Nearly a year after word began to surface that the California Department of Parks and Recreation might be sitting on millions of dollars in hidden money, it looks like a criminal prosecution is not in the immediate offing.

The Sacramento County District Attorney’s office announced Thursday that it would not be going after any bad guys because the case turned over to it by the state attorney general did not identify any broken laws or possible criminal targets. “It is thus unclear why the matter has been referred to our office at all,” the district attorney wrote in a letter that kicked the hot potato back to the attorney general.

This is how the case came to be referred to the D.A..

Heads rolled last year after it was revealed that the Parks Department had $54 million hidden in two funds while the cash-strapped state scrambled to avoid closing 70 parks in the summer. 

Director Ruth Coleman, who said she knew nothing of the scandal, resigned and two key deputies were implicated. As speculation grew about who knew what, and when did they know it, questions of criminal culpability were raised. Eventually, most of the money was found to be legitimately accounted for, leaving $20 million in secret cash.

Governor Jerry Brown asked the attorney general’s office to investigate. It is not unusual for the office to pursue cases that potentially involve senior department officials.

The attorney general conducted an “administrative” investigation, which, according to the Sacramento Bee, is a limited probe that doesn’t lay the groundwork for a criminal proceeding. For instance, interviews with current and former employees do not include certain legal warnings, and some people were promised immunity from prosecution for providing information. Coleman refused to talk to investigators.

It was determined that no one had stolen or improperly tapped the hidden money. Its origins were still murky—possibly amassed during a lengthy and confusing reorganization years before—and way too many people knew the funds should be revealed but did nothing about it. Part of the motivation behind the secrecy seemed to be a desire to keep a possible rainy-day fund alive.

That didn’t assuage some of the department’s more vocal critics, including groups and individuals that had donated money to the department in a desperate bid to keep parks open during the economic downturn and budget crunch. Some wanted their money back; others wanted responsible parties brought to justice.

Instead of making the call itself on whether to prosecute, the attorney general’s office turned to the Natural Resources Agency, parent of the Parks Department, for guidance on whether to turn the matter over to local law enforcement. Former Department of Finance Director Mike Genest told the Bee, “Usually that decision goes the other way.”

It was determined that local law enforcement was the way to go, and the district attorney was given the case. But it didn’t take long for the D.A. to assess the situation and bounce the case right back to the attorney general.

–Ken Broder

To Learn More:

District Attorney Won’t Investigate California Parks Scandal (by Matt Weiser, Sacramento Bee)

Sacramento D.A. Rejects Case Against State Parks Department (by Chris Megerian, Los Angeles Times)

California Parks Officials Knowingly Kept $20 Million Hidden, Probe Finds (by Matt Weiser and Jon Ortiz, Sacramento Bee)

Final Report: Parks Department Hid Millions after Error Mushroomed (by Ken Broder, AllGov California)