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Nearly seven years into his administration, it’s no surprise that Gov. Bobby Jindal (R-Iowa/New Hampshire/Florida—anywhere by Louisiana) would be losing many of his top appointees. After all, the ride is nearly over and they have to be looking for opportunities beyond the inevitable unemployment line once Jindal’s term ends in January of 2016.

A few left early on, barely two years in, causing raised eyebrows among some political observers. Lobbyist Luke Letlow bolted early from his position as Special Assistant and Director of Intergovernmental Affairs as did Ethics Administrator Richard Sherburne and Department of Transportation and Development (D)TD) Secretary William Ankner. Sherburne’s departure came after Jindal stripped the State Ethics Board of its adjudicatory authority, giving those responsibilities to a set of administrative law judges who have proved largely ineffective. Ankner left after a controversy arose over the awarding of a $60 million contract for a highway construction to high bidder Boh Brothers Construction.

Others, like Department of Health and Hospitals DHH) Secretary Bruce Greenstein and Office of Group Benefits (OGB) CEO Tommy Teague were shown the door—Teague for his reluctance to jump on board Jindal’s privatization train that ultimately carried OGB to the brink of bankruptcy before a controversial restructuring of OGB’s benefit package and Greenstein under the cloud of a federal investigation over the awarding of a contract by DHH to Greenstein’s former employer, CNSI. That cloud has since turned into a nine-count state grand jury indictment brought against Greenstein for perjury.

Still others bided their time until the right opportunities came along. Michael DiResto, a Jindal budget spokesman, left nearly 14 months ago to become Vice President for Economic Competitiveness for the Baton Rouge Area Chamber and DNR Secretary Scott Angelle resigned to run for—and win—a seat on the Public Service Commission and recently announced he would be a candidate for governor next year.

And then there are those who walked for no apparent reason other than to get away from a struggling administration that has been virtually rudderless, thanks to a largely absent and detached governor. Jindal seems to be more preoccupied with running for president than completing his job, which he repeatedly called “the only job I ever wanted” before beginning his second term in 2012 and redirecting his attention from the Governor’s Mansion to the White House.

His first Commissioner of Administration, Angéle Davis, left shortly after attending a meeting in which Jindal’s then Chief of Staff Timmy Teepell directed Teague to draft a “tightly written” request for proposals (RFP) for a state employee health coverage plan in such a way that only one vendor would be qualified to bid. Vantage Health Plan of Monroe ultimately was awarded the $70 million contract.

Her successor, Paul Rainwater, was eventually moved over to serve as Jindal’s Chief of Staff but he, too, resigned last February without giving a reason other than to say he wanted to pursue opportunities in the private sector.

Another recent departure who did not explain her reason for leaving was Division of Administration (DOA) Executive Counsel Liz Murrill. Unconfirmed reports have surfaced, however, that she has confided to friends that she felt she could no longer legally carry out some of the duties assigned to her as the DOA attorney.

Over the ensuing 15 months left in Jindal’s floundering administration, there are certain to be other departures as appointees begin jockeying for positions in the private sector or attempt to latch onto the campaigns of candidates who have already announced for governor in the hope of landing another prestigious job in the next administration.

Among those we might expect to see jump ship between now and January 2016 include Jindal’s Chief of Staff Kyle Plotkin, the governor’s Communications Director Mike Reed and Deputy Communications Director Shannon Bates, and perhaps even a few cabinet-level appointees, including Commissioner of Administration Kristy Nichols.

Question: What’s more dangerous than Bobby Jindal as governor?

Question: What’s more dangerous than Bobby Jindal as governor?

Answer: Bobby Jindal with an automatic weapon in his hands.

Question: What’s more dangerous than Bobby Jindal with an automatic weapon in his hands?

Answer: Bobby Jindal as president.

 http://www.youtube.com/watch?v=-p51Ic7kgpA

 

(From: http://www.thelibertypapers.org/)

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This artist is obviously a state employee or surely he would come forward and take credit for his brilliant work! Perhaps someday, after he retires, he can make his identity known so that we may pay him proper homage.

