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.

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.

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.

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.  

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.

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.

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.

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.

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.”

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.

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.

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.

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.

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:

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.

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.

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.

Eight groups representing workers, Latinos, immigrants, and civil rights advocates have filed a federal complaint documenting wide-ranging failures of Iowa’s Occupational Safety and Health Administration (OSHA) to do its job.

The November 13 complaint asks federal OSHA officials to investigate the state agency and compel it to address six broad problems:

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.

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.”

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.

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.

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.

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,

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.

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.”

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.

Randy Richardson: Governor Kim Reynolds’ latest proclamation appears to override all of the work done by school districts and strikes at the very heart of our long tradition of local control of school districts. -promoted by Laura Belin

Usually when an elected leader holds a press conference to offer additional guidance on a topic, everyone leaves with a deeper understanding of the issue. Unfortunately that wasn’t the case following Governor Kim Reynolds’ July 17 press conference on students returning to school amid the COVID-19 pandemic.

Instead, we got a new interpretation of a law that went into effect on July 1, which runs counter to much of the work schools have been doing.

Following the press conference, the governor released a proclamation that limits the ability of both public and private schools to offer remote learning and which loosens the current requirements on the qualifications for substitute teachers.

Bridget Carberry Montgomery sounds the alarm about a bill Iowa Senate Republicans sent to the governor last week. Bleeding Heartland covered its provisions in detail after House Republicans approved the legislation in February. -promoted by Laura Belin

As a member of the Urbandale City Council, I have a responsibility to ensure the safety of residents, employees, and visitors to Urbandale. In that capacity, I implore Governor Kim Reynolds to veto House File 2502, because it interferes with our state’s long history of local control and makes our communities less safe.

State Auditor Rob Sand is examining the no-bid contracts Iowa has signed to procure personal protective equipment (PPE), which has been in short supply across the country during the novel coronavirus pandemic.

A one-sentence statement released by the State Auditor’s Office on May 18 quoted Sand as saying, “Prior to last week’s coverage of a vendor whom has never before sold PPE receiving a $7 million no-bid contract for PPE, we had already begun collecting information about both no-bid contracts and the state’s PPE supply.”

Randy Evans is executive director of the Iowa Freedom of Information Council. -promoted by Laura Belin

We have all become acutely aware in the past few weeks why masks and face shields, respirators and ventilators are so important for hospital workers and their patients.

The supply is not keeping up with the need, and that could have dire consequences for the doctors, nurses, and patients.

Likewise, the novel coronavirus crisis has underscored the importance of another valuable commodity — access to accurate, authoritative information.

Jon Muller is a semi-retired public policy analyst and sporadic blogger at jonathonmuller.com.-promoted by Laura Belin

Governor Kim Reynolds’ March 20 proclamation related to the COVID-19 pandemic suspended provisions of Iowa law imposing penalties and interest on late property tax payments.

Iowa’s 99 county governments collect property taxes and distribute the funds to themselves and other taxing authorities, such as school districts, cities, community colleges, or townships. The taxes paid by property owners are technically due on March 1 and September 1 of each year. Normally, penalties and interest begin to accrue on April 1 and October 1, respectively.

Jim Kurtenbach will step down as director of the Iowa Department of Administrative Services after only eight months on the job. In so doing, he will avoid an Iowa Senate confirmation fight he probably would have lost.

Matt Chapman closely follows Iowa legislative happenings. -promoted by Laura Belin

The Iowa Senate Local Government Committee has approved a bill that would prevent municipalities from banning discrimination against tenants based on their source of income.

Senate Study Bill 3178 is yet another attack by the majority party on some of the most vulnerable Iowans. Section 8 housing vouchers are for those with nowhere to go, and they only cover half of the rent on apartments or houses.

Five years ago, I started taking stock of my most labor-intensive posts near the end of each year. Not all of these are my favorite projects, though invariably, some of my favorites end up on these compilations.

Before getting to the countdown for 2019, I want to give another shout out to guest authors who poured an extraordinary amount of work into two posts Bleeding Heartland published last year.

Good news stories about journalism are few and far between these days. The decline of statehouse reporting across the country has been well documented over the past two decades.

However, more eyes will be on Iowa government in 2020.

Randy Richardson argues that it’s time to revive an idea first proposed for public school districts four decades ago. -promoted by Laura Belin

When I started teaching in 1976, I received fully paid family health insurance as part of my benefits package. That coverage included a $100/$200 deductible. Although this was considered to be a “Cadillac plan,” it was not uncommon to find similar coverage at schools across Iowa. The teachers in my district felt this insurance plan was very important and, over the years, often sacrificed salary increases to keep the coverage.

Shortly after I left the district in 1996, one of my former co-workers was diagnosed with a serious illness and claims from that incident ran well into six figures. Insurance premiums skyrocketed and, in an effort to keep premiums at a reasonable level, deductibles and out-of-pocket expenses increased.

Today that district offers a high deductible insurance plan with a single deductible of $3,250 and a family deductible of $6,500. Teachers in that district who wish to have family coverage must contribute more than $1,000 per month to receive that coverage. That alone would be tragic. Even worse, the same scenario has played out in every school district in the state.

Chasing traffic never has been and never will be my primary goal for Bleeding Heartland. If it were, I’d publish weekly posts about puppies or Casey’s pizza instead of Iowa wildflowers.

And anyone who has worked on an online news source can vouch for me: a writer’s favorite projects are often not the ones that get the most clicks.

Still, people do ask me from time what posts tend to do well, and I find it fun at year-end to recap the pieces that were particularly popular with readers. Since I started this exercise a few years ago, I’ve always uncovered some surprises.

More than 125 authors contributed to the 290 guest posts Bleeding Heartland published this calendar year–way up from the 202 pieces by about 100 writers in 2018 and the 164 posts by 83 writers the year before that. I’m immensely grateful for all the hard work that went into these articles and commentaries and have linked to them all below.

You will find scoops grounded in original research, such as John Morrissey’s exclusive reporting on Sedgwick landing a lucrative contract to administer Iowa’s worker’s compensation program for state employee, despite not submitting the high bid.

The most-viewed Bleeding Heartland post this year was Gwen Hope’s exclusive about the the Hy-Vee PAC donating $25,000 to the Iowa GOP, shortly before President Donald Trump headlined a Republican fundraiser at Hy-Vee’s event center in West Des Moines.

Several commentaries about major news events or political trends were also among the most widely read Bleeding Heartland posts of 2019. I’ve noted below pieces by Ed Fallon, Tim Nelson, Bruce Lear, Randy Richardson, J.D. Scholten, Dan Guild, State Senator Claire Celsi, and others that were especially popular. (This site has run more than 630 pieces since January 1.)

John Norwood is a Polk County Soil and Water Commissioner. Readers can email comments to Dan Kendall at daniel.kendall@dnr.iowa.gov or mail them to the address enclosed at the end of this post. -promoted by Laura Belin

Friends, Polk County Residents, Iowans,

Below, please find public comments I filed with the Iowa Department of Natural Resources (DNR) last week on our 2018 Impaired Waters List. The public comment period closes December 28.

My most important takeaway and message to Iowans is that our impaired waters need to be addressed by first, modernizing the vision for our state’s agricultural “machine,” and second, looking at how to support that new vision through systems, conservation infrastructure, policies and practices, and local, regional, national, or international markets.