May 23, 2012

Investigation into Gov. Blunt e-mail policy concludes

An investigation into whether the Blunt Administration violated the state record retention and open records law ends with a whimper, not a bang, in Cole County Circuit Court.

Special investigators Mel Fisher and Richard Wilhoit have filed a 46-page report that contains eight findings as well as eight unresolved issues. The attorneys for former Governor Blunt have filed a 22-page response that rejects the conclusions of the investigation and claims the issue could have been resolved quickly if the scope of the investigation had been narrowed.

The crux of the case will never be resolved. The report filed by Fisher and Wilhoit admits that "The role of Governor Matt Blunt in the development and application of the Office of Governor’s policies and practices regarding the Sunshine Law and record retention is unknown, because Governor Blunt could not be deposed or interviewed during the course of the investigation."

Cole County Circuit Judge Richard Callahan quashed a motion by Special Assistant Attorneys General Louis Leonatti and Joe Maxwell to depose Blunt. Fisher then sent a letter to Blunt, asking to meet with the governor "to discuss our findings". Blunt did not respond.

The investigation began after then-Attorney General Jay Nixon received complaints that the governor’s office had violated the state Sunshine Law in how it handle e-mail correspondence. Nixon appointed Fisher and Wilhoit to investigate. Lawyers for Governor Blunt, objected and, eventually Judge Callahan ruled that neither Fisher nor Wilhoit had authorization for the investigation, because the Attorney General’s office had not extended the proper authorization to a special assistant attorney general. Callahan himself appointed Leonatti, a Republican, and Maxwell, a Democrat and former Lt. Governor, as special assistant attorneys general. Current Attorney General Chris Koster authorized the team to continue its investigation when it lapsed over from one administration to the next.

The investigation concludes that it is unable to determine the extent of Governor Blunt’s involvement in how his office decided to handle electronic communication, because he refused requests for interviews.

"What has also not been determined is why Governor Blunt left office with no public accounting, or explanation to the public, of his administration’s failure to comply with these two laws (The records retention and the open records laws)," the report states.

The report did find that the Office of Governor had insufficient policies "to ensure proper compliance with the Sunshine Law and the record retention statutes." The inadequacy of the policies and practices limited its ability to comply with Sunshine Law requests made by various media outlets for e-mail correspondence.

An effort to discover whether the governor’s office purposely sought to destroy back-up tapes of e-mails failed to reach a conclusion. The report states, "Insufficient evidence was present to either prove or disprove the allegation that there was any endeavor by any individual or group of individuals to overwrite data contained on backup tapes in the possession of the Office of Administration."

Unresolved issues, according to the report, remain. The primary concern of the report is whether the Attorney General has authority to conduct a thorough investigation into whether a governor’s office has violated the records retention and open records laws.

A response filed by Governor Blunt’s attorneys rejects much of the report.  It states, "The findings and conclusions the report reaches, other than those specifically noted above, are rooted in no small part on legal assumptions and conclusions that are at odds with the text of the statutes on which they rely and unsupported by any caselaw. The report also contains flawed factual assumptions and conclusions."

Blunt’s legal team contend the governor’s office fully complied with state law and rejects the report’s conclusion that its policies were insufficient to comply with state law. The response notes that the court cleared Governor Blunt of any personal liability in the case. It also states that the claims against the governor’s staff were unsubstantiated, "More importantly, there was never any evidence that anyone, much less Gov. Blunt, committed any purposeful violation of the Sunshine law."

The response concludes that case could have been settled quickly if the scope of the requests for e-mails had been narrowed. It claims taxpayer money was wasted in the litigation.

With the investigation and response submitted to the court, Special Assistant Attorney General Louis Leonatti  filed a request to the court to dismiss the case.

Some MoHELA projects once suspended back on track

Many college capital improvement projects put on hold have been given the go ahead by the Nixon Administration to move forward.

Five public universities were told by the Nixon Administration that planned capital improvements on their campuses had to be put on hold. Now, the governor’s office has given the green light to several of them.

"We would love to be able to say that we have the money in the MoHELA fund to complete projects. But unfortunately that’s not the case," says Scott Holste, a spokesman for the governor.

The Nixon Administration has completed a review of the MoHELA projects, formally known as the Lewis and Clark Initiative. Money from the sale of MoHELA assets has fallen more than $107 million short of expectations. Projects at Missouri State University in Springfield, the University of Central Missouri in Warrensburg and Truman State University in Kirksville that had been suspended will now resume.

