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State Treasurer John Kennedy on Tuesday told the House Appropriations Committee that the Division of Administration exerts extortion-like tactics against legislators and takes the approach that it should not be questioned about the manner in which it hands out state contracts and that the legislature should, in effect, keep its nose out of the administration’s business.

Kennedy was testifying on behalf of House Bill 30 by State Rep. Jerome Richard (I-Thibodaux) which provides for reporting, review and approval by the Joint Legislative Committee on the Budget (JLCB) of all contracts for professional, personal and consulting services totaling $40,000 or more per year which are funded exclusively with state general fund (SGF) or the Overcollections Fund. HB 30

HB 30 FISCAL NOTES

Kennedy, in a matter of only a few minutes’ testimony, attacked figures provided by three representatives of the Division of Administration (DOA) who objected to the bill because of what they termed additional delays that would be incurred in contract approval and because of claimed infringement upon the separation of powers between the legislative and administrative branches of government.

Here is the link to the committee hearing. While Kennedy spoke at length on the bill, the gist of his remarks about DOA begin at about one hour and 13 minutes into his testimony. You can move your cursor to that point and pick up his attacks on DOA. http://house.louisiana.gov/H_Video/VideoArchivePlayer.aspx?v=house/2015/may/0526_15_AP

That argument appeared to be a reach at best considering it is the legislature that appropriates funding for the contracts. It also appeared more of a smokescreen for the real objections: DOA’s, and by extension, Bobby Jindal’s wish that the administration be allowed to continue to operate behind closed doors and without any oversight, unanswerable to anyone.

DOA representatives tried to minimize the effect of the bill by downplaying the number and dollar amount of the contracts affected (which raises the obvious question of why the opposition to the bill if its impact would be so minimal). The administration said only 164 contracts totaling some $29 million would be affected by the bill.

Kennedy, however, was quick to jump on those figures. “The numbers the division provided you are inaccurate,” he said flatly. “The Legislative Auditor, who works for you,” he told committee members, “just released a report that says there are 14,000 consulting contracts, plus another 4600 ‘off the books.’

“The fiscal notes of 2014 by the Legislative Fiscal Office—not the Division (DOA)—said the number of contracts approved in 2013 by the Office of Contractual Review was 2,001—not 160—professional, personal and consulting service contracts with a total value of $3.1 billion,” he said. “I don’t know where DOA is getting its numbers.

“To sum up their objections,” he said, “it appears to me that DOA and more to the point, the bureaucracy, is smarter than you and knows how to spend taxpayer dollars better than you. That’s the bottom line. They don’t want you to know. This bill will not be overly burdensome to you. Thirty days before the JLCB hearing, you will get a list of contracts. If there are no questions, they fly through. If there are questions, you can ask.”

Kennedy tossed a grenade at DOA on the issue of separation of powers when he accused the administration of blackmailing legislators who might be reluctant to go along with its programs.

“Let’s talk about how the division’s advice on contracts has worked out,” he said. “The Division advised you to spend all the $800 million in the Medicaid Trust Fund for the Elderly. Now they have zero in that account. In fact, they pushed you to do that. Some of you were told if you didn’t do that, you’d lose your Capital Outlay projects. How’s that for separation of powers? How’d that work out for you?

“My colleagues from Division who just testified against the bill are the same ones who told you to take $400 million out of the (Office of Group Benefits) savings account set aside to pay retirees’ and state employees’ health claims. How’d that work out?”

Kennedy didn’t stop there. He came prepared with an entire laundry list of accusations against the administration.

“My colleagues from Division are the ones who told you, ‘Look, we need to privatize our health care delivery system,’ which I support in concept. They sat at this table and I heard them say we would only have to spend $600 million per year on our public-private partnership and (that it would be) a great deal ‘because right now we’re spending $900 million.’ I thought we’d be saving $300 million a year. Except we’re not spending $600 million; we’re spending $1.3 billion and we don’t have the slightest idea whether it’s (the partnerships) working. How’d that work out for you?

