Democrats accuse Blunt of illegally offering settlement check from federal funds

The controversy surrounding the departure of former Agriculture Director Fred Ferrell continues.
On Wednesday, state Democrats accused Governor Matt Blunt of illegally using federal funds for a payoff to Heather Elder, the employee who accused Ferrell of sexually harassing her, an accusation that was confirmed by a Missouri Highway Patrol investigation:

After learning that department officials had used "federal and other funds" in an equipment account for the settlement, Reps. Rachel Storch, D-St. Louis, and Margaret Donnelly, D-Richmond Heights, questioned the legality of the expenditure.

Blunt's administration acknowledged it was not "standard practice" to pay settlements from the account but called the move acceptable because the account could have been reimbursed later from the proper fund.

Ms. Elder rejected the check because of the provision that the allegations against Ferrell be kept secret. Governor Blunt told the media that details about the charges would be released once settlement talks were completed with the employee, but all of the paperwork involved in the agreement included strict confidentiality clauses.