Case Study: County and Foundation Boards
Here's an interesting case study from Council Bluffs, IA.
According to <a href="http://www.southwestiowanews.com/site/news.cfm?newsid=20234973&BRD=2703…; target="”_blank”">an
article in yesterday's </a><span><a href="http://www.southwestiowanews.com/site/news.cfm?newsid=20234973&BRD=2703…; target="”_blank”">Daily
Nonpareil</a>,</span> 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.<br>
<br>
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.<br>
<br>
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.<br>
<br>
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?<br>
<br>
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?<br>
<br>
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?<br>
<br>
Robert Wechsler<br>
Director of Research-Retired, City Ethics<br>
<br>
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