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.

The Iowa Department of Public Health is hiring a temporary staffer to assist public information officer Sarah Ekstrand in processing open records requests. The job listing says the new hire will help review and update the agency’s system for tracking requests, communicate with members of the public about the status of requests, help refine search terms, provide cost estimates, and review documents to see if they can be withheld as confidential.

The application deadline for the position was September 16. The temporary hire will be paid between $26.61 and $40.50 an hour, for at most 780 hours of work in the current fiscal year. That works out to about 20 weeks of full-time efforts devoted to processing records requests between now and June 30, 2022.

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.

Republicans nominated Iowa Department of Management Director Michael Bousselot this weekend to be their candidate in the September 14 special election to represent Iowa House district 37. Bousselot received about 75 percent of the vote on the first ballot; one of his two rivals for the nomination withdrew his candidacy before convention delegates voted.

Bousselot did not respond to phone or email messages on August 13 asking whether he would take a leave of absence from his day job, assuming he won the GOP nomination for the special election. But he and Democratic candidate Andrea Phillips are clearly ready to devote substantial time and energy to the abbreviated campaign.

House district 37 was among the most expensive state legislative races in 2020; Democrats spent nearly $800,000 on behalf of Phillips, while Republicans spent about $575,000 defending State Representative John Landon, who passed away in late July.

The Iowa Ethics and Campaign Disclosure Board unanimously found that Governor Kim Reynolds did not violate a state ban on “self-promotion” last year when she appeared in advertisements promoting COVID-19 safety measures.

The board reviewed the “Step Up, Stop the Spread” online and television ad campaign, funded through federal COVID-19 relief dollars, after State Auditor Rob Sand asserted in a report that Reynolds violated a state law prohibiting “self-promotion with taxpayer funds.”

In an unusual move, Governor Kim Reynolds is allowing two state agency directors she appointed early this year to continue serving through next year’s legislative session, even though they lacked the votes to be confirmed by the Iowa Senate.

Reynolds withdrew the nominations of Department of Management Director Michael Bousselot and Department of Administrative Services Director Adam Steen shortly before state lawmakers adjourned for the year in May. Days later, she rejected the directors’ resignations, saying she would resubmit their names to the Senate in 2022, documents obtained through public records requests show.

The governor’s office has not publicly announced Reynolds’ decision to hold over Bousselot and Steen and did not respond to Bleeding Heartland’s inquiries.

The Department of Management handles state budget planning as well as disbursements from Iowa’s general fund and various other funds. The Department of Administrative Services handles human resources, payroll, and procurement of goods and services for state government.

Staff at the Iowa Veterans Home in Marshalltown, where a recent COVID-19 outbreak killed two fully vaccinated residents, are not subject to a new vaccine mandate issued by the U.S. Department of Veterans Affairs.

Veterans Affairs Secretary Denis McDonough announced on July 26 that coronavirus vaccinations are now required for “Title 38 VA health care personnel — including physicians, dentists, podiatrists, optometrists, registered nurses, physician assistants, expanded-function dental auxiliaries and chiropractors — who work in Veterans Health Administration facilities, visit VHA facilities or provide direct care to those VA serves.”

The Iowa Veterans Home is a state-run facility, but it receives some federal funding, is certified by the U.S. Centers for Medicare & Medicaid Services, and has residents who use VA health care. At least 900 employees work at the Marshalltown facility, which is Iowa’s largest nursing home. Families and guardians were informed in late June that 70 percent of staff had already been vaccinated for COVID-19. That would leave more than 250 unprotected by any coronavirus vaccine.

Staff in the governor’s office and Iowa Veterans Home declined to clarify why Governor Kim Reynolds fired the home’s Commandant Timon Oujiri in early May, and for months did not respond to public records requests related to Oujiri’s removal.

The mystery was revealed on July 29, when State Auditor Rob Sand released a special report showing Oujiri had received $105,412.85 in improper compensation since June 2019, including $90,027.20 of unauthorized gross wages.

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

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

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

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

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

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.

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

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

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

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

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.

