A former administrative law judge who testified about political interference at Iowa Workforce Development is facing a felony fraud charge after staff in the Polk County Attorney’s office failed to do their homework.

Ryan Foley reported Thursday for the Associated Press that former Administrative Law Judge Susan Ackerman is charged with making fraudulent submissions, having “falsely certified that her married daughter was single so that she could receive state health insurance in 2013 and 2014.” When the Iowa Supreme Court Attorney Disciplinary Board reviewed an Iowa Workforce Development complaint citing the same conduct a year and a half ago, the board determined “that Ackerman didn’t commit an ethical violation and declined to take action against her law license,” Foley noted.

So why is she facing criminal prosecution now? Because no one in the Polk County Attorney’s office researched this case before filing charges.

Happy new year, Bleeding Heartland readers! Here’s an open thread: all topics welcome.

I am grateful to everyone who contributed guest posts during 2015: Dave Swenson, Jon Muller, fladem, 2laneIA, ahawby, Julie Stauch, Susan Staed, Mike Owen, natewithglasses, sarased, frankly, Jane Kersch, aleand67, Matt Hauge, ModerateIADem, Leland Searles, Eileen Miller, Tracy Leone, Pari Kasotia, Roger Pedactor, Stacey Walker, Mike Draper, cocinero, AbramsMom, mrtyryn, desmoinesiowa15, moderatepachy, Joe Stutler, Zach Wahls, and State Representative Chuck Isenhart.

Guest authors can write about any political topic of state, local, or national importance. Pieces can be short or long, funny or serious. You do not need to contact me ahead of time with your story idea. Just register for a user account, log in, write a post, edit as needed, and hit publish when you are ready. The piece will be “pending” until I approve it for publication, to prevent spammers from using the site to sell their wares.

I also want to thank everyone who participates here by commenting on posts. If you’ve never done so, feel free to register for a user account and share your views. If you used to comment occasionally but have not done so since this blog relaunched on a different software platform in October, you will need to reset your password. E-mail me with any problems registering for an account, logging in, or changing a password; my address is near the lower right-hand corner of this page.

I wish everyone success in sticking to your new year’s resolutions. Keep in mind that new habits typically take a few months to establish. I’m still working on my list of Iowa politics predictions for 2016, but now seems like the right time to hold myself accountable for last year’s effort. Follow me after the jump to see how I did.

After nearly two years on the job, Matt Hinch is resigning as Governor Terry Branstad’s chief of staff, effective August 7. The full press release from the governor’s office is after the jump.

Hinch is leaving for an unspecified “private sector” opportunity. I expect to hear soon that he is joining one of the Republican presidential campaigns. Hinch’s previous work included a stint as campaign manager for then-U.S. Representative Tom Latham. He also served as chief of staff for Iowa House Speaker Kraig Paulsen and handled government relations for the Greater Des Moines Partnership, an influential business-oriented group.

Hinch kept a low profile as the governor’s chief of staff, rarely making the news. Last year, he headed a quick (and I mean very quick) review of secret settlements with former state employees, which sidestepped allegations of political cronyism that affected the careers of some merit-based state workers. Former Iowa Workforce Development Director Teresa Wahlert has asserted that Hinch and other senior Branstad administration officials thwarted her efforts to make her department’s chief administrative law judge position a merit-based job, as the U.S. Department of Labor has demanded.

UPDATE: Another plausible theory: Hinch may go to work for the Iowa Partnership for Clean Water, an astroturf group the Iowa Farm Bureau created to lobby against any regulations to improve water quality.

Iowa Workforce Development Director Beth Townsend is implementing key recommendations from the U.S. Department of Labor to resolve concerns about the previous agency director’s actions. Townsend’s actions provide a refreshing contrast to Teresa Wahlert’s management of Iowa Workforce Development, which sparked recurring controversy and not one, not two, but three lawsuits.

The U.S. Department of Labor’s Employment and Training Administration has given Iowa Workforce Development Director Beth Townsend a list of tasks to “strengthen Iowa’s compliance with Federal law” and address various concerns about the actions of Teresa Wahlert, Townsend’s predecessor.

It’s another sign that while Wahlert may not be Governor Terry Branstad’s worst appointee during his current administration, she’s a solid contender.

