# State Government



Governor bashes CDC, blames immigrants for COVID-19 spread

As the more transmissible Delta variant causes COVID-19 cases to rise in all 50 states, the U.S. Centers for Disease Control changed its guidance for fully vaccinated individuals on July 27. The CDC now recommends that they “wear a mask indoors in public” in areas “of substantial or high transmission.” In addition, anyone living with unvaccinated or immunocompromised household members, or those at higher risk of severe disease, “might choose to wear a mask regardless of the level of transmission.”

Despite having no science background, Governor Kim Reynolds bashed the new guidance as “not grounded in reality or common sense.” Only a few hours earlier, she had absurdly suggested that immigrants entering Texas might be to blame for accelerating community spread of COVID-19.

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Iowa abortions increase for second straight year

About 14 percent more abortions were performed in Iowa during calendar year 2020 compared to the previous year, indicating that a sharp increase recorded in 2019 was not a one-off.

Iowa Department of Public Health data shows 4,058 pregnancy terminations occurred during 2020, up from 3,566 abortions performed in 2019. That number represented a 25 percent increase from the 2,849 abortions recorded in 2018.

Prior to 2019, abortions were on a steady downward trend in Iowa and nationally for at least a decade. The figure recorded for 2020 was the highest since 2013.

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Exclusive: Governor approved CARES Act spending on office tech upgrades

Governor Kim Reynolds approved plans last year to spend federal COVID-19 relief funds to upgrade the technology in her conference room, state records show.

The Office of Chief Information Officer (OCIO) paid vendor AVI Systems $67,543.48 in December for unspecified “IT Equipment and Software” and “IT Outside Services.” Published reports and searchable databases do not reveal that those purchases benefited the governor’s office. But documents Bleeding Heartland obtained through public records requests indicate that the spending covered new audio and video equipment installed in the Robert Ray Conference Room, which is part of the governor’s office suite.

Records also show the payments were supposed to come out of Iowa’s Coronavirus Relief Fund, a pot of federal money established under the March 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act.

OCIO may have tapped a different funding source later to cover the conference room upgrade, as happened with a $39,512 project to migrate the governor’s office computers from Google suite to Microsoft Office 365 last year. Entries on the state’s online checkbook, totaling $67,543.48 to AVI Systems on the same December dates, do not mention the Coronavirus Relief Fund.

The governor’s spokesperson Pat Garrett ignored six inquiries over a two-week period. OCIO’s public information officer Gloria Van Rees also did not respond to eight messages during the same time frame seeking to clarify what funding stream paid for the conference room upgrades, and whether the governor’s office reimbursed OCIO for the payments to AVI Systems, as happened following the Office 365 migration.

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Update on efforts to obtain a federal cannabis exemption for Iowa

Carl Olsen is the founder of Iowans for Medical Marijuana. promoted by Laura Belin

In February 2019, I asked the Iowa Medical Cannabidiol Board, which regulates our state’s medical cannabis program, if there was anything we could be doing about federal drug law, such as obtaining a federal exemption (21 C.F.R. § 1307.03) like the one that currently exists for another federal Schedule I controlled substance, peyote (21 C.F.R. § 1307.31).

In August 2019, at my request, the board recommended that the Iowa Department of Public Health (IDPH) obtain a federal exemption for cannabis. However, the department refused, saying none of the other 46 states that have enacted medical cannabis laws have requested federal exemptions, and that Iowans were not being injured by the federal criminalization of cannabis.

Keep in mind that patients had been testifying before the board about discrimination in schools and health care facilities because of the federal criminalization of cannabis. Iowa Attorney General Tom Miller signed a September 2019 bipartisan letter from attorneys general saying the current federal policy “poses a serious threat to public safety.”

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Iowa Republicans have abandoned executive branch oversight

Governor Kim Reynolds has been lucky at key points in her political career. Terry Branstad passed over more experienced contenders to select her as his 2010 running mate, allowing a little-known first-term state senator to become a statewide elected official. Six years later, Donald Trump won the presidency and named Branstad as an ambassador, setting Reynolds up to become governor without having to win a GOP primary first.

