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.

“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.