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Archive for the ‘ORM, Office of Risk Management’ Category

This might be considered a break from state politics and in a way, it is. At the same time, however, there is a tenuous link—a tongue-in-cheek link, to be sure, but a link nonetheless.

It is a somewhat convoluted story centered around a former co-worker. Harley Purvis (not his real name) worked with me for about 10 years as a claims adjuster for the Louisiana Office of Risk Management (ORM). A legend in his own mind, he retired about a decade before I managed to make a less than graceful exit to watching the mail for my monthly pension check.

Harley was a hoot. He was never shy about boasting of his self-anointed title of political kingmaker (or king-breaker, depending upon which politician was the subject of the day’s conversation) during coffee breaks in the old Department of Education building.

We so looked forward to those breaks because we knew ol’ Harley would regale us with tales of his epic exploits which approached reality only in his vivid imagination. All other conversation would cease whenever he began with his obligatory “I’ll tell you one damned thing…,” because we knew he was about to bestow his unique version of the truth upon us.

He claimed to be president of the board of a country club in a neighboring parish but a single phone call by yours truly confirmed that he was neither president nor even a member of the club’s board of directors. A club member, yes. But President? you can check that box “no.”

There were normally up to a dozen—maybe even more—present at many of the breaks at which he generally held court. No one at those breaks ever challenged his claims—mostly because no one wanted to interrupt his wildly imaginative flights of fancy.

When Edwin Edwards defeated Buddy Roemer in the 1993 governor’s election, Harley spread the word that he was in line to be the next commissioner of administration.

Of course, it didn’t happen. Weeks later, after Edwards mysteriously passed over Harley in favor of another, I asked him at break what happened to his appointment. Without missing a beat, Harley simply informed us that “They didn’t get the money right.” This at a time when claims adjusters for ORM topped out at somewhere around $30,000.

When Harley’s high school class scheduled its reunion (there was no word which reunion it was, but it must have been at least his 35th or 40th), he immediately began his preparations for the big event by dying his hair jet black—with liquid shoe polish.

Predictably, the polish soon began running down the back of his neck, soaking into his shirt collar. ORM’s claims officer walked past his cubicle and, seeing the streaking shoe polish oozing down his neck, asked, “Harley, what the hell happened to you?”

He once ran for the state civil service board and after taking time off to campaign throughout the state, finished last.

Anytime anyone at break mentioned any prominent resident of the parish where his country club was located, Harley would always twist his first two fingers together, hold them up and proclaim, “We’re just like this. He always sits at my table when we have a function at the country club.”

After about the 20th time hearing this (about 20 different “tight friends”), I asked, “Harley, how many tables do you wait on at these country club functions?” That was probably the angriest I ever saw him but everyone else got a good laugh.

He once spotted an attractive lady who worked for another agency in our building. Unaware that I knew her, he confided in me that he had a date with her for the coming weekend. Intent on giving her a heads up about his misplaced narcissism, I quietly made my way to her and asked her if she knew Harley. “Who?” she said. I pointed him out and informed her that he said he had a date with her. “Oh, God, no!” she blurted. “I don’t have a date with him this weekend or ever. I have to stop this.”

I never learned what she said to him but when I later asked him how his date went, Harley said, “I cancelled it. I found out she’s married.”

She wasn’t.

For the then-approaching 1997 elections, he boasted that he had to start lining up his campaign contributions because “You have to know where to put your money. That’s how I keep my political power.”

“But isn’t it illegal for civil service employees to contribute to political campaigns?” I asked.

“Hell, I’m not stupid. I give the money to my mother and she passes out the contributions.”

“So, in other words, your mama has political influence and you’ve got squat.”

That was the second time I made him angry. “I don’t know why I even talk to you,” he muttered, walking away.

Never one to be discouraged, he nevertheless did continue talking to me, later telling me his girlfriend was moving back to Louisiana from Houston. Hooking his thumbs in his belt buckle, he drawled, “I guess I’m gonna have to call Edwin (Gov. Edwards, whom he apparently knew on a first-name basis) and get her a job at (an area university).”

A couple of hours afterward, I walked into the copy room and found a female co-worker already at the copier. As I waited my turn, I related that conversation to her in full Harley Purvis mode—right down to the thumbs in the buckle. As I embellished his drawl, I noticed her eyes widening and her mouth trying to form words.

“He’s standing right behind me, isn’t he?” I asked, still imitating his distinctive cadence and inflection.

She could only nod in silent assent.

I turned and said, “Hello, Harley” and retreated to my cubicle. Nothing else one can do when busted like that.

As his retirement date approached, Harley became bolder and even more boastful with his fellow adjusters.

“When I retire, I’m gonna work as an investigator for a plaintiff attorney and I’m gonna bring this agency to its knees,” he said more than once.

Fast forward a few years and ORM becomes the first state agency to be privatized by Gov. Bobby Jindal—at a cost to the state of nearly $75 million. It was $68 million at first but the company that took over ORM, F.A. Richard and Associates (FARA) of Mandeville came back in only about eight months for a 10 percent ($6.8 million) amendment to its contract.

Then, less than a month after getting that amendment approved, FARA sold its contract to another company from Ohio which only a few months later, sold out to a New York firm—despite a clause in the state contract that strictly forbade transfer of the contract without prior written approval. No prior written approval was ever given.

Meanwhile, word coming out of ORM indicates that workers comp claims payments are about $10 million more than before privatization. So instead of the privatization saving the projected $20 million, the state now is in a $10 million hole and will now have to see a savings of $30 million to reach that $20 million estimate—and it doesn’t seem likely that those savings will ever be realized.

With a third company now serving as ORM’s third party administrator, accountability and transparency are out the window insofar as the agency is concerned.

So in retrospect, perhaps Harley was right. Maybe he was behind the privatization movement. Maybe he helped to run up the excess claims payments.

It may have taken 10 or more years, but hey, who’s to say ol’ Harley wasn’t sandbagging us all those years?

