Hearing Held To Investigate Whether Kansas Nonprofit Used Political Ties to Gov. Sebelius to Secure Funding
The Topeka Star reports thatKansas lawmakers want to know whether a Johnson County nonprofit used itspolitical connections to Gov. Kathleen Sebelius to get a special fundingincrease last fall. Lenexa-based Community Living Opportunities wasawarded nearly $713,000 in extra Medicaid funds. The group serves developmentallydisabled Kansans, primarily in Johnson and Douglas counties. At the time,the agency’s board of directors included Kansas Democratic Party Chairman LarryGates, a Sebelius confidant, and his former law partner, Dan Biles, whomSebelius appointed to the state Supreme Court this year. Lew Perkins, theUniversity of Kansas athletic director, also serves on the board. Biles hassince stepped down from the board. The allegations come as Sebelius, aDemocrat, awaits U.S. Senate confirmation to lead the U.S. Department of Healthand Human Services, which administers Medicaid.
A hearing was held on Wednesday, but neither Sebelius nor Gatesattended. Sebelius has said she had nothing to do with the fundingdecision, which was made by Don Jordan, her secretary of social andrehabilitation services. Gates also has denied speaking to Sebelius about thefunding request.
At the hearing, other service providers maintained that the state toldthem no extra funding was available. They told lawmakers that Community LivingOpportunities was allowed to skip the usual process of requesting extra funds,which involves going before a local agency that oversees such requests. The extra funds Community Living received went to pay staffers who workdirectly with 43 of its 350 clients with disabilities deemed severe enough towarrant higher payments. Jordan told lawmakers Wednesday that givingCommunity Living the extra funds was “an extremely challenging decision.” Hesaid he concluded that the agency’s clients deserved the funding. “I believe Idid the right thing,” he told lawmakers.
Typically, groups such as Community Living go before a local entity —a Community Developmental Disability Organization — that has been designated bythe state to oversee extra funding requests. In most cases, however, the“gatekeeper” is itself a competing service provider. However, CommunityLiving’s requests for extra funds had been denied in the past by the localgatekeeper, the county-run Johnson County Developmental Supports. “It’sthe reason we felt we had to go to SRS (Social and Rehabilitation Services),”said Community Living’s senior administrator, Stephanie Wilson. She saidCommunity Living serves those with severe disabilities who require more costlyservices. Yet at the same time Community Living petitioned the state, itwas developing a 40-acre ranch in Douglas County for use as a therapeuticequestrian and activity center for its clients. The property cost $400,000,Community Living executives told lawmakers Wednesday. A home, stable, andswimming pool have been built.
No additional hearings are scheduled, but an investigation bylegislative auditors has been requested. Jordan also has asked for anexternal review to validate his decision, which should be completed in May.
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