In reading Destiny’s Anvil, a novel about Louisiana politics by New Orleans writer Steven Wells Hicks, one sentence near the end of the story was so profound that it jumped off the page at us:

  • The responsibility for building and maintaining our way of open and honest government belongs in the hands of those who elect our leaders and not the leaders themselves.

The very simplicity of that one sentence, so succinct and straightforward a summation of what our government should aspire to, should be the credo which dictates the acceptance of every campaign contribution, every promise made and every action carried out by every elected official in America.

Sadly, it does not. And most certainly, it does not in Louisiana, especially where generous donors to the campaigns of Gov. Bobby Jindal (R-Iowa, R-New Hampshire, R-Florida, R-Anywhere by Louisiana) are concerned.

LouisianaVoice has learned that one major donor and its principals not only benefitted from several contracts worth more than $240 million, but also appear to have been given preferable treatment in the purchase of a state building at a bargain price at the expense of taxpayers.

The electorate of this state has capitulated in that responsibility, choosing instead to acquiesce to backroom deals fueled by campaign contributions and to actions concealed in secrecy and carried out for political expedience or personal gain instead of for the common good of the citizenry.

Remember last month when we wrote that Timmy Teepell in 2010 issued a directive to Tommy Teague, then the CEO of the Office of Group Benefits that a request for proposals (RFP) be crafted in such a way as to favor a specific vendor and that then-Commissioner of Administration Angéle Davis resigned shortly thereafter?

At the time, Teepell was Jindal’s Chief of Staff. The RFP was for vendors to provide health care coverage to state workers primarily in northeast Louisiana. Vantage Health Plan of Monroe subsequently landed the 26 month, $70 million contract, effective July 1, 2010. Six months later, on Jan. 1, 2011, a second one-year contract of $14 million awarded to Vantage to provide a Medicare Advantage plan for eligible OGB retirees and on Sept. 1, 2012, Vantage received yet another four-month $10 million contract under an emergency rule to provide an HMO plan to OGB members.

Since Jindal took office in January of 2008, Vantage has been awarded six contracts totaling nearly $242 million.

In addition to the claim of the 2010 directive to Teague to “write a tightly-written” RFP, LouisianaVoice has learned the Jindal administration may have deliberately circumvented the usual procedure for selling state property in order that Vantage could purchase a six-story state office building in Monroe last year.

By legislative fiat, the administration was within its legal rights to sell the State Office Building in Monroe to a chosen buyer without going through the bid process but it may have done so at a cost to state taxpayers.

Senate Bill 216 of 2013 by Sens. Mike Walsworth (R-West Monroe), Rick Gallot (D-Ruston), Neil Riser (R-Columbia) and Francis Thompson (D-Delhi) passed overwhelming in both the House and Senate and was signed into law by Jindal as Act 127, clearing the way for the sale of the former Virginia Hotel at 122 St. John Street.

By law, if a legislative act is passed, the state can legally bypass the public bid process but there are several indications that the administration may well have gone out of its way to accommodate Vantage and its President, Dr. Patrick Gary Jones through the Louisiana Department of Economic Development (LED).

The cooperative endeavor agreement between Vantage and the state was executed by Vantage Executive Vice President Mike Breard and LED Undersecretary Anne Villa on Aug. 28, 2013.

Vantage paid the state $881,000 for the six-story, 100,750-square-foot building and an adjoining 39,260-square-foot lot and one-story office building. The cost breakdown was $655,000 for the hotel and $226,000 for the adjoining property.

The Virginia Hotel was constructed in 1925 at a cost of $1.6 million and underwent extensive renovations in 1969 and again in 1984, according to documents provided LouisianaVoice by DED.

But LouisianaVoice has learned that there was at least one other potential buyer interested in the Virginia Hotel/State Office Building and indeed, documents obtained from LED contained no fewer than three references to fears by Vantage officers that if the building were put up for public auction, the bids might make the costs prohibitive to Vantage.