Can anyone say with any degree of certainty that he wasn’t instrumental in “bringing this agency to its knees?”

Who knew?

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As analogies go, something called the Leadership Academy, offered to state employees by the Division of Administration (DOA), could best be described as Nero fiddling while Rome burns.

Did we say offered? Of course, we meant to say mandated, as in employees had no choice but to attend. And what they got was reminiscent of motivational courses offered a few years back to employees of the late Office of Risk Management. In those ORM classes, motivational speaker Ron Jackson of Baton Rouge offered employees the opportunity to build structures out of plastic drinking straws as some kind of motivational exercise.

And for his trouble, Jackson was awarded a $49,000 contract by ORM. In another of Jackson’s sessions, employees were asked to draw an energy-efficient automobile.

It is not known if Toyota, Kia, Nissan, GM, Ford or any other carmaker has moved to incorporate any of the revolutionary automotive designs that came out of that little exercise. And to our knowledge, no architectural firms have inquired about plastic straw building designs.

Jackson did hold one-on-one sessions with ORM employees to receive “confidential” thoughts, suggestions and complaints but few employees placed their full trust in the word “confidential,” and thus did not participate.

One reason for that lack of trust was the name of one of board members of his company, LEAD Training Resources Group. Before the contact information was removed, the LEAD website contained the name of a board member who, coincidentally, just happened to be an employee of DOA. And as if that were not enough, her contact information contained her state email address.

So now DOA is following that example by offering its Leadership Academy, complete with handouts of a book entitled Leadership Challenge by James Kouzes and Barry Posner.

The list price of the book is $24.95 but it’s likely that DOA got a steep volume discount. Total cost for all copies of the book was only $448.80, which computes to only about 18 copies at full price and considerably more copies than that were passed out.

Another $565.45 was spent by DOA on the reproduction of handouts and binders, bringing the total cost of leadership to $1,014.25 for the undetermined number of DOA employees assigned to attend the academy. Of course, the time spent by employees away from their duties to attend the lectures was not computed into the equation so that cost is undetermined.

And while no one was asked to construct a building of plastic straws or to design an energy-efficient car, attendees were given a list of six pairs of choices, or preferences, printed on a sheet of paper. That list is as follows:

• Beach or Mountains;
• Hamburger or Hot dog;
• Hotel or Camping;
• Fiction or Non-fiction;
• Pie or Cake, and
• Movie Theater or DVD.

Participants were asked to circle one preference on each line and then to visit other employees in attendance to compare lists to see who came closest to their choice of preferences—to what end we’re not entirely sure. Perhaps it was a test of compatibility for some new type of dating service.

The academy consists of five sessions. The first was held on Feb. 13 and the final session for the last group of employees is scheduled for next Wednesday (March 6), according to the itinerary provided employees.

We’re also not certain what happened last Wednesday but following that session, Vincent Miholic, Ph.D., training and development program manager for DOA, sent a somewhat curious email in which he apologized to attendees.

“My apologies, again, for miscalculating and running out of time,” he wrote. “Was really looking for a robust discussion, rather than the failed timing. Thought I could ‘power’ through it…very dangerous, drag-racing without enough pavement. Hope you’ll let me chalk this one up to success as ultimately a product of failure.”

“…chalk this one up to success as ultimately a product of failure”?

Can someone please tell us what that means?

The handbook contained a letter to attendees from DOA Chief Staff Steven Procopio, Ph.D. ($122,000 a year).

“On behalf of the Office of the Commissioner, (Commissioner Kristy Nichols ($162,700), thank you for your attendance in this valuable professional development activity,” Procopio wrote. “Your participation is an investment in professional growth and evidence of a strong commitment to the mission of the Division.”

Excuse us, Dr. Procopio, just how is required attendance indicative of a “strong commitment” to anything?

And as for the “mission” of the division, that’s a little difficult to quantify considering the mission of the governor’s office seems to be a little vague these days. It’s virtually impossible to discern any mission when Gonenor Jindal never seems to be around to look in on little things like an ever-expanding sinkhole in Assumption Parish that just happens to be leaking toxic gases.

It’s hard to define a mission when efforts to overhaul retirement and schemes to pay for school vouchers are shot down either by the Legislature or the courts.

Where’s the mission when an agency like the Department of Health and Hospitals, which has more than $650 million in assets and more than $7 billion in annual revenue is allowed to decimate its audit section in favor of a single contract auditor (who subsequently walked away from that contract) only to see an employee misappropriate some $800,000 in state funds before being caught?

Sorry, but having sat through a few of them ourselves, we really do not see the value of these touchy-feely sessions that may be intended to spread a warm fuzzy message throughout an agency but which accomplish little more than provoke derisive ridicule from the very ones the sessions are intended to benefit.

Where’s the mission in a campaign hell-bent on gutting higher education, handing out lucrative contracts to political supporters as public education is offered up as a sacrifice to the god of charters and vouchers and systematically dismantling the state’s public health programs?

From our perspective, this “Leadership Academy” is nothing more than meaningless lip service and an empty gesture designed solely to convince employees that someone up the food chain actually cares about them.

Sadly, the reality is nothing could be further from the truth.

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Mitt Romney’s loss to President Obama on Tuesday may have provided the perfect opportunity for Gov. Piyush Jindal and de facto governor Timmy Teepell (or so they must certainly be thinking right about now).

Sure, Jindal did the dutiful thing and ran around the country like the proverbial chicken with its head chopped off, talking to throngs of avid Romney supporters that sometimes numbered as many as a dozen or so.

And sure, he said all the right things at those massive gatherings.

But deep down, you have to know that Jindal and Teepell are smirking just a little right now and have already begun their drive to the White House for 2016.

Jindal is an impatient man as witnessed by his rush to push through a radical education agenda and his attempt to completely revamp the state retirement system even though his plan would have cut some state employees’ pensions by as much as 85 percent (and the vast majority of state employees do not qualify for social security because they have never worked in the private sector and state employees don’t pay into the system).