Most important, Reynolds has enjoyed a Republican trifecta her entire four years as governor. Not only has she been able to sign much of her wish list into law, she has not needed to worry that state lawmakers would closely scrutinize her administration’s work or handling of public funds.

During the legislative session that wrapped up last month, the GOP-controlled House and Senate rejected every attempt to make the governor’s spending decisions more transparent. They declined to hold even one hearing about questionable uses of federal COVID-19 relief funds or practices at state agencies that disadvantaged thousands of Iowans.

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Former DHS director files wrongful termination lawsuit

Jerry Foxhoven asserts in a new lawsuit that Governor Kim Reynolds and her senior staff forced him out as Iowa Department of Human Services director “because he refused to engage in illegal activity” and to prevent him from seeking legal advice about possible misuse of federal Medicaid funds.

The petition filed in Polk County District Court on June 9 closely tracks allegations Foxhoven made in a wrongful termination claim soon after he resigned under pressure in 2019. Reynolds, her chief of staff Sara Craig Gongol, and her former senior legal counsel Sam Langholz are named defendants in addition to the state of Iowa.

Foxhoven’s court filing says the events leading to his ouster centered on a dispute over payments from DHS for work done by Reynolds’ deputy chief of staff Paige Thorson. The DHS director agreed in early 2018 to have the agency pay 69 percent of Thorson’s salary and benefits, as she assisted Iowa’s new Medicaid director Mike Randol. Foxhoven signed a similar agreement for the next fiscal year, which ran through June 2019. (Several of the governor’s staffers are mostly paid by other state agencies; the longstanding practice helps Reynolds keep more staff on payroll than her budget appropriation could support.)

Foxhoven says that in February or March 2019, he told Craig Gongol in a telephone conversation “that Randol was now adequately familiar with Iowa’s health care network,” adding that “Thorson was no longer performing duties that furthered the mission of Iowa Medicaid and that he did not believe DHS could legally divert federal Medicaid dollars to pay her salary.”

In the spring of 2019, Republican lawmakers approved an extra $200,000 for the governor’s office, supposedly for health and tax policy analysts. Foxhoven says he “believed that the issue was resolved,” and spoke with Craig Gongol in early June “hoping to confirm that DHS would not continue paying any portion of the Thorson’s salary with Medicaid funds in the next fiscal year.”

However, the governor’s chief of staff indicated that she expected the agency to keep compensating Thorson. Foxhoven “questioned the legality of such an arrangement” and asked Craig Gongol to consult with legal counsel Langholz, but she refused.

According to Foxhoven, he told Craig Gongol “that he intended to ask the assistant attorney generals assigned to DHS for a legal opinion” on June 18, after the expected conclusion of a federal trial they were working on. But he wasn’t able to send that email, because Craig Gongol and Langholz asked for his resignation on June 17. Foxhoven says during that meeting, the governor’s senior staff “demanded the immediate return of all of Foxhoven’s state issued equipment and told him not to return to his office.”

The lawsuit alleges that the defendants terminated Foxhoven:

  • “in order to prevent him from enforcing his statutory right to disclose information he reasonably and in good faith believed constituted a violation of the law, mismanagement, a gross abuse of funds or abuse of authority […]”;
  • “in order to prevent him from disclosing information he reasonably and in good faith believed constituted a violation of the law, mismanagement, a gross abuse of funds or abuse of authority […]”;
  • “because he refused to engage in illegal activity; that is committing Medicaid fraud and misuse of federal monies by continuing to pay Thorson’s salary despite the fact that she was no longer providing any duties relating to Medicaid or otherwise furthering the mission of DHS […]”; and
  • interfered with and prevented him from consulting with the Iowa Attorney General’s office about his agency continuing to pay Thorson’s salary.

Foxhoven told journalists in 2019 he would not have objected to using Medicaid funds to support Thorson’s compensation if legal experts determined the practice was still allowable. But he wanted a letter from the Attorney General’s office. That way, in case state or federal auditors questioned the payments later, “There might be a difference of opinion between the auditor and the AG’s office, but it isn’t a matter of Foxhoven diverting funds.”

