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State labor commissioner to leave job in September

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BY NANCY HICKS / Lincoln Journal Star

Friday, Jul 25, 2008 - 05:10:12 pm CDT

State Labor Commissioner Fernando “Butch” Lecuona III will be leaving his job in mid-September after 18 years in state government.

Gov. Dave Heineman announced Lecuona’s resignation in a news release Friday afternoon.

Lecuona will be “pursuing other opportunities,” according to the release.

Story Photo
Fernando "Butch" Lecuona III (Courtesy photo)

“He’s served for 18 years and is ready to move on,” said Terri Johnston, director of administrative services for the department.

Lecuona, 56, was first named labor commissioner in 1997 by then-Gov. Ben Nelson. He was reappointed by former Gov. Mike Johanns and by Heineman.

Lecuona started with the agency in 1991 as deputy commissioner, according to the news release.

Lecuona, who earns about $89,000 a year, manages a state agency with about 470 employees and a $31 million annual budget, 98 percent from federal funds, Johnston said.

Spokeswomen for both the governor and the labor department said his resignation was voluntary had nothing to do with recent financial problems.

It was just a coincidence the resignation comes soon after the news media reported on serious financial problems, said Jen Rae Hein, Heineman’s spokeswoman.

State Auditor Mike Foley reported in early June that the department overspent about $7 million in federal funds over the past few years.

The problem was apparently the result of human error,  complicated by the use of multiple accounting systems, according to a special audit of the department’s federal funds.

The department already had reduced spending to handle at least part of the overspending when the auditor’s report was released.

Lecuona  was the first Nebraska labor commissioner to be elected  president of the State Workforce Agencies, a national organization made up of state workforce administrators.

He also was honored with the organization’s 2006 Eagle Award for efforts to serve workers and employers in the United States, according to the news release.

Since his resignation will not take place until Sept. 12, the governor has plenty of time to find a new commissioner, Hein said.

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.


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New to Lincoln wrote on July 25, 2008 3:37 pm:
" In Nebraska this is probably a $250k per year job and you don't need any experience wait I will take it. "

 Randy Walters wrote on July 25, 2008 6:27 pm:
" Kudos to Gov. Heineman. Unfortunately he had to be the bad guy in this since State Auditor Foley failed to do his job. If there was ever a time when a Nebraska government official needed to be asked to resign or even charged with misuse of state and federal funds it is now. How do you miscalculate $7 million dollars. So many of these appointed and elected government officials feel that they do not have to be accountable to the taxpayers, and we are their private piggy bank. "

 Just a Little Late wrote on July 25, 2008 10:42 pm:
" This comes a little late for some. Had he left earlier some of the innocent people that were laid off would still have a job. "

 Robert wrote on July 25, 2008 11:12 pm:
" Butch Lecuona is a man of integrity who will be greatly missed in state government. You don't serve under 3 governors and not know what you are doing. His experience and contributions to workforce development are deep and wide. The financial woes of the Department of Labor began to be uncovered when Lecuona implemented fiscal review processes. Marti withheld information when the feds began to question inconsistencies in financial reporting, and she misrepresented agency financials. You are only as good as the people you surround yourself with, and that includes the Governor. Leaders all rely upon their advisors to provide them with reliable statistics and information. While the buck stops with Lecuona, and I'm sure he knows it, his misfortune was Kay Marti, who alone is responsible for the impact of this upon Nebraskans and the employees of DOL who have lost their jobs. Lecuona will leave DOL with this issue put to rest. It's a matter of personal conviction for him. None of us are exempt from mistakes, and few of us have the courage to face them head on, even in the line of political fire. "

 Not stupid wrote on July 26, 2008 7:43 am:
" Come on you actually want us to believe this is a "coincidence",how stupid do you actualy think we are? Jen Rae Hein needs to go to for insulting our intelligence with such a comment. "

 John wrote on July 26, 2008 7:52 am:
" The Governor should have fired Lecuona months ago.  Lack of leadership by the Governor in this case. Lecuona was in over his head and did not have the credentials to be Commissioner of Labor. I was surprised the Governor retained Lecuona in the first place.The citizens are lucky Lecuona is leaving before he causes more financial issues. "

 unknown wrote on July 26, 2008 9:34 am:
" I find it interesting that for as many people they have forced out and that have left, almost none of them are in the finance department. I think that this agency just needs to clean house at the top levels. Maybe with Lecuona "leaving", the next commissioner will change the business as usual. That is unless they promote one of the managers from within. "

 State Observer wrote on July 26, 2008 10:49 am:
" I think there are several points that need to be considered regarding the much-publicized financial issues within the Department of Labor.

It cannot be overlooked that the vast majority of funding that supports the Labor agency and the services it provides comes from federal coffers, not state. The federally required process of managing these funds while wedged into an ill conceived, ill constructed, state-mandated financial system (NIS) resulted in blinders for all concerned. Labor accountants missed it. Foley's team of auditors missed it. All responsible parties missed it. In all fairness, if it will be said that Labor accountants were "inept" at their jobs, it must be said that the state auditors equally failed at theirs.

Which now brings us to Commissioner Lecuona's resignation. Although the article clearly states the budget debacle is not the reason for his intent to leave, I think it's safe to assume that because he is the head of the agency and these events occurred on his watch, resigning is the appropriate course of action. That covers the Department of Labor. Done.

For me, the hanging question is: Where's Mikey's? "

 none wrote on July 26, 2008 5:39 pm:
" I still say clean house starting with the emplyees who aren't pulling their weight...There are some slackers at DOL and they know who they are - the ones who can't show up for work on time or show up at all; the ones that extend their lunch and breaks! Come on! And I still don't believe that Marti was the total blame for the finance problems! And please don't tell us that Lecuona is leaving on his own to pursue other things! Hogwash! "

 Mr. Goodsense wrote on July 27, 2008 11:37 pm:
" While your at it, Governor, eliminate the entire department. It's overkill. The U.S. labor standards are enforced at the federal level. Save taxpayer dollars. Do away with the energy and education departments, too. BE CONSERVATIVE! "

 unknown wrote on July 28, 2008 7:13 pm:
" Let's just hope the next Commissioner has more than just a high school education. I question how you can have a job such as this and not have any kind of a college education. "

 Been on the inside wrote on July 29, 2008 9:06 pm:
" This should have happened years ago. Could have saved the DOL alot of money and embarrasment.
Could have saved Gary Hirsch his job as well. ( although I bet he's happy with the million dollars - Thanks Mr. Lecuona!!! "

 Almost been on the inside also wrote on July 30, 2008 2:49 pm:
" "Been on the inside" is absolutely correct - it should have happened years ago! The lack of quality management and the inane programs pushed by management not only resulted in a number of talented and capable employees leaving DOL but led to the current situation. The upside to that is that some of the other State agencies gained from DOLs losses. Management was so interested pusing their own agendas, receipt of awards and personal recognition, that the primary duties of their positions were neglected.

DOL was not "The best run agency in State government".

Mr. Hirsh, enjoy your DOL financed retirement! "

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