Melody Olson and husband Kim purchased the nearby Penn Hotel for $341,000 and poured $2 million into converting it into condominiums.

The late Shady Wall, a colorful state representative from Ouachita Parish, lived in the Penn’s penthouse. (Wall once wedged a pencil between a stack of books and the “yes” button at his House desk and went home for the day, officially casting “yes” votes on every matter that came up in the chamber after his departure.) The Olsons now reside in that same penthouse.

Melody Olson told LouisianaVoice that she and her husband wanted to purchase the Virginia and convert it into a boutique hotel but were never given the opportunity.

“It was sold through the Department of Economic Development and never was offered for public bid,” she said. “We never got the chance to make an offer.”

One internal LED memorandum said that Vantage Health Plan (VHP) “approached LED to help arrange the sale in order to avoid typical State surplus real property requirements of public bidding. VHP fears that public bidding would allow a developer utilizing various incentive programs to pay an above market price that VHP would find hard to match.” (Emphasis added.) IMAG0379

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Another document appears to be an internal memorandum that provides an overview of a 2012 meeting about the sale. It indicates that LED Secretary Stephen Moret, Sen. Walsworth, LED Legislative and Congressional Liaison Mandi Mitchell and LED Director of Contract Performance Shawn Welcome were in attendance on behalf of the state and Dr. Jones and his son-in-law Michael Echols, Director of Business Development, representing Vantage.

Under a heading entitled Company Issues/Concerns there were these two notations:

  • “Developers have purchased and converted some downtown Monroe buildings into mixed use buildings (by) taking advantage of federal and state restoration tax credits.”
  • “Concern: Vantage is worried that if SB (state building) is offered through regular channels, developers using federal tax credits could outbid Vantage.” IMAG0377

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Finally, there was a handwritten note which described another meeting on Nov. 1, 2012. Besides the notation that “Sen. Riser supports,” there was this:

  • “Problem is option of auction—if auction comes there is possibility of tax credits allowing a bidder to out-bid.”

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Finally, there was a hand-scrawled notation at the bottom of a typewritten page containing employment estimates by Vantage through 2024 which directed that an “approach” be written “specific to Vantage.”

And while Vantage repeatedly cited concerns about other potential buyers obtaining state and federal incentives which they might use to thwart their purchase plans for the building, Vantage was not shy about seeking incentives from the state for its own benefit.

Documents obtained from LED show no fewer than 20 applications or notices of applications for various state incentive programs, including Enterprise Zone, Quality Jobs Program and property tax exemptions for renovations to existing offices in Monroe or expansion into new offices in Shreveport, Mangham, West Monroe, New Orleans and even into Arkansas.

Nor were Vantage and its corporate principals shy about flashing cash for political campaign contributions.

Campaign finance records show that Vantage its affiliate, Affinity Health Group, their corporate officers and family members combined to contribute more than $100,000 to various political campaigns, including $22,000 to Jindal and $11,000 to three of the four Senators who authored the bill authorizing the sale of the Virginia Hotel to Vantage: Thompson ($5,400), Walsworth ($4,500), and Riser ($1,000.

Unlike the Jindal administration, we are not transparent when it comes to identifying either our sources or those who support us financially.

Oh, we do report all income to the IRS, but because we are not a non-profit, we are not required to reveal our funding sources—and we won’t, for obvious reasons.

Many of our contributors are state employees and the last thing they need is for a vindictive Gov. Bobby Jindal (R-Iowa, R-New Hampshire, R-Florida, R-Anywhere by Louisiana) to learn their names. Can you say teagued?

Our fund raiser continues and we still need assistance to help us offset the cost of pursuing stories the other media continue to ignore. Just as the identities sources for news tips and leads are protected as priority one, so too do we protect the names of donors.