State agency directors are at-will employees, who serve at the pleasure of the governor. But one exception to the at-will doctrine is firing someone in violation of public policy–for instance, because they refuse to engage in illegal conduct. Foxhoven’s lawsuit alleges that his “termination violates well established public policy of the State of Iowa as defined by statute, regulation, and judicial decision.”

The court filing notes that Foxhoven has suffered “substantial loss of earnings, insurance benefits, retirement benefits and other employee benefits” as well as “emotional distress and damage to his reputation.” It also argues that he’s entitled to punitive damages against Reynolds, Craig Gongol, and Langholz, because their termination of his employment “was willful and wanton and done in reckless disregard of his rights.”

The governor’s office did not immediately respond to Bleeding Heartland’s request for comment on the lawsuit. The Iowa Attorney General’s Office had no comment. Langholz has worked there since late last year, representing the Reynolds administration in several high-profile cases.

Reynolds said in 2019 that “many factors” influenced her decision to ask for the DHS director’s resignation. (The agency has faced lawsuits and investigations over its management of the State Training School for Boys and the Glenwood Resource Center for the intellectually disabled.) In early 2020, the governor told reporters “she was ‘not happy’ with the response she received” about an increase in deaths at Glenwood.

Reynolds also claimed Foxhoven “never raised concerns with me or my staff about the salary agreements in question, and he never asked my staff for a legal opinion or said he would be reaching out to the Attorney General’s office for one.”

Final note: Records I received while investigating the governor’s office spending indicated that DHS did not end up paying any portion of Thorson’s salary during fiscal year 2020, which began in July 2019. However, DHS did pay 100 percent of the salary and benefits of the governor’s new health policy adviser Liz Matney from July 2019 through mid-March 2020. Thorson and Matney were among 21 permanent staffers in Reynolds’ office who had about 62 percent of their compensation from mid-March through June 2020 covered through federal COVID-19 relief funds.


Appendix: Petition filed in Polk County District Court on June 9

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Paul Trombino heading to local government job in Colorado

Paul Trombino III will be the next public works director of city of Greeley, Colorado, the city announced on May 28. He was hired following a national search, according to a news release enclosed in full below. The job was posted in February, so Trombino must have applied only weeks after becoming Iowa’s Homeland Security and Emergency Management director.

Governor Kim Reynolds’ office announced Trombino’s impending departure on May 20. The news surprised many observers, since the governor had worked closely with her chief operating officer for two years and awarded him a large bonus in February, ensuring he wouldn’t take a pay cut when transitioning to the Homeland Security position.

Trombino’s resignation from his Iowa government post becomes effective June 3. Reynolds hasn’t yet announced her choice to run the Homeland Security agency, which oversees disaster preparedness and relief operations and has administered tens of millions of dollars in federal COVID-19 relief funds.

Most of the CARES Act funding transferred to Homeland Security is tied to the state or local match for the Federal Emergency Management Agency’s Public Assistance Program. Reynolds also approved a $1 million transfer for “State Government COVID Staffing,” from which $448,449 was used to cover personnel costs in the governor’s office. The remaining $551,551 set aside for that purpose remains unspent, a state database shows. A Homeland Security communications staffer told me last year, “Although that funding was transferred to our department to process, we are not the decision makers on how it will be spent.”

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Iowa set to pay off Workday contract this month

The state of Iowa should be able to pay the remainder on its contract to acquire the Workday software system once Governor Kim Reynolds signs the final appropriations bill lawmakers approved before adjourning on May 19.

Senate File 615, the so-called “standings” bill, allocates $23.23 million from the state’s general fund to the Office of Chief Information Officer during the current fiscal year, which ends on June 30. That money is to be used for “implementation of a new state central personnel, accounting, and budget system.”