Even after retiring as Iowa Workforce Development director (effective this past Sunday), Teresa Wahlert continues to leave her mark on state government. Yesterday Administrative Law Judge Susan Ackerman filed a lawsuit against the State of Iowa, Wahlert, and two judges Wahlert promoted. After the jump I’ve enclosed excerpts from David Pitt’s report for the Associated Press. Ackerman claims Wahlert “interfered with the bureau’s work, attempting to turn a fair and impartial administration of unemployment benefits into a process that is biased in favor of employers over employees.”

That makes not one, not two, but three pending lawsuits against the State of Iowa in which Wahlert is a central figure. Former Workers Compensation Commissioner Chris Godfrey named Wahlert as a co-defendant in his 2012 lawsuit against the state, alleging (among other things) that she “ostracized” him after he resisted pressure to resign before the end of his fixed term. Last year Joseph Walsh, the former Chief Administrative Law Judge for Iowa Workforce Development, sued the state and Wahlert, claiming that she had “interfere[d] with the administrative judicial process in order to favor employers,” attempted “to illegally strip [Walsh] of his merit protection,” and eventually retaliated by removing him in “a political reorganization disguised as a budget layoff.”

In addition, Wahlert was on the wrong end of a November 2014 ruling by an arbitrator, who determined that the Iowa Workforce Development director had “overstepped her bounds when she promoted a judge who had been demoted after complaints that she created a hostile work environment.”

Just last week, unemployment appeals Judge Marlon Mormann announced his early retirement, telling the Associated Press that he was “ready to be done with it” after his worst year in a 24-year career in state government. Judge Mormann and Judge Ackerman were both witnesses at Iowa Senate Oversight Committee hearings last August on Branstad administrative officials (led by Wahlert) “pressuring judges to rule against unemployed Iowans.”

Let’s not forget that Wahlert presided over the governor’s policy to close Iowa Workforce Development field offices in dozens of communities, which became an issue in a lawsuit that went all the way up to the Iowa Supreme Court.

I would guess that Wahlert’s tenure has set some kind of record for legal entanglements involving an agency director for the State of Iowa. Yet every step of the way, including the day his office announced Wahlert’s resignation, Branstad has heaped praise on her work. I’m convinced that the only reason she retired was everyone knew she’d never be confirmed to run Iowa Workforce Development again. Thank heaven for checks and balances.

Sidestepping what looked like an unwinnable battle with Iowa Senate Democrats, Governor Terry Branstad announced in a press release today that Teresa Wahlert will retire as head of Iowa Workforce Development. Apparently Wahlert informed Branstad on January 9 that she would step down, effective today. Iowa Civil Rights Commission Executive Director Beth Townsend will take over as acting director of Iowa Workforce Development. After the jump I’ve posted background on Townsend as well as today’s press release about Wahlert’s retirement.

Wahlert’s tenure was rocky from the start, as she only barely was confirmed to lead the agency in 2011. Iowa Senate Democrats objected to the planned closure of staffed Iowa Workforce Development offices all over the state, a policy that Wahlert later carried out despite lawmakers’ efforts to keep the offices open. (The Iowa Supreme Court eventually ruled unanimously that Branstad acted improperly when he struck language about the field offices without vetoing the money allocated to fund them, but the offices were never reopened.)

Wahlert’s conduct is also mixed up in two lawsuits filed by former senior state employees. As if that weren’t enough, an arbitrator ruled in November that Wahlert “overstepped her bounds when she promoted a judge who had been demoted after complaints that she created a hostile work environment.” For those reasons, she certainly would not have received the 34 yes votes she needed in the Iowa Senate, had Branstad re-appointed her to her current job. Today’s official press release does not acknowledge any of the controversies surrounding Wahlert’s work. Instead, the governor and Lieutenant Governor Kim Reynolds praised her leadership on worker training and job creation.

Final note: words attributed to Reynolds today greatly exaggerate the number of jobs created during Wahlert’s years in state government. No matter how many times real economists dismantle this zombie lie, the Branstad administration is hell-bent on counting only gross jobs created (a “fake” number), not net jobs created (which accounts for job losses as well). Townsend could do all Iowans a service by getting her new subordinates out of the fuzzy math business. As Mike Owen of the Iowa Policy Project argued here, the “political tainting” of Iowa Workforce Development is unacceptable: “IWD should be trying to determine and illustrate the actual job picture facing our state, so policy makers can make decisions in that light.”  

