# State Budget



Iowa Republicans continue to underfund public schools

Iowa House and Senate Republicans have yet again approved school funding at a level that will fail to meet the needs of K-12 school districts.

House File 2316 increases Supplemental State Aid by 2.5 percent (or $181 per pupil) for the coming academic year, the level Governor Kim Reynolds requested. Total state funding for public school districts and Area Education Agencies will increase by $172 million to about $3.58 billion, according to analysis by the nonpartisan Legislative Services Agency.

GOP lawmakers bristle at accusations that they have underfunded K-12 schools, when state aid has increased nearly every year. Republicans “have never once” cut funding to education, Iowa Senate Education Committee chair Amy Sinclair said during the February 14 floor debate.

But a 2.5 percent increase is tantamount to a funding cut in real terms, because it will not keep pace with rising costs for school districts.

Moreover, a review of school funding over nearly 50 years shows that this Republican trifecta has been far less willing to support public schools than past Iowa legislatures.

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Governor's vision for Iowa is out of focus

Iowa Alliance for Retired Americans President Mike McCarthy (retired AFSCME), Vice President Kay Pence (retired CWA), Secretary Jan Corderman (retired AFSCME), and Treasurer Ken Sagar (retired IBEW and Iowa AFL-CIO President Emeritus) co-authored this commentary.

The Iowa Alliance for Retired Americans is alarmed by Governor Kim Reynolds’ vision for Iowa. Iowa seniors value a strong economy where our families can live and thrive. From tax cuts to undermining our schools and our future ability to fund public needs, her vision is out of focus.

A strong economy needs a strong infrastructure, but under six years of Republican leadership, Iowa has earned the dubious distinction as either worst or second-worst in the nation for deficient bridges, depending on if you are talking about number or percentage

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Four thoughts about Mary Ann Hanusa's state auditor campaign

Former State Representative Mary Ann Hanusa finally gave up her Congressional ambitions and announced on January 5 she’s running for state auditor. She won’t face any competition in the Republican primary, coming out of the gate with endorsements from Governor Kim Reynolds, Senator Chuck Grassley, and Senator Joni Ernst.

Democrat Rob Sand won the 2018 state auditor’s race by 660,169 votes to 601,320 for GOP incumbent Mary Mosiman (50.9 percent to 46.4 percent). Turnout set a modern midterm record for Iowa that year. Participation could be far lower in 2022—perhaps 1.1 million to 1.2 million voters.

Whether Hanusa emerges as a strong challenger will become more clear as her campaign unfolds, but here are some initial thoughts.

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Republican policies fuel Iowa's workforce crisis, rural decline

Senator Joe Bolkcom represents Iowa City and is the ranking Democrat on the Iowa Senate Appropriations Committee.

Iowa’s workforce crisis and rural decline can be traced to irresponsible Republican tax and economic policies year after year.  

Their actions bring to life the words of their puppet master Grover Norquist, who famously said, “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.”

As Governor Kim Reynolds and legislative Republicans return to the statehouse, their workforce crisis and abandonment of rural Iowa will only grow worse with more tax cuts for Des Moines millionaires. The Republican strategy is to stay the course by continuing to starve rural Iowa’s struggling public schools, exhausted health care providers, declining state parks, dangerous prisons, and neglected state resource centers. 

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The 21 most-viewed Bleeding Heartland posts of 2021

It’s time for another review of Bleeding Heartland’s most widely-read posts from the year that just ended. I always struggle a bit with this task, because the work I’m most proud of doesn’t always overlap with what resonated most with readers. Also, I’m wary of watching traffic numbers too closely, because I try not to let potential clicks drive my editorial decisions.

However, I always gain some insight from this review, so here goes.

This list draws from Google Analytics data about total views for 598 posts this website published during 2021: 362 written by me and 236 by other authors. I left out the site’s front page and the “about” page, where many people landed following online searches.

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Governor will struggle to justify CARES Act funds for staff salaries

Governor Kim Reynolds used $448,449 in federal COVID-19 relief funds to cover a shortfall in her office budget without documenting that 21 of her staffers were “substantially dedicated” to the pandemic response, a state audit determined.

The U.S. Treasury Department’s Office of Inspector General asked state auditors in January 2021 to review whether the spending complied with rules governing the use of Coronavirus Aid, Relief and Economic Security (CARES) Act funds. Bleeding Heartland was first to report in September 2020 on CARES Act payments supporting the governor’s permanent staffers, and reported exclusively last December on how documents were altered to make a “FY 2020 Shortfall” in the governor’s office budget appear to be “COVID-19 Personnel Costs.”