“I sat right here at this table and I heard my friends from Division say we need to do Bayou Health managed care. You now appropriate $2.8 billion a year for four health insurance companies to treat 900,000 of our people—not their people, our people,” he said. “There’s just one problem: when the Legislative Auditor goes to DHH (the Department of Health and Hospitals) to audit it (the program), they tell him no.”

Kennedy said that pursuant to orders from DOA, “the only way they can audit is if they take the numbers given him (Legislative Auditor Daryl Purpera) by the insurance companies.

“This is a good bill,” he said. “It’s not my bill. My preference is to tell Division to cut 10 percent on all contracts and if you can’t do it, you will be unemployed. But this bill allows you to see where the taxpayer money is being spent.

“I have more confidence in you than I do in the people who’re doing things right now,” he said.

Kennedy said he was somewhat reluctant to testify about the bill “but I’m not going to let this go—especially the part about separation of powers.

“You want to see a blatant example of separation of powers?” he asked rhetorically, returning to the issue of the administration’s heavy handedness. “How about if I have a bill but you don’t read it. You either vote for it or you lose your Capital Outlay projects. How’s that for separation of powers?”

That evoked memories from November of 2012 when Jindal removed two representatives from their committee assignments one day after they voted against the administration’s proposed contract between the Office of Group Benefits and Blue Cross/Blue Shield of Louisiana.

“Everything they (legislative committees) do is scripted,” said Rep. Joe Harrison (R-Gray), speaking to LouisianaVoice about his removal from the House Appropriations Committee. “I’ve seen the scripts. They hand out a list of questions we are allowed to ask and they tell us not to deviate from the list and not to ask questions that are not in the best interest of the administration.” http://louisianavoice.com/2012/11/02/notable-quotables-in-their-own-words-142/

Rep. John Schroder (R-Covington) asked Kennedy what his budget was to which Kennedy responded, “Less than last year and less that year than the year before and probably will be even less after this hearing. But you know what? I don’t care.

“There’s nothing you can say to get Division to support this bill,” he said. “They’re just not going to do it.

“You can’t find these contracts with a search party. But if you require them to come before you, you can get a feel for how money is being spent that people work hard for and you can provide a mechanism to shift some of that spending to higher priorities.

“Next year, you will spend $47 million on consulting contracts for coastal restoration. I’m not against coastal restoration; I’m all for it. But these consultants will not plant a blade of swamp grass. Don’t tell me they can’t do the job for 10 percent less. That $47 million is more than the entire state general fund appropriation for LSU-Shreveport, Southern University-Shreveport, McNeese and Nicholls State combined.

“Under the law, agencies are supposed to go before the Civil Service Board and show that the work being contracted cannot be done by state employees but that is perfunctory at best,” Kennedy said.

To the administration’s arguments of delays in contract approvals and infringements on the separation of powers, Rep. Brett Geymann (R-Lake Charles) dug in his heels. “This is not a bad thing,” he insisted. “We’re not going to go through every page of every contract unless someone calls it to our attention. It doesn’t matter if it’s 14,000 or 14 million contracts. The number is immaterial. If there’s an issue with a contract, we need to look at it.”

For once, the administration did not have its way with the legislature. The committee approved the bill unanimously and it will now move to the House floor for debate where Jindal’s forces are certain to lobby hard against its passage.

Should the bill ultimately pass both the House and Senate, Jindal will in all likelihood, veto the measure and at that point, we will learn how strong the legislature’s resolve really is.

But for Kennedy, the line has been drawn in the dust.

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Our friend C.B. Forgotston, who follows the legislature relentlessly, alerted us to this little tidbit this morning that illustrates just how far the legislature is willing to go to absolve itself of any responsibility in the current fiscal mess in which the state currently finds itself.

Year after year, when stinging budget cuts are imposed on higher education and health care, the same cry goes up from the citizenry: “Why are only higher ed and health care subjected to repeated budget cuts? Why aren’t other agencies made to share the pain?”

And year after year, the same response from legislators: “Because under the State Constitution, those are the only areas that can be cut.

“Our hands are tied,” they wail in unison.

Not so, says Forgotston, who once was a staff attorney for the legislature.