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Iowans face long wait for disability services

Kyla Claussen is one of some 16,000 Iowans on waiting lists for disability services. -promoted by Laura Belin

My name is Kyla Claussen and I’m from Avoca, Iowa. I have an unknown progressive neuromuscular disorder that has been slowly taking skills away from me over the past five years. By March 2020, I was unable to walk independently anymore or work. Last August, I went on Social Security Disability Insurance (SSDI) and then applied for the Physical Disability Waiver and the Health and Disability Waiver.

I’m now waiting for services in my home, along with 15,956 Iowans on the waiting list for one of the waivers for people with disabilities. Most likely, I will be waiting for one to three years.

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Late budget amendment sought funds for no-bid Homeland Security contract

One day before Iowa lawmakers adjourned for the year, the Iowa Senate amended a spending bill to allocate $4.5 million over two years to the Iowa Department of Homeland Security and Emergency Management for a sole source contract.

The funding to install a mobile panic button system in Iowa’s K-12 schools could only have been used by Rave Mobile Safety, which recently signed a contract with the Homeland Security department to replace Iowa’s emergency mass notification system.

The Iowa House altered the bill to leave the funding in place without an earmark for a specific product. But the last-minute effort raises questions about whether outgoing Homeland Security Director Paul Trombino III sought the funding to benefit a company represented by one of Iowa’s most influential lobbyists.

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Unemployment insurance is not the problem

Jeff Clothier reacts to the news that Governor Kim Reynolds is pulling Iowa out of federal pandemic-related unemployment programs, effective June 12. -promoted by Laura Belin

I work as a trainer, primarily for Unemployment Insurance, for Iowa Workforce Development. Between May and September 2020 I received unemployment benefits, having been riffed from my corporate job due to COVID-19.

Some facts are left out of the discussion around ending the $300 federal contribution to weekly benefit checks for Iowa recipients. Governor Reynolds and others insinuate – without much evidence – that these federal supplements to unemployment insurance are a disincentive to people returning to the workforce.

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Terrace Hill fence approved last summer; governor's role unclear

Officials in the Iowa Department of Public Safety and the governor’s office decided during the summer of 2020 to install a permanent fence around the Terrace Hill mansion in Des Moines, records obtained by Bleeding Heartland show.

The documents don’t reveal, nor did state officials clarify, whether Governor Kim Reynolds or her staff pushed for added security around the governor’s official residence. The records also don’t explain the timing of the decision to move forward with a plan that had been floated years earlier, according to the agency responsible for protecting the governor.

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ISU's Workday problems still delaying state financial report

The state of Iowa’s Comprehensive Annual Financial Report for the 2020 fiscal year may be finalized by the end of June, six months later than the usual publication date.

Staff at the Iowa Department of Administrative Services compile the report using data provided by state government entities, and for many years have completed that work by December 31. However, Iowa State University (ISU) struggled to provide accurate, auditable data for the fiscal year that ran from July 2019 through June 2020. The reporting problems coincided with the year the university switched to the Workday computer system for accounting.

While other state government units sent their year-end financials by the usual deadline of October 1, 2020, ISU completed that process more than six months later, in early April.

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Exclusive: Bonuses push five Iowa agency heads above maximum pay

Governor Kim Reynolds has approved bonuses for at least five current state agency directors, allowing them to receive substantially more compensation than the top of the pay scale Iowa law sets for their positions.

The Iowa Department of Administrative Services disclosed information about four agency leaders now receiving such bonuses in response to Bleeding Heartland’s public records request. The Cedar Rapids Gazette’s Erin Jordan was first to report on Homeland Security and Emergency Management Director Paul Trombino’s bonus, in an article published April 7.

This post discusses each official’s bonus pay in the order that they were awarded. The governor’s spokesperson Pat Garrett did not respond to an April 7 email seeking to clarify whether any other heads of state departments are receiving greater compensation than the statutory maximum for their positions.

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Exclusive: ISU accounting issues still delaying state financial report

Editor’s note from Laura Belin: The Governmental Accounting Standards Board and the Government Finance Officers Association now discourage use of the common acronym for this report, because when pronounced it sounds like a racial slur. Bleeding Heartland will avoid using the acronym in the future. Original post follows.

