# News



Questions and answers: Jerry Foxhoven's wrongful termination claim

Former Iowa Department of Human Services director Jerry Foxhoven revealed more details about his wrongful termination claim on August 1. He asserts that he was fired after expressing concern about the DHS continuing to pay a large share of the salary for the governor’s deputy chief of staff, Paige Thorson.

As Bleeding Heartland reported last week, Thorson worked extensively on Medicaid-related issues for some time, but she became less involved with the DHS this spring, as Governor Kim Reynolds brought on a new health policy adviser.

Foxhoven and his attorney Tom Duff released a written statement and answered many follow-up questions during a 45-minute news conference. Radio Iowa posted the full audio. The questions and answers below are not a transcript from the conference, but rather my effort to put information about Foxhoven’s case in context for readers.

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What needs to happen for J.D. Scholten to beat Steve King (2020 edition)

UPDATE: Scholten launched his campaign on August 5.

Art Cullen reported in the Storm Lake Times on July 31 that while J.D. Scholten “has not formally announced whether he will run” for Congress again in Iowa’s fourth district,

He is running.

“Let me put it this way,” he said. “Last cycle we hoped to win. This cycle we intend to win.”

I assume that means Scholten is in.

He swore off running against Sen. Joni Ernst.

It’s time to revisit Bleeding Heartland’s 2018 analysis of what it would take for Scholten to win a district with a partisan voting index of R+11. I see six essential elements to an upset victory:

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Jerry Foxhoven to claim wrongful termination, retaliation

Jerry Foxhoven will pursue legal action claiming retaliation and wrongful termination as director of the Iowa Department of Human Services, Ryan Foley was first to report for the Associated Press on July 31. His attorney, Tom Duff, told the AP

that Foxhoven objected to a request to continue to have his agency fund most of the salary of the governor’s deputy chief of staff, Paige Thorson. Duff says that Foxhoven believed the arrangement made sense when he approved it in 2018. But he said that, by June, Foxhoven believed Thorson was no longer furthering the agency’s interests.

Duff plans to release a more detailed statement at an August 1 news conference, his office told Iowa reporters today.

As Bleeding Heartland discussed here, Thorson had handled health policy for the governor’s office since late 2017, but Governor Kim Reynolds brought Liz Matney over from the DHS this spring to be her health policy advisor.

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Leader quits Iowa civil rights enforcement agency (updated)

The Iowa Civil Rights Commission’s interim executive director stepped down last week, following an extended period of uncertainty for the agency charged with enforcing the Iowa Civil Rights Act.

Linda Grathwohl did not explain her decision in the letter she delivered to Governor Kim Reynolds on July 11. In an e-mail to the commission’s staff the same day, Grathwohl didn’t specify any reason for leaving, saying she planned to return to Iowa Legal Aid once her resignation was effective on July 25. Attempts to reach Grathwohl for further comment by phone, e-mail, and Facebook message were unsuccessful.

Nearly seven months have passed since Grathwohl’s predecessor, Kristin Johnson, left at the end of her term. Reynolds has not appointed a permanent executive director, and correspondence obtained by Bleeding Heartland through a public records request shows little sign the governor or her staff are interested in the agency’s work.

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IA-04: Joni Ernst's neutrality hurts Randy Feenstra more than Steve King

U.S. Senator Joni Ernst made headlines in Iowa and national media this week when she told reporters on a conference call she “will not be endorsing anyone” for the Republican nomination in the fourth Congressional district.

Strictly speaking, her announcement wasn’t news. Within days of State Senator Randy Feenstra’s campaign launch in January, Ernst said she didn’t plan to endorse in the IA-04 primary, Bret Hayworth reported for the Sioux City Journal at the time.

Many commentators have viewed Ernst’s distancing as a political blow to King, whom she enthusiastically endorsed the first time he faced a GOP primary challenger. Similarly, Governor Kim Reynolds and Senator Chuck Grassley backed King in that 2016 race but have vowed to stay neutral before next June’s primary.

While King would surely welcome the backing of Republican heavyweights for what may be the toughest race of his career, Feenstra likely needs that boost more.

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Why was Jerry Foxhoven worried?

Jerry Foxhoven has shed more light on the disagreement that preceded his forced departure as Iowa Department of Human Services director last month. On July 24 he told David Pitt of the Associated Press “that he declined to approve paying the salary of Elizabeth Matney, who left DHS on May 17 to accept a job as Gov. Kim Reynolds’ adviser on health policy.”

Staff for Reynolds disputed Foxhoven’s account, saying he never raised concerns about covering Matney’s salary and wasn’t fired for that reason. They also noted that for many years, state agencies including DHS have occasionally paid employees working in the governor’s office.

