# Jake Swanson



Exclusive: Iowa governor's office hides the ball on its own spending

Iowa House and Senate Republicans have agreed to increase the allocation for Governor Kim Reynolds’ office by more than 20 percent, even as many state agencies are receiving status quo budgets for fiscal year 2024, which begins on July 1.

Senate Appropriations Committee chair Tim Kraayenbrink acknowledged during floor debate on April 26 that Republicans do not know how the governor’s office plans to use an additional $500,000 standing appropriation for FY2024.

It was an extraordinary moment, but not a surprising one. For years, Reynolds’ staff have avoided disclosing how the governor’s office was covering expenses that greatly exceeded the funds allocated by the legislature, by nearly $900,000 in fiscal year 2020 and roughly the same amount in fiscal year 2021.

The Reynolds administration has also made it increasingly difficult to uncover details about the governor’s office spending through open records requests. Budget reports for fiscal year 2022, which ran from July 2021 through last June, were provided in a different format from previous years, concealing how much other state agencies provided to compensate Reynolds’ staffers. In response to a records request, the governor’s office claimed to have no invoices for such payments.

Nevertheless, documents obtained by Bleeding Heartland indicate that other state agencies contributed about $670,000 to cover salaries and benefits for Reynolds’ staffers during fiscal year 2022. The governor’s office was able to cover another $115,000 in expenses by continuing to understaff the Office of State-Federal Relations, for which other state agencies are charged a fixed fee.

In other words, even an additional $500,000 appropriation, bringing the governor’s office general fund budget to $2.8 million for the coming fiscal year, probably would not be enough to cover all expenses.

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Exclusive: Other agencies covered $900K in governor's office costs

Governor Kim Reynolds’ office was able to spend nearly 40 percent more than its $2.3 million budget appropriation during the last fiscal year, mostly by shifting personnel costs onto other state agencies.

Documents Bleeding Heartland obtained through public records requests show that eight state agencies covered $812,420.83 in salaries and benefits for nine employees in the governor’s office from July 1, 2020 through June 30, 2021. In addition, the Office for State-Federal Relations in Washington, DC remained understaffed, as it has been throughout Reynolds’ tenure. The vacant position should allow roughly $85,000 in unspent funds to be used to balance the rest of the governor’s office budget, as happened last year.

The governor’s communications director Pat Garrett did not respond to four inquiries over the past two weeks related to the office budget. But records indicate that unlike in 2020, federal COVID-19 relief funds will not be tapped to cover salaries for Reynolds’ permanent staffers in fiscal year 2021.

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Exclusive: Iowa governor used CARES Act funds to pay staff salaries

Governor Kim Reynolds directed that nearly $450,000 in federal funding the state of Iowa received through the Coronavirus Aid, Relief and Economic Security (CARES) Act be used to cover salaries and benefits for staff working in her office.

According to documents Bleeding Heartland obtained from the Iowa Department of Management through public records requests, the funds will cover more than 60 percent of the compensation for 21 employees from March 14 through June 30, 2020.

Reynolds has not disclosed that she allocated funds for that purpose, and reports produced by the nonpartisan Legislative Services Agency have not mentioned any CARES Act funding received by the governor’s office. Nor do any such disbursements appear on a database showing thousands of state government expenditures under the CARES Act.

The governor’s communications director Pat Garrett did not respond to four requests for comment over a two-week period.

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