Glen Stubbe/Star Tribune
Minnesota House Speaker Kurt Daudt paid more than $10,000 in outstanding credit card debt in the past year after facing lawsuits demanding repayment, he said at a news conference Monday.
The Crown Republican was sued three times by debt collectors over credit card liabilities in the past year. He resolved them all by paying in full, he said.
The first-term speaker's dealings with creditors were first reported by Minnesota Public Radio.
Daudt, who has often chastised DFL legislators and Gov. Mark Dayton for spending too much taxpayer money, said he understands the financial challenges of Minnesotans.
"It gives me a real appreciation for the struggles Minnesotans have gone through," he said.
The revelation about Daudt's debt came on the first day of a legislative session in a pivotal election year. Daudt is trying to ensure Republicans hold control of the House and Democrats are trying to win enough seats to win the majority.
Democrats seized on the incident, saying Daudt's sudden payoff of the debt and legal bills warrant more explanation.
"There remain many unanswered questions about this troubling story," said House Minority Leader Paul Thissen, DFL-Minneapolis. "It's in the public's interest that he disclose the nature of the settlement he reached on his debt with a law firm with significant lobbying ties at the Capitol."
Daudt said he was laid off from his job at a car dealership in 2012 and went through financial problems he has since cleaned up.
Legislators are paid $31,140 a year plus per diem expenses during session. Daudt earns an extra $12,456 because he holds a leadership position.
"It is an honor for me to serve in the Legislature, but it is also a bit of sacrifice," said Daudt, who does not have another job.
The law firm representing Daudt's creditors was Messerli & Kramer, which has a significant lobbying presence at the Capitol, advocating on behalf of health care companies, railroads, the Twins and the city of St. Paul.
A call to the firm's debt collection division was not returned.
Daudt said he received no special treatment from the firm.
"I know I received no special treatment because I paid every dollar fully," he said.
Daudt was represented in the matter by R. Reid LeBeau, a lobbyist who also specializes in election law. LeBeau, who declined to comment, mostly represents tribal interests at the Capitol.
Daudt said he paid legal bills out of his own pocket.
Daudt also owed $68 in property tax on two parcels he owns, which he paid Monday.
The speaker said he failed to pay the taxes because he overpaid and received a refund on other parcels and was confused about his true tax liability.
"The story isn't that I had financial trouble," Daudt said. "The story today is that I have taken care of all of that."
J. Patrick Coolican • 651-925-5042