If you are not seeing the “Donate” button, it may be because you are receiving our posts via email subscription. To contribute by credit card, please click on this link to go to our actual web page and look for the yellow Donate button: http://louisianavoice.com/

If you prefer not to conduct an internet transaction, you may mail a check to:

Capital News Service/LouisianaVoice

P.O. Box 922

Denham Springs, Louisiana 70727-0922

 

CORRECTION:

We were in error when we reported on Saturday that Rep. Jim Fannin (D/R-Jonesboro), chairman of the Joint Legislative Committee on the Budget (JLCB) refused a request by Rep. James Armes (D-Leesville) that Rep. Kenny Havard (R-Jackson) be allowed to serve as his proxy at last Friday’s JLCB meeting in Baton Rouge.

LouisianaVoice was unable to contact any of the principals involved over the weekend but we spoke with Armes on Monday and he informed us that it was not Fannin, but House Speaker Chuck Kleckley (R-Lake Charles) who declined, or simply failed to act on, Armes’ request.

More accurately, it appears now that Kleckley may have indicated he would consent to Armes’ request but either had a change of heart or simply did not follow up. “When I spoke with the speaker, he told me he would take care of it,” Armes said today. “I was unavailable and unable to attend, so I called him (Kleckley) and asked that Rep. Havard be allowed to serve as my proxy. Normally when a member cannot attend, we will try to get someone from the Baton Rouge area to attend and Rep. Havard is only a few miles outside Baton Rouge.

While it may not have been Fannin who dropped the ball on approving a proxy for Armes, it was Fannin who informed committee members after they had convened that the issue of the $178.5 million budget surplus claimed by the administration would not be taken up pending a report by the Legislative Auditor’s office. That report is expected sometime in December. Meanwhile, the state is in budgetary limbo over whether there is a surplus as claimed by Commissioner of Administration Kristy Nichols or a $141 million deficit as claimed by State Treasurer John Kennedy.

The administration’s sudden “discovery” of $360 million (accumulated since 2002), which it says brought the state out of a $141 million hole to a surplus of $178.5 million has drawn fire from two former commissioners of administration, Raymond Laborde of Marksville and his niece, Stephanie Laborde of Baton Rouge. Raymond Laborde was commissioner during former Gov. Edwin Edwards’ third term of office and Stephanie Laborde (at the time Stephanie Alexander) served during Edwards’ fourth and final term. Both, along with Kennedy, indicated it was highly improbable that that much money could have remained hidden for so long a time.

One source has put the amount closer to $500 million but added that the money has already been spent. If so, that would put the deficit closer to $300 million than the $141 million initially claimed by Kennedy.

State Treasurer John Kennedy isn’t the only one who disputes the veracity—or the political motives—of administration claims of a $178.5 million budget surplus for the fiscal year that ended on June 30.

There are a couple of Kristy Nichols’ predecessors, former commissioners of administration and a former state budget officer who have been there, done that and got the T-shirts, who are genuinely perplexed and skeptical of the whimsical claims.

Bobby Jindal (R-Iowa, R-New Hampshire, R-Anywhere but Louisiana), aka Booby Jindini, through Commissioner of Administration Nichols, is claiming the implausible “discovery” of some $360 million, dating back to 2002 that pulls the state from the jaws of a $141 million deficit in favor of the surplus explained thus far only as Immaculate Discovery.

LouisianaVoice, meanwhile, has learned that the true “discovered” money is more like $500 and that it actually goes back as far as 1998, near the end of Gov. Mike “the Jindal Creator” Foster’s second term. But, says Kennedy, the money has already been spent, which would make the real deficit more like $200 million, instead of the mere $141 hole claimed by Kennedy.

But the devil, as they say, is in the details and the details have not been readily forthcoming from the administration. And members of the Joint Legislative Committee on the Budget (JLCB) sat mutely Friday morning as committee Chairman Rep. Jim Fannin (D/R-Jonesboro) proclaimed that the committee would not be discussing the matter until it received a report from the Legislative Auditor’s office, probably sometime in December.

