Iowa taxpayers covering Debi Durham's luxury travel (updated)

Iowa’s Economic Development Director Debi Durham already earns substantially more than the salary cap for her position under state law, thanks to $30,000 bonuses Governor Terry Branstad has been giving her every year.

A few days ago, WHO-TV took a closer look at Durham’s very large travel expenses.

I recommend reading the whole story on WHO TV’s website. Sonya Heitshusen examined Durham’s $73,000 in travel expenses for fiscal year 2012 alone, including overseas trips to Asia and Europe. Plane tickets were extremely costly, because the state pays for Durham to fly business class. WHO found that on four legs of a European trip, Durham was upgraded to first class. That trip was supposedly for a conference in Hannover, Germany, but Durham “never made it to the conference.” During her overseas travel, she stays in luxury, five-star hotels as well.

Durham declined WHO’s requests for interviews on this topic, but when a reporter caught up with her recently, she said “we have results” for her sales trips around the world.

Iowa’s Economic Development Authority claims Durham’s approximate $75,000 in travel expenses resulted in $2.6 billion in capital investments in fiscal year 2012.  That’s $35,000 invested in Iowa for every one dollar spent on travel.

As for the return on investment for the European trip, Durham’s spokesperson says, “Seven projects were identified, that collectively could result in the creation of 400 jobs and $60 million in capital investment.”

We’ve asked for, and are still waiting for, the equation used to calculate those numbers.  And to date, the state can’t tell us if Durham actually closed the deal on any of her European sales calls.

Sidenote:  We compared Durham’s travel expenses to those amassed by the last two Directors of Economic Development.  The most Michael Tramontina spent on travel was about $30,000.  Michael Blouin spent about $45,000.

We also looked at travel expenses Economic Directors in other states.  Nebraska’s Economic Development Director, Catherine Lang says she spent nearly $9,000 on travel in fiscal year 2012.  Lang also told us she is only allowed to fly economy, even when flying overseas.  When she flew to China in March, her plane ticket cost a little more than $1,700.  When asked how her boss might react to a $12,000 plane ticket, Lang responded, “It would come under serious scrutiny.”

I lived overseas for about 10 years and always bought plane tickets in coach class, no matter how long the flight. Once on an overbooked trans-Atlantic flight, I was upgraded to business class, and I have to admit it was way more comfortable. But I don’t see why Iowa taxpayers should cover luxuries for Durham when the governor has imposed benefit cuts on non-contract state employees and insisted on a contract for unionized state employees with no across-the-board pay increase. Belt-tightening should apply to everyone in the Branstad administration.

As the Cedar Rapids Gazette reported months ago, Durham’s monetary compensation is already around 20 percent above the level set in state law for her position. She can afford to pay for her own upgrades. I don’t see why taxpayers should cover five-star hotels for her either. She doesn’t need to book rooms in a youth hostel; there are reasonably-priced hotels in Europe and Asia.

In a statement released on April 26, Iowa Democratic Party Executive Director Troy Price denounced what he called an “outrageous use of state taxpayer dollars.”

“When Governor Branstad turned our state’s economic development efforts over to his donors, supporters, and cronies these types of abuses were bound to happen.  This is one more example of taxpayers having to cover the costs of Branstad’s failed policies. Governor Branstad should stand up, take responsibility, explain why his office approved these trips, and tell us what steps they are going to take to prevent abuses like this from happening in the future.  Iowa taxpayers deserve no less.”

UPDATE: Branstad defended Durham’s travel at his weekly press conference on April 29.

The governor says if any of the receipts show Durham was flying first class, it was because she got an upgrade, not because she booked a first class ticket.

“She’s a tireless advocate for Iowa and she’s had a tremendous success rate in attracting business and jobs from all over – from Japan and Korea and Egypt and everywhere else,” Branstad says. “…This woman works day and night for the taxpayers of Iowa and what she’s done is phenomenal.”

Branstad says he and Durham travel in business class so they can sleep when they go overseas, because they immediately go into meetings once they land.

“I just know what the policies are and I know Debi Durham,” Branstad says. “I know that there’s nobody that is more honest, more focused, more dedicated, more effective and I just find these accusations to be unfair and inappropriate.”

I have no problem with Branstad and Durham flying business class, but they can afford to pay for their own upgrades. Taxpayers should never be billed for more than a coach class ticket.

Branstad also commented today, “She [Durham] is not treated different than anybody else. She just works harder than anybody else.” He is so out of touch. I’m sure many other state employees work just as hard at their jobs, yet will never have the opportunity to stay in a luxury hotel at no personal cost.

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  • Durham

    These expenses are absurd of course, but Debi Durham’s message around the state has been a bit of a contradiction.  This is the issue that I am concerned with.

    She has actually been critical of some of the rural areas for not being culturally accepting enough while ignoring the fact that it was the rural voters who put her in her current post.  She shouldn’t be slapping at some of her “base”, I hate in when people take their votes but do very little in return of economic development.

    Whether she’s right about the rural voters or not, you should  have more tact when trying to convince people to stay in your state.  

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