I don’t expect Governor Terry Branstad to replace many state agency leaders going into his sixth term, but before too long he will need to find a new head of Iowa Workforce Development. Although he will probably nominate Teresa Wahlert for that post again, the Iowa Senate will likely reject her confirmation. Here’s why:

1. Wahlert needs at least ten Democrats to join the 24 incoming Iowa Senate Republicans in order to be confirmed. She was confirmed in 2011 with only two votes to spare; two of the twelve Democratic senators who backed her then no longer serve in the Iowa legislature, and several who remain in the Senate have been critical of various Branstad administration policies implemented by Wahlert.

2. Wahlert presided over dismantling staffed Iowa Workforce Development field offices in dozens of communities, following a Branstad line-item veto that was eventually struck down by a unanimous Iowa Supreme Court.

3. Wahlert is a defendant in a lawsuit filed by former Iowa Workers’ Compensation Commissioner Chris Godfrey. Depositions are happening soon in that case, following an Iowa Supreme Court ruling earlier this year.

4. Wahlert is also a defendant in a lawsuit filed by Joseph Walsh, the former Chief Administrative Law Judge for Iowa Workforce Development. Among other things, Walsh alleges that Wahlert “interfere[d] with the administrative judicial process in order to favor employers,” attempted “to illegally strip [Walsh] of his merit protection,” and eventually retaliated by removing him in “a political reorganization disguised as a budget layoff.”

5. Just this week, an arbitrator ruled that Wahlert “overstepped her bounds when she promoted a judge who had been demoted after complaints that she created a hostile work environment.” After the jump I’ve posted excerpts from David Pitt’s report for the Associated Press.

No wonder State Senator Janet Petersen has predicted that Wahlert would face a tough confirmation process if re-appointed by Branstad. He could save everyone a lot of time by choosing new leadership for Iowa Workforce Development.

The Iowa Senate Oversight Committee met yesterday to approve a wide range of recommendations on state government management, contracting, and labor practices. O. Kay Henderson posted audio from the committee meeting at Radio Iowa. On a 3-2 party-line vote, Democrats on the committee approved recommendations in the following nine areas:

• A ban on secret settlements and hush money

• Expanded whistleblower protections

• Anti-cronyism measures

• Reform of the state’s “do-not-hire” database

• A ban on no-bid contracts for state projects

• Increase accountability in state infrastructure projects

• Protect Iowans right to fair hearings by preventing political appointees and at-will employees from supervising or evaluating judges

• Restore integrity to Iowa’s unemployment trust fund by appointing trusted and transparent leadership

• Require that the Legislature be notified when the Governor receives reports of founded workplace violence in state agencies.

One of the Republicans who voted against the recommendations, State Senator Julian Garrett, characterized the Democratic proposals as “political theater” not “borne out by the facts.”

“No laws were broken. No codes of ethics were violated,” Garrett said. “Instead, we have discovered that there is a difference of opinion in management philosophies…and we have learned that sometimes front-line workers don’t care for or particularly agree with their bosses.”

In Garrett’s view, Governor Terry Branstad is running the state “exceptionally well” and should get more credit for ending secret settlements through an executive order. However, witnesses appearing before the Iowa Senate Oversight Committee in recent months testified to many problems in state government beyond settlements that included confidentiality clauses (which were the first scandals to get widespread attention). Committee Chair Janet Petersen mentioned several of them in her opening remarks for yesterday’s meeting. After the jump I’ve posted a more detailed list of recommendations, along with findings that prompted them. Whether these proposals go anywhere during the 2015 legislative session will depend on party control of the Iowa House and Senate after the November election.

Rod Boshart paraphrased Petersen as predicting that if Branstad is re-elected, several of his appointees who were involved in these scandals may have trouble being confirmed by the Iowa Senate, “notably Iowa Workforce Development Director Teresa Wahlert.”