Other projects, most notably the proposed $31 million expansion of the Ellis Fischel Cancer Center on the University of Missouri-Columbia campus, remain suspended.

Governor Nixon, as Attorney General, vocally opposed former Governor Blunt’s MoHELA program. Nixon stated the program diverted money away from MoHELA’s primary mission, providing low-interest student loans, and was based on uncertain funding. Still, as governor, Nixon is committed to seeing the Lewis and Clark Initiative projects through, according to Holste.

"But, the fact of the matter is, the previous administration had committed and proposed spending funds that just do not exist," says Holste.

 

Below is the news release from the governor’s office outlining the projects affected.

 JEFFERSON CITY, Mo. – Gov. Jay Nixon announced today that his administration’s review of the MOHELA project list is complete. The review was needed because MOHELA has failed to make its payments to the state. The remaining balance on the MOHELA list proposed by the previous administration is $107,109,486 more than is currently in the MOHELA fund.

The projects which will be funded right away and the remaining balance on those projects are:

· Harris – Stowe State University – Child & Parent Education Center $9,252,803

· Linn State Technical College – Heavy Equipment Technology Building $4,393,526

· Lincoln University – Jason Hall $983,406

· Missouri Southern State University – Health Sciences Building $14,301,775

· Missouri State University – Jordon Valley Incubator $2,686,579

· Missouri Western State University – Agenstein Science & Math Halls, $25,112,770

· Northwest Missouri State University – Plant Biologics Center, $12,896,195

· Missouri University of Science & Technology – Engineering Building $1,138,249

· University of Missouri-Kansas City – Dental Equipment $249,075

· University of Missouri-Kansas City – Pharmacy and Nursing Building $9,487,485

· Community College Maintenance & Repair $790,171

· Missouri State University – Siceluff Hall $7,170,597

· University of Central Missouri – Morrow & Garrison Building $12,081,895

· Southeast Missouri State University – Autism Center $2,427,856

· University of Missouri-Hundley-Whaley Center $184,721

· University of Missouri – South Farms $2,395,651

· University of Missouri-Plant Science Building, Mexico (partial funding) $2,500,000

· Truman State University – Pershing Hall (partial funding) $10,000,000

The fund currently has a balance of $118,319,642 and is estimated to have a balance of $266,888 after the above projects are completed.

The projects that will be suspended until MOHELA makes additional payments or additional funding sources can be identified include:

· Southeast Missouri State University-Incubator · University of Missouri-St. Louis -Benton & Stadler Halls

 

· University of Missouri – Delta Research Center

· University of Missouri – Southwest Education & Outreach Center

· University of Missouri – Graves-Chapple Facility

· University of Missouri – Horticulture & Agroforestry Center

· University of Missouri – Wurdack Farm

· University of Missouri – Thompson Farm

· University of Missouri – Greenley Learning & Discovery Park

· University of Missouri – McCredie, Midwest Clayplan

· University of Missouri-Columbia- Ellis Fischel · Missouri State University – FREUP Phase 1

Download/listen Brent Martin interviews Scott Holste (10 min. MP3)

Nixon defends suspension of MoHELA projects

Governor Nixon has defended his decision to cut off funding for capital improvement projects planned by five universities.

Nixon made the defense during a news conference in Columbia, which took a big hit with the suspension of a $31 million expansion of the Ellis Fischel Cancer Center. The Office of Administration outlined a total of 13 projects within the University of Missouri system that have been suspended and are under review. Projects have also been suspended at Missouri State University in Springfield, The University of Central Missouri in Warrensburg, Southeast Missouri State University in Cape Girardeau and Truman State University in Kirksville.

Nixon told reporters that the projects were suspended, because the sale of Missouri Higher Education Loan Authority (MoHELA) assets hasn’t generated the money expected. Nixon said the money simply isn’t there to go through with the projects at this time. He said his administration attempted to target projects that weren’t under construction or, at least, were not that far along.

The decision caught state lawmakers off guard. Legislators with projects in their district were hand-delivered letters detailing the decision Wednesday morning.

It was well-known that Nixon didn’t favor the Lewis and Clark Discovery Initiative devised by former Governor Matt Blunt. The initiative relied on money generated by the sale of MoHELA assets. Nixon claimed the program hampered the ability of MoHELA to fulfill its primary role: providing low-interest loans to college students.

