# Cheryl Arnold



Exclusive: Labor relations board shifts staff, cases to other agency. Is it legal?

Iowa’s Public Employment Relations Board (PERB) is transferring most of its staff and caseload to the state Department of Inspections and Appeals.

Since the mid-1970s, PERB members and administrative law judges have adjudicated labor disputes within state and local government or school districts. Following the changes, administrative law judges now working for PERB will handle other matters, while other employees at Inspections and Appeals will hear cases that were previously in PERB’s jurisdiction.

State officials have not announced the changes, which are scheduled to take effect on September 30. It’s not clear who initiated or authorized the plan. Staff in the governor’s office and Department of Inspections and Appeals did not respond to any of Bleeding Heartland’s inquiries over the past three weeks. PERB members Erik Helland and Cheryl Arnold likewise did not reply to several emails.

State Senator Nate Boulton, a Democrat with extensive experience as a labor attorney, has asked Attorney General Tom Miller for an official opinion on whether “it is an illegal shift of an essential PERB duty” to assign its responsibilities “to an unrelated state agency.”

Boulton also asked Miller to weigh in on the legality of Governor Kim Reynolds’ recent appointments to PERB. As Bleeding Heartland previously reported, Reynolds has circumvented the Senate confirmation process by keeping one of the three PERB positions unfilled, so she can name her preferred candidates to a vacant slot while the legislature is not in session.

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Governor appoints board member Iowa Senate already rejected

In another end run around the Iowa Senate confirmation process, Governor Kim Reynolds has named Cheryl Arnold to serve on Iowa’s Public Relations Board (PERB), which adjudicates labor disputes within state and local government or school districts.

The governor’s office has not publicly announced the nomination, and at this writing, the board’s website lists only one member (Erik Helland) on what Iowa law designates as a three-person board. Reynolds informed Secretary of the Iowa Senate Charlie Smithson about Arnold’s appointment in a letter dated August 15, which Smithson provided to Bleeding Heartland.

Arnold previously served as chair of the PERB for a little more than a year. She left the position after Iowa Senate Democrats voted against her nomination near the end of the 2020 legislative session. Appointments subject to Senate confirmation need a two-thirds vote for approval, giving Democrats the power to block nominations while in the minority.

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Exclusive: Governor stacked labor relations board with Republicans

Governor Kim Reynolds has kept one of three positions on Iowa’s Public Employment Relations Board (PERB) vacant for more than a year, and since October has ensured the board operates with Republican members only.

By law, the board that handles public sector labor relations “shall consist of three members appointed by the governor,” of whom no more than two “shall be of the same political affiliation.” Reynolds has left one position unfilled since August 2020 and recently replaced Democrat Mary Gannon with Republican Jane Dufoe. She serves alongside Erik Helland, a longtime Republican and former state lawmaker.

The current situation runs counter to the spirit of PERB’s partisan balance requirement and potentially allows Reynolds to circumvent the Iowa Senate confirmation process, by shifting board members who are not confirmed to an open position.

In addition, state salary records show Reynolds’ GOP appointees to PERB immediately earned higher pay than Gannon, despite the Democrat’s years of experience. For decades, under Republican and Democratic governors, PERB members not chairing the board had received identical salaries.

The governor’s communications director Alex Murphy confirmed Dufoe’s party affiliation in September, then did not respond to eight follow-up inquiries about the PERB appointments over a three-month period.

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Governor holds over agency directors Iowa Senate didn't confirm

In an unusual move, Governor Kim Reynolds is allowing two state agency directors she appointed early this year to continue serving through next year’s legislative session, even though they lacked the votes to be confirmed by the Iowa Senate.

Reynolds withdrew the nominations of Department of Management Director Michael Bousselot and Department of Administrative Services Director Adam Steen shortly before state lawmakers adjourned for the year in May. Days later, she rejected the directors’ resignations, saying she would resubmit their names to the Senate in 2022, documents obtained through public records requests show.

The governor’s office has not publicly announced Reynolds’ decision to hold over Bousselot and Steen and did not respond to Bleeding Heartland’s inquiries.

The Department of Management handles state budget planning as well as disbursements from Iowa’s general fund and various other funds. The Department of Administrative Services handles human resources, payroll, and procurement of goods and services for state government.

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