State Auditor Rob Sand warned the Reynolds administration in October 2020 that without adequate documentation, COVID-19 relief funds used to pay governor’s staff salaries might need to be repaid to the federal government. The report issued this week advised the governor to return the money to Iowa’s Coronavirus Relief Fund “for other eligible and supported uses prior to the December 31, 2021 deadline.”

The governor’s spokesperson Alex Murphy told reporters the office is “now working with Treasury to provide them documentation” to support the CARES Act spending.

That’s easier said than done.

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Iowa governor wrongly claims credit for large budget surplus

Tax and budget policy expert Randy Bauer was Governor Tom Vilsack’s budget director for six and a half years and has evaluated tax and revenue policies for many state and local governments.

In late September, Governor Kim Reynolds announced that the State of Iowa had a $1.24 billion surplus for fiscal year 2021, which ended on June 30. In a news release, she and the state’s interim budget director credited their own fiscal management for the surplus. Top Iowa Republican lawmakers have echoed that message.

Was it really all that praiseworthy? I’d suggest not. Here’s why this record surplus was not the big deal Reynolds and her minions made it out to be.

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Governor taps American Rescue Plan for IT project predating pandemic

UPDATE: In November 2023, a spokesperson for OCIO told Bleeding Heartland, “OCIO never executed a contract for Master Data Management in any RFP.” She did not explain why the project was shelved. However, it appears that the American Rescue Plan funds allocated for this project were not spent for that purpose. In December 2023, the spokesperson confirmed, “Master Data Management has not moved forward since October 2021.” Original post follows.

Governor Kim Reynolds has allocated $13 million from the state’s American Rescue Plan funds for a data project that has been in the works since 2019.

Last year, the governor approved a request from the state’s Office of Chief Information Officer (OCIO) to pay for the Master Data Management Program with $13 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. But those funds were never spent, according to pandemic spending reports and documents obtained through public records requests.

OCIO recently transferred the $13 million earmarked for the data management project back to the agency that administers Iowa’s Coronavirus Relief Fund, spokesperson Cayanna Reinier told Bleeding Heartland on September 29. She added that OCIO is “in the process of restarting” the project and “looking forward to moving ahead” with it, now that the governor’s office has approved the use of American Rescue Plan funds.

It’s far from clear this program is an eligible expense under the latest federal relief package.

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Governor brags about hoarding public money during pandemic

The state of Iowa ended fiscal year 2021 with the largest surplus ever recorded: nearly $1.24 billion. That’s four times higher than the general fund’s ending balance of $305 million when the books closed on the previous fiscal year, and it doesn’t include an estimated $801 million in Iowa’s cash reserves and economic emergency funds.

Governor Kim Reynolds declared in a news release, “Iowa is in a very strong financial position due to our fiscal responsibility.” Her staffer Joel Anderson, who is temporarily running the state’s budget agency, commended the governor “on recognizing the importance and need for a healthy and strong balanced budget.”

But an enormous surplus is not a sign of a healthy budget or responsible decisions. On the contrary, it suggests state government should have spent more on the public services Iowans need.

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Kraig Paulsen to lead Iowa budget agency (updated)

Governor Kim Reynolds has decided to appoint Kraig Paulsen to lead the Iowa Department of Management, according to a document posted on the state budget agency’s website September 27. The governor’s office has not yet announced the decision, but the agenda for the October 4 meeting of the State Appeal Board indicates that Paulsen will be introduced as “Director of the Department of Management.”

The State Appeal Board meets monthly to approve or reject claims against the state or a state employee. Its three members are the Department of Management director, the state treasurer, and the state auditor.

Paulsen has served as Iowa Department of Revenue director since February 2019. He previously led a supply chain initiative at Iowa State University, a position that was created for him on a fast track, bypassing the university’s usual open search process. Before working at ISU, Paulsen represented part of Linn County in the Iowa House for fourteen years, serving as House speaker from 2011 to 2015.

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Exclusive: Other agencies covered $900K in governor's office costs

Governor Kim Reynolds’ office was able to spend nearly 40 percent more than its $2.3 million budget appropriation during the last fiscal year, mostly by shifting personnel costs onto other state agencies.