Nor will the vast majority of state employees qualify for Medicare for the same reason. But that fact did nothing to stop him from slashing Medicaid.

Jindal also rushed through his plan to privatize state government, beginning with the ill-fated takeover of the Office of Risk Management by F.A. Richard and Associates (FARA) of Mandeville at an initial contract cost of $68 million to the state. Eight months into its contract, FARA was requesting a $6.8 million amendment to its contract. That was precisely 10 percent of the original contract amount. There is an obscure regulation that allows a one-time amendment to contracts for up to—you guessed it—10 percent.

But wait! There’s more! Less than a month after the contract was bumped up to nearly $75 million, FARA upped and sold the contract to an Ohio company who kept it for about four months before selling it to a New York company.

There was a hitch in all those transactions but again, did it slow Jindal down? Not a bit. That hitch was a clause in the FARA contract that supposedly prohibited the transfer of the contract without prior written approval of the Division of Administration (DOA). When asked for a copy of that prior written approval, DOA responded without a shred of concern and even less of an explanation that no such document existed.

Jindal has plowed headlong into a policy of closing state hospitals with little or no concern of the effects it has to area residents who rely on the hospitals for treatment of injuries, disease and mental illness.

He has been similarly reckless in his closures of state prisons, throwing hundreds of state employees out of work. In both the hospital and prison closures, he has neglected to give area legislators a heads-up before taking the action to close the facilities, an oversight over which lawmakers continue to seethe.

He has attempted with equal urgency to enter into a contract with Blue Cross/Blue Shield (BCBS) as a third party administrator (TPA) for the Office of Group Benefits (OGB) Preferred Provider Organization (PPO) medical coverage for about 62,000 state employees, retirees and dependents.

Facing certain defeat of the proposed contract at the hands of the House Appropriations Committee last week, Jindal’s new Commissioner of Administration Kristy Nichols abruptly pulled the proposal from the agenda of the joint meeting between the Appropriations Committee and the Senate Finance Committee.

It was a less than auspicious coming out party for his new commissioner of administration. A smashing debut for Nichols it was not.

But the administration is back for another attempt this Friday at 8:30 a.m. The makeup of the Appropriations Committee will be slightly different, however, after last week’s Black Friday purge of the committee by Jindal.

And make no mistake, while it was House Speaker Chuck “Genuflecting Gelding” Kleckley (R-Lake Charles) who announced the removal of Reps. Cameron Henry of Metairie and Joseph Harrison of Gray, the word came from Jindal—or Teepell. Both Henry and Harrison are Republicans but both also violated the cardinal rule against questioning anything put before them by Pontiff Piyush.

Harrison said as much when he revealed that the administration historically provides questions to committee members that they are allowed to ask. At the same time, he said, they are instructed not to deviate from the list by asking any questions other than those on the list.

So now Jindal is making one final push to get his contract with BCBS approved.

It’s doubtful he will make a personal appearance; he almost always sends his flunkies to carry the water for him.

It’s also doubtful if Nichols will repeat last week’s faux pas of tell committee members she would “dumb down” her explanation of the proposed contract for the benefit of lawmakers. It’s one thing to close a hospital or prison without informing the legislators in the area. It’s quite another to sit before them and call them dumb to their faces.

The point of all this is this: don’t look for Piyush in Baton Rouge in the remaining three-plus years of his term of office. He’s not likely to be spending much time in his fourth floor office.

A quick drive through on Wednesday revealed that Teepell’s Jeep was parked—as always—in the back parking lot of the State Capitol. This is a former Jindal staff member who resigned more than a year ago to run the Southern office of OnMessage, a Maryland political consulting firm. OnMessage has been paid hundreds of thousands of dollars by Jindal’s campaign fund over recent years but more than a year after Teepell opened that Baton Rouge office, there still is no local address or telephone number for the firm.

If Teepell is doing anything at all for OnMessage, he is doing it—as a private citizen—from the State Capitol’s fourth floor governor’s office. We have mentioned this on at least two other occasions but still the attorney general and the inspector general’s offices have done nothing to bring the misuse of the public office for private purposes to an end.

But the boy wonder we know as Piyush is about to hit the road in a fundraising blitz that will, in all likelihood, dwarf that of his re-election fundraising efforts of a year ago.

He is going to be running full time for president and he is an impatient man. He did not want to wait eight years wasting his valuable time in some obscure federally appointed position in the Romney administration (though doubtless he would have taken a higher profile position if it could keep his name in the forefront). He will serve next year as head of the National Republican Governor’s Association. That will keep his name out there while he ramps up his fundraising efforts.

Now, though, he can hold to the office (in theory if not in reality) of governor of Louisiana for three years while keeping his travel itinerary full. His term will end in January, 2016—just in time for him to become a full time candidate.

Even as he does so, however, there is a significant lesson to be learned from Tuesday’s results—a lesson quite likely overlooked by JindalTeepell.

The Democrats learned from the Reagan landslides that it was going to have to move from the far left more towards the center in order to gain the acceptance and trust of the American electorate. It did and the result was Bill Clinton.

Likewise, to gain the trust of the American people, the Republican Party is going to have shed itself of the stigma it now carries as a refuge for the Tea Partiers. Simply put, the GOP is going to have to shift away from the right right, becoming less a haven for the extremists with more appeal to the centrists.

Unfortunately for Piyush (and perhaps fortunately for the rest of us), he seems incapable of making such a shift. He has shown himself to be stubborn, obstinate and convinced of his own infallability. He is simply unwilling to compromise and that, in the end, will be his undoing.

In the meantime, don’t look for him in Baton Rouge during the next three years.

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Editor’s note: The information contained in this story was received via printouts from the Louisiana Department of Civil Service of those earning $100,000 or more for the years 2009 through 2012. Each year was listed separately. Accordingly, when the name of Patti Gonzalez of the Office of Risk Management did not appear until the 2012 printout, the indication was she had received a pay increase. This was not the case and there was no explanation as to why she did not appear in prior years but Ms. Gonzalez says she has not received an increase since March of 2010.