Of the $30 Billion in the current state budget, $3.9 Billion or only 13 percent is constitutionally-protected, he says.

Of the dedicated funds:

  • $3.3 Billion (85 percent of the constitutionally-dedicated funds) funds public elementary and secondary education’s Minimum Foundation Program (“MFP”) which is approved by the leges.
  • $318 Million (9 percent) pays the annual debt service on state borrowing (bonds).
  • $115 Million (3 percent) pays the supplemental pay for municipal policemen, firemen and deputy sheriffs.

What’s not protected?

            Of the $30 Billion budget, Forgotston says 87 percent is not constitutionally-protected. That includes:

  • NGOs (non-governmental organizations) and other local pork barrel projects in the Operating and Capital Outlay budgets.

The constitutional scapegoat

            The constitution is a convenient scapegoat for the governor and the legislators’ lack of political courage to set priorities,” he said, “especially, since none of them appear to have ever read the document.”

No matter. On Monday, they had a chance to do something about it and they didn’t.

They punted.

And the vote wasn’t even close.

The Senate Finance Committee deferred, by an 8-2 vote, Senate Bill 196 by State Sen. Jean Paul Morrell (D-New Orleans) which would have placed a constitutional amendment before Louisiana voters that would have repealed the constitutionally-imposed dedications. SB 196 TEXT

The Legislative Fiscal Notes, which accompany any bill dealing with fiscal matters, says there would be “no anticipated direct material effect on governmental expenditures.”

The fiscal notes also said, “Due to the elimination of approximately 20 constitutional funds and the requirement that the revenue source of such funds now flow into the State General Fund (SGF), the SGF will have approximately a statutorily dedicated fund balance transfer of approximately $3.9 billion in FY 16 and annual SGF revenue flow of approximately $730 million per year.” SB 196 FISCAL NOTES

Morrell lectured committee members as he testified on behalf of his bill, saying, “We fixed higher ed but not health care. We have too many ‘not me’s’ coming before you to defend their programs.

“If you kill this bill,” he cautioned members, “you’re saying to your constituents not only that your hands are tied but that you like your hands to be tied.”

Which is precisely what they did on motion from Sen. Dan Claitor (R-Baton Rouge).

Before the vote on Claitor’s motion, Sen. Fred Mills (R-St. Martinville) offered a substitute motion to approve the bill, sending it to the Senate floor. Only Sen. Bodi White (R-Central) voted with Mills in favor of the bill. Those voting against approval were committee Chairman Jack Donahue (R-Mandeville), committee Vice-Chairman Norbert Chabert (R-Houma), members Bret Allain (R-Franklin), Sherri Smith Buffington (R-Shreveport), Claitor, Ronnie Johns (R-Lake Charles), Eric LaFleur (D-Ville Platte), Edwin Murray (D-New Orleans), and Greg Tarver (D-Shreveport).

As an unspoken acknowledgement of the committee’s concern over a possible veto by Bobby Jindal, a fretful White went so far as to suggest to Morrell that he might get a more favorable consideration of his bill if he waited until next year “when we have a new governor.”

So, bottom line, it appears that legislators remain unwilling to confront a lame duck, largely absentee governor despite his abysmal approval ratings by Louisiana voters.

Something is wrong with this herd mentality, folks.

This is not the time to wait for a “new governor.” This is the time for bold, decisive action that says to Jindal, “We damned well dare you to veto this or we’ll throw it back in your face with a veto session like this state—or any other state—has never seen. We will bring the attention of the national media down upon your delusional head.”

Instead, they choose to wait.

Again.

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It’s funny in a sick, perverted kind of way when you think about it.

Come to think of it though, that’s entirely appropriate; the Bobby Jindal administration has been nothing but seven years of sick, perverted exercises in futility and failed policies. It’s enough to make other states laugh at us—and they probably are.

