Gogebic County, Ironwood disagree on veterans' payment

BESSEMER — A question of whether or not to allot funds to the Gogebic County Council of Veterans Affairs has created a difference of opinions among governmental entities in Gogebic County.

The issue was discussed at the March 27 meeting of the Gogebic County Board of Commissioners and has been scheduled for the next meeting’s agenda, as well.

The commissioners’ discussion arose after learning that the city of Ironwood had informed the CVA that it will not pay its current requested allotment of $8,517.

The 2024 budget for the CVA is $67,752, with half of that requested from Gogebic County and the remaining requests based on pro-rated determinations, per population, for the county’s other, smaller governmental entities.

John Frello, county veterans affairs officer, told the commissioners that his office was incorporated in 1986 and that such donations from local governmental units have occurred ever since then.

Although Ironwood has issued such allotments over the years, its city manager, Paul Anderson, sent a letter dated March 19 to Frello, explaining why it intends to cease doing so.

Anderson quoted a Michigan Municipal League fact sheet that states: “MCL 117.3 indicates that the charters of home rule cities shall provide for the public peace, health and safety of persons and property. Specifically, a home rule city may contract with a private organization or another governmental unit for services considered necessary by the legislative body.”

He also provided an excerpt from the Michigan Department of Treasury Audit Manual for Local Units of Government, Appendix II, under the section “Restrictions on Local Government Expenditures,” No. 1. “Charitable Donations to Non-Profit Organizations.”

The excerpt is as follows: “Unless the payment is in exchange for the provision of a governmental service that the local unit could have provided itself, this is not a valid public purpose. In general, such expenditures should be documented through a written agreement. This prohibition includes churches, veterans’ organizations, community organizations, Little League, Boy Scouts, Big Brothers/Big Sisters, etc.”

Anderson wrote, “Based on this language, our city attorney has opined that the city of Ironwood is prohibited from providing funding to the attached request.”

He added, “Therefore, we are sorry to share with you that we will not be able to fund this request. We wish you success in your continued efforts for your organization.”

In turn, Gogebic County Board Chairman James Lorenson requested an opinion from County Prosecutor Nicholas Jacobs, who also responded in a letter dated Monday.

Jacobs quotes MCL 35.11 from the state legislature as follows: “Whenever any local council of veterans’ affairs has been or shall be established in any county, city, village or township, or jointly, the legislative body of any such county, city, village or township is hereby authorized to appropriate, from time to time, such sums of money as it may determine, for the operation of any such local council of veterans’ affair.”

Moreover, said Jacobs, “Of equal note: the city of Ironwood has more than its fair share of disabled vets directly benefitting from the CVA.”

In general he said, “Last year over $46,000 was expended to county veterans for things like food, utilities, dental and other necessities.” He said the CVA also coordinates a Disabled Veterans Americans transportation program, which coordinates free transportation to medical appointments for veterans.

Jacobs said the CVA also helps veterans to receive substantial sums in relation to governmental benefits to which they are entitled.

He said, “the city of Ironwood has the legal authority to make the requested appropriation for the benefit of the CVA for FY 2024 and hereafter.”

Jacobs specifically recommended a written memorandum of understanding be developed between the CVA and contributing municipalities in order to formalize such arrangements hereon.

During last week’s meeting, Lorenson said the county will take the lead on addressing the issue and added that the county will pay Ironwood’s allotment to the CVA, if needed.

“We’re not going to accept the loss of veterans’ services in Gogebic County, period,” he said.

He requested that issue be placed on commission’s next agenda and requested Frello attend.

Lorenson said the services of Frello’s office as “outstanding.”

Larry Grimsby of Erwin Township also addressed the board as the chairman of the Gogebic County Chapter of the Michigan Townships Association.

Grimsby said the issue had been the main topic of conversation at the March 26 GCMTA meeting.

He claimed that state legislation allows for governments to donate to nonprofits/charities if it results in equalized service, as he claims is the case here.

He added that Erwin Township, for which he serves as supervisor, provides a donation to its historical society with the same expectation of equalized service.

“The rule of thumb on supporting these nonprofits is do you get equal service for these allotments?” he said.

Grimsby also said the CVA staff is “exceptional.”

Both Lorenson and Anderson addressed the issue again by phone on Tuesday.

Lorenson said local entities have paid their allotments for the past four decades.

“No one’s had a problem with auditors, and no one in Gogebic County has had an issue with it,” he said, adding of Ironwood’s decision, “It just seems odd.”

He reiterated the county’s position. “The county board was very definitive,” said Lorenson. “We’re not going to allow a reduction of services for veterans.”

Anderson told The Globe that Ironwood’s decision was based on prior scrutiny of the situation.

“Our finance director (Paul Linn) and attorney (Timothy Dean) reviewed it and decided it was not an appropriate expense.”

When asked whether the Ironwood City Commission will address the issue, he said he did not know.

“Obviously, it’s a delicate issue, and we’ll have to work through it,” said Anderson.

In acknowledging the county’s desire to do right by veterans, he added, “So do we.”