Lawsuit claims Iowa governor illegally transferred state funds

State Representative Chris Hall filed a lawsuit today, charging Governor Kim Reynolds and Department of Management Director David Roederer “conspired together to unlawfully appropriate and misuse state funds.” The ranking Democrat on the Iowa House Appropriations Committee is seeking to void “all actions taken as a result of the unlawful Official Proclamation signed on September 28, 2017,” which transferred $13 million from the Iowa Economic Emergency Fund.

That order allowed Reynolds to cover a projected budget shortfall at the end of fiscal year 2017 without calling a special legislative session. But State Treasurer Michael Fitzgerald warned the governor that the planned transfer “would not be in compliance with Iowa law.” Hall’s petition, enclosed in full below, points to the same Iowa Code provision Fitzgerald cited in his letter to the governor.

The court filing alleges that Reynolds and Roederer “unlawfully transferred money” to balance the budget because calling lawmakers back to address the shortfall “would have created a political problem” for the governor, “drawing attention to her inability to adequately manage the State’s fiscal affairs.” Hall’s lawsuit notes Iowa law

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