Foxhoven’s aware of that precedent, having signed some of the relevant documents himself. So why would he question the legality of this arrangement? The former director’s comments to reporters and records obtained by Bleeding Heartland provide some clues.

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How politicians control coverage of their fundraising: A Joni Ernst case study

Some incumbency advantages in campaigns are inevitable, like higher name ID and greater ability to raise money from interest groups.

Others are undeserved.

Bleeding Heartland has noted before that Iowa members of Congress, especially U.S. Senators Chuck Grassley and Joni Ernst, greatly influence media coverage of their activities. If these elected officials don’t brag about it in a news release or conference call with reporters, Iowans are unlikely ever to hear that it happened. As a result, stories that would shine an unflattering light on the senators largely stay out of the news.

Articles about campaign fundraising shouldn’t suffer from the same dynamic. Journalists can easily do original reporting without being on the ground in Washington. Anyone can access filings on the Federal Election Commission website and convey the key figures to readers.

Yet too often, what Iowans learn about political fundraising is largely written by campaign strategists.

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Jerry Foxhoven stopped playing along. This will end badly for Kim Reynolds

Editor’s note: Bleeding Heartland’s coverage of this story continues here and here.

Governor Kim Reynolds didn’t want the public to learn why she forced out Jerry Foxhoven as director of the Iowa Department of Human Services. The vague official narrative about Foxhoven’s unexpected departure remained intact for a month.

But the ground shifted last week. As further details emerge, the governor and her top staff will have more explaining to do.

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Justice should be blind. Not willfully blind

A Polk County District Court has ruled that transgender Iowans must exhaust all administrative remedies before challenging in court a new state law designed to prevent Medicaid from covering gender-affirming surgery.

In a July 18 order dismissing the ACLU of Iowa’s lawsuit on behalf of Mika Covington, Aiden Vasquez, and the LGBTQ advocacy group One Iowa, Judge David Porter wrote that the plaintiffs seeking surgery “have an adequate remedy at law” and that their case “is not ripe for judicial consideration.”

In other words, Covington and Vasquez must jump through hoops that will take many months, possibly years, before any court can consider their claim that denying Medicaid coverage for medically necessary procedures violates their constitutional rights.

Porter’s decision ignored evidence pointing to the law’s discriminatory intent as well as its impact on the plaintiffs.

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IA-04: Bob Vander Plaats adds to bad news piling up for Steve King (updated)

One of Iowa’s most prominent social conservatives has compounded U.S. Representative Steve King’s political problems.

Bob Vander Plaats worked closely with King during the 2010 campaign to oust three Iowa Supreme Court justices, and the two were among Senator Ted Cruz’s top Iowa supporters before the 2016 caucuses.

But Vander Plaats just endorsed King’s leading GOP primary rival.

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Iowa Democrats vote to kill new impeachment resolution

The U.S. House voted on July 17 to kill a new resolution seeking to impeach President Donald Trump for “racist comments that have legitimized and increased fear and hatred of new Americans and people of color […].”

Iowa’s Representatives Abby Finkenauer (IA-01), Dave Loebsack (IA-02), and Cindy Axne (IA-03) were among 137 Democrats who voted to table the resolution (roll call). So did all 194 Republicans present, including Steve King (IA-04), and independent Justin Amash, even though Amash has previously said Trump engaged in impeachable “conduct satisfying all the elements of obstruction of justice.”

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IA-01: Strong fundraising for Abby Finkenauer and Ashley Hinson

Iowa’s first Congressional district will be among the country’s top-targeted U.S. House races next year. Both the Cook Political Report and Sabato’s Crystal Ball rate this district a toss-up, for good reason. Although voter registration numbers slightly favor Democrats, voters in northwest Iowa swung heavily to Donald Trump and to Republicans for down-ballot offices in 2016.

Three Republican candidates have announced plans to challenge first-term U.S. Representative Abby Finkenauer, but at this writing, only State Representative Ashley Hinson appears relevant to the conversation. Thomas Hansen announced his candidacy on May 1, but his first Federal Election Commission filing shows just one donation from the candidate and one expenditure for gas, leaving $18.36 cash on hand. (FEC staff have already dinged Hansen for not filing his campaign’s statement of organization on time.) The third GOP candidate, Darren White, filed a statement of candidacy with the FEC last month but has not filed a July quarterly, indicating that he has not raised or spent any significant sum.