Challenges in obtaining auditable financial data from Iowa State University continue to delay the publication of the state’s Comprehensive Annual Financial Report (CAFR) covering the fiscal year that ended June 30, 2020. The Iowa Department of Administrative Services compiles the CAFR and typically publishes it by December 31. The latest edition has been held up because ISU was unable to submit its year-end financial data on the usual timetable.

The university switched to using the Workday computer system for accounting at the start of the 2020 fiscal year. While Iowa’s public universities have long sent year-end data to the Department of Administrative by October 1, ISU is still working on some “supplemental pieces” six months later.

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State government has better things to do

Jim Chrisinger: Government employees are just as smart, creative, and hard working as their private sector counterparts; they just have to work in a system with lousy organizational DNA. -promoted by Laura Belin

When we moved back to Iowa three years ago, our state was up and coming, a place that attracted young families, entrepreneurs, and the tech industry, as well as retirees like us. But now Iowa’s elected leaders seem intent on taking Iowa backwards: suppressing the vote, waging culture wars, and threatening public education.  

Imagine what Iowa’s elected leaders could do if they put their energies into governing to move us forward again.  

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Exclusive: Iowa approved CARES Act funds for governor's office software switch

UPDATE: Weeks after publication, state officials said this payment had been “inaccurately coded to the federal CARES program,” which was “anticipated” to cover this expense but did not. They said the database would be corrected to reflect the coding error. More details are at the end of this post. Original text follows.

Iowa’s Office of Chief Information Officer spent $39,512 in federal COVID-19 relief funds on a project to migrate computers in Governor Kim Reynolds’ office from Google suite to Microsoft Office 365.

Public databases showing expenditures from Iowa’s Coronavirus Relief Fund do not indicate the governor’s office was the beneficiary of that November payment from OCIO to the vendor Insight Public Sector for unspecified “IT Outside Services.” Documents obtained through public records requests show the money covered the cost of the Google to Office 365 migration.

The governor’s office reimbursed OCIO for that expense in mid-December, days after the Reynolds administration was forced to backpedal on other COVID-19 funds spent on computer technology. Earlier the same month, Bleeding Heartland had sought records related to goods and services OCIO purchased on behalf of the governor’s office using money from the Coronavirus Relief Fund. 

The governor’s spokesperson Pat Garrett has not replied to inquiries about who authorized the initial spending on switching from Google to Office 365 or what funding source eventually covered the cost.

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Iowa governor objects to "biased" federal COVID-19 funding formula

Governor Kim Reynolds and 21 of her Republican counterparts complained on February 27 that the latest Democratic COVID-19 relief package “punishes” their states.

It’s a strange take on a bill that would provide $350 billion to state and local governments across the country, including more than $2.5 billion to Iowa. In contrast, a smaller coronavirus response proposal from Republican members of Congress would allocate zero new dollars to state and local governments.

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ISU switch to Workday accounting delayed state financial report

Editor’s note from Laura Belin: The Governmental Accounting Standards Board and the Government Finance Officers Association now discourage use of the common acronym for this report, because when pronounced it sounds like a racial slur. Bleeding Heartland will avoid using the acronym in the future. Original post follows.

The state of Iowa missed a deadline for publishing a key report on its finances because Iowa State University was unable to provide the data on time.

Iowa’s public universities have typically submitted their financial information to the state by October 1, allowing the state to complete its Comprehensive Annual Financial Report (CAFR) by December 31. But ISU is more than four months behind schedule in submitting data for fiscal year 2020.

The delay stems from the university’s transition to a new accounting method using Workday software, raising concerns about the functionality of the computer system state government committed to in 2019.

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Governor names Michael Bousselot to lead Iowa's budget agency

Governor Kim Reynolds announced on February 1 that she had selected Michael Bousselot to serve as director of the Iowa Department of Management, effective February 8. That agency handles state budget planning as well as disbursements from Iowa’s general fund and various other funds, such as the Coronavirus Relief Fund and other federal money flows related to the COVID-19 pandemic.

