Investigating Quasi-Public Agencies by John Cheves
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John Cheves, investigative reporter at the Lexington Herald-Leader, presents during the Reynolds Center's free workshop, "Investigating the Business of Government," in Lexington, Ky. For more information on business coverage training for journalists, please visit http://businessjournalism.org.
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Investigating Quasi-Public Agencies by John Cheves
- 1. Inves&ga&ng quasi-‐public agencies John Cheves Lexington (Ky.) Herald-‐Leader jcheves@herald-‐leader.com
- 2. What is a “quasi-‐public agency”? • It gets public money, performs a public func&on and some&mes can raise taxes • But it’s run by its own appointed board, not by elected poli&cians answerable to voters, and it might not consider itself a government en&ty • Examples include airports, libraries, health departments, water districts, community ac&on councils, housing authori&es, area development districts and bus systems
- 3. If it’s our money, it’s our business.
- 4. “Ghost government” • In 2012, State Auditor Adam Edelen es&mated that $2.7 billion passed through Kentucky’s quasi-‐ public agencies every year, oUen with liVle oversight by elected poli&cians or the news media in their communi&es.
- 5. “Ghost government” • The governing boards at these agencies do not always comply with ethics rules, spend money wisely, conduct independent financial audits, keep a proper budget or welcome scru&ny. Photo: Tax Credits
- 6. Finding my local quasis • Database at Kentucky state auditor’s website lets you check for them by county: hVp://apps.auditor.ky.gov/public/theregistry/ cai.html • Also, think about your community and your news coverage. Who runs public housing in your town? The bus system? The Head Start program for toddlers? The industrial park? The volunteer fire departments? The library?
- 7. Owsley County, Ky. • Booneville/Owsley Fire District, Island City Fire District, Vincent Fire District, Owsley County Extension Service, Owsley County Public Library, Owsley County Health Department, Owsley County Soil & Water Conserva&on District, Pine Ridge Industrial Authority, Owsley County Ac&on Team
- 9. Lexington Public Library • $134,000 in credit card spending by library CEO and $350,000 in credit card spending by others at library at CEO’s direc&on • Paid $3 million for a $1 million parking garage • Red flags were raised by auditors and chief financial officer, all of whom were ousted • AUer our stories published, new spending controls enacted, CEO fired and Lexington mayor replaced library board members
- 10. What tools can I use? • Open Records/Open Mee&ngs laws • Guidestar.org • hVp:// www.ci&zenaudit.org/ • Lawsuits • Human sources
- 11. Open Records and Mee&ngs • Ky Open Records Act covers an agency if it gets at least 25% of its funds from state or local gov’t; or if it’s created by state or local law; or a majority of its board is appointed by a public en&ty. • Ky Open Mee&ngs Act covers an agency if it’s created by state or local law; or established by state or local gov’t; or a majority of its board is appointed by a public en&ty.
- 12. What records do I request • Budgets (including supplementary material) • Audits (and there had beVer be audits) • Mee&ng minutes of governing board (don’t forget special commiVees if there are any) • Also could be useful: contracts, wriVen and electronic correspondence (but be specific), payroll database, spending records about your agency from the government that funds it
- 13. Guidestar.org
- 14. Lawsuits
- 15. Human sources • Execu&ves in charge, board leaders, the agency’s aVorneys • Find the maverick -‐ the one clear-‐eyed board member who demanded more informa&on or the chief financial officer or auditor who was fired for asking too many ques&ons • Employees (past and present) and clients • Officials at the government that funds it
- 16. What am I looking for? • How does it spend its money? Excessive pay at the top? Poverty wages at the boVom? Big credit card bills for travel, meals and giUs? Costly real estate? Inside deals? Nepo&sm? Poor management that leads to deficits? • How does it do its job? Are the community and its client base sa&sfied? Is it rated well by any oversight agency responsible for that?