Likewise, no state elected officials received pay increases as their salaries are set in statute. Civil Service printouts did indicate pay increases for all but two statewide elected officials but this apparently was in error.

Rank and file state civil service employees have gone without pay increases, merit or otherwise, since 2009 but at least 104 managers, directors, supervisors and five statewide elected officials already making in excess of $100,000 a year have received increases over the past three years.

Not included in the tabulation were doctors, nurses, pharmacists, higher education professors or, with one exception, those who were promoted from one job to another and got raises.

Altogether, more than 3,200 state employees earning more than $100,000 per year accounted for an annual payroll of approximately $432 million—an average of about $135,000 each.

The average pay of a state civil service employee is approximately $39,600.

In most cases—but not all—the pay increases were 4 percent increases. A 4 percent increase for one making $100,000 would be $4,000. That would fund four such increases for workers earning only $25,000 a year.

There were those, however, who did better. Much better.

Michael Diresto went from $103,792 in 2011 to $118,792 this year, a $15,000 (14.5 percent) bump. He was listed by the Department of Civil Service as a “director” in the Division of Administration (DOA) for both years. On the DOA web page, he is identified as an assistant commissioner for policy and communications.

Bruce Unangst, executive director of the Real Estate Commission, also saw his annual salary balloon from $109,000 in 2011 to $125,000 this year, a 14.7 percent increase.

In the governor’s office itself, Executive Counsel Elizabeth Murrill did extremely well for herself. Her 2011 salary of $110,000 grew to $165,000 this year—before her transfer to DOA where presumably, it will remain the same. Her one-year pay hike was a whopping 50 percent, according to Civil Service records.

In the Department of Insurance, 14 employees earning $100,000 or more received 4 percent increases from 2011 to 2012 while four others, including an attorney supervisor, did not. Insurance Commissioner James Donelon this year also hired former state legislator Noble Ellington, who had no experience in insurance, as deputy commissioner at a salary of $149,900.

Five of 14 employees of the Port of New Orleans Port Commission who earn $100,000 or more were awarded pay raises ranging from 5.5 percent to 7.5 percent.

At the Department of Health and Hospitals (DHH), several employees received pay increases from 2011 to 2012 despite the pay freeze. They included Executive Director Robert Marier, who went from $196,102 to $205,899 (5 percent); Associate Director Cecilia Mouton, from $185,640 to $194m916 (5.1 percent); Executive Director John Liggio, from $119,044 to $125,068 (5 percent), and Executive Director Lisa Schilling, from $107,702 to $134,638 (25 percent).

None of the four changed job classifications, according to the Civil Service report. One who did change classifications got a 14.8 percent increase, a lower percentage than Schilling. Courtney Phillips was promoted from a Medicaid Program Manager 4 at $102,814 per year to Chief of Staff at $118,019.

One other executive director, six DHH attorneys, a deputy director, a deputy secretary, a budget administrator, an economist and a program director received no salary increases from 2011 to 2012.

Debra Schum, listed as an executive officer in the Department of Education (DOE), got a 20 percent pay raise, from $110,000 in 2011 to $132,000 this year while Kerry Lester, also an executive officer with DOE, got a $5,000 increase, from $150,000 to $155,000 during the same time frame.

But what is particularly interesting about the DOE payroll is the seemingly inordinate number of new hires of people at six-figure salaries, especially in the Recovery School District.

State Superintendent of Education John White has brought in no fewer than 10 new employees at salaries in excess of $100,000 this year alone—and that’s not even counting Deirdre Finn, a part time contract employee who will be paid $144,000 a year to work as communications manager for the department—from her home in Florida.

The idea of hiring a commuting employee, apparently borrowed from DHH and Carol Steckel, who is being paid $148,500 a year as a “confidential assistant” to DHH Secretary Bruce Greenstein to commute back and forth from her home in Alabama, seems to be catching on.

David “Lefty” Lefkowith is being paid $146,000 to commute back and forth from Los Angeles to work at DOE as a “director,” according to Civil Service records. He describes himself in a DOE video, however, as a “deputy superintendent.”

Other new, six-figure employees added by DOE this year include:

• Gary Jones, Executive Officer, $145,000;

• Melissa Stilley, Liaison Officer, $135,000;

• Michael Rounds, Deputy Superintendent, $170,000;

• Hannah Dietsch, Assistant Superintendent, $130,000;

• Francis Touchet, Liaison Officer, $130,000;

• Stephen Osborn, Assistant Superintendent, $125,000;

• Sandy Michelet, Executive Director, $120,000;

• Kenneth Bradford, Director, $110,000;

• Heather Cope, Executive Director of the Board of Elementary and Secondary Education, $125,000.

For the Recovery School District (RSD), both the high turnover and six-figure salaries are significant. That’s because there is substantial turnover despite the high salaries and that turnover has stymied any progress the already troubled RSD might have realized.

No fewer than 20 employees earning six figures have left the RSD since 2009, records show.

For the three years from 2010 to 2012, there was a turnover rate among those earning $100,000 or more ranging from 29 to 44 percent from the previous year Civil Service records indicate.

Of 24 RSD employees earning six figures for the current year, 15, or 62.5 percent, are new hires, records show. These include:

• Stacy Green, School Nurse, $145,000;

• James D. Ford, Administrative Superintendent, $145,000;

• Dana Peterson, Administrative Superintendent, $125,000;

• Adam Hawf, Administrator, $120,000;

• Mark Comanducci, Executive Director, $115,000;

• Helen Molpus, Administrative Chief, Officers, $115,000;

• Kizzy Payton, Administrative, Business Office, $110,000;

• Hua Liang, Administrative Chief, Officers, $110,000;

• Nicole Diamantes, Administrative, Other Special Programs, $105,000;

• Isaac Pollack, Administrative, Principal, $105,000;

• Desmond Moore, Administrative, Principal, $105,000;

• Betty Robertson, Other Business Services, $105,000;

• Robert Webb, Administrator, Other Special Programs, $105,000;

• Sametta Brown, Administrator, Regular Programs, $100,800;

• Ericka Jones, Administrative, Principal, $100,000;

• Eric Richard, Administrative, Principal, $100,000.