The appointment means that loyalists who formerly worked in the governor’s office will head Iowa’s budget and homeland security departments, provided that state senators confirm Reynolds’ nominees.

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State auditor to review Iowa's COVID-19 "strike teams"

State Auditor Rob Sand announced on January 26 that his office will examine the state’s use of COVID-19 “strike teams” involving the Iowa National Guard. A news release noted,

Reports show public record emails in which a metal-working manufacturer owned by major donors to Governor Reynolds received a strike team deployment upon a personal request made to her office, while the same county’s public health department saw its requests for locations with higher needs ignored.

Bleeding Heartland exclusively reported on those emails. In one exchange, an employee of the GMT Corporation in Waverly told Bremer County’s public health administrator, “I requested testing and was told that we would most likely be denied with only one case. Our owners contacted the governor directly and she authorized the testing for us.”

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Exclusive: Governor fast-tracked COVID tests for firm linked to major donor

Governor Kim Reynolds authorized using state resources to conduct COVID-19 tests at a workplace that had only one confirmed case after the company’s owners reached out to her last May.

Iowa National Guard and Iowa Department of Public Health (IDPH) personnel facilitated coronavirus testing at GMT Corporation, a machine parts manufacturer in Waverly, on May 22, 2020. Fewer than a dozen Iowa businesses received such visits during the two months the state’s “strike team” program was active, when coronavirus testing kits were not widely available.

Summit Ag Investors, the asset management arm of Bruce Rastetter’s Summit Agricultural Group, owns a majority interest in GMT. Emails Bleeding Heartland obtained through a public records request indicated, and GMT’s top executive confirmed, that someone from Summit Ag “contacted the governor directly” after GMT staff learned they “would most likely be denied” testing assistance from the state.

Neither Summit Ag executives nor staff in the governor’s office responded to Bleeding Heartland’s inquiries.

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Why oversight of Iowa's COVID-19 spending just got more important

Three state agencies that play important roles in Iowa’s use of COVID-19 relief funds will have new leadership in the coming weeks.

The turnover underscores the need for lawmakers, state and federal auditors, and the news media to keep a close watch on how Governor Kim Reynolds’ administration spends money Congress approved last year to address the coronavirus pandemic.

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Best of Bleeding Heartland's original reporting in 2020

My primary goal in running this website is to provide Iowa political news and analysis that’s not available anywhere else. I’m proud of what Bleeding Heartland accomplished in 2020 and want to highlight some of the investigative reporting and accountability journalism published first or exclusively here.

A forthcoming post will review the site’s most popular pieces from 2020, which included many I worked hardest on or most enjoyed writing.

As always, I’m grateful for readers whose appetite for this kind of reporting keeps me going.

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A call for responsibility, accountability, and compassion in the new year

Ras Smith represents Iowa House district 62, covering part of Waterloo. -promoted by Laura Belin

Christmas, for me, is a season of spiritual tradition, personal reflection, and service to
community. Because my mom is a pastor, I had the fortune of growing up in a faith-filled church community. Today, my own children are blessed to experience a closeness to this family faith that instills in them the importance of loving and serving our fellow humans. This makes the holiday season even more meaningful.

As I reflect upon the year, I think about the thousands of Iowans who stepped up to help one another during a global pandemic. I think about people pouring into communities to clean up, provide food, build shelter, and give moral support in the wake of the devastating derecho. I think about the sacrifices of so many essential workers across the state. This is the unbreakable spirit of Iowa, and why I love living here.

But as I reflect further, my heart also hurts for families across the state who experienced preventable suffering and loss at the hands of poor leadership.

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Feds deny exemption for Iowa's medical cannabis program

Carl Olsen recounts the latest legal steps in his effort to reconcile state and federal drug laws. -promoted by Laura Belin

On November 10, just a week after the election, the U.S. Drug Enforcement Administration (DEA) denied our petition for a new federal regulation exempting state medical cannabis programs to be added as 21 C.F.R.