Documents Bleeding Heartland obtained through public records requests show that eight state agencies covered $812,420.83 in salaries and benefits for nine employees in the governor’s office from July 1, 2020 through June 30, 2021. In addition, the Office for State-Federal Relations in Washington, DC remained understaffed, as it has been throughout Reynolds’ tenure. The vacant position should allow roughly $85,000 in unspent funds to be used to balance the rest of the governor’s office budget, as happened last year.

The governor’s communications director Pat Garrett did not respond to four inquiries over the past two weeks related to the office budget. But records indicate that unlike in 2020, federal COVID-19 relief funds will not be tapped to cover salaries for Reynolds’ permanent staffers in fiscal year 2021.

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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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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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"Out of whack": Rob Sand criticizes Terrace Hill fence

State Auditor Rob Sand contends that spending $400,000 to construct permanent fencing around Governor Kim Reynolds’ official residence reflects “out of whack” priorities favoring “insiders” over “outsiders.”

Sand regularly answers commenter questions during live videos posted on his political Facebook page. During his June 1 “Transparency Tuesday” session, one person asked, “how about that governor’s fence?” Beginning around the 8:15 mark, Sand replied,

My transcript:

Yeah, how about that governor’s fence. If you missed this, Jean’s comment is about the $400,000 that’s getting spent on a fence at Terrace Hill.

Threats should be taken seriously, and the governor has seen threats, but so did Governor Branstad. So did Governor Culver. So did Governor Vilsack. They didn’t build a fence.

And in the meantime, you know, year after year after year, we’ve seen a lot of violence in Iowa’s correctional facilities, which could have been fixed in a variety of ways, depending on who you ask. But we didn’t see much action. Until finally now, that two correctional officers actually got murdered, now they decided to provide additional funding.

So it’s just, to me, it’s a question of priorities and insiders versus outsiders. $400,000 for protection because of some threats that were not uncommon, versus years of assaults that essentially got nothing until people died.

Priorities are out of whack for who that’s serving.

A little later in the video, Sand agreed with a different commenter who characterized the Terrace Hill fence as “ridiculous.”

The Iowa Department of Public Safety approved plans to construct permanent fencing around the governor’s residence sometime during the summer of 2020, public records show. I have not been able to determine whether Reynolds or anyone on her staff advocated for beefed-up security. Public safety officials denied the decision was linked to protests or demonstrations occurring near Terrace Hill and said the U.S. Department of Homeland Security had recommended perimeter fencing for years.

Sand’s comments during the June 1 video were not a one-off. A few days earlier, he drew the same comparison on his political Twitter feed.

In that Twitter thread, Sand linked to a recent Des Moines Register article by Daniel Lathrop, “Iowa prison staffing levels before Anamosa killings were near their lowest level in at least 30 years.”

Two decades of budget cuts left the people who guard Iowa’s prisons understaffed and overmatched by a growing prison population, a Des Moines Register investigation found. The issue is getting attention after the March slaying of two employees at the Anamosa prison, allegedly by a pair of prisoners.

The Register found that Iowa’s Department of Corrections in 2020 had:

-Close to the lowest number of correctional officers guarding its prisons in at least 30 years.

-Substantially fewer correctional officers working at eight of its nine prisons than it did five, 10 and 20 years earlier.

-A ratio of prisoners to correctional officers that had risen above the national average.

The Republican-controlled Iowa House and Senate recently approved a $20 million increase to the corrections budget for the next fiscal year. But Sand pointed out that happened only after two correctional officers were murdered, allegedly by an incarcerated person.

Reporters for the Cedar Rapids Gazette and KCRG-TV obtained public records in April showing that Iowa’s Occupational Safety and Health Administration cited the Iowa Department of Corrections last year for workplace violations at the Anamosa facility. Inspectors noted a lack of “adequate and reliable means of communication for employees to summon assistance during violent attacks or calls for emergency aid,” and not enough employees continually available to respond to such emergencies.

Sand is widely seen as likely to challenge Reynolds in 2022. He recently ruled out seeking any federal office next year but acknowledged he’s still considering running for governor or for a second term as state auditor.

Top image: Screenshot from Rob Sand’s “Transparency Tuesday” video on June 1.

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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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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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Governor endorses plan targeting Iowans on public assistance

A longstanding effort by Iowa Senate Republicans to reduce the number of Iowans receiving various forms of public assistance got a quiet boost last week from Governor Kim Reynolds.