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

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

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

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

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

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

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

The lawsuit alleges that the defendants terminated Foxhoven:

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

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

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

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

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

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

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

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

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

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

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

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

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

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.”

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

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

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

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.

Paul Trombino III is resigning as director of Iowa’s Homeland Security and Emergency Management Department, effective June 3, the governor’s office announced on May 20. A news release said Trombino was “leaving his position to pursue other opportunities.”

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

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

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

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

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

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.

Exclusive reporting by Marty Ryan on his efforts to hold the Iowa Board of Corrections accountable for failing to follow state law. -promoted by Laura Belin

“You can’t fight city hall,” the saying goes. It means you may get more gratification from beating your head against a wall than from fighting with government bureaucratic processes.

I have fought city hall, but I think I can count the successes on one finger. My recent challenge to secure a win for common sense was beat back last month when the Iowa Public Information Board dismissed the complaint I had filed against the Iowa Board of Corrections in July.

The state of Iowa is advertising for a new Department of Transportation director, about a week after Governor Kim Reynolds requested the resignation of current Director Mark Lowe.

The Iowa Public Employees’ Retirement System (IPERS) posted a job listing for a new chief executive officer on December 9. Staff confirmed longtime CEO Donna Mueller will retire when her current term ends on April 30, 2020.

State employees “did not follow the process in place” when they recently approved a request to fly the transgender pride flag above the Capitol building, Iowa Department of Administrative Services spokesperson Tami Wiencek told Bleeding Heartland.

Ten months after the Des Moines Register revealed that “Iowa’s flawed felon list has been disqualifying legitimate voters for years,” and five months after voting rights advocates warned that “Iowa’s voter list maintenance practices are arbitrary and unlawful,” Secretary of State Paul Pate announced an ambitious plan to clean up the felon database.

“The new steps to ensure the system’s accuracy include a manual review of all 90,000 files,” a November 20 news release announced. The goal is to complete the task before next year’s general election.

Several unanswered questions remain about the plan.

The Iowa Department of Agriculture and Land Stewardship (IDALS) has not acted on advice to improve its management of financial transactions and databases “to prevent losses from employee error or dishonesty.”

For ten years running, under three different state auditors, reports have warned Iowa Secretary of Agriculture Mike Naig or his predecessor Bill Northey that the IDALS accounting system does not conform to best practices and does not ensure that some divisions are collecting and depositing fees appropriately.

IDALS leaders have responded to each report with boilerplate excuses and non-sequiturs, instead of changing internal procedures to address the concerns.

Iowa has long had one of the country’s worst racial disparities in the criminal justice system. A 2016 report by Ashley Nellis for The Sentencing Project showed the incarceration rate for African Americans in Iowa was the fourth-highest among the 50 states, with approximately one in seventeen adult black males imprisoned. Iowa ranked third-worst in the nation for racial disparity, with an incarceration rate for African Americans eleven times higher than the rate for white people.

Over the past year, the Iowa Department of Corrections has formally recognized the problem and its responsibility to provide a bias-free environment for incarcerated individuals and those in community-based corrections programs. The department has also taken several concrete steps to improve staff training and identify possible sources of racial disparities.

The Iowa Ethics and Campaign Disclosure Board will soon hire a new executive director. Megan Tooker, who has held the position since December 2010, is leaving to pursue unspecified new opportunities, she told Bleeding Heartland on November 4.

The ethics board is one of the smallest state agencies and enforces Iowa law on campaign finance disclosures, government ethics and lobbying the executive branch, and gifts to public officials.

Fourteen people representing a “diverse group of stakeholders” will recommend policies to reduce recidivism and racial disparities in Iowa’s criminal justice system, Governor Kim Reynolds announced on November 4.

Lieutenant Governor Adam Gregg, a former state public defender, will chair the Governor’s FOCUS Committee on Criminal Justice Reform, which will meet for the first time on November 7. FOCUS stands for “Fueling Ongoing Collaboration and Uncovering Solutions.” The other members are:

The number of reporters assigned to cover state governments and legislatures has declined sharply over the past two decades, and Iowa has not escaped the trend. But a nonprofit entity focused on statehouse reporting will soon open an Iowa affiliate, with a veteran political journalist at the helm.