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This is about arrogance. More specifically, it is about the arrogance of two men, both from Louisiana and each elected to represent his constituents to the best of his ability.

And to that end, each has failed miserably while taking his individual insolence to new levels—in very different ways. One we have written about extensively in the past. The other, not so much, though perhaps he may well warrant closer attention in the future.

We are talking about Gov. Piyush Jindal and U.S. Sen. David Vitter.

The first, Jindal, has repeatedly displayed his cowardice, his spinelessness, by taking actions to close state facilities without bothering to notify affected legislators of his plans in advance. He has consistently ignored the plight of hundreds of state employees he forced into unemployment by cutting services and corporate taxes, further exacerbating the state’s budgetary crisis.

Vitter’s vote on a Senate bill last week can only described as despicable and hypocritical.

We will get to him presently.

It was not enough that Jindal announced the closure of Southeast Louisiana Hospital in Mandeville and C. Paul Phelps Correctional Center in Dequincy without extending the courtesy of a heads up to the legislative delegation in southeast and southwest Louisiana, the two areas affected.

But in doing so, he appeared to give little regard to or concern for the hundreds of employees at the two facilities who will be adversely impacted by layoffs or, in a few cases, transfers.

Then, on the heels of the announcement of the C. Paul Phelps closure The Baton Rouge League of Women Voters held a panel discussion to discuss Jindal’s continued privatization of state agencies, including the Office of Risk Management, the Office of Group Benefits, charter schools, educational vouchers, state hospital privatization and Medicaid cutbacks.

Invited to attend were representatives of the Jindal administration and proponents of privatization as well as four opponents, including an education coalition representative and Dr. Fred Cerise, former head of the LSU Health Care System.

One end of the head table was fully represented. On the other end, not a single person appeared on behalf of the administration. Cowardice. If an administration cannot publicly defend its actions—and make no mistake, Jindal never does—then that can only be described as cowardly.

Oh, they all had excuses. Commissioner of Administration Paul Rainwater said he had to attend a State Bond Commission meeting. But that meeting was over before the panel forum began across town. Bottom line, no one from the administration could—or would—find the time to defend the governor’s program.

Of course, Jindal had plenty time to attend a Republican unity breakfast in New Hampshire a week before and agreed to participate in a Sept. 26 Leaders of Iowans for Freedom “No Wiggins” bus tour—a rally in opposition to the re-election of Iowa Supreme Court Justice David Wiggins who voted with the majority to rule the state’s one-man, one-woman marriage law unconstitutional.

We have to wonder how our governor, who, metaphorically speaking, has more snakes than he can kill right here at home, can find time to involve himself in a supreme court race in Iowa. Does the state Medicaid budget’s gaping budget hole not keep him sufficiently occupied without his having to traipse off to Iowa? Isn’t the fiscal plight of the state’s colleges and universities of enough concern to deter him from having breakfast in New Hampshire?

Or could it be more than mere coincidence that the first presidential primary and party caucus will be in New Hampshire and Iowa, respectively, in about three years? Could Jindal be that brazen, that disturbingly obvious? Well, yes. Could he really be that delusional, fooling himself into thinking he has a prayer? Yes again.

Piyush would be wise to awaken to the realization that Timmy Teepell is no Karl Rove.

LouisianaVoice has submitted a public records request to determine the cost of Jindal’s two trips including costs not only for Jindal, but for his security detail and any staff members who went along, including travel, lodging, meals and salaries—and including Jindal’s pro-rated salary for the days he is out of state.

Just for argument’s sake, let us say he made each trip in a single day. Giving his annual salary of $130,000, that would mean he should rebate the state a minimum $712 in salary while he was out of state attending to non-governor-type business—plus all the other expenses incurred on the trip for him and his entourage.

Now let’s talk about Vitter.

There was a bill up for a vote in the Senate last week. The Veterans Jobs Corps Act of 2012 would have made it easier for veterans in the future to transition to civilian life.

With veterans of the Iraq and Afghanistan wars experiencing unemployment rates 3 percent higher than the general population, the bill would have put a lot of those veterans to work.

A majority (58-40) voted for the bill but that was two votes short of the three-fifths majority needed to overcome a budgetary point of order thrown up by Republicans.

Republicans said the bill violated the Budget Control Act by adding a program that would increase the deficit. Only five Republicans voted for the bill.

Vitter was one of 40 Republicans who voted no.

That’s correct. U.S. Sen. David Vitter (R-Louisiana), given a chance to vote up or down on a measure to help veterans, chose to vote down.

We’re talking about a $16 trillion deficit and the Republicans were quibbling over a budget item of $200 million per year over five years.

Given the propensity of Republicans to consistently vote for larger and larger appropriations for the Pentagon and military contractors and given Republicans’ support of two wars that have cost this country more than $4 trillion, a $1 billion appropriation to help our veterans re-enter the work force should not seem so unreasonable.

Given that most of these Republican chicken hawks have never experienced military service, it certainly is curious that they are so reluctant to lend a hand once these military personnel have sacrificed so much to defend the rhetoric of the pompous congressmen who while beating their collective breasts, are so quick, yea eager, to send them off to war.

It is heartless enough that military personnel with traumatic head injuries are unable to obtain adequate or timely medical treatment once they are no longer useful as fighters and as unwitting enablers of military contractors who milk the Pentagon budget of untold billions of dollars in unchecked cost overruns and outright fraud.

But when it came time to put his money where his patriotic, flag-waving mouth is, Vitter, rather than reaching out to the veterans, turns his back on them. What a coward.

And we thought his frequenting New Orleans prostitutes and cavorting with the D.C. Madam after all of his preaching about family values was hypocritical. That was child’s play, a victimless crime, as they say. His vote on the Veterans Jobs Corps Act dwarfed that transgression. There were thousands of victims of that callous action.

