Vilsack taps business executive to fill open board spot
January 28, 2005
Mid-America Group President and chief operating officer Teresa Wahlert has been named by Gov. Tom Vilsack to replace John Forsyth on the Board of Regents.
Forsyth — former board president — resigned Jan. 20 from the board along with La Porte City Regent David Neil because of conflicts of interest over the University of Iowa’s contract with Wellmark Inc.
Wahlert said Vilsack made the announcement at the Iowa Business Council meeting Thursday. However, the governor’s office refused to comment on the appointment. A press release has yet to be issued from the governor confirming the appointment. Yet Wahlert said she was asked by Vilsack to fill the vacated seat on Wednesday — a requested she accepted.
“I will work very hard and I will work to continue the transformational process John Forsyth started,” Wahlert said. “I look forward to the opportunity to continue to furthering of educational excellence and the opportunity to look for ways for education to be more affordable to all Iowans.”
State Republicans have said they are concerned with the condition of the board following the recent shakeup and called for a full disclosure of the reasoning behind the departures.
Some legislators speculate that University of Iowa officials pressured Iowa Attorney General Tom Miller to place further restrictions on Forsyth’s role in the decision-making process concerning the Wellmark contract. Both Miller and University of Iowa spokesman Steve Parrott denied such allegations.
In November, after learning of the possibility that the U of I Hospitals would terminate their contract with Wellmark, he wrote a letter to Iowa Attorney General Tom Miller asking for legal advice and outlining potential conflicts.
Miller said Forsyth could still serve as board president, but added new restrictions to the scope of his duties as president. Miller said he should have no involvement as board president on any university hospital matter “whether Wellmark of not.”
Because of this, Forsyth said the restrictions severely limited the scope of his fiduciary responsibilities as a regent and resigned.
Neil’s and Forsyth’s resignations stemmed from an emergency board meeting Dec. 29 at which the regents voted 5-2 to allow Iowa to have greater discretion in their negotiations with Wellmark.
As a result, the university decided to attempt to renegotiate a different agreement.
Neil stepped down from the Wellmark board to cast a no vote at the December meeting, leaving the regents shortly after.
The contract remains in effect unless U of I officials decide to officially terminate the contract, or do not agree on a new contract by the time it expires Dec. 31, 2006.
For now, Wellmark patients, Iowa State and regents university employees will not see a change in their insurance plan and coverage.
Iowa City Regent and president pro tem Bob Downer will serve in the role of board president until the regents elect someone to fill the rest of Forsyth’s term.
Forsyth was elected president in 2004, with his two-year term ending in April 2006.
The Board of Regents consists of nine members who are appointed by the governor and subject to Senate confirmation. Board members are appointed to staggered six-year terms.
Though saddened by the regents’ departure, many legislators said they are excited by Gartner’s appointment.
Republicans are upset with the departures, but few Iowa senators are raising objections to Des Moines businessman and Iowa Cubs co-owner Michael Gartner’s appointment to the Board of Regents.
Senators said they are expecting overwhelming support for Gartner’s confirmation to one of two openings on the board within the next two weeks.
Gov. Tom Vilsack tapped Gartner to replace La Porte City Regent David Neil, who resigned along with Forsyth over concerns about conflicts of interest involving the University of Iowa’s contract with Wellmark.
“It’s unfortunate they had to step down. They are both great Iowans, and Michael Gartner is an outstanding Iowan and he will do a fantastic job,” said Sen. Michael Connolly, D-Dubuque, Democratic assistant leader in the Senate and co-chairman of the Senate’s Education Committee.
“I expect he’ll get a ringing endorsement.”
Connolly, whose committee will likely examination Gartner’s confirmation, said the committee is likely to send his appointment to the Senate floor for approval soon.
“I think he will sail through the Senate. Most people here hold him in high regard,” he said.
“His work on the Vision Iowa Board was superlative. I can’t think of a better advocate than Michael Gartner.”
Fellow committee members Sens. Jeff Lamberti, R-Ankeny and Herman Quirmbach, D-Ames, voiced similar approval of Gartner.
“In the end, I would be surprised if [his confirmation] didn’t go through with a substantial majority,” said Quirmbach, associate professor of economics.
Quirmbach said he has known Gartner for 10 years, since his time as publisher of The (Ames) Tribune.
Lamberti, Senate co-president, said Vilsack did well to appoint someone who supports Forsyth’s concept of transformation — of using a business-style approach to make the management of the universities more effective.
In his letter to Vilsack, Forsyth requested the governor appoint a business leader saying there’s precedent for this type of transition.
“I’m disappointed we lost someone of the caliber of John Forsyth, but there need to be changes. That will be key in [Vilsack’s] decision of who he selects in addition to Gartner,” Lamberti said.
“We need to continue that process and look at what are the processes of the universities and how we can more effectively and efficiently provide university services.”