Foremost among his many efforts at “reform” preached by this incoherent governor is his insistence on something he refers to as “freedom of choice” for parents of students in grades K-12. http://www.breitbart.com/big-government/2015/02/10/jindal-urges-parental-choice-limited-government-and-end-to-teacher-tenure-in-sweeping-education-policy-plan/

Speaking at the Brookings Institute in 2012, he said the U.S. does not provide equal opportunity in education. https://www.youtube.com/watch?v=nDCU-VlSgX0

Yet, when it comes to freedom of choice and equal opportunity for students in Louisiana’s colleges and universities, Jindal appears perfectly willing to “let them eat cake.”

Even as LSU and other universities and colleges face financial exigency in the face of another round of budget cuts, this time as much as $600 million and as more than 1,000 LSU students marched on the State Capitol on Thursday in protest, where was Jindal?

Out of state, as usual.

Damn him.

Damn his blasé attitude toward doing his job as the elected governor of Louisiana at a time when the state is in dire need of leadership.

Damn his resolve not to repeal corporate tax breaks, his administrations’ failure to properly audit severance tax payments to the oil and gas companies who have bankrolled his campaigns to the tune of about $1 million.

JINDAL SWINDLE

Following the rally Thursday, dozens of students converged on the Senate Education Committee which was meeting in the bowels of the Capitol. The five committee members, who for the most part, talked among themselves instead of listening as a witnessed testified on a bill about student records, paid the obligatory lip service in welcoming the students and then politely suggested they move up one floor to the Senate Finance Committee “because that’s where the money is,” according to one member.

Except it isn’t there. There is no money because of Jindal’s haphazard, slipshod, snow-cone stand brand of administration.

One Education Committee member even suggested that the students keep going—up “to the fourth floor.”

“Except no one’s there,” said another member, eliciting laughter at probably the most accurate statement made thus far this session.

It’s not, of course, as though Jindal is solely to blame for this fiasco. The legislature is complicit in allowing him to run roughshod over the citizens of this state on his way out the door and (he somehow still believes) to the White House.

If you don’t believe the legislators must share the blame in this, then explain how an attempt this week to finally accept Medicaid funds to help provide health care for 240,000 low-income Louisianians never got out of committee. Explain how attempts to increase the minimum wage and close the gender wage gap fail time after time but somehow legislation to allow the teaching that the earth is only 9,000 years old passes muster.

Therefore, the protest by the LSU students, one of those demonstrations inspired by social media, was the perfect opportunity for the four announced candidates for governor in this fall’s election.

It would have been if they had all showed up. Perhaps that’s why State Representative John Bel Edwards (D-Amite) and the lone Democrat among the four candidates, got such an enthusiastic response from the students crowded onto the steps in front of the Capitol.

JOHN BEL EDWARDS

Rep. John Bel Edwards addresses LSU students on Thursday (click on image to enlarge).

Lt. Gov. Jay Dardenne, the only one of the four to hold an undergraduate degree from LSU and a former LSU Student Government President was apparently so busy he could only send a representative from his office. A missed opportunity if there ever was one.

Edwards tried to downplay the significance of that. “Well, to be fair, I was already in the building,” he laughed. “I didn’t have to go far.”

But neither did Dardenne. His office is across the street from the Capitol and LSU’s right fielder could probably peg a strike to his office window from the Capitol steps.

But Public Service Commission member Scott Angelle and U.S. Sen. David Vitter also were conspicuously absent. Nor was a single member of the LSU Board of Supervisors in attendance.

Of course, it would have been a sham for Angelle to make an appearance. He is, after all, joined at the hip with Jindal. Granted, Angelle was a Kathleen Blanco holdover, but held over he was and Jindal even made him his legislative liaison. Jindal also named him as interim Lieutenant Governor when Mitch Landrieu was elected mayor of New Orleans, and then appointed him to the LSU Board of Supervisors (that’s the same board that fires LSU presidents on a whim, costs the state hundreds of thousands of dollars defending a defenseless attempt to deny access to public records, and which gives away state hospitals in a deal that had been rejected by the federal government). http://www.nola.com/opinions/index.ssf/2015/03/lsu_board_jindal_resign.html

But why Vitter didn’t show is something of a mystery; there were so many attractive co-eds at the protest, after all.