Former Iowa Department of Human Services director Jerry Foxhoven revealed more details about his wrongful termination claim on August 1. He asserts that he was fired after expressing concern about the DHS continuing to pay a large share of the salary for the governor’s deputy chief of staff, Paige Thorson.

As Bleeding Heartland reported last week, Thorson worked extensively on Medicaid-related issues for some time, but she became less involved with the DHS this spring, as Governor Kim Reynolds brought on a new health policy adviser.

Foxhoven and his attorney Tom Duff released a written statement and answered many follow-up questions during a 45-minute news conference. Radio Iowa posted the full audio. The questions and answers below are not a transcript from the conference, but rather my effort to put information about Foxhoven’s case in context for readers.

Jerry Foxhoven will pursue legal action claiming retaliation and wrongful termination as director of the Iowa Department of Human Services, Ryan Foley was first to report for the Associated Press on July 31. His attorney, Tom Duff, told the AP

that Foxhoven objected to a request to continue to have his agency fund most of the salary of the governor’s deputy chief of staff, Paige Thorson. Duff says that Foxhoven believed the arrangement made sense when he approved it in 2018. But he said that, by June, Foxhoven believed Thorson was no longer furthering the agency’s interests.

Duff plans to release a more detailed statement at an August 1 news conference, his office told Iowa reporters today.

As Bleeding Heartland discussed here, Thorson had handled health policy for the governor’s office since late 2017, but Governor Kim Reynolds brought Liz Matney over from the DHS this spring to be her health policy advisor.

The Iowa Civil Rights Commission’s interim executive director stepped down last week, following an extended period of uncertainty for the agency charged with enforcing the Iowa Civil Rights Act.

Linda Grathwohl did not explain her decision in the letter she delivered to Governor Kim Reynolds on July 11. In an e-mail to the commission’s staff the same day, Grathwohl didn’t specify any reason for leaving, saying she planned to return to Iowa Legal Aid once her resignation was effective on July 25. Attempts to reach Grathwohl for further comment by phone, e-mail, and Facebook message were unsuccessful.

Nearly seven months have passed since Grathwohl’s predecessor, Kristin Johnson, left at the end of her term. Reynolds has not appointed a permanent executive director, and correspondence obtained by Bleeding Heartland through a public records request shows little sign the governor or her staff are interested in the agency’s work.

Jerry Foxhoven has shed more light on the disagreement that preceded his forced departure as Iowa Department of Human Services director last month. On July 24 he told David Pitt of the Associated Press “that he declined to approve paying the salary of Elizabeth Matney, who left DHS on May 17 to accept a job as Gov. Kim Reynolds’ adviser on health policy.”

Staff for Reynolds disputed Foxhoven’s account, saying he never raised concerns about covering Matney’s salary and wasn’t fired for that reason. They also noted that for many years, state agencies including DHS have occasionally paid employees working in the governor’s office.

Foxhoven’s aware of that precedent, having signed some of the relevant documents himself. So why would he question the legality of this arrangement? The former director’s comments to reporters and records obtained by Bleeding Heartland provide some clues.

Editor’s note: Bleeding Heartland’s coverage of this story continues here and here.

Governor Kim Reynolds didn’t want the public to learn why she forced out Jerry Foxhoven as director of the Iowa Department of Human Services. The vague official narrative about Foxhoven’s unexpected departure remained intact for a month.

But the ground shifted last week. As further details emerge, the governor and her top staff will have more explaining to do.

Des Moines freelance writer John Morrissey digs into how a well-connected company landed a lucrative state contract. Laura Belin contributed reporting to this story.

Four months after being awarded a contract to administer Iowa’s worker’s compensation program for state employees, a politically connected West Des Moines company has apparently not come to terms with the state to continue its work.

Sedgwick Claims Management Services LLC was selected in early March to keep handling the program, even though a competitor achieved a better score on three cost proposal items. The state will pay Sedgwick $7.9 million in administrative costs over six years. Runner-up bidder TRISTAR Risk Enterprise Management LLC offered to do the work for a little more than $6 million, a potential savings of nearly $1.9 million over the contract period.