In a 5-2 split decision, the Iowa Supreme Court ruled on Friday that a District Court judge should determine whether Iowa Workers’ Compensation Commissioner Chris Godfrey can sue Governor Terry Branstad and five other administration officials individually for defamation, extortion and other claims. Follow me after the jump for background, links and details about the opinion.  

The former Chief Administrative Law Judge for Iowa Workforce Development filed suit yesterday in Polk County District Court against the State of Iowa and Iowa Workforce Development Director Teresa Wahlert. You can read the full text of Joseph Walsh’s lawsuit here (pdf). After the jump I’ve posted an excerpt from his case. Walsh alleges that the IWD director “interfere[d] with the administrative judicial process in order to favor employers,” attempted “to illegally strip [Walsh] of his merit protection,” and eventually retaliated by removing him in “a political reorganization disguised as a budget layoff.”

I’ve also enclosed below a statement Wahlert released yesterday, denouncing the “frivolous lawsuit.” Wahlert contends that while serving as chief administrative law judge, Walsh failed in basic management responsibilities.

Last month, Democratic State Senator Bill Dotzler asked the U.S. Department of Labor to investigate claims that Wahlert interfered with the work of Iowa’s administrative law judges, hoping to secure more favorable outcomes for employers in unemployment cases. Governor Terry Branstad rejected Dotzler’s allegations against Wahlert without conducting any internal review of the matter.

At a press conference in Des Moines on April 3, Walsh asserted that “in many ways this administration is tearing the Department of Workforce Development down.” Wahlert’s agency was at the center of political controversy in 2011, when the Branstad administration moved to replace dozens of Iowa Workforce Development field offices around the state with hundreds of computer terminal access points. That reorganization led to a lawsuit and eventually an Iowa Supreme Court ruling that the governor had overstepped his authority by striking legislative language about the IWD offices without vetoing the money allocated to fund those offices.  

Governor Terry Branstad responded today to two political scandals that broke while he was on vacation last week. The big news was the governor signing an executive order “to increase accountability, openness and transparency of employee settlements.”

Branstad’s behavior reflects an odd understanding of those words. He is not holding anyone accountable for forcing out permanent employees and attempting to keep settlement deals a secret. His administration’s alleged “thorough review” of the deals took place behind closed doors over the span of a few days. Branstad rejected any outside investigation of the matter and dismissed accusations against Iowa Workforce Development Director Teresa Wahlert without even basic fact-finding.  

While Governor Terry Branstad vacations in Arizona this week, his administration is facing new allegations of misconduct. As first reported in the Sunday Des Moines Register, at least six former state employees were offered secret settlement deals after claiming they were forced out of their jobs for political reasons. Today, Democratic State Senator Bill Dotzler announced that he is seeking a federal investigation into the actions of Iowa Workforce Development Director Teresa Wahlert, whom Dotzler accused of interfering with the work of administrative law judges.

After the jump I’ve posted several links about both scandals as well as some political reaction. Any relevant comments are welcome in this thread.

Iowa Workers’ Compensation Commissioner Chris Godfrey filed suit against the state, Governor Terry Branstad, and several other officials yesterday over attempts to remove Godfrey from office and cut his pay between December 2010 and July 2011. The lawsuit also accuses several state employees of defaming Godfrey by publicly claiming that his poor job performance motivated attempts to replace him.

The state agency Iowa Workforce Development has replaced 36 field offices with hundreds of new “enhanced access” computer terminals this year.

Although the shuttered offices are unlikely ever to reopen, they may live on as talking points in many competitive Iowa House and Senate races next fall.

New Iowa teachers would no longer receive automatic raises based on years of experience or post-graduate degrees under an education reform proposal to be revealed in the coming weeks. Iowa Department of Education Director Jason Glass and Governor Terry Branstad’s special adviser on education, Linda Fandel, shared the outlines of the proposed changes with journalists yesterday.

Iowa Workforce Development officials can move ahead with closing 37 36 of the agency’s 55 field offices around Iowa, thanks to a line-item veto by Governor Terry Branstad. State lawmakers included language in the economic development appropriations bill to require Iowa Workforce Development to maintain its current number of field offices through the 2012 fiscal year. However, Branstad rejected that provision yesterday:

“This item would prohibit Iowa Workforce Development from putting forth an enhanced delivery system that broadens access to Iowans across the state in fiscal year 2012,” Branstad said. “In order to develop a sustainable delivery system in light of continually fluctuating federal funding, the department must put forth a system that embraces the use of technology while providing enhanced benefits through maximum efficiencies.”