For the first time, the governor’s draft human services budget included provisions that would create asset tests for federal food assistance and require the Iowa Department of Human Services to establish a new “eligibility verification system” for Medicaid and several other public assistance programs.

State Senator Jason Schultz has pushed similar legislation for several years running. Each session, Senate Republicans have approved the bills, which died in the House Human Resources Committee (see here and here).

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In unprecedented move, Iowa Senate GOP bypasses budget subcommittees

Passing a budget for the fiscal year that begins on July 1 is the most important unfinished business for the Iowa legislature’s regular 2021 session. But House and Senate Republican leaders haven’t found consensus on spending targets for several large pieces of the roughly $8 billion state budget.

In a move without precedent in decades, Senate Republicans declined this this year to participate in the joint appropriations subcommittees where lawmakers review and discuss agency spending requests. Senate Majority Leader Jack Whitver and Appropriations Committee chair Tim Kraayenbrink did not respond to Bleeding Heartland’s inquiries about who made the decision or why.

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Governor joins suit challenging limits on state tax cuts

Governor Kim Reynolds signed Iowa on to a lawsuit challenging part of the federal government’s most recent COVID-19 relief package. Thirteen states filed suit in Alabama on March 31, charging that the American Rescue Plan “impermissibly seizes tax authority from the States.” Reynolds announced the lawsuit during a March 31 appearance on WHO Radio’s program hosted by Simon Conway. The Associated Press was first to report the news.

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Why Iowa Senate Democrats backed a GOP tax bill

When the Republican-controlled Iowa House and Senate approved large tax cuts in 2018, not a single Democrat voted for the legislation. Critics pointed out that the bill hailed by Governor Kim Reynolds was skewed to provide most of the benefit to wealthy people, with little savings for middle class Iowans.

Much of that bill went into effect immediately, but lawmakers put some portions on hold until 2023, provided that state revenue hit certain targets. In her annual address to legislators in January, Reynolds called for eliminating “the unnecessary triggers that were put in place in 2018,” so all of the tax cuts would go into effect.

Republicans embraced that idea in Senate File 576, which would take out the triggers and phase out Iowa’s inheritance tax by 2024. Democrats didn’t support the bill when the Senate’s tax-writing committee voted on it this month. But a surprise to many observers, including the GOP floor manager Dan Dawson, every senator from both parties voted for Senate File 576 on March 17.

Why did Democrats come around to supporting a bill that is estimated to reduce state revenues by more than $100 million annually, beginning in fiscal year 2023?

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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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Let’s work together to make Iowa public schools great again

Zach Wahls and Todd Prichard, the Democratic leaders in the Iowa Senate and House, co-authored this post. -promoted by Laura Belin

Public education has long been the foundation of our state. For generations, Iowans could count on a great public education from Iowa schools to set them up for success in life. When we were growing up, our public education system regularly led national rankings.

Today, however, many Iowans are watching with dismay as a decade of under-investment from Republican leadership has resulted in Iowa placing in the middle of the pack in national rankings. We’re wondering: When will Iowa schools lead the nation again?

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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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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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Six themes from the Iowa legislature's opening day in 2021

The Iowa legislature’s 2021 session began on January 11 with the usual appeals to work together for the good of Iowans. But potential for bipartisan work on high-profile issues appears limited, as the Republicans who enjoy large majorities in the state House and Senate have quite different priorities from their Democratic counterparts.

At the end of this post, I’ve posted the substantive portions of all opening remarks from legislative leaders, as prepared for delivery. The speakers focused on the following matters:

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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: 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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Federal officials: Iowa can't use CARES Act funds for software system

The state of Iowa’s contract with Workday to upgrade computer systems “is not an allowable expenditure” under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the U.S. Treasury’s Office of Inspector General informed Iowa Department of Management Director David Roederer on October 16.

The State Auditor’s office released a copy of the letter on October 21. State Auditor Rob Sand announced two days earlier that he had also informed Governor Kim Reynolds and Roederer that spending $21 million on Workday-related costs was “not an appropriate use” of the Coronavirus Relief Fund.

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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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Five unanswered questions about Iowa governor's staff salary payments

Governor Kim Reynolds has defended her decision to use nearly $450,000 in federal funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act to pay salaries and benefits for her permanent staffers.

