Orlando Sentinel (Florida) - by Jim Stratton

Since 2005, the partnership between Workforce Central Florida, the region's taxpayer-funded, nonprofit jobs agency, and the Orlando Regional Chamber of Commerce has proved to be quite lucrative — for the chamber.

Workforce has given chamber-related groups more than $300,000 over that time, possibly in violation of federal rules and, in one instance, skirting a state directive.

The money went to a series of chamber projects designed to promote the Central Florida business community. On several initiatives, Workforce was a major contributor, providing more than a quarter of all sponsorship money.

Workforce justified the payments as "public outreach," but it's not clear the payments met federal requirements. Those regulations forbid spending federal grant money on certain "public relations" costs, including some "meetings, conventions, convocations, or other events."

Workforce's new leadership is particularly concerned that a $50,000 payment made last year might have been designed to circumvent state instructions. Rather than make a single payment to the chamber, as was typical, Workforce processed the expense as 13 separate items, each one less than $5,000.

That's noteworthy because when the payments were made — between April and June of 2011 — Workforce was under orders to seek state review of any non-payroll expenses of more than $5,000.

Workforce Vice Chairman Thomas Katheder said the incident "appears very troubling." Katheder is part of a new board appointed in October after allegations of mismanagement shook the agency.

Last year's payments have been referred to a state inspector general, said Workforce interim Executive Director Kevin Neal. State officials will determine if a formal investigation is needed. In Tallahassee, a spokesman for the Department of Economic Opportunity confirmed that state officials are concerned Workforce may have structured the payments to escape state review.

Former Workforce Chairman Lawrence Haber — forced out when Gov. Rick Scott demanded a change in agency leadership — would not comment on any of the payments.

Jacob Stuart, president of the Central Florida Partnership, the chamber's parent organization, did not respond to a series of questions about Workforce payments. But in an email to chamber officials last week, Stuart praised past collaboration between his organization and Workforce.

The partnership, he wrote, "has been open for everyone to see" and "enthusiastically encouraged by me, our Management Team and by our Volunteer Leaders."

The collaboration goes back at least seven years and reflects Workforce Central Florida's goal of supporting area businesses. Though best known as a jobs agency, it has for years considered the business community its primary client.

To that end, it became a heavy sponsor of chamber-led projects. Its payments include:

• $30,000 total for Hispanic Summits staged in 2005, 2006 and 2007.
• $100,000 for two Small Business Summits.
• $75,000 for the Business Innovation and Growth summit in 2010.
• $50,000 to a chamber-led group called the Central Florida Coalition for Growth & Prosperity.

All told, Workforce gave the chamber about $310,000 over seven years. The chamber refunded $50,000 when one event was rescheduled.

Records show Workforce officials approved the expenditures as "public outreach." But the direct benefits focused more on raising Workforce's profile.

Records show its sponsorship money, for example, allowed it to hang banners at the events, have its logo printed on event material or secure exhibit space. Workforce also received free tickets worth as much as $10,000 for one event.

New Workforce board members recently questioned the sponsorships, saying they want to spend on programs that more directly help the unemployed. Last week, Orange County Mayor Teresa Jacobs voiced similar concerns. Jacobs is part of a consortium of elected officials that oversees the Workforce board.

"I'm pretty skeptical," Jacobs said. "I think there's probably a better way to use that money."

New Workforce officials say they're not sure if the previous chamber payments were permissible. Federal regulations give workforce agencies wide discretion on spending, but they prohibit some types of advertising and public relations.

Workforce attorney Skip Sell would not discuss the payments in detail, but he said he thought they were permitted as "outreach." Neal said he needed to more fully research the payments before expressing an opinion.

Last year's $50,000 payment faces particular scrutiny — and not just because Workforce made installment payments.

The money, paid in the midst of the agency's ridiculed campaign to give superhero capes to the unemployed, financed the chamber-led effort called the Central Florida Coalition for Growth & Prosperity.

The coalition includes builders groups, Orlando Realtors, the Florida Banking Association and the Metro Orlando Economic Development Commission. It was created "to address barriers hindering the region's economic recovery," with goals that included identifying and eliminating "current regulatory and economic barriers" to business.

That sounds like a political agenda, said former Workforce board member Larry Kidd, because the goals echo the talking points of Scott. In fact, the group's original slogan — "Let's get to work" — was the same one Scott used on the campaign trail.

Kidd said it's fine if private business groups want to bankroll such an effort. But Workforce is funded with tax money — more than $100 million in the past five years — and must steer clear of politics, he said.

"There's absolutely a political aspect to what the chamber does," said Kidd, who represented organized labor when he served on the board. "Workforce shouldn't be involved in that."