Edwards told the students that he has “spent seven years fighting Jindal’s budgets. I did not vote for the budget last year and my solemn promise to you is that I will never vote for a budget that cuts funding for higher education.”

Edwards, who holds his undergraduate degree from West Point, received his law degree from LSU Law School. He told the students they are facing the potential of a 90 percent increase in tuition this fall. As expected, that was met with a chorus of boos. “No state has cut funding to higher education more than Louisiana,” he said. “I have a personal interest in seeing higher education fully funded. My daughter is a freshman at LSU.

“If you look behind you, you see a statue of Huey Long,” he said. “Say what you will about Huey Long, but at a time this state was in the throes of the Great Depression, Huey Long found money to build LSU, build roads and bridges throughout the state and to establish a great state hospital system. If he could find money to do all that during the Depression, we should be able to fund education today.”

But as Jindal prattles on about choice for students of K-12, he seems to have forgotten about the choice of post-secondary students: the choice to obtain an affordable education, the choice to remain in Louisiana and attend a tier 1 university, the choice to avoid devastating student loans that put graduates in deep financial holes even before their careers begin.

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You have to love Rolfe McCollister, Jr. The man has done the following:

  • Was an unsuccessful candidate for mayor-president of Baton Rouge;
  • Contributed $17,000 to the campaign of Bobby Jindal in 2003, 2006, and 2008;
  • Served as treasurer for Jindal’s 2007 gubernatorial campaign;
  • Served as chairman of Jindal’s transition team following Jindal’s 2007 election;
  • Served as a director of Jindal’s first fundraising organization Believe in Louisiana;
  • Currently serves as treasurer of Jindal’s super PAC Believe Again;
  • Been appointed by Jindal as a member of the LSU Board of Supervisors.

Moreover, McCollister’s Louisiana Business, Inc. partner, Julio Melara has:

  • Contributed $7,500 to Jindal’s campaigns in 2007, 2010, and 2011 (his wife also contributed $1,000 in 2007);
  • Been appointed to the Louisiana Stadium and Exposition District (Superdome Board).

At the same time, McCollister, apparently with a straight face, attempts to pass himself off as an objective news executive as Publisher of the Baton Rouge Business Report, even publishing a story by his staff today (Monday, April 27) on the long-running court battle by real news organizations to obtain the names of 35 candidates for the LSU presidency. https://www.businessreport.com/business/along-alexander-lsu-board-considered-candidates-texas-alabama-east-carolina-presidential-search-2012

Before the finger-pointing begins, let’s set the record straight. While McCollister carries the water for Jindal on such issues as protecting what should obviously be public records, firing an LSU president (thus, making the new hire necessary) and giving away LSU hospitals to a foundation run by a fellow LSU board member, he also purports to be an objective chronicler of political news.

We at LouisianaVoice, on the other hand, make no pretense at objectivity. We are opinionated and we freely express those opinions—and invite readers to do the same, both pro and con. We spent a quarter-century working for the so-called objective publications. But a political blog is very much like an op-ed opinion piece. McCollister should be familiar with those; he’s certainly seen enough of them from Jindal in the New York Times, Washington Post, and Wall Street Journal.

Louisiana Business, Inc., led by McCollister and Melara, is the parent company of the Business Report, so both men are in the news business but nevertheless have continued to curry favor from the man they apparently believe will one day occupy the big house at 1600 Pennsylvania Ave. in Washington, D.C.

What is so particularly galling about Monday’s story about the release of the documents by the LSU board attorney is that a reader unfamiliar with the story would have no way of knowing that the publisher was complicit not in attempting to shine the light of transparency on a secretive board, but in participating in the board’s harboring of the information. Nowhere was a single word devoted to revealing that the piece’s publisher was a party to attempting to hide information from the public—an effort, by the way, that cost the state tens of thousands, if not hundreds of thousands, of dollars in legal costs and fines.

As if that were not enough, McCollister, in his ever-diligent vigil to defend the public’s right to know, turned his guns on an LSU faculty member who was bold enough to criticize the LSU board in print over its efforts to keep its business away from the public’s prying eyes.

