Governor Vilsack Takes Decisive Action to Ensure Resposible Use of Taxpayer Dollars and Continued Job Training Opportunities for Iowans
Governor Vilsack announced tonight that he has taken several steps to tighten oversight of public funds related to the Central Iowa Employment Training Consortium (CIETC).
Vilsack also announced that he has asked for and accepted the resignation of Iowa Workforce Development (IWD) Director Richard Running, and he has accepted the resignation of Deputy Director Jane Barto. Current Labor Commissioner Dave Neil will serve as Interim Director until a replacement is appointed. The Governor has instructed Neil to consult with the Department of Administrative Services to determine what additional personnel actions need to be taken.
Vilsack said that he has taken away financial and administrative responsibilities for the Promise Jobs program from CIETC and that IWD would assume those responsibilities at an anticipated lower cost. The move will provide for an expansion of services to Iowans looking for new opportunities.
"The misuse of public funds by the CIETC Board violated the trust of Iowans," said Vilsack. "As public servants, we have a responsibility to the people we serve to deliver the services Iowans want in the most cost efficient way."
Vilsack assured Iowans that he would work with the State Auditor, Attorney General and County Attorney to immediately recover the public funds that were misspent by the CIETC Board.
"I hope that local officials will cooperate with state and federal officials during the continuing investigation and afterward in providing effective and efficient services to Iowans," said Vilsack. "While the state was responsible for monitoring this entity, there were others on the local level who were responsible for the exorbitant salaries being paid and authorized, and those individuals should be held accountable," said Vilsack.
The Governor has also instructed the Department of Management to continue to review IWD's contracting and monitoring procedures for compliance with the Accountable Government Act. The review will also ensure the Department's monitoring reports include adequate financial information to detect inappropriate salaries of subcontractors.
http://www.governor.state.ia.us/news/2006/april/april0506_1.html