Former U.S. Representative Rod Blum, who lost to Finkenauer in 2018, raised nothing during the second quarter and spent only a token amount to keep campaign e-mail accounts working. Blum paid for some polling during the first quarter and has not ruled out running for Congress again. Republican insiders appear to prefer Hinson, for reasons Bleeding Heartland discussed in detail here.

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House approves defense authorization bill: How the Iowans voted

The U.S. House on July 12 approved a draft National Defense Authorization Act, setting military policy for the coming fiscal year. The final vote on passage split mostly along party lines, 220 to 197 (roll call).

Along the way, House members considered dozens of amendments, and the controversial ones received separate roll call votes. On most of those votes, Iowa’s delegation divided as one would expect: Democratic Representatives Abby Finkenauer (IA-01), Dave Loebsack (IA-02), and Cindy Axne (IA-03) voted with most of the Democratic caucus, while Republican Steve King (IA-04) was on the other side.

But one or more Iowa Democrats voted with the majority of House Republicans on quite a few proposals. Axne did so most often, siding with most GOP colleagues rather than with her own caucus on fourteen amendments.

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Kim Reynolds thumbed her nose at ISU students for nothing

Democrat Ross Wilburn will be unopposed in the August 6 special election to represent Iowa House district 46. The deadline to file nominating papers was on July 12 at 5:00 pm, and Wilburn is the only name on the Iowa Secretary of State’s candidate list.

A spokesperson for the Republican Party of Iowa told the Des Moines Register’s Stephen Gruber-Miller that the GOP would not field a candidate for the special election, but did not indicate why. The Libertarian Party of Iowa also declined to compete for this district; Libertarians have occasionally nominated candidates in House district 45, covering other Ames neighborhoods.

In all likelihood, Wilburn would have won this election regardless of the timing or the competition, given the political layout of House district 46. The strongest potential GOP candidate, Ames City Council member Tim Gartin, took himself out of the running early, and several Democratic presidential candidates have either headlined events for Wilburn or had their staff help knock doors for him.

If Republicans weren’t planning to play for this seat, it was exceptionally foolish for Governor Kim Reynolds to set the election on the first Tuesday allowed under state law. She could have scheduled the vote for late August or September, when most Iowa State University students would be back in Ames.

All Reynolds accomplished by picking August 6 was reinforcing the narrative that she doesn’t care about constituents who don’t politically align with her. She could have shown her commitment to fair play by picking a day that would give more House district 46 residents a voice. Instead, she used the levers of power to depress Democratic turnout–for nothing.

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Kim Reynolds keeps giving away the store to for-profit Medicaid managers

Governor Terry Branstad and then Lieutenant Governor Kim Reynolds promised endlessly that privatizing Medicaid would make the system more “sustainable.” The talking point became a crutch for Governor Reynolds whenever she faced questions about problems privatization has created for patients, caregivers, and health care providers.

The old state-run Medicaid system wasn’t sustainable, Reynolds told reporters again and again. The new system was becoming more sustainable, she claimed during all three debates against her 2018 opponent Fred Hubbell.

The latest reality check arrived on July 10. For the second year in a row, for-profit companies that manage care for hundreds of thousands of Iowans on Medicaid will receive more than an 8 percent increase in government payments.

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Memo to law enforcement officers: Swearing at you is not a crime

The Adams County Sheriff’s office must stop charging critics with crimes, under a U.S. District Court injunction issued this week. The injunction is part of an agreement to settle a federal lawsuit filed on behalf of Red Oak resident Jon Goldsmith, the ACLU of Iowa announced on July 8. Goldsmith faced a third-degree harassment charge last year after putting up a profanity-laden Facebook post about a sheriff’s deputy.

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IA-02's starting to look like a lean Democratic seat

After seven-term Democratic U.S. Representative Dave Loebsack announced plans to retire after his current term, I argued that the open-seat race in Iowa’s second Congressional district looked like a toss-up.

Bobby Schilling made his campaign official on July 8, setting up a likely general election match-up against Rita Hart. Although Democrats should take nothing for granted here, and the Cook Political Report and Sabato’s Crystal Ball still rate IA-02 as a toss-up, I’m now considering this a lean Democratic seat for the following reasons.

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Sedgwick landed six-year, $7.9 million state contract with also-ran cost proposal

Des Moines freelance writer John Morrissey digs into how a well-connected company landed a lucrative state contract. Laura Belin contributed reporting to this story.

Four months after being awarded a contract to administer Iowa’s worker’s compensation program for state employees, a politically connected West Des Moines company has apparently not come to terms with the state to continue its work.