What?!!!!!!!” legislators should have sputtered, shouted and otherwise protested.

Sorry, guys, you should have stood as one and protested that the time to discuss this little matter is now and the place is right here. Right here, right now. We want, no, demand an explanation, an accounting of where this money suddenly came from and how it is that the administration did not know of its existence for the past seven years.

And while we’re at it, why is it that Fannin sudden decided to exercise his power to disallow a request by Rep. James Armes (D-Leesville) that a non-member of the JLCB, Rep. Kenny Havard (R-Jackson), be allowed to sit in on the committee as his proxy. Legislative observers cannot recall a time when such a request was denied. Was Fannin afraid Havard might ask some embarrassing questions about the budgetary procedure?

Or was it that Havard was not among the members who had been called in a few at a time in advance of Friday’s meeting to be reminded by the administration that capital outlay projects in their respective districts could suddenly face a lack of funding for their implementation?

Regardless, it is quite obvious from our perspective that the fix is in.

Instead, committee members sat mutely as one as Fannin, desperate to hang onto his chairmanship and reportedly considering a run at the State Senate seat currently held by Sen. Bob Kostelka (R-Monroe), allowed that rather than demanding details and explanations from the administration, there was no urgency to the issue that could not wait until December.

Retired state budget officer Stephen Winham said that in his 21 years in that office, nothing of this magnitude ever occurred.

“The hidden piles of money is a myth,” he said. “There may have been hidden pockets of money before modern accounting and information technology, but it is impossible to hide money in the state treasury today.

“This has to be the most ridiculous thing I have ever seen happen with regard to the state’s financial condition and its reputation,” he said. “How can $500 million simply have been hiding in the state treasury? Do Ms. Nichols and others have any idea how her contention totally undermines the integrity of our financial system? It makes a mockery of our accounting system and our annual Comprehensive Financial Reports for the past 16 years, if not longer, and of our state itself. People already routinely suspected the numbers they were given. Now there is no reason to believe anything.

“I cannot overstate how horrible this is.”

Raymond Laborde and Stephanie Laborde agree.

Raymond Laborde (Stephanie Laborde’s uncle) served as commissioner of administration from 1992 to 1996 under former Gov. Edwin Edwards. Before that, he served five terms in the Louisiana House, serving as Speaker Pro Tem from 1982-1984 and also served as Chairman of the House Ways and Means Committee.

He was re-elected without opposition to a sixth term in 1991 but immediately resigned to become Commissioner of Administration during Edwards’ fourth and final term as governor. In 2003, Raymond Laborde was inducted into the Louisiana Political Museum and Hall of Fame in Winnfield.

“I haven’t seen any details yet and neither, apparently has John Kennedy,” he said.

“We had surpluses each year during my tenure, but they were legitimate surpluses. If the money was there, it should have been seen. If Kennedy’s approach is correct, there is a heck of a difference between what the administration says and what he says.”

Reminded that Kennedy has said any money found from prior years has already been spent, Raymond Laborde said, “It should have been spent.”

Stephanie Laborde served as commissioner of administration during Edwards’ third term (1984-1988) when she was Stephanie Alexander.

Her observations were supportive of Winham’s and were equally critical of the administration.

“If the surplus is real, where were those dollars when the budget was being developed 15 months or so ago?” she asked, perhaps not so rhetorically.

“That is not to say when there was not extra money,” she said. “There were times when there were more taxes collected than anticipated or when the price of oil was higher than expected but for this much in surplus funds to be lying around for years? That just didn’t happen.”

She also said the sources of such revenue would have been considered one-time money and not recurring revenue. “There is a difference of philosophy, a difference of opinion with the character of funds found in the past.

“But it still comes down to where was this money during the budget writing process, where was it, in fact, for all these years?

“If it was there, it speaks to the administration’s competence, its ability—or inability—to give us an accurate budget.

“If the money was not there as is being claimed, it speaks to something else entirely,” she said.

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