In giving unanimous approval Tuesday to an eight-page resolution to repay the state $1.24 million in expended federal pandemic relief funding for workforce training that had been funneled through the Pikes Peak Workforce Center to a now-defunct nonprofit, the five-member board of El Paso County commissioners said the decision will remedy part of an unintended consequence of a complex situation.<\/p>\n
Some on the dais said they felt like they had no choice.<\/p>\n
\u201cI supported the organization, I felt it was a worthy program. I am disappointed the state is holding me hostage, which I feel like they\u2019re doing today,\u201d said Commissioner Holly Williams.<\/p>\n
The issue began in 2023 when the workforce center, which serves El Paso and Teller counties, awarded federal money to a sole qualifying applicant, Colorado Springs Community Cultural Collective, to a request for proposals for innovation grants.<\/p>\n
The organization said it would create and offer courses that would lead to employment in media, culinary arts and early childhood education jobs.<\/p>\n
The training programs were successful after launching, said Linda Weise, the organization\u2019s founder and CEO.<\/p>\n
With 89% placement and retention in restaurants and hotels, Weise contends that the education helped many people redirect their professional lives as the pandemic waylaid workers.<\/p>\n
But some involved with the program, which operated under the name Opus Creative Industries, filed complaints with the state about slow payment, program disruptions and other concerns.<\/p>\n
The Colorado Department of Labor and Employment conducted a routine monitoring audit of fiscal year 2023 and released the results in December 2024.<\/p>\n
Findings included spending on disallowed costs, reporting delays, incomplete accounting, nondisclosure that former Workforce Center CEO and Executive Director Tracy Marques was a board member of the collective in 2024 and other flagged discrepancies that the state said proved the organization did not meet conditions of the federal grant.<\/p>\n
\u201cThe PPWFC did not adequately oversee the activities of the CSCCC, which led to issues with noncompliance with grant regulations, improper use of funds and poor project management. Furthermore, these issues led to questioned costs,\u201d audit documentation states.<\/p>\n
The program paid out $1.68 million from February 2023 through Dec. 19, 2024, before the state halted grant money reimbursements, which meant the organization could not make payroll and was forced to close April 1, 2025, according to Weise.<\/p>\n
Both the workforce center and Weise contested the audit results, saying expenses were properly vetted and approved before reimbursements were made and that the state changed some of the requirements after the grant began.<\/p>\n
They also asserted that the state was unwilling to accept further documentation that supported their claims. <\/p>\n
The workforce center sought to appeal the state\u2019s determinations but was denied that request.<\/p>\n
Because Weise did not fulfill the state\u2019s demand for repayment, the state placed liability on El Paso County.<\/p>\n
The state notified the county on July 2 that it would enact the \u201cvendor offset system,\u201d a legal tool Colorado uses primarily against businesses and individuals, to collect past-due debts by intercepting incoming payments for goods or services provided.<\/p>\n
For the county in this instance, that means other state grant funding that was earmarked for human services and public safety services.<\/p>\n
Some commissioners said they weren\u2019t happy about the odd domino effect that has produced adverse consequences for local entities that had nothing to do with the issue.<\/p>\n
\u201cThis is a choice that the county is needing to make because of the lack of grant compliance that is evidenced through the audit and also because the state has chosen to use the vendor offset system to withhold other funds,\u201d said Board Chair Carrie Geitner. \u201cI\u2019m very disappointed. That is a very difficult situation for us to intervene.\u201d<\/p>\n
Though Geitner said she has \u201cno condemnation for the state for choosing this system that we don\u2019t believe is a misuse, it\u2019s very difficult to fight back.\u201d<\/p>\n
No matter Tuesday\u2019s decision, \u201cThe state is already taking the money; this is a way to proceed to protect the county,\u201d she said.<\/p>\n
By the time the problem is fully resolved, \u201cthe state will have already taken more money \u2014 or the entire amount \u2014 before we can legally fight that,\u201d Geitner added.<\/p>\n
Insurance to pick up the tab<\/p>\n
Nearly a year ago, the Pikes Peak Workforce Center filed a lawsuit in Denver District Court against the Colorado Department of Labor and Employment and the Colorado Department of Personnel and Administration, contesting the state\u2019s mandate for restitution.<\/p>\n
While recent court documents show the case appeared to be headed toward a settlement agreement, the outcome of the lawsuit remains pending, Geitner said after Tuesday\u2019s commissioners\u2019 meeting. She said she could not comment further on the litigation.<\/p>\n
On April 7, the parties told the court they have continued to discuss settlement terms \u2026 and \u201cdiscussions have continued to progress toward a potential resolution.\u201d<\/p>\n
A finalized settlement had not been reached as of May 22, and on July 7, the state agencies made a motion to dismiss the case based on the complaint asserting claims or seeking remedies that were not raised in the workforce center\u2019s original protest.<\/p>\n
When asked about the situation, Gov. Jared Polis\u2019s office said he also does not comment on active litigation.<\/p>\n
A spokesperson for the Governor\u2019s Office said the funding at issue includes mostly federal refinanced funds, and the state is committed to ensuring all awarded federal grant funding is spent within federal spending guidelines and will hold any grantee responsible for disallowed costs.<\/p>\n
As to an accusation from Weise that the state is engaging in a \u201cmoney grab\u201d to help offset its budget problems, Polis said he was \u201cproud to sign a balanced \u201cfor fiscal year 2026-27 and \u201cany suggestion that this is related to the state\u2019s budget is inaccurate.\u201d<\/p>\n
El Paso County Commissioner Lauren Nelson said the $1.4 million in reimbursement to the state will not be taxpayer dollars but rather come from the self-insurance fund the county holds.<\/p>\n
Weise denies the claims against her and her organization.<\/p>\n
\u201cThere\u2019s no judicial finding that there was any misuse or abuse of funds or wrongdoing of any type other than through this sham audit that the Colorado Department of Labor and Employment would not let us appeal or provide documentation to refute,\u201d said Leslie Weise, Linda\u2019s sister who is an attorney in Colorado.<\/p>\n
\u201cThe Colorado Department of Labor and Employment was the auditor, prosecutor, judge and collector over federal funds.\u201d<\/p>\n
She believes the state has no grounds to recall the expended funds and that \u201cfederal accounting rules do not require what the state is imposing retroactively.\u201d<\/p>\n
The Pikes Peak Workforce Center was considering challenging the state\u2019s legal authority to do so, according to emails Linda and Leslie Weise obtained through open-records requests.<\/p>\n
Traci Marques, who had been executive director and CEO of Pikes Peak Workforce Center for 14 years before abruptly departing her position in mid-June, was arguing for the county to fight the state and officials appeared to be leaning in that direction, their communication suggests.<\/p>\n
There was no severance paid out to Marques, according to a Gazette records request.<\/p>\n
Geitner said in a post-meeting interview that based on the issues of oversight and accountability that surfaced in the audit, the workforce center\u2019s leadership is being reconfigured to work in conjunction with economic development.<\/p>\n
Weise is still facing challenges. The county indicated on Tuesday it would pursue restitution from her of the $1.24 million.<\/p>\n
Though Weise\u2019s organization has been shuttered for more than a year, Geitner said the organization\u2019s insurance would still cover the period of time the Opus workforce development program operated, from February 2023 until Dec. 20, 2024.<\/p>\n
Weise remains involved in another lawsuit for nonpayment of $182 to a part-time contractor who provided events support for a different project her organization headed, a proposed redesign of the City Auditorium. Fines accumulated have pushed the total owed into thousands of dollars, which Weise is challenging in Denver District Court.<\/p>\n
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