On April 1, McCollister, in a column titled The Two Hats of Bob, attacked LSU journalism professor Bob Mann who also writes a political blog called Something Like the Truth, which is also published in the New Orleans Times-Picayune. “Man is one to take full advantage of free speech and faculty tenure as he pontificates in his columns on all that’s evil,” McCollister sniffed. https://www.businessreport.com/politics/rolfe-mccollister-survey-reveals-contradictions-confusion

He was writing about Mann’s blog and the accompanying column that ran in the Times-Picayune in which Mann said the LSU Board was more loyal to Jindal than to the students at LSU and that the entire board needed to resign or be fired. In that column, Mann quoted from another McCollister essay in which McCollister “chided those in the news media who ‘sound like Chicken Little. Let me predict here and now, the world will not end for Louisiana or higher education during the upcoming session. Solutions will be found.’ What those magic solutions are, McCollister does not say,” Mann wrote.

“I asked a former seasoned journalist about the ethics of a faculty member who has a second job as a journalist and (who) writes about his university,” the publisher continued in that April 1 column. “He said, ‘Every good journalist knows that you cannot ethically cover the institution that pays your salary and the people who supervise the work you do for that salary.”

Oh, really? And just who was that “former seasoned journalist”? And was he a former journalist or just formerly seasoned?

As for ethically covering “the institution that pays your salary” (or in this case, appointed you and your business partner to two of the more prestigious boards in state government), doesn’t McCollister provide Jindal glowing press coverage at every opportunity? (Of course, whether that can accurately be called real “coverage” is still open to debate. There’s another word for it in the reporting business. It’s called fluff.)

“The ethical equation doesn’t change if a reporter vilifies those people (for whom he works),” McCollister continued. “Who is to say the reporter’s self-interest isn’t involved. When journalists don’t recognize this fundamental aspect of journalism, everything they write, on any topic, lacks credibility.”

Wait. We’re confused. Is McCollister still talking about Mann—or about himself? It’s really impossible to tell, considering all the self-interest and conflicts of interests involved in everything McCollister writes about Jindal.

But let’s review. McCollister, it seems, was also a member of the LSU Board back in 1992 when the state was in the throes of another financial crisis and cutting budgets. At that time, McCollister, indignant over the cuts to LSU, called for the arrest of the governor.

The governor? Edwin Edwards. http://www.nola.com/opinions/baton-rouge/index.ssf/2015/03/higher_education_budget_cuts_l.html

Mann responded to McCollister, of course. Anyone would. But rather than delve into their “he said, she said” exchange, let’s look at what others are saying.

The Hayride blog, which is somewhere off to the right of Rush Limbaugh, trumpeted its headline: “Bob Mann goes after Rolfe McCollister, but doesn’t have the numbers on his side.”

http://thehayride.com/2015/03/bob-mann-goes-after-rolfe-mccollister-but-doesnt-have-the-numbers-on-his-side/

Repeating the Chicken Little quote by McCollister, it added a quote by him which it accused Mann of omitting: “Business is strong in Louisiana and getting even better. I hear from many company CEOs who had a record year and look to grow and expand in 2015.”

(Perhaps that’s why Louisiana continues to rank third in the nation in our poverty rate and why Louisiana’s colleges and universities are looking seriously at declaring financial exigency.)

We’ll get back to The Hayride momentarily.

Red Shtick, a Baton Rouge publication that specializes in parody, took its turn at lampooning McCollister for his obvious double standard. http://theredshtick.com/2015/04/03/jindal-crony-who-pens-pro-jindal-editorials-accuses-professor-of-unethical-journalism/

Likewise, the Independent of Lafayette, one of the state’s better political publications, noted with some irony that McCollister found it necessary to reach out “to an anonymous source” to obtain an opinion about journalistic ethics—after all, “hasn’t he run a newspaper for more than 25 years?” the Independent asked somewhat rhetorically, adding, “I’m sure that untenured, junior faculty at LSU will take note that one of the governor’s best friends, who serves on the LSU Board, has this opinion of academic freedom. http://theind.com/article-20612-rolfe-mccollister-faculty-who-criticize-lsu-in-print-are-unethical.html

“Did McCollister threaten my LSU job? The Independent quoted Mann as asking. “Not really. He just finds some gutless anonymous source to call me unethical for criticizing a group of public officials.”