DEA explained that denying the exemption was necessary because it would create an exemption:

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Iowa governor offers state employees two-year pay freeze

At televised news conferences, Governor Kim Reynolds often expresses appreciation for Iowans “doing the right thing” and helping our state get through the COVID-19 pandemic.

Her gratitude apparently doesn’t extend to some 19,000 state employees, many of whom worked longer hours than ever this year, under extraordinary stress. The governor’s offer to nurses, university staff, corrections officers, and others represented by AFSCME Council 61: no raise for the two years beginning on July 1, 2021.

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Exclusive: Iowa governor overspent office budget before tapping CARES Act

Governor Kim Reynolds’ office would have had a large shortfall for the fiscal year that ended June 30 without a transfer of federal funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act, state financial reports show.

Documents Bleeding Heartland obtained through public records requests indicate that in mid-September, the state’s accounting system showed $448,448.86 was needed to balance the fiscal year 2020 appropriation for the governor’s office. Reynolds’ chief of staff Sara Craig Gongol invoiced the Iowa Department of Homeland Security for exactly that amount in CARES Act funds shortly before the books closed on fiscal year 2020.

That invoice and an accompanying document on “COVID-19 Personnel Costs” were revised to incorporate language from U.S. Treasury guidance on allowable Coronavirus Relief Fund expenditures.

For many years, during several administrations, Iowa governors have maintained a larger office than the general fund appropriation would otherwise allow by having separate state agencies support some employees’ salaries. But it has not been typical to use hundreds of thousands of federal dollars to balance the books. Without the CARES Act funding, Reynolds’ office would have been deeply in the red during the last fiscal year, even after four state agencies chipped in a total of $357,652 to cover part of four staffers’ compensation.

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Exclusive: Iowa medical director's 45% raise violated state policy

Iowa Medical Director Dr. Caitlin Pedati received a 45 percent raise this summer despite a state policy limiting within-grade pay increases, records obtained by Bleeding Heartland show.

Department of Administrative Services (DAS) Interim Director Paul Trombino III advocated for Pedati to receive the unusually large raise three weeks after informing state agency directors that they could give employees within-grade salary hikes of up to 3 percent.

State rules also require that “any within grade pay increase must be accompanied by a current performance evaluation,” Trombino reminded directors in the same memo. However, staff with the Iowa Department of Public Health (IDPH) and DAS did not answer questions about whether anyone has formally reviewed Pedati’s work this year.

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Exclusive: Payment scheme concealed CARES Act funds for governor's staff

Federal funds used to cover salaries and benefits for Governor Kim Reynolds’ staffers were routed through the Iowa Department of Homeland Security and Emergency Management, rather than going directly to the governor’s office.

Because of the unique arrangement, state agencies’ databases and published reports on expenditures from the Coronavirus Aid, Relief and Economic Security (CARES) Act do not reveal that any funding supported the governor’s office. Instead, some show allocations from Iowa’s Coronavirus Relief Fund to Homeland Security, from which $448,449 was spent on “COVID Staffing” or “State Government COVID Staffing.”

That’s the exact dollar amount Reynolds approved to pay permanent employees on her staff for part of their work during the last three and a half months of the 2020 fiscal year. Other agencies that had staff working on the pandemic response from the State Emergency Operations Center, such as the Iowa Department of Public Health, did not receive CARES Act funding through the same indirect route.

The governor’s communications director Pat Garrett and chief of staff Sara Craig Gongol did not respond to six inquiries over a three-week period about how these payments were made and recorded.

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State moves forward on merging human services, public health programs

The state of Iowa is looking for a private company to help integrate programs of the Iowa Department of Human Services (DHS) and Department of Public Health (IDPH).

Governor Kim Reynolds indicated this summer that she planned to merge many operations of the departments, which serve a combined total of more than 1 million Iowans. After Gerd Clabaugh announced plans to retire as IDPH director, Reynolds appointed DHS Director Kelly Garcia to serve simultaneously as interim director of public health, saying in a news release, “This is an opportunity to increase cooperation and collaboration between these two agencies to better serve Iowans.”