The Iowa Department of Administrative Services (DAS) provided copies of all submitted bids for the current and previous bid cycles upon receiving John Morrissey’s public records request. But the department has declined further comment about the award and refused to clarify the scoring system or other matters related to this bid process. The new DAS director Jim Kurtenbach did not respond to a request for an interview about this matter.

Sedgwick’s bid contact officer referred questions to several state officials and the company’s public relations office. That office also did not respond to Bleeding Heartland’s inquiry.

Governor Kim Reynolds announced last week that Jim Kurtenbach will be the new director of the Iowa Department of Administrative Services (DAS), effective July 1. Paul Trombino has held that position on an interim basis for about a month, after the Iowa Senate did not confirm previous DAS Director Janet Phipps.

Tapping Kurtenbach for this job was a strange choice. The agency has broad responsibility for human resources, procurement, and accounting on behalf of the state. Sexual harassment or discrimination by senior officials has led to several lawsuits against the state and millions of dollars in settlements in recent years. Yet not only does Kurtenbach lack relevant experience in the HR field, his hiring and managerial decisions as Iowa State University’s vice president and chief information officer were far from a model for best practices.

Elizabeth Matney, who has led the Iowa Medicaid Bureau of Managed Care since the state began privatizing nearly the whole program in 2015, is leaving the Department of Human Services to become Governor Kim Reynolds’ health policy advisor, Matney’s LinkedIn profile shows. Her starting date is unclear; the governor’s office has not announced Matney’s hiring or responded to Bleeding Heartland’s inquiries on the subject. A DHS organizational chart dated June 17 still shows Matney as bureau chief for MCO Oversight & Supports, the state’s leading official for overseeing the private companies picked to manage care for more than 600,000 Iowans on Medicaid.

When the new fiscal year begins on July 1, the governor’s office will receive additional funding for staff, so Matney’s work for Reynolds may formally begin at that time. The governor’s previous health policy advisor, Paige Thorson, appears to be staying on as deputy chief of staff, meaning that new funds would be needed to pay Matney (the governor’s staff have not clarified that point).

Jerry Foxhoven has resigned as Iowa Department of Human Services director, effective today, Governor Kim Reynolds’ office announced on June 17. The news release did not give a reason for Foxhoven’s departure. Staff for DHS and the governor did not immediately respond to questions including:

Two Iowa state agencies announced on May 31 an intent to award Planned Parenthood of the Heartland sex education grants for the fiscal year beginning on July 1.

Republican lawmakers approved and Governor Kim Reynolds signed legislation seeking to deny Planned Parenthood access to the federally-funded Community Adolescent Pregnancy Prevention and Services Program (CAPP) and the Personal Responsibility Education Program (PREP) grants. However, a Polk County District Court put that provision on hold this week, saying Planned Parenthood was “likely to succeed on the merits of its equal protection claim” under the Iowa Constitution.

Carl Olsen has been a leading advocate for medical cannabis in Iowa for many years and closely follows legislative happenings related to the issue. -promoted by Laura Belin

In a highly unusual move, the Iowa Department of Public Health (IDPH) announced on the afternoon of April 12 that the Medical Cannabidiol Advisory Board had rescheduled its planned meeting. Instead of convening for two and a half hours on May 3, the board would meet for one hour on April 16.

Members called the shorter, rushed meeting in order to discuss recommendations on the tetrahydracannabinol or THC cap and purchase limits in a bill the Iowa House approved last month.

John Morrissey is a longtime Des Moines resident who has investigated state spending increases, financial anomalies, and payment disruptions associated with Medicaid privatization in Iowa. -promoted by Laura Belin

The “he said/she said” controversy between an insurance company CEO and Iowa’s governor about why UnitedHealthcare decided to leave the state’s Medicaid program might make entertaining copy, but it doesn’t address who is going to manage the care of 420,000 Iowans left in the lurch.

Nor does it address whether the remaining company (Amerigroup) is adequately prepared to handle more members, and whether a new player poised to enter our state’s Medicaid market (Iowa Total Care) has the expertise to handle special populations in Iowa such as the elderly, disabled, and very ill.

