being concealed in the 4th District race.
The news release pointed to missing information in South County Coalition’s filings and the timing of making changes to its organization statement.
“I would much prefer that they, the organization, that PAC, just correct themselves and follow the law,” Verdin said. “I thought that if we just make it public, that that would just make them correct it. If they didn’t correct it, then you do the next steps, right?” ∆
This article appears in April 30 – May 7, 2026.