The heat is on Indiana Secretary of State Diego Morales. Questionable spending and missteps have, in recent weeks, captured the attention of lawmakers in charge of his budget for the next two years.
Things are adding up, and Republicans known for fiscal conservatism are taking note.
Morales’ office said Thursday he “stands by all the financial decisions the office has made.”
To be clear, some of the information isn’t novel — but seems to have gained new life recently. For instance, the Indianapolis Star broke the news in Feb. 2023 that Morales hired his brother-in-law for a position with a six-figure salary. It isn’t illegal under nepotism laws because in-laws aren’t covered. But optics are another thing altogether.
And in Oct. 2023, the Capital Chronicle first revealed Morales’ liberal use of “spot bonuses.” Indiana executive branch agencies adhere to guidance from the Indiana State Personnel Department when it comes to the bonuses, which dictates that awards range from $100 to $1,000 to recognize outstanding performance “on the spot.”
That year, the Secretary of State’s office doled out 80 bonuses to 68 employees — out of a staff of roughly 75. They ranged from $500 to $12,000, for an average of $4,540 per employee. Nearly a dozen employees received two bonuses from Morales within the 10 months scanned by the Capital Chronicle, and one got two in one month. Morales’ brother-in-law received a total $12,500 from two bonuses.
Morales said the bonuses were needed due to promises made before his tenure for salary adjustments.
Rep. Ed DeLaney seized on these things when questioning Morales during a House Ways and Means Committee budget hearing on Jan. 15. The video has made the rounds on social media.
The Indianapolis Democrat also focused on another Capital Chronicle story about no-bid technology contracts in which the winners then gave campaign contributions to Morales. No-bid contracts are not illegal.
Morales indicated he thought DeLaney’s questions were inappropriate for the setting, replying that “we don’t mix political and official business.”
Sen. Fady Qaddoura, another Indianapolis Democrat, continued the questions in Senate Appropriations Committee on March 18. Only this time, Morales didn’t show up – sending his deputy instead. Lawmakers were told Morales was on economic development trip, according to State Affairs Indiana.
Qaddoura noted it was the second time Morales had missed a meeting before the panel, and that every other elected statewide official showed up.
“It’s not the job of the secretary of state to be traveling for economic development,” he said.
Indiana Secretary of State Diego Morales’ 2024 election security guide features a whistle. (Submitted photo)
Morales was still on the trip Tuesday when he missed a prayer breakfast for which his office was a sponsor. But he sent his staff to take photos of his table for social media.
Well, it turns out he was in India. That’s according to a post on X from the Indo-American Chamber of Commerce, and a press release issued by Morales on Thursday.
Republicans also took Morales’ office to task.
Sen. Liz Brown, R-Fort Wayne, started with questions on bonuses, leading to a promise that no new bonuses are planned.
Sen. Chris Garten, R-Charlestown, then pointed to paper maps that Morales’ office printed with his name in large, bolded letters.
Staff said less than $15,000 was spent on the maps, which were distributed at the Indiana State Fair and to county offices.
Garten said maps should be printed by the Indiana Department of Transportation.
“I have no idea why we’ve spent any amount of taxpayer money on a road map that nobody knows is a road map because, quite frankly, to me, it looks like a campaign sign,” Garten said. “The biggest thing on here is a name.”
He went on to say Morales’ budget should be decreased by whatever amount was spent on the maps, and dinged the office for overaggressive compliance fines.
That’s not Morales’ only promotional spending, though.
The office previously spent $35,00 to send glossy spiral-bound election security guides to hundreds of election administrators, lawmakers, law enforcement officers and others across the state. They were accompanied by a lanyard and card saying “Blow the Whistle on Election Interference” with Morales’ name. Federal election funds were used.
Morales’ office sent a statement to me on Thursday saying, “The Secretary of State’s Office is committed to its outreach efforts through the distribution of informational materials like papers, pamphlets, and brochures. Featuring the elected official’s name on the materials fosters trust and accountability, much like the annual mail sent by members of the Indiana General Assembly to their constituents.”
It added that the office returned $400, 000 to the General Fund at the end of fiscal year 2024. The office is currently on track to return a similar amount to the state at the end of the current fiscal year.
“It’s not unusual for questions to arise in legislative committee hearings that require research and follow up. We appreciate thoughtful questions from legislators about any aspect of our budget and operations and respond as promptly as possible,” the statement said.
It remains to be seen whether another Republican will step up to challenge Morales in 2026. He was chosen at a party nominating convention over sitting Secretary of State Holli Sullivan in 2022. GOP delegates voted against Sullivan, who then-Gov. Eric Holcomb had appointed into the role — as a revolt against him and his pandemic-era policies.
I wonder if they are now regretting that decision.