To demonstrate the Republican stance on American exceptionalism and righteous wars, one need look no further than to a statement made by Andrew Card, President George W. Bush’s chief of staff who, when asked about the timing of the March 2003 Iraqi invasion, dubbed Operation Iraqi Freedom, said, “From a marketing point of view, you don’t introduce new products in August.”

There you have it. A half-century ago President Eisenhower said, “We must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex.”

Despite that admonition, war—and the influence of that military-industrial complex—has become a marketing concept, a product to be introduced with the appropriately hyped mixture of patriotism, mom and apple pie, along with the oft-repeated need to defeat the newest threat to the American Way of Life, whatever that is.

And Vitter is right there with his fellow Republicans—until it’s time to help those who supported that policy—the men and women in uniform.

In 2003, he voted in favor of HR 1559, the Emergency Wartime Supplemental Appropriations Act. In 2008, he voted in favor of HR 2642 to approve funding for the Iraq and Afghanistan War—funding that has now exceeded the $4 trillion mark.

But in 2012, he and 39 other Republicans just could not bring themselves to waste a five-year, billion dollar expenditure to help military veterans return to the workforce.

We should be so very proud of our junior senator.

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Remember when we recently suggested that you contact your legislator with a specific list of questions relative to Gov. Piyush Jindal’s efforts to:

Destroy public education by allowing private concerns to open charter schools and offer online courses with no accountability;

Destroy higher education in general with massive budgetary cutbacks and LSU in particular by loading the state’s flagship university board of supervisors with political hacks and campaign contributors;

Dismantle the state’s public health system through closures, cutbacks and by, as in the case of the LSU Board of Supervisors, packing the University Medical Center Management Corp. Board with political cronies, and

Usurping the powers and responsibilities that rightfully belong to the legislature?

We provided the internet web page addresses for both the House and Senate and suggested that you contact your legislators with these specific questions with specific answers and promised that as the results came in, we would publicize them.
Rep. Alan Seabaugh (R-Shreveport), knowing that state employees might be reluctant to divulge their names for fear of being teagued and thus might feel the need to use a pseudonym, issued the following snarky reply to one such person:

“You make some substantive and good points. However, I do not send substantive responses to people who hide behind fake names.”

Rep. Stephen Carter (R-Baton Rouge) fell back on the standard tactic of “baffle ‘em with B.S. with his non-response to a constituent:

Thank you for your email. I understand your concerns and appreciate you taking the time to contact me. Upon review, most of the items you listed are proposals and have not been implemented yet. When the time comes, I will be charged with giving the up or down approval through legislation. I will carefully consider each item individually that is up for a vote. The Governor’s job is to propose initiatives, try to get the approval of the legislature, and then implement. The a governor has not sought my advice on the items you listed, but I will consider his proposals when and if they become proposed legislation. I cannot usurp his authority including his appointive power to various boards and commissions.

I do want to be sure I make decisions in the best interest of the state, whether privatization is the answer or not. Until we have the opportunity to see proposals to privatize, it is difficult to evaluate the pros and cons. I can’t make a blanket judgement about privatization because I believe it is an issue that warrants case-by-case evaluation.

To provide information on some of your specific concerns, William Jenkins is the interem President of the University. He has appointed, and the Board of Supervisors has approved, Dr. Frank Opelka to serve as the Executive Vice President for Health Care and Medical Education Redesign. The Board has approved Dr. Opelka issuing a Request for Proposal (RFP) to seek the interest of private partners who are interested in a collaboration with LSU to run the hospitals. Again, thank you for your interest and rest assured that all of us in the legislature are trying to make decisions that will improve the quality of life of all of our citizens. Please don’t hesitate to contact us if you have any more questions or if we can be of any assistance to you.

Best regards,
Steve Carter

Our favorite, however, came from Sen. Neil Riser (R-Columbia):

“Thank you for your correspondence to Senator Riser regarding state cuts. Please know that Senator Riser appreciates hearing from you and will keep your thoughts and concerns in mind as they go thru the legislative process.”

There you have it. A canned response and not even from Riser himself, but from a legislative assistant. The man could not even take the five minutes out of his busy schedule to write specific responses to specific questions. Apparently the affairs of the American Legislative Exchange Council (ALEC), of which Riser is a member, are of greater precedence that those of a lowly constituent.

For those of you who may have missed it, here are the questions and the web addresses again;

I want to know where you stand on of allowing the governor to ignore the medical needs of the state’s indigent population as well as to ignore the need to maintain teaching hospitals for medical students at the LSU and Tulane schools of medicine;
Moreover:

When are you, as my (representative/senator) going to stand up to Gov. Jindal and his runaway efforts to:

• Disembowel higher education;

• Destroy public education to the financial benefit of private contractors/campaign supporters;

• Dismantle the state’s flagship university by appointing political hacks to the LSU Board of Supervisors, firing capable administrators and closing/privatizing state hospitals;

• Allow voucher and online courses to take the place of public education without even a smidgen of accountability or standards to which public education is held;

• Continually allow our governor to usurp the powers and responsibilities that rightfully belong to the legislative branch, including the choosing of House Speaker and Senate President?

I want and expect a public and publicized answer by you on the entirety of this subject. You’ve been silent long enough.

Click here for a list of House members: http://house.louisiana.gov/H_Reps/H_Reps_ByName.asp

Click here for a list of Senate members: http://senate.legis.louisiana.gov/Senators/
Scroll down the list until you find your representative/senator and click on the name. The legislator’s email address will on the page that will appear. For representatives, you need only click on the email address but you will have to type the senators’ email addresses.

It helps if you are able to provide your real name but if you are a state employee, do not use your real name.

Also, send only the questions; do NOT send the entire content of this blog. It’s not that we are concerned about legislators knowing where the questions originate because most of them will; it’s just not necessary to send this entire text.

One final note:

We are getting comments back today that certain legislators were sent the original questions and have not responded.