But her comments at a September 16 news conference, along with information her staff provided to some reporters afterwards, left several salient questions unanswered.

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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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Why did these House Republicans reject an easy win for Iowa taxpayers?

State Auditor Rob Sand had “great news” to share with members of the Iowa House and Senate Appropriations Committees in May. Federal officials had agreed not to demand repayment for alleged overbilling, provided that Iowa changed its billing practices for future audits. The savings to the state would amount to tens of thousands of dollars for each fiscal year.

Documents Bleeding Heartland obtained through a public records request confirm that key Reynolds administration officials were on board with the reform plan, and Iowa Senate appropriators took it up in June as the legislature was completing its work.

The records also show that State Representatives Gary Mohr and John Landon refused to move the fix through the Iowa House.

What they don’t explain is why.

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Leading Iowa research centers merge

Two of Iowa’s best resources for public policy research have merged, the institutions announced on August 6. The Child and Family Policy Center and the Iowa Policy Project are building “on a collective 50 years of experience” and will be known as Common Good Iowa.

Look to Common Good Iowa for the rock-solid research, rigorous policy analysis and focused advocacy that Iowans have come to expect from CFPC and IPP, and for a new, invigorated approach to advance a bold policy agenda advancing equity and effective policy in four areas:

• Well-being of children and families, especially those failed by our current systems

• Adequate and equitably raised revenue to support strong public structures

• Workplace fairness and living wages for all Iowans

• Clean air, water and sustainable energy for a healthy future for all

Common Good Iowa will maintain offices in Des Moines and Iowa City, according to a news released I’ve enclosed below.

The two organizations have long collaborated on research published under the banner of the Iowa Fiscal Partnership. Some of their “greatest hits”:

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Ashley Hinson dodged Iowa House debates on high-profile bills

State Representative Ashley Hinson didn’t miss a roll call vote as the Iowa House wrapped up its work in June, legislative records show. But the two-term Republican mostly stayed out of the House chamber while colleagues debated controversial bills.

The tactic allowed Hinson, who is also the GOP challenger in Iowa’s first Congressional district, to avoid public questioning about policies she supported. Notably, she was absent during most of the House deliberations on imposing a 24-hour waiting period for abortions, establishing a barrier to voting by mail, and giving businesses near-total immunity from lawsuits related to COVID-19.

Neither Hinson nor her Congressional campaign responded to Bleeding Heartland’s repeated inquiries about those absences.

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Reflection on the 2020 legislative session

Eric Giddens is a Democrat representing Iowa Senate District 30. -promoted by Laura Belin

At the end of my first full session as state senator representing Cedar Falls, Hudson, and southwest Waterloo, here’s my report on selected highlights of this year’s session: three good decisions, three bad decisions, and three decisions put off until next year.

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Senate Republicans misstate facts, misread Iowa law on absentee mailing

A wide-ranging election bill is eligible for Iowa Senate debate on June 10. Judging by the party-line vote in the State Government Committee on June 5, the Republican majority seems likely to rubber-stamp House File 2486 and send it to the Iowa House.

State Senator Roby Smith proposed many bad ideas in his 30-page amendment to that previously innocuous bill. The most controversial would prevent Republican Secretary of State Paul Pate from sending an absentee ballot request form to any voter who did not ask for one. Pate’s decision to send such forms to every registered Iowa voter contributed to record-setting turnout for the June 2 primary.

Smith has denied he is trying to suppress voting by mail. But talking points he and a Republican ally floated in recent days do not withstand scrutiny. Pate didn’t need lawmakers to appropriate state funds for the mass mailing, didn’t need legislative approval to send the forms, and didn’t exceed his authority under Iowa law.

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Republicans have underfunded Iowa's State Hygienic Lab for years

Staff at Iowa’s State Hygienic Laboratory have been working around the clock to process tests that reveal the scope of the novel coronavirus epidemic. Governor Kim Reynolds has often lauded their “yeoman’s work” at her daily news conferences.

But as former Vice President Joe Biden famously said, “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” In real terms, state support for a facility critical to Iowa’s COVID-19 response dropped considerably over the last decade.

The Iowa legislature hasn’t increased dollars allocated to the State Hygienic Lab since 2013, when Senate Democrats insisted on doing so. Not only has state funding failed to keep up with inflation since then, the laboratory’s annual appropriation has yet to recover from a mid-year budget cut in 2018.

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