Sedgwick Claims Management Services LLC was selected in early March to keep handling the program, even though a competitor achieved a better score on three cost proposal items. The state will pay Sedgwick $7.9 million in administrative costs over six years. Runner-up bidder TRISTAR Risk Enterprise Management LLC offered to do the work for a little more than $6 million, a potential savings of nearly $1.9 million over the contract period.

The Iowa Department of Administrative Services (DAS) provided copies of all submitted bids for the current and previous bid cycles upon receiving John Morrissey’s public records request. But the department has declined further comment about the award and refused to clarify the scoring system or other matters related to this bid process. The new DAS director Jim Kurtenbach did not respond to a request for an interview about this matter.

Sedgwick’s bid contact officer referred questions to several state officials and the company’s public relations office. That office also did not respond to Bleeding Heartland’s inquiry.

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Interview: Why Cindy Axne's not for impeachment hearings (yet)

Months have passed since Special Counsel Robert Mueller released hundreds of pages of findings from a two-year investigation. About 1,000 former federal prosecutors signed a statement saying “the conduct of President Trump described in Special Counsel Robert Mueller’s report would, in the case of any other person not covered by the Office of Legal Counsel policy against indicting a sitting President, result in multiple felony charges for obstruction of justice.”

Various Trump administration officials have flouted Congressional subpoenas to produce documents or testify. President Richard Nixon’s failure to comply with the House Judiciary Committee’s subpoenas in 1974 were the basis for one of the three articles of impeachment against him.

Yet only about 80 of the 235 U.S. House Democrats are now on record supporting formal impeachment hearings.

None of Iowa’s three Democrats in Congress are among them.

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Tanks in Washington and other July 4 links

President Donald Trump has ordered a military parade and flyover in Washington, DC to celebrate Independence Day. He’s been wanting to stage this kind of display since his first year in office.

The production will cost millions of additional dollars and shut down air traffic to and from Reagan National Airport for hours. Republican donors and VIPs will get special passes to watch the festivities in a restricted area. Traditionally, all July 4 events in the nation’s capital have been free and open to the public.

The National Park Service is diverting $2.5 million “primarily intended to improve parks across the country” to cover a “fraction of the extra costs,” the Washington Post’s Juliet Eilperin, Josh Dawsey, and Dan Lamothe reported on July 2. The “entire Fourth of July celebration on the Mall typically costs the agency about $2 million,” a former Park Service deputy director told the newspaper. Costs could escalate if the heavy military equipment damages streets.

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The first Democratic debate and Iowa: Biden in real trouble and a race remade

Dan Guild puts the latest Democratic primary poll numbers in context. -promoted by Laura Belin

The above image and the accompanying story were national news within minutes of the end of the first debates. Kamala Harris attacking Joe Biden for his statements about busing and his praise for two old segregationist senators was the story of the June 27 event.

Less than a week later, the race in Iowa is remade.

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Some bad laws for Iowa's environment take effect today

Continuing Bleeding Heartland’s coverage of the Iowa legislature’s work during the 2019 session.

Iowa’s environmental community had something to celebrate when state lawmakers adjourned for the year without passing legislation that would crush small-scale solar development. An unusual coalition including solar installers, environmental groups, and livestock farmers helped keep the bill bottled up in the Iowa House despite intense lobbying by MidAmerican Energy and its allies, along with massive spending by undisclosed donors.

Unfortunately, lawmakers approved and Governor Kim Reynolds signed several other measures that will be detrimental for Iowa’s natural resources and take our state’s energy policy in the wrong direction. The new laws take effect today, as the 2020 fiscal year begins.

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Ross Wilburn nominated for Iowa House district 46 special

Ross Wilburn will be the Democratic candidate in the August 6 election to represent Iowa House district 46. Delegates to a special nominating convention in Ames on June 29 chose Wilburn on the second ballot.

The former Iowa City mayor, who has worked for Iowa State University Extension and Outreach since 2014, recently told Bleeding Heartland that if elected to the state House, he wants to address problems with privatized Medicaid, climate change, and gun violence. Other priorities for Wilburn are strengthening public school districts, restoring collective bargaining rights for public workers, and making Iowa more welcoming and inclusive for marginalized groups such as the LGBTQ community, people of color, veterans, and people with disabilities.

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Auditor: Service cuts to some Iowans on Medicaid violate state contracts

State Auditor Rob Sand warned the Iowa Department of Human Services on June 26 that service cuts to two quadriplegic Iowans indicate that Amerigroup and UnitedHealthcare “have failed to comply” with their state contracts. Sand said the managed-care organizations (MCOs) have pushed both Medicaid recipients to move into assisted living, rather than meeting their contractual obligations to ensure members have access to covered benefits and adequate health care services.