The letters sent to the five institutions warn them not to proceed with the capital improvement projects unless they receive written authorization to do so.

(Matt LaCasse of KFRU provided the audio from the Columbia news conference.)

Download/listen Gov Nixon defends MoHELA project suspension (:30 MP3)

Nixon Administration puts brakes on MoHELA projects

Five public universities have been told by the Nixon Administration that planned capital improvements on their campuses likely will be scuttled.

Letters were sent by Commissioner of Administration, Kelvin Simmons, to the University of Missouri-Columbia, Missouri State University in Springfield, The University of Central Missouri in Warrensburg, Southeast Missouri State University in Cape Girardeau and Truman State University in Kirksville. Each letter informs the various campuses that expected funding from the sale of Missouri Higher Education Loan Authority (MoHELA) assets might not be forthcoming.  The letters state that MoHELA has not been able to make its scheduled payments into the Lewis and Clark Discovery Initiative Fund, through which the capital improvements were to be paid.

The Office of Administration sent the letters via overnight mail and hand-delivered copies to state representatives and senators with affected campuses in their districts.

Sen. David Pearce (R-Warrensburg) received a letter at mid-morning. He says the action comes as a surprise.

"This is the same governor that last Thursday said, ‘I won’t cut higher education. I won’t do any withholds.’ And yet, to me, this is a real disservice to higher education across the state," Pearce tells the Missourinet.

Pearce says the action will have a drastic impact on the University of Central Missouri, putting the skids on a project that now totals $20 million. Pearce says UCM was to receive $10 million in Lewis and had raised $2 million in private funding. Also, the university students had approved a fee increase to raise another $8 million to renovate the Morrow and Garrison buildings, turning the aging buildings into a health science center. Pearce says the project is well underway and that the buildings have already been gutted.

A letter sent to University of Missouri Vice President of Finance and Administration, Nikki Krawitz, informs Krawitz that a $31 million appropriation for the Ellis Fischel Cancer Center in Columbia has been suspended indefinitely. Simmons writes that the project, and others, "will not be reinstated to active consideration unless and until you receive further written notice from my office."

Similar wording is used for separate letters to officials at the other campuses. The letters also warn the campuses that no expenditures will be reimbursed unless authorized in writing by the Office of Administration.

The Lewis and Clark Initiative was a pet project of former Governor Matt Blunt. Governor Nixon has been a harsh critic of the program from the beginning. He attempted to stop the sale of MoHELA assets as Attorney General and claimed Blunt was diverting MoHELA assets from their intended purpose:  financing low-interest college loans. Throughout the gubernatorial campaign, Nixon avoided directly answering what he would do with the MoHELA projects authorized during the Blunt Administration.

Jim Talent, Roy Blunt, Sarah Steelman among Republicans considering running for Bond’s Senate seat

Senator Kit Bond’s decision not to seek reelection in 2010 has started the talk about possible Republican candidates. Former U.S. Senator Jim Talent is certainly considering a run. “When the shock wears off I’m gonna consider it,” says Talent. “I enjoy having an impact in public life and … this is an opportunity that I’m gonna look at carefully.”

Southwest Missouri Congressman Roy Blunt, the former Minority Whip in the U.S. House, is said to be considering. That word came from his son, outgoing Governor Matt Blunt, who issued a statement calling his father “the leading candidate.” The Governor says he talked with his father in general following the Bond announcement, but concedes he has had “no real strategic discussion.”

Outgoing State Treasurer Sarah Steelman is considering a run. In an interview with KY3 TV in Springfield, Steelman took a shot at both Senator Bond and Congressman Blunt, saying, “Senator Bond and Congressman Blunt represent the old ways of Washington. I don’t think people can tolerate that.” Bond endorsed Steelman’s opponent, Congressman Kenny Hulshof, in the Republican primary for Governor.

Lieutenant Governor Peter Kinder is another prominent Republican who ran, briefly, for Governor before withdrawing to seek reelection. Asked whether he is thinking of running, Kinder would not say, preferring to praise Bond today and to put off any announcement until later. In making that statement, Kinder responded to the Steelman comments without mentioning the State Treasurer by name. “I’m not going to join those with what I think is rather unseemly haste at taking pot shots at such a distinguished public servant or announcing my own plans today.”