It also doesn’t consider whether the state’s traditional fee-for-service Medicaid offering has the financial wherewithal to shoulder an even larger share of the enrollment and cost. Fee-for-service was held over from the old state-run program when most of the Medicaid program was privatized in 2016. The fee-for-service program pays the claims of Iowa’s sickest and most frail Medicaid members, which the for-profit managed care organizations (MCOs) don’t want or can’t handle.

The Iowa Deparment of Human Services (DHS) did not respond to a request for comment on these issues.

When a government press release arrives at 4:45 pm on a Friday, you know it’s not bearing good news. UnitedHealthcare will soon pull out of Iowa’s Medicaid program, the governor’s office announced on March 29. The company “manages health care for more than two-thirds of Iowans on Medicaid,” at least 425,000 people, Tony Leys reported for the Des Moines Register.

The official spin portrayed Governor Kim Reynolds as a hero who resisted a for-profit insurer’s “unreasonable” and “unacceptable” demands.

The real story is that nearly three years into our costly Medicaid privatization experiment, Iowa’s dominant managed-care organization (MCO) still can’t handle normal business practices like paying health care providers on time.

Paul Deaton: “It’s easy to say we should balance our politics and policy. I’m not sure about that. A better approach is to recognize there is political bandwidth and tune in.” -promoted by Laura Belin

The 2020 general election will be challenging for a lot of reasons, not the least of which for me is deciding whether policy or politics is the most important part of it.

Politics is the art of what’s possible. I’m over the naive notion that policy matters more than politics, although the art of what’s possible has produced some problems.

Matt Chapman has closely followed this year’s legislative proposals targeting Iowans on public assistance. -promoted by Laura Belin

A bill requiring more frequent reviews of Iowans’ eligibility for public assistance programs would cost the state an additional $40 million during the first two years alone, according to analysis by the nonpartisan Legislative Services Agency. The federal government would be on the hook for an additional $35 million during the same period.

A new dark money group is threatening clean energy progress in Iowa. Mark Langgin digs into the social media advertising campaign that emerged a few days ago. -promoted by Laura Belin

Looks like the utilities and electric cooperatives are up to no good. A new “dark money” organization just launched ads on Facebook.

The “REAL” Coalition began advertising on Facebook on March 1, arguing for legislation that would undermine net metering. The REAL Coalition is doing this under the guise of promoting renewable and clean energy.

Governor Kim Reynolds appointed former Iowa House Speaker Kraig Paulsen as director of the Iowa Department of Revenue on February 22, only six weeks after she had named Adam Humes to lead the agency. A late Friday afternoon news release did not explain the reason for the change, saying only that Humes “has decided to pursue other opportunities.”* Paulsen will start work this coming Monday. Leadership transitions at state agencies typically are weeks or months in the making.

Humes’ predecessor, Courtney Kay-Decker, also left under odd circumstances. Appointed by Governor Terry Branstad in 2011, she sounded excited to continue to lead the department after the 2018 election. But in early December, Kay-Decker announced her resignation, effective at the start of the new year.

Catherine Gayle Williams passed away on May 20, 2020. Original post follows.

Democratic State Representative Marti Anderson delivered these remarks in the Iowa House on February 4. -promoted by Laura Belin

The Iowa House of Representatives on February 4, 2019 begins to observe Black History Month. The ancestors of African Americans did not immigrate to the United States of their own free will like most of our families. They were trafficked to America to work the fields, build our communities and help create our nation’s history.

Beginning today and for the next month, you will hear inspirational stories of Black Americans and you will be moved by their lives of hard work and persistence to make America a better place for their children.

I am thrilled to open this special month of American history by honoring the Iowa grit and American spirit of my friend and shero, Catherine Gayle Williams of Des Moines. Ms. Williams has had two primary careers in her 104 rich years of life, and I would like to weave her story of accomplishment for you.

A divided state board has approved settlements worth a combined $4.15 million to two women who reported extensive, appalling sexual misconduct by former Iowa Finance Authority Director Dave Jamison. Under the agreements posted in full below, $2.35 million will go to the agency’s former business development director Beth Mahaffey, and $1.8 million will go to the agency’s communications director Ashley Jared. Attorney’s fees for both women will come out of those payments.