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Jim Kurtenbach to lead Iowa's HR agency. What was Kim Reynolds thinking?

Governor Kim Reynolds announced last week that Jim Kurtenbach will be the new director of the Iowa Department of Administrative Services (DAS), effective July 1. Paul Trombino has held that position on an interim basis for about a month, after the Iowa Senate did not confirm previous DAS Director Janet Phipps.

Tapping Kurtenbach for this job was a strange choice. The agency has broad responsibility for human resources, procurement, and accounting on behalf of the state. Sexual harassment or discrimination by senior officials has led to several lawsuits against the state and millions of dollars in settlements in recent years. Yet not only does Kurtenbach lack relevant experience in the HR field, his hiring and managerial decisions as Iowa State University’s vice president and chief information officer were far from a model for best practices.

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Iowa Democratic groups weigh doing business with Hy-Vee

News that Hy-Vee’s political action committee donated $25,000 to the Republican Party of Iowa shortly before a recent fundraiser featuring President Donald Trump is prompting some Iowa Democratic organizations to re-examine the business they give to the major grocery store chain.

Leaders of the West Des Moines Democrats decided to cancel a contract for Hy-Vee to cater an upcoming picnic that is one of the group’s biggest fundraisers.

Several members of the Polk County Democratic Central Committee raised concerns this week about plans for Hy-Vee to cater the group’s Steak Fry in September, which could attract thousands of caucus-goers.

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Hy-Vee's largest political donation in a decade preceded Trump event

Editor’s note: Hy-Vee’s PAC provided a comment on June 24, which is enclosed in full at the end of this post.

Great catch and great digging by Gwen Hope. -promoted by Laura Belin

Hy-Vee is one of those companies we often associate with small-town, everyone-knows-everyone “Iowa Nice” culture. Yet it’s important to remember that while some major Iowa businesses started small, many are no longer those small-town startups of yesteryear. Hy-Vee is no exception, having just made a conveniently-timed donation that was its largest single political contribution in a decade.

Like many livestock farmers, state businesses fill their animal troughs with corn and silage, but the resulting pork is of the political persuasion variety. In this vein, I looked into the fundraiser1 for the Republican Party of Iowa (RPI), held at Hy-Vee’s Ron Pearson Center in West Des Moines. President Donald Trump headlined the June 11 event.

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Back to the drawing board for Republicans in IA-02

Osceola Mayor Thomas Kedley announced on June 22 that he will no longer seek the Republican nomination in Iowa’s second Congressional district. In a statement enclosed in full below, Kedley said after traveling the district in recent weeks, “I realized I wasn’t done yet in Osceola,” and “I feel like I can make the biggest impact at the local and state level.”

Though he was the only declared GOP candidate, Kedley was never likely to become the nominee in IA-02. He lacked name recognition, a base of support in a large county, or a track record with fundraising.

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Iowa House district 46 election to happen before most ISU students return

For the second time this year, voters in a college town will elect a new Iowa lawmaker when most students are not on campus. Governor Kim Reynolds announced today that the special election in House district 46, covering part of Ames, will take place on Tuesday, August 6.

The College and Young Democrats of Iowa quickly denounced the decision: “Anyone else having some déjà vu with the timing of this special election? @KimReynoldsIA is once again denying students – many who will not be on campus until late Aug. – the chance to vote in the IA House district they heavily occupy.”

Whereas Reynolds clearly tried to suppress student and faculty voting by scheduling the Senate district 30 special election during the University of Northern Iowa’s spring break, the timing of the coming vote in Ames is arguably consistent with standard Iowa practice.

However, the governor could have and should have set the date a few weeks later, allowing greater participation by Iowa State University stakeholders.

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Iowa Medicaid oversight chief to be governor's new health policy analyst

Elizabeth Matney, who has led the Iowa Medicaid Bureau of Managed Care since the state began privatizing nearly the whole program in 2015, is leaving the Department of Human Services to become Governor Kim Reynolds’ health policy advisor, Matney’s LinkedIn profile shows. Her starting date is unclear; the governor’s office has not announced Matney’s hiring or responded to Bleeding Heartland’s inquiries on the subject. A DHS organizational chart dated June 17 still shows Matney as bureau chief for MCO Oversight & Supports, the state’s leading official for overseeing the private companies picked to manage care for more than 600,000 Iowans on Medicaid.

When the new fiscal year begins on July 1, the governor’s office will receive additional funding for staff, so Matney’s work for Reynolds may formally begin at that time. The governor’s previous health policy advisor, Paige Thorson, appears to be staying on as deputy chief of staff, meaning that new funds would be needed to pay Matney (the governor’s staff have not clarified that point).

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