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.

Read more: https://www.bleedingheartland.com/2020/12/07/exclusive-iowa-governor-overspent-office-budget-before-tapping-cares-act/