A simple mistake, not an evil conspiracy, led to $90,000 being earmarked for a private, nonprofit inmate-aid group, legislative leaders said Tuesday.
No disciplinary action will be taken in that matter, said Senate President Lane Beattie, R-West Bountiful.In an unrelated investigation of previous dealings between legislative staffers, former legislators and the nonprofit group known as Exodus, Attorney General Jan Graham says she's turning her office's probe over to an independent agency because of her close working relationship with legislative staffers and leaders.
The two matters - the mix-up in the 1995 budget bill that led to Exodus getting a $90,000 appropriation and the Graham investigation into past actions involving Exodus funding - are separate.
Beattie said a legislative fiscal analyst who handles education funding for the Legislature mistakenly wrote "Exodus" next to the $90,000 appropriation in the rush to finish the huge document.
When the $90,000 misappropriation was discovered Friday, two days after the 1995 Legislature adjourned, some had wondered if legislative staffer Bill Dinehart, who puts together the Corrections Department budget for the Legislature and is an Exodus supporter, had been involved. Dinehart is part of the attorney general's investigation on previous Exodus spending as is former state Sen. Haven Barlow, another Exodus supporter.
"Bill Dinehart had nothing to do with this ($90,000) mistake," said Beattie. "And neither did Haven Barlow."
Beattie explains the events that led to the $90,000 mix-up this way:
Former House Speaker Glen Brown (brother of current House Speaker Mel Brown and an Exodus supporter) was concerned about previous funding mistakes involving Exodus and wanted an open bid process in determining which group would get the $90,000 contract in 1995 to help fight recidivism among released prison inmates.
Glen Brown drafted "legislative intent language" to be placed in the huge budget document, clearly defining the criteria for awarding the competitively bid $90,000 contract, and faxed it to legislative leaders.
The Glen Brown intent language was read into the budget act in the final Feb. 24 meeting of the Executive Appropriations Committee, which puts together the final $4.9 billion state budget.
After that vote, the Legislature's budget staff sat down to work out specific budget line items. About $1.9 million was lumped into education programs, including recidivism programs, for the prison. Those items are handled by an education fiscal analyst, not Dinehart. The education analyst remembered talk of Exodus from years previously and he mistakenly believed that $90,000 was supposed to be broken out of the $1.9 million and given directly to Exodus.
"It was a mistake, pure and simple," said Beattie. Lawmakers never meant for the $90,000 to go directly to Exodus. "That would violate the state procurement code - we have to put these things out for competitive bid. And we will."
Beattie said he's talked with Gov. Mike Leavitt and Leavitt, through executive power, will lump together all recidivism spending, said Beattie. "He will use our intent language to set up criteria for a competitive bid for the $90,000 recidivism program. Exodus can bid, anyone can bid on it," said Beattie.
Beattie said as far as he's concerned the $90,000 matter is closed.
In a separate matter involving Exodus, a memo drafted by Assistant Attorney General Frank Mylar to Solicitor General Carol Clawson accuses Dinehart and Barlow of trying to put pressure on the Department of Corrections in 1994 to give money previously allocated for inmate recidivism to Exodus.
Barlow hasn't seen the December memo but said the allegations are ridiculous. "I've never discussed Exodus with the prison people," Barlow said. Dinehart also denies any wrongdoing in that matter.
Palmer DePaulis, chief of staff to Graham, said the decision to assign the investigation to another entity was based on the appearance of conflict of interest. Dinehart also prepares for the Legislature the annual budget for Grahams' office.
DePaulis also acknowledged there could be political fallout if Graham, a Democrat, investigated Barlow, one of the most beloved Republican lawmakers in the state. "I understand he is known and loved, and Bill Dinehart being in the thick of things, too, we decided to send the case out," he said.
Exactly who will investigate the matter has not yet been determined. It will probably be the Salt Lake district attorney's office or another county attorney with investigatory authority. A decision will likely be made by the end of the week.
Staff writers Jerry Spangler and Amy Donaldson contributed to this story.