ALBUQUERQUE, N.M. (KRQE) – A new Office of the Inspector General report alleges that the city paid out federal COVID-19 relief money to high-ranking city employees instead of childcare providers that it was meant for. The bonuses range from $4,000 to $22,000.
In 2021, the Federal Government signed the American Rescue Plan Act (ARPA) aimed at assisting local governments during the COVID-19 pandemic. The city of Albuquerque applied for funding through a series of 21 grants filed to the ECECD for approval of the funds. The OIG report states that the grants were completed by a division manager on behalf of 21 different site managers.
The funding, per the OIG findings, was meant to be paid out to providers and other teachers as a means of retention and “designed to stabilize existing childcare businesses”. In 2022, then city councilors approved the grants and the funding that was approved by the state.
In total, $287,972.77 was distributed to 27 city employees that the report alleges, a majority worked outside the Family and Community Development Department, which oversees childcare in the city. According to the report, pay ranges for preschool are $32,469 to $42,162 annually. The report goes on to say that the pay ranges for the recipients of the “premium payments” range from $32,468.80 to $123,489.60. The bonuses were $3,878.99 to $22,498.03, with the highest payments given to office assistants, fiscal analysts, a fiscal manager, facilities operations coordinator, and a Child & Family Development Division manager.
In employee interviews during the inspector general’s investigation, employees stated the bonuses were for recruitment and retention, and couldn’t give a formula of how they decide how much to pay each employee or who would get a bonus.
In response to the OIG report, the city mentions they will reevaluate funding applications in the future, and who is eligible for them, but does standby the payments saying the grant was
“to compensate employees performing essential work during the Covid-19 public health emergency”
The Keller administration goes on to say “once again the OIG is submitting subjective opinions that were unanimously rejected by her own oversight committee.” The oversight committee says they didn’t approve the report because they found the OIG lacked sufficient jurisdiction to investigate some of the allegations.
City Council President Dan Lewis issued a statement in response to the report saying:
My office is referring this investigation to the U.S. Attorney due to allegations of federal crimes involving the abuse, misuse, and theft of federal funds allocated to high-ranking members of the Keller administration. These funds, approved by the Council, were intended exclusively for early childhood programs as outlined in the grant’s description. However, they appear to have been unlawfully redirected as cash bonuses for the Mayor’s staff.
Albuquerque City Council President Dan Lewis
Associate Chief Administrative Officer with the city, Carla Martinez released this statement:
Once again the OIG is submitting subjective opinions that were unanimously rejected by her own oversight committee comprised of legal and accounting professionals. This grant provided necessary overtime funding for critical early childhood caregiver programs and management during the Covid crisis.
Carla Martinez, CABQ Associate Chief Administrative Officer
A spokesperson in the Mayor’s Office responded to President Lewis:
Dan’s comments are at best, a grossly inaccurate overreaction; and worst another in a long line of bitter rants against the Administration since losing his own election bid.