A fraud investigation into the King County Department of Community and Human Services (DCHS) has prompted concerns about the handling of taxpayer funds. Councilmember Pete Dembowski discussed the issues on KIRO Newsradio’s The Gee Scott and Ursula Reutin Show, citing a pattern of ignored warnings and a lack of accountability.

Auditor's Warnings Ignored

Dembowski explained that the county’s independent auditor identified significant problems with the department a couple of years ago and issued a detailed report. Despite these findings, no action was taken to address the concerns. The auditor subsequently sent a follow-up letter that Dembowski described as unusually alarming.

“It was a letter, in my time on council, like I’ve never seen,” Dembowski stated. “She was raising serious red flags about problems with the program, problems with some of the grant recipients. And then the lack of accountability and action, and that’s generated some responses, including legislative and others.”

Fraudulent Activity Uncovered

The investigation revealed that DCHS disregarded multiple warnings regarding contractors misusing tax dollars. Internal complaints, anonymous tips, and employee concerns about potential fraud were reportedly overlooked. Despite these red flags, the department continued to pay out hundreds of thousands of dollars to contractors who, in some instances, could not demonstrate completed work or account for the funds received.

In one instance, a county employee who raised concerns about potential fraud claimed to have been fired shortly after. This prompted KIRO host Ursula Reutin to question, “How is it that a department that gets that much money has zero accountability?”

Impact on Best Starts for Kids Program

Dembowski acknowledged the issues but stated, “I don’t think there is zero accountability. There clearly have been some very serious missteps, and we can look at what caused that.” He expressed regret that the scandal is overshadowing the positive work of the Best Starts for Kids program.

“It’s really a tremendous program. And one of the sad things about this is a lot of the good work that I think they do for young people, infants, children, young adults, is being seriously tarnished,” he said.

Program Details and Funding

Best Starts for Kids, a $880 million, six-year program currently in its second renewal, aims to improve outcomes for children and families. The program funds initiatives like school health clinics and support for new mothers, with the goal of reducing involvement in the criminal justice system. As Dembowski explained, “The whole purpose of this program…is to get kids off to a better start so they don’t show up at the other stuff we do at the county, the sheriff, the prosecutor, the jail, and all of the costs that go with that.”

Looking Ahead

King County is expecting a report from a private accounting firm hired to review the program’s contracts. Dembowski believes this report will be crucial in pursuing further action. “I think it can serve as the basis to take the next steps in terms of civil recoveries and perhaps even criminal cases,” he said.

Systemic Issues and Contributing Factors

Dembowski attributed the problems to a combination of incompetence and systemic issues. He noted that the department was overwhelmed with billions of dollars in federal funding during the COVID-19 pandemic, alongside the implementation of the revised Best Starts for Kids program. This influx of funds, coupled with staff turnover and leadership changes, created challenges. However, he emphasized that these factors do not excuse the misuse of funds. “There is definitely some incompetence, and there are definitely components of a broken system,” Dembowski responded. “A broken system…We put a lot of money, $1.8 billion, it kind of doubled in two years, and they didn’t keep up.”