Nebraska Tourism Commission Suspends Executive Directorer With Pay

Nebraska Tourism Commission Director Kathy McKillip has been suspended with pay in the wake of an audit that found "significant issues" with agency expenditures.

The commission met in an emergency session Friday and voted to suspend McKillip pending the results of an investigation.

Nebraska State Auditor Charlie Janssen released the 79-page audit earlier this month.

It detailed findings that included expensive meals, reimbursement for alcohol and cigarettes, and inadequate record keeping that often left spending unchecked.

The board voted unanimously for the suspension, with the chair abstaining.

McKillip left the meeting without speaking to reporters.

Andy Pollock, of the Nebraska Travel Association called the suspension a step in the right direction, and said McKillip should resign.

"If Kathy has a genuine concern, if she genuinely cares about tourism in Nebraska she'll apologize for the black cloud that she has created for the state and she'll resign," Pollock said.

During the meeting, one person defended McKillip. Hannah Hoch vouched for McKillip’s character and asked the board to stand up to outside pressure.

"Kathy is doing an incredible job. She has done nothing illegal, nothing unethical," Hoch said.

McKillip has previously called the issues mistakes, and said many of the mismanaged funds have been reimbursed.

She also said that the agency is working with the Department of Administrative Services to create a policies and procedures manual.

The board chair had little to say about who would be performing the investigation and how long McKillip's paid leave should be.

"I really cannot go into further detail and discussion because it is a personal issue," Commission Chair John Chapo said.

Commissioners also voted to require board approval for expenditures over $1,000 and involving personal expenses. In one case, the commission paid $44,000 to one speaker and in another reimbursed an employee more than $18,000 to relocate.

"There were errors. The errors have been corrected," McKillip said.

McKillip's salary is $86,000 a year.