The settlements bring closure to women who endured a horrific workplace environment. But they also ensure that oversight failures at the finance authority will never be fully explored in litigation.

Rejecting a leading Republican talking point from the 2018 campaign, the board that regulates the accounting profession in Iowa has confirmed State Auditor Rob Sand can do the job Iowans elected him to do.

Catching up on news from last week: State Auditor Rob Sand announced on January 22 that energy efficiency recommendations will be part of every audit his office produces of a municipal, county, or state government entity.

The Iowa Ethics and Campaign Disclosure Board has a new website that is easier to navigate and complies with its own transparency rules. The board announced the site launch on January 15, a week before the next deadline for Iowa campaigns to report on their fundraising and spending.

Clive native T.J. Foley is a Harvard College undergraduate. -promoted by Laura Belin

As shutdowns abound and federal workers around the country continue to celebrate the holidays without their paychecks, the fiscal practices of our state and federal government continue to destabilize economic outlook. Day after day, elected officials in Washington bicker about spending cuts and public expenditures with no end in sight, all from the supposed guardians of fiscal responsibility.

Republicans in Wisconsin and Michigan responded to recent election losses by limiting the powers of some Democratic statewide officials. GOP lawmakers are rumored to be considering similar legislation in Iowa, where Rob Sand just took office as the first Democrat to serve as state auditor in more than 50 years.

But Republican State Representative Bobby Kaufmann, who chairs the Iowa House State Government Committee, told Bleeding Heartland he has no interest in revoking or curtailing the subpoena power of Sand’s office.

The first Democrat to serve as Iowa’s state auditor in more than 50 years has hired a “tri-partisan leadership team” to help run the office.

Iowa has long been one of the worst states for racial disparities in the criminal justice system. Gwen Hope reviews some depressing relevant data. -promoted by desmoinesdem

If you’ve been convicted of falling short of the law in Iowa, it pays to be white. This is nothing new, racial bias nationwide has long been a known and understood problem rooted in the prejudices of the past and present. How much bias, however, might surprise some people.

This is nearly 2019, after all, many white Americans live as if racism is a thing of the past no longer dealt with in their illusory post-racial modern world. In 2018, the evidence here in Iowa shows the continuation of one of the longest, most abhorrent trends in US history – white privilege, black punishment.

For weeks this fall, the Iowa Department of Human Services stonewalled a journalist’s request for easily accessible public records that would have cast an unflattering light on management of the state’s Medicaid program.

Three days after Governor Kim Reynolds won the election, the department sent a copy of one key document to Ryan Foley of the Associated Press. DHS released other relevant files on December 6, allowing Foley to confirm Director Jerry Foxhoven had cut a deal in April allowing UnityPoint Health affiliates to keep nearly $2.4 million they had been overpaid for services provided to Medicaid patients.

The settlement agreement came shortly after UnityPoint agreed to remain part of the network for Amerigroup, one of the private companies DHS picked to manage care for Medicaid recipients.

Privatizing Medicaid saved the state of Iowa about $126 million during the fiscal year that ended June 30, according to a report State Auditor Mary Mosiman released on November 26.

I put low odds on that estimate holding up after a more diligent auditor takes office.

Even if it did, this review of “savings” was too narrow to reveal whether turning Medicaid over to for-profit companies was a good deal for Iowans.

Leslie Carpenter is an advocate for improving the treatment of people with serious mental illnesses in Iowa and across the country. -promoted by desmoinesdem

While speaking at the National Alliance on Mental Illness Iowa Annual Conference on November 16, Iowa Department of Human Services Director Jerry Foxhoven advised the attendees that it was a good thing that two of the state’s four in-patient mental health institutions (MHIs) were closed, and that we have moved to community-based care. He further shared that it was a good thing to go from more than 700 beds to the current level of 64 beds for adults in the whole state.

We should recall that this reduction of state-operated acute care beds has caused Iowa to be ranked 51st by the Treatment Advocacy Center.