Our suggestion would be to re-send them each and every day until they do respond. Bombard them and do not let up.

One of Winston Churchill’s greatest speeches included this classic line: “Never give in. Never give in. Never, never, never never.”

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By JOHN SACHS

Periodically I am asked why I’m screaming about what is taking place in our state government. It is suggested that I speak with more deference and respect to and about elected and appointed officials. I am reminded of the adage that one catches more flies with sugar than with salt. I listen to that advice and then I counter with the following explanation for my approach and call to action:

When you as an individual or through your business or when a government entity wants to make a change in service providers such as a pest control service, a janitorial service, or a building maintenance and repair service, it does not involve the lives and livelihood of employees or the ownership of the entity’s physical assets such as buildings. One simply contacts several competing service providers and after evaluating them, makes a decision as to which vendor will provide the specific service for a specific time period.

Now take the case of lease and rentals of buildings and equipment. This is a more complex transaction and generally extends over a longer period of time than a service contract. Except in the case of a rent/lease-to-own transaction, ownership of the assets remains unchanged. Thus, at the end of the lease the parties can agree to terminate the agreement and go their separate ways or to enter into a new contract. Ownership of the asset being rented or leased, however, remains with the original owner.

Finally, there are the types of transactions that are of a permanent nature with lasting consequences, and the ones that the Jindal administration is entering into that will for all intent and purposes change our system of government, alter the delivery of essential services, and transfer ownership of state physical assets forever. What Gov. Bobby Jindal is doing now will be felt for decades to come if not forever. And forever is a mighty long time for the state to suffer after Jindal leaves office for greener pastures (which I find myself occasionally hoping will have a name such as “Serenity Gardens.”)

The first of these “Forever” changes involves privatizing essential government services. When these services are privatized, the state employees almost to a man/woman lose their jobs, their retirement and their benefits. Moreover, their years of experience and expertise are lost to the state almost always forever. The state’s records generally become those of a private company accessible only by the state agency responsible for their administration.

And even that access can become iffy. Take the Office of Risk Management, for example. In less than a year after being privatized at a cost of $75 million to the state, the contract was transferred to a second and then a third company—in open defiance of the state contract requiring written authority for the contract to be transferred. Today, two years after the privatization, nothing has been done about the contract violation.

Records that should be open and public disappear behind a cloak of protection from prying eyes not afforded public agencies. Consequently, monitoring by state and even federal investigators charged with oversight of the function becomes difficult. And to the press, the fourth estate charged with keeping everyone honest and accountable, access to once public records becomes all but impossible. When one adds in the profit motive of a private enterprise and tax liabilities that are not a cost factor to a state operating department, the cost to administer an essential and rightfully state service escalates significantly to the detriment of the state.

The second “Forever” change is the most troublesome and is the one that makes me scream the loudest. That is when physical assets owned by the state and its citizens are sold to private individuals, companies, and corporations. When assets such as hospitals, prisons, schools, etc., are sold, ownership of those assets by the state is lost FOREVER. Let me say that again. When physical assets of the state are sold, ownership of them by the state is lost FOREVER.

We will never again own them. If we need those physical assets to deliver essential state services and programs, we have to enter into negotiations with the new owners to rent or lease those same facilities that we previously owned. And since we in almost every case have no alternative site from which to provide the service, we are held captive by the private owner of the former state facility paid for with taxpayer dollars.

If the new owner knows that he has no competition, is it reasonable to expect him to give us a fair, reasonable, competitive rent/lease term? Chances of that happening are so slight as to be incalculable. The only protection is the initial agreement. After that, it’s every man for himself.

And remember, these new owners will most likely be the contributors to Jindal’s political campaigns, his political slush fund, Believe in Louisiana, or his wife’s “charitable” foundation. They will be the ALEC-supported “One-Percenters” who feel that they are, by divine right, entitled to the spoils of political patronage. It is the finality of the “FOREVER” consequences of the sale of physical assets that makes me scream the loudest and that must be stopped before it ever happens.

Jindal has three years left to do his dastardly deeds. Everyone knows he has higher political aspirations (goals that he will never attain) and that he is a pathological liar who will say anything to portray himself as a caring and responsible keeper of the sacred trust placed in him by the Louisiana electorate. And our generally brain-dead media will drink his poisoned Kool-Aid, ask no intelligent and probing questions, and print verbatim his press releases.

Meanwhile, the Super Pacs will reward him for his unconscionable acts of greed on behalf of the One-Percenters.

So how can Jindal be stopped? There is only one way. Our legislators must muster the required two-thirds (2/3) vote to take back powers to act that in the past have been ceded to the governor and his appointees. That is the only way. And that must happen within the next year and certainly before the end of his term in office. Otherwise, Jindal will have sold ALL of the most marketable physical assets that the state must have in order to deliver essential services mandated by state and federal law and the state will be forced to contract with the new owners for these assets use at exorbitant rates and for terms favorable to the new owners.

That is why I’m screaming and you’d better scream too. Legislators, you’d better muster whatever it takes to act as a body politic united to preserve our state’s assets or your term in office will be forever tainted as a do-nothing, hear, see and speak no evil hand-maiden to the most corrupt governor in our state’s history. That’s a legacy that I would not want to bear.

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A Louisiana Attorney General’s opinion released Friday has accused the administration of Gov. Piyush Jindal of attempting an end run around the legislature in its efforts to privatize the Office of Group Benefits (OGB).

Meanwhile, another state prison is abruptly closed by Jindal.

The eight-page opinion, written by Assistant Attorney General Michael J. Vallan, says that the proposed privatization of the Office of Group Benefits and the ensuing contract with Blue Cross/Blue Shield of Louisiana must be approved by the House Appropriations Committee and the Senate Finance Committee, as well as the Office of Contractual Review.

But don’t expect Jindal to capitulate too easily, for while the opinion, which boiled down to a interpretation of under which state statute the privatization action was taken, is just that—an opinion. It has no force of law and the likely action to be taken by Jindal and the Division of Administration (DOA) is to simply ignore it and proceed as planned.