Branstad said Iowa Workforce Development has more than 190 “virtual access point workstations” in over 60 new locations throughout the state to increase access to these critica services. He says Iowans are already using the expanded hours of operation, six days a week.

“At my direction, IWD will have hundreds of additional virtual access points by the end of fiscal year 2012,” he said.

I doubt many unemployed Iowans would consider a computer terminal “enhanced” access, compared to an office staffed by a real person explaining the available services.

Controversy over shutting down these offices nearly derailed the Iowa Senate confirmation of Teresa Wahlert. Opposition from lawmakers of both parties didn’t persuade her, although two of the 39 field offices originally targeted will be spared. Iowa Workforce Development started closing some of its field offices even before legislators had adopted a final budget. In early July, the agency laid off 13 employees as part of the planned reorganization. Iowa Workforce Development Communications Coordinator Katie Hommer communications director was unable to tell me today when the agency will finish shutting down the offices slated for closure. She said staff are still going through the signed budget, which they only just received.

Hommer also did not know whether enough funds were provided for the agency to keep open its New Iowan Centers, which offer specialized services for recent immigrants. Those centers are currently located in Muscatine, Ottumwa, Marshalltown, Mt. Pleasant, Iowa City, Des Moines, Sioux City, Storm Lake, Council Bluffs, Mason City and Denison.

On a related note, Branstad’s love for streamlining government doesn’t extend to the U.S. Postal Service, which may close as many as 178 Iowa post offices. The downsizing is part of a plan to eliminate 3,700 of nearly 32,000 post offices nationwide. Branstad has repeatedly criticized plans to eliminate rural Iowa post offices, and yesterday he told Radio Iowa that the postal service is not using “common sense.” He wants the independent federal agency to explore alternatives to closing offices that small-town residents rely on.

Conservatives talk a good game about running government like a business, but a private business with declining revenues could never afford to operate retail outlets in as many locations as the U.S. Postal Service. The independent agency gets almost all of its revenues from postal fees (not federal budget allocations). As Americans send fewer paper letters and documents, postal service revenues have declined.

Branstad and his wife own 12 Iowa buildings that are leased to the U.S. Postal Service. So far only one of those, in Lohrville, is on the list of post offices to be closed.

UPDATE: Iowa House and Senate Democrats will reach out to Republicans to convene a special legislative session “with the sole purpose of overriding Governor Branstad’s line-item vetoes of legislation prohibiting the closure of the [Iowa Workforce Development] offices.” Details are in a press release I’ve posted after the jump. That document lists all the towns that would lose Iowa Workforce Development offices, as well as the county unemployment rate in each area.

SECOND UPDATE: Sounds like Republicans are not game for a special session to deal with this narrow issue. I’ve added Iowa Senate Minority Leader Paul McKinley’s statement below.

THIRD UPDATE: Only 36 field offices will be closed, because federal funding came through to keep the Webster City office open. The closure of the Electrolux factory has been a particular hardship for Iowans in the local area. After the jump I’ve posted an Iowa Workforce Development press release, which lists all the cities and towns that will have the “regional integrated one-stop offices,” as well as all the localities that will lose their field offices.

Meanwhile, Iowa House and Senate Democrats formally called for a special session on July 29. Republicans are not interested. Expect these office closures to become a campaign issue in a bunch of statehouse races next year. The Golden Dome Blog found a video of Lieutenant Governor Kim Reynolds praising a “phenomenal” and “user friendly” workforce development office during last year’s gubernatorial campaign.

Democratic State Representative Dave Jacoby serves on the Iowa Workforce Development Board and is angry that board didn’t get to weigh in on whether these field offices should be closed.

No matter what happens during the ongoing state budget negotiations, Iowa Workforce Development will close 37 of its 55 field offices around the state, barely budging from initial plans to close 39 offices. The agency will maintain 16 full-service regional offices and two smaller field offices. State legislators aren’t happy about the consolidation plans, which will force many unemployed Iowans to drive further for personal assistance. Agency officials counter that budget constraints forced their hand.

