If there was ever a wake-up call for local government, this is it.
In a disturbing report released Tuesday, the King County Auditor determined that grant funding from the county’s Department of Community and Human Services ballooned from $22 million in 2019-2020 to more than $1.5 billion in 2023-2024.
Along with that massive growth, the auditor discovered improper payments, including potential fraud, across multiple contracts.
It was a devastating portrait of an administration in free fall, all against the backdrop of the election of a new King County executive this fall.
Change can’t come fast enough.
First, let’s compare the $1.5 billion in social service spending examined by the auditor with a recently enacted 0.1% sales tax increase. The Metropolitan King County Council passed the new regressive tax last month because budget shortfalls had put sheriff deputies and prosecutors at risk.
This is the way of local governments around here: Basic functions go hungry while the funding of community groups continues at such a reckless pace no one can properly keep track of the dollars.
Among the report’s findings: Auditors determined DCHS made improper payments with little oversight. DCHS conducted fiscal site visits to only 2% of grantees in 2022 and 1% in 2023. The department’s own standards called for meeting 33% of grant recipients to ensure they complied with county rules.
“According to interviews with management-level staff, DCHS culture may signal that relationships (with grantees) are more important than accountability,” wrote auditors. “The DCHS staff we interviewed rarely expressed concern about fraud risk.”
One organization spent at least $439,000 on subcontractors despite its budget allocating subcontractor payments of only $63,000. Another organization submitted an expense report that likely includes $10,000 in duplicate expenses due to four $2,500 checks being recorded twice.
And it goes on.
What was the reaction from council members during the briefing?
Unbelievably, several expressed concern — for those taking the public’s money.
Councilmember Teresa Mosqueda chided auditors presenting their report for using the term “high risk” to describe organizations with little experience and limited capability to properly manage government grants.
“The title of ‘high risk’ is not necessarily appropriate,” she said, preferring instead the terms “initial investments” or “seed capacity.”
Councilmember Sarah Perry wondered how the county could help organizations “we have in some way harmed … so they are not penalized by our lack of attention.”
Say what? Who is protecting taxpayer interests here?
Governing is hard work. Administering public funds is hard work. Nonetheless, if it wasn’t for the fact that the King County Executive’s Office is running on fumes in the dying days of former Executive Dow Constantine’s fourth — fourth! — term of office, someone should lose their job or have the decency to resign.
As it is, Constantine decamped for Sound Transit earlier this year and it’s time to focus on the future.
Both candidates now running for executive heard the auditor’s report.
Councilmember Girmay Zahilay asked how fast DCHS could implement the auditor’s recommendations. He offered no reaction when told key changes may not be made until 2027. That is simply an embrace of the status quo.
Taking a different tack was Councilmember Claudia Balducci, his opponent in November.
“We’re talking today about basic financial management. And when we don’t provide basic financial management internally and with our community partners, money is wasted. And that is just unacceptable,” she said.
Noting the rather subdued response by her council colleagues during the auditor’s briefing, Balducci added:
“One of the things I love most about this government is we’re a very low drama government here. I’ve been listening to this whole conversation — the questions, the answers, the community — it’s all been very professional.
“But make no mistake, this is a damning audit. And we need to take it that way, and we need to make sure that we are on top of doing something about it, understanding the full extent of challenges and fixing them.”
Balducci earned The Times editorial board’s endorsement for a reason.
King County voters, choose wisely.
