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Case Study: County and Foundation Boards
Wednesday, January 7th, 2009
Robert Wechsler
Here's an interesting case study from Council Bluffs, IA.
According to an
article in yesterday's Daily
Nonpareil, there is an issue involving whether a new county
board member who sits on the board of the Iowa West Foundation has a
conflict of interest. The foundation hands out big grants from three local casinos to local
organizations, including the county board.
The foundation says that the county board member must leave Iowa West Foundation board meetings if a grant application from the county board comes up for discussion. Similarly, the county attorney says that the county board member must abstain from county board votes that pertain to the foundation. This is responsible handling of a conflict of interest.
But there's more to it than this. For one thing, as a city council member says, the county is a potential competitor with other grant applicants, including the city, for foundation money. How the county board member deals with competitors' proposals could also be seen as biased.
In addition, the county board member, who intends to serve out his final year on the foundation board, says that he will "look for - and lobby on behalf of - a replacement for his spot on the foundation board." [quoting the journalist, not the board member] Should an elected official be lobbying on behalf of someone who might be seen as having the same bias he now does?
This becomes even more complicated, because nominations for the foundation board come from the Council Bluffs city council, the county board, the Chamber of Commerce, and the school district. As a member of the county board, he could lobby his fellow members relating to a nomination. But which hat would he be wearing when he lobbied the city council, the chamber, the school district, and the foundation itself?
With these extra considerations, I would advise that the new county board member resign from the foundation board, effective upon the selection of a replacement, and that until that time he refrain from participating in the discussion of grants going to any government agencies, and from lobbying anyone other than his fellow county board members. What do you think?
Robert Wechsler
Director of Research-Retired, City Ethics
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The foundation says that the county board member must leave Iowa West Foundation board meetings if a grant application from the county board comes up for discussion. Similarly, the county attorney says that the county board member must abstain from county board votes that pertain to the foundation. This is responsible handling of a conflict of interest.
But there's more to it than this. For one thing, as a city council member says, the county is a potential competitor with other grant applicants, including the city, for foundation money. How the county board member deals with competitors' proposals could also be seen as biased.
In addition, the county board member, who intends to serve out his final year on the foundation board, says that he will "look for - and lobby on behalf of - a replacement for his spot on the foundation board." [quoting the journalist, not the board member] Should an elected official be lobbying on behalf of someone who might be seen as having the same bias he now does?
This becomes even more complicated, because nominations for the foundation board come from the Council Bluffs city council, the county board, the Chamber of Commerce, and the school district. As a member of the county board, he could lobby his fellow members relating to a nomination. But which hat would he be wearing when he lobbied the city council, the chamber, the school district, and the foundation itself?
With these extra considerations, I would advise that the new county board member resign from the foundation board, effective upon the selection of a replacement, and that until that time he refrain from participating in the discussion of grants going to any government agencies, and from lobbying anyone other than his fellow county board members. What do you think?
Robert Wechsler
Director of Research-Retired, City Ethics
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