More details and background on this controversy are after the jump.  

The Iowa Senate confirmed six of Governor Terry Branstad’s appointees to state offices and boards yesterday, but Democratic senators indicated that two of the governor’s picks may not receive the two-thirds vote needed in the upper chamber. Meanwhile, Branstad suggested at his weekly press conference that race may be a factor in opposition to Isaiah McGee as director of the Iowa Department of Human Rights.

Follow me after the jump for more on who was confirmed yesterday and the battles coming later this week.

UPDATE: On April 12 the Senate rejected McGee as well as William Gustoff, one of Branstad’s appointees to the state Judicial Nominating Commission. Senators confirmed Teresa Wahlert with two votes to spare and three members of the Environmental Protection Commission. Details on the April 12 votes are below.

Governor-elect Terry Branstad announced today that former State Representative Rod Roberts will head the Iowa Department of Inspections and Appeals in the next administration. Roberts gave up his seat after six five terms in the Iowa House to run for governor. He won about 9 percent of the vote in the Republican primary. I believe his candidacy helped Branstad by attracting social conservatives who might otherwise have consolidated behind Bob Vander Plaats.

Branstad and other Republicans have criticized Dean Lerner, the head of the inspections and appeals department in Chet Culver’s administration. They claim state inspectors have been too tough on businesses, particularly nursing home owners. The nursing home industry already gets most of what it wants from state legislators, and will cheer Roberts’ appointment. I am skeptical that Branstad plans to improve on his dismal record of nursing home regulation.

UPDATE: Clark Kauffman reported in the Des Moines Register on December 9,

Roberts, 53, told The Des Moines Register Wednesday that he didn’t apply for the job. Instead, he said Branstad contacted him shortly after the election and offered him the job. […]

Roberts said his 10 years of experience as a lawmaker will help him lead the agency, although he acknowledged he faces a steep learning curve because he has no staff management or regulatory experience.

Roberts also said he would not have any conflicts of interests – despite ties that he and his wife have to facilities that are inspected and regulated by the employees he will supervise.

Roberts has served on the boards that govern the New Hope Village care center in Carroll and its charitable foundation.

His wife, Patricia Roberts, is director of development for the foundation that provides financial support for St. Anthony Regional Hospital and Nursing Home in Carroll.

Kathie Obradovich argues that Roberts should “pledge to have no part in any regulation of operations where he has personal ties and relationships. Staff members should handle it.”

Also on December 8, Branstad named Teresa Wahlert as his choice to head Iowa Workforce Development. She is a past president of the Greater Des Moines Partnership and a member Iowa Business Hall of Fame who informally advised Branstad’s gubernatorial campaign.

Finally, Branstad announced that Courtney Kay-Decker will head the Iowa Department of Revenue. Kay-Decker is a Davenport attorney who was a member of the Iowa State Tax Review Board from 2000 to 2007.

Press releases with background on the three latest Branstad appointees are after the jump. I expect the Iowa Senate to confirm them all.

Meanwhile, outgoing Governor Culver was in Washington recently. Culver told the trade publication North American Windpower that he met with members of Congress to advocate for legislation to promote renewable energy. Presumably some job-hunting was going on as well.

For the near term, Culver will focus on completing the five weeks he has remaining as Iowa governor. After that, he will begin weighing his options. He wants to stay involved with either a wind energy company or a public interest group, adding that he would rather focus his energy on the task at hand rather than dwelling on the November defeat.

Culver chaired the Governors’ Wind Energy Coalition and lobbied Congress for a strong renewable electricity standard while the federal climate change bill was being debated. I don’t expect any progress on promoting renewable energy at the federal level, especially now that Republicans will control the House of Representatives. The tenative tax cut deal President Barack Obama struck with Republican leaders includes extending biofuels subsidies but not tax credits for wind or solar power.

Debi Durham’s appointment as economic development leader was the big news of the week from Governor-elect Terry Branstad’s camp, but he and his close advisers continue to lay the groundwork for his administration.

After the jump I catch up on stories about the state budget, inauguration plans, and top Branstad donors from the past year.