The head of the Morgan County Republican Party says the organization is returning a $500 campaign contribution to the city of Martinsville.

The city made the contribution on March 15.

County chairman Dan Elliot tells Indy Politics the contribution was made to pay for an ad at the Morgan County Lincoln Day Dinner.

Elliot says the money should have come from the Mayor’s campaign fund and not city coffers,

He says the $500 is being returned this morning.   Elliot was not aware of the contribution.

While local governments are not expressly prohibited under Indiana Election law from donating to political candidates or parties,  under the State Board of Accounts they cannot spend money unless it was appropriated by a legislative body.

Martinsville Mayor Kenneth Costin says the check to the party was a mistake and should have come from his business, not the city.  He says his business has written a check to the party and the party reimbursed the city.