As promised, we now return to The Hayride and one of its regular columnists who seems to fit comfortably in Jindal’s back pocket and who slings darts and arrows at anyone who dares criticize his governor.

We’re talking, of course, about one Jeff Sadow who works as…(ahem), ah…well, as a full time political science professor at LSU-Shreveport. Correction. Make that associate professor. And one who has (gasp!) a political blog.

Rather than go into a lot of Sadow’s qualifications to speak his opinion in a blog as opposed to those who would censure Mann, we’ll let yet another blogger lay it out for us.

https://lahigheredconfessions.wordpress.com/2015/04/02/biting-the-hand-that-pays-you/

But at the end of the day (to borrow a phrase from Bobby Jindal), we still believe in tolerance and we will defend with our last breath the First Amendment rights of McCollister, Sadow, and Mann. They have every right to voice their opinions, though two of those three do not appear to agree.

To sum it all up, it appears we have an LSU Board member who is a Jindal operative in every sense of the word and who just happens to own a news publication. But that board member/journalist steadfastly refuses to advocate for openness on the board (as would just about any member of the Fourth Estate), who votes to fire an LSU president only because the governor wants him to, who votes in favor of giving away teaching hospitals to a fellow board member, and who calls for the censuring of free speech by a journalism professor and newspaper columnist. And, coincidentally, we have an associate professor who does the same thing as Mann, but who gets a free pass because his opinions happen to dovetail nicely with those of  McCollister, Jindal, et al.

Okay, as long as we understand the ground rules.

But, Chicken Little, it appears the sky really is falling. And as for those solutions McCollister promised “will be found,” they now appear more distant than ever.

And meanwhile, he calls Bob Mann unethical.

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Thank goodness for late-inning rallies Thursday and Friday nights by LSU’s No. 1-ranked baseball team to beat No. 2 Texas A&M 4-3  and 9-6, respectively. Otherwise, the news just keeps getting worse for Louisiana.

That’s right; we had to flip all the way back to the sports section to find anything good to write.

That’s because even as the legislature grapples with that $1.6 billion budgetary shortfall, things were becoming unraveled elsewhere as the administration was hit this week not with a double- but a triple-whammy that could end up costing the state hundreds of millions of dollars and could conceivably end up costing another LSU president his job.

We will try to take the events in chronological order.

On Tuesday, the administration received word from the Center for Medicare & Medicaid Services that CMS AGAIN REJECTS the administration’s Cooperative Endeavor Agreements (CEAs) in connection with the controversial state hospital privatization plan pushed by Bobby Jindal “because the state has not met its burden of documenting the allowability of its claims for Federal Financial Participation (FFP).”

The decision apparently will cost the state $190 million, according to a letter to State Medicaid Director Ruth Kennedy from Acting CMS Director Nikki Wachino.

On the heels of that letter, Commissioner of Administration Kristy Nichols received notification from Attorney General Buddy Caldwell on Thursday that the state had been OVERPAID BY $17 MILLION in tobacco settlement money and would have to repay that amount to the tobacco companies who then will redistribute it to states that were underpaid.

And on Friday, State Treasurer John Kennedy announced that national investors had pulled out of a large portion of a major bond deal for LSU after concerns were raised on Wall Street by LSU President F. King Alexander who announced on Thursday that he was preparing paperwork for the state’s flagship university to file for financial exigency, or academic bankruptcy. http://www.nola.com/politics/index.ssf/2015/04/lsu_academic_bankruptcy.html

Kennedy, in a Friday news release, said his office was “trying to sort out the facts,” but essentially, a $114 million bond issue that was in the works appeared to fall flat when investors pulled out on about $80 million in commitments. The bond sale was to have funded a Family Housing Complex, residence halls and a Student Health Center and also would have saved interest on existing debt. http://campaign.r20.constantcontact.com/render?ca=e9da20fd-7c07-4e6d-9d75-82afa4fb05a9&c=cdce75a0-62fb-11e3-959d-d4ae52a459cd&ch=ce38f740-62fb-11e3-95d9-d4ae52a459cd