A Request for Proposal reveals more details about the planned scope of the reorganization, which is scheduled to begin early next year. Notably, control of infectious diseases is among the areas of the IDPH’s work that will be “excluded from the redesign.”

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Auditor: Iowa governor misused $21 million in COVID-19 relief funds

Governor Kim Reynolds erred in directing that $21 million in federal funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act be used to cover the cost of a software system purchased before the COVID-19 pandemic, according to State Auditor Rob Sand.

Sand announced on October 19 that he and the U.S. Treasury Department’s Inspector General “have advised Iowa Governor Kim Reynolds that her decision to use millions of CARES Act dollars to help implement a new software system for state government was not an allowable use of the funds.” The Treasury Department and governor’s office did not respond to requests for confirmation and comment.

Sand also described as “questionable” the use of CARES Act funds to pay the governor’s permanent staff. Bleeding Heartland was first to report last month that Reynolds directed $448,449 in COVID-19 relief funds to pay a portion of salaries and benefits for 21 of her staffers from mid-March through June 2020. Sand warned that a federal audit may eventually determine that the payments did not meet requirements, so reallocating the funds to purposes clearly allowed under the CARES Act would be less risky for taxpayers.

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Corrections department belatedly shows concern for following Iowa law

The Iowa Board of Corrections violated state law in 2019 by failing to send Governor Kim Reynolds a list of individuals qualified to serve as director of the Department of Corrections, a state audit confirmed on September 21.

Department officials assured auditors they would share the findings with the Board of Corrections and advise members of their duties under state law. Spokesperson Cord Overton told Bleeding Heartland on September 22 the department had sent board members a copy of the findings and the relevant code section.

He didn’t explain why the department failed to ensure that the board complied with the statute last year, when Marty Ryan raised concerns with the acting director.

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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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Iowa's state universities won't follow Trump's payroll tax deferral

Tens of thousands of employees at Iowa’s state universities will have their payroll taxes withheld as usual this fall, despite a recent executive order from President Donald Trump.

Trump moved last month to suspend payroll taxes from September 1 through December 31, 2020. Affected employees would see slightly higher paychecks for the next four months, but would have lower take-home pay from January through April 2021 as employers withhold double the amount for payroll taxes.

Josh Lehman, communications director for the Iowa Board of Regents, told Bleeding Heartland on September 9,

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Iowa state government won't follow Trump's payroll tax deferral

The agency handling payroll for Iowa’s executive, judicial, and legislative employees will not follow President Donald Trump’s recent executive order allowing payroll taxes to be deferred for the last four months of this calendar year.

Wendy Noce, the Centralized Payroll program manager for the Iowa Department of Administrative Services, announced the decision in a September 4 email to state entities.

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We live here, too: Dirt road Democrats in the arena

Former Republican C.J. Petersen on the values and issues that drove him to run for the Iowa Senate and become the new chair of the Carroll County Democrats. -promoted by Laura Belin

In the fall of 2010, I knocked on the door of a 70-year-old woman in rural Grundy Center, Iowa. I was there on a mission: get Terry Branstad and Kim Reynolds elected governor and lieutenant governor of Iowa.

The woman was kind, and we discussed the issues of the day–jobs, health care, and her feeling that our state and nation were on the wrong track. “Trust me,” I told her. “Terry Branstad and Kim Reynolds are ready to lead Iowa’s comeback.”

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Exclusive: Iowa's state medical director received 45% pay raise

The base pay for Iowa’s medical director and state epidemiologist Dr. Caitlin Pedati increased by 45 percent as the current fiscal year began on July 1, records obtained by Bleeding Heartland show. The additional $3,144 that Pedati began receiving per two-week pay period would translate to an extra $81,744 in base salary over twelve months.

The doctor leading the state’s COVID-19 pandemic response also received more than $55,000 in overtime pay from March through early July, even though her job class would not normally be eligible for overtime compensation.

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