A BloombergBusiness report said that while investors who bought the $114 million of debt sold by LSU they were not told the school was considering filing for exigency. http://www.bloomberg.com/news/articles/2015-04-23/louisiana-state-bond-buyers-greeted-by-insolvency-plan-next-day

A declaration of exigency by LSU and other colleges and universities across the state would open the way for the schools to fire tenured professors. http://www.bloomberg.com/politics/articles/2015-04-23/louisiana-state-to-draft-insolvency-plan-as-jindal-plans-cuts

One state official confided in LouisianaVoice that Alexander, in his attempts to underscore the severity of the financial crisis in Louisiana higher education, currently facing still more deep budgetary cuts, may have overplayed his hand in making a “premature” announcement of such magnitude.

Meanwhile, word leaked out of a Board of Regents committee meeting Friday afternoon that as many as one-half to 75 percent of Louisiana colleges and universities may be unable to meet payroll by June unless some solution is found quickly to the fiscal crisis that has spread a mood of imminent doom across state campuses. That source said he does not believe a solution will be found until the last week of the session—if then.

With a vengeful governor like Bobby Jindal, anything perceived by him to place him in a bad light is met with severe repercussions, namely teaguing, and Alexander’s pronouncements have certainly reflected poorly on the administration.

For new readers who may not be familiar with the term, teaguing refers to Jindal’s firing of Melody Teague because of her testimony before the state government streamlining committee and the similar firing of her husband, Tommy Teague, only six months later from his job as Director of the Office of Group Benefits (OGB) when he failed to go along with the ill-fated privatization of that agency. Dozens of other state employees and legislators have been either fired or demoted from committee assignments by Jindal for lesser sins. LouisianaVoice learned today that Melody Teague, who was suffering from ALS, died in March. http://www.legacy.com/obituaries/theadvocate/obituary.aspx?pid=174404543

For his part, Jindal, after more than seven years in office, has finally admitted there is a problem with “corporate welfare” in Louisiana, i.e. corporations that do not pay any taxes to the state.

One classic example cited by Steve Spires of the Louisiana Budget Project was Wal-Mart, which is a Delaware-based corporation. Spires, speaking at a State of (Dis)Repair conference in Hammond on Thursday, noted that Louisiana Wal-Mart stores are leased by local entities who pay exorbitant rent to the corporate parent in Delaware, a state with no state income tax, thus avoiding income tax in Louisiana while reaping the benefits of other incentives such as Enterprise Zone designation and 10-year property tax exemptions.

Jindal has only in the past couple of weeks so much as acknowledged the state has a problem with its generous tax breaks for corporations which cost the state billions of dollars per year.

Thus, as the budget crisis grows progressively worse with each passing year, Jindal has resorted to more and more sleight of hand in patching over budget holes with one-money.

Caldwell, in his letter to Nichols and Kennedy, said a number of states had been underpaid in tobacco fund settlement money by the tobacco companies because of accounting errors, and that a corresponding number, including Louisiana, had been overpaid.

Louisiana, he said, was overpaid by about $17 million which will have to be repaid so the money can be redistributed to the proper states.

The CMS rejection has been a problem for the administration since the privatization deals with several private hospitals were signed, though DHH Secretary Kathy Kleibert has attempted to see the world through rose-colored glasses, always expressing optimism that the state’s plan would be approved.

Not so.

In her three-page letter to Ruth Kennedy, Wachino said, “After careful consideration, CMS cannot accept the arguments advanced by the State in its Request for Reconsideration. While CMS recognizes the State’s efforts at corrective action, such measures do not address the State’s noncompliance for the period in question (Jan. 1, 2013 through May 23, 2014). For the reasons stated above, as well as in CMS’s Dec. 23, 2014, disallowance letter, the…disallowance is affirmed.”

All in all, the state has seen better weeks.

Go LSU! We need a sweep badly!

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