The only recourse in such a scenario, would be for the legislature to file suit against Jindal to get a determination of which statute should apply in the privatization process—one which effective bypasses legislative authority or one which specifically requires approval of the two committees.

The requirement for approval of the Office of Contractual Review may as well have been deleted from the opinion since the office is a part of DOA and answers directly to Commissioner of Administration Paul Rainwater, making that agency’s approval a virtual given.

The Division of Administration, through OGB issued a request for proposals (RFP) earlier this year and on April 30 issued a Notice of Intent to Contract (NIC) for Administrative Services Only (ASO), meaning for the awarding of a contract to a third party administrator (TPA) to take over the administrative duties for the state’s Preferred Provider Organization (PPO) plan, the High Deductible Health Plan (HDHP) with Health Savings Account (HAS), and the LaChip Affordable Health Plan (LaCHIP).

Blue Cross Blue Shield of Louisiana (BCBS) was already serving as third party administrator for the state’s HMO coverage for state employees and their dependents through OGB and on July 20, OGB issued a report and recommendation to the Evaluation Committee in which it proposed awarding the PPO, HDHP, HAS and LaCHIP business to BCBS as well.

That recommendation was approved by the State Civil Service Commission on Aug. 1.

State Rep. Katrina Jackson (D-Monroe) two days later requested an expedited legal opinion from the attorney general’s office based on her belief that the legislature had to sign off on the awarding of such contracts.

Vallan, in his opinion, said that Louisiana Revised Statute 42:802(B)(8)(b) “clearly provides that any such contract shall be subject to review and final approval by the appropriate standing committees of the Legislature having jurisdiction over review of agency rules by OGB as designated by (statute), or the subcommittees on oversight of such standing committees, and the Office of Contractual Review of the Division of Administration.”

“It is our understanding that the House Appropriations Committee and the Senate Finance Committee are the appropriate standing committees having jurisdiction over OGB rules.

“Therefore, pursuant to the plain language of …42:802, it is the opinion of this office that any contract negotiated by OGB pursuant to the authority granted by …42:802(B)(8) shall be subject to review and final approval by the House Appropriations Committee and the Senate Finance Committee.”

The entire issue hangs on which statute was used in the issuance of the NIC and the subsequent awarding of the contract to BCBS.

“According to OGB,” Vallan said, “the contract at issue was not negotiated pursuant to the provisions of …42:802(B), but was instead negotiated pursuant to the authority provided by Louisiana Revised Statute 42:851.”

While acknowledging that 42:851 does not require legislative approval of contracts, Vallan said, “Our reading of …42:851 is that it applies to situations where a particular state governmental or administrative subdivision, department, agency, school system, etc., intends to procure private contracts of insurance for its respective subdivision, department or agency.

“We do not believe that …42:851 provides OGB with the authority to enter into the proposed contract with BCBS. We are of the opinion that such authority is clearly granted by …42:802. An interpretation of both …42:802 and 42:851 authorize OGB to execute the proposed contract with BCBS would render the provisions of (the two statutes) duplicates of each other and their provisions superfluous and/or meaningless. Such an interpretation should be avoided.”

Vallan said that by enacting 42:802, it was clear that the legislature “has expressed its desire that contracts governing the provision of basic health care services, as well as certain other related contracts be subject to review and final approval by the legislature.

“To interpret …42:851 as offering some sort of alternative route to execute such contracts, thereby escaping legislative oversight, appears to be contrary to the logic and presumed fair purpose the legislature had in enacting …42:802.

“In summary, it is the opinion of this office that the proposed contract between OGB and BCBS is a contract negotiated pursuant to the provisions of …42:802. As such, the contract is subject to review and final approval by the appropriate standing committees of the legislature having jurisdiction over review of agency rules by the Office of Group Benefits.”

Almost lost in all the legalese is the fact that if Jindal’s privatization plan is ultimately approved—by the legislature or by the courts—121 state employees who show up each day to see to it that the medical claims of more than 100,000 state employees, retirees and their dependents are paid in a timely fashion will see their jobs vanish.

Jindal sees privatization through rose-colored glasses—provided him, no doubt, by generous corporate campaign contributors—despite the obvious pitfalls.

Take the Office of Risk Management (ORM), for example. It was the first state agency to be privatized and the company that the state paid $68 million to take over the TPA functions. The takeover was to occur in phases, with the worker’s compensation section one of the first to go and the road hazard section scheduled later this year as the last section to go over.

One of the conditions of the privatization contract was that the TPA absorb displaced ORM employees for a minimum of one year.

In only about eight months after taking over ORM in September of 2010, the contractor, F.A. Richard and Associates (FARA) of Mandeville, was back, asking for an amendment of a tad over $6.8 million to its contract, bring the total to just under $75 million.

Because the request was for an additional 10 percent, legislative approval was not necessary; there is a provision that contractors may get a one-time bump of 10 percent without legislative concurrence.

Legislators were not too happy to learn of that provision but in less than a month, FARA sold out to a company in Ohio which in a matter of only a few more months, sold out to a company in New York.

But here’s the clincher: the contract with FARA contains a clause which specifically says that its contract with ORM may not be transferred or reassigned without prior written approval. When DOA was asked for a copy of the written approval to transfer the contract to each of the out-of-state companies, the response was no such document existed.

So, because of not one, but two flagrant violations of its contract for privatization, ORM is being run by an out-of-state corporation even before all the ORM sections were phased into the contract.

And where are those former ORM employees today? Well, it seems, only a handful of former ORM employees remain there.

OGB remains on the privatization chopping block despite the encouraging legal opinion of the state’s highest legal office. It remains to be seen how it all will play out.

Meanwhile, Jindal, having failed to privatize state prisons as he wished, is simply closing facilities. J. Levy Dabadie Correctional Center was closed earlier this year with nary a word to area legislators of his intent.

On Friday, September 14, Jindal dropped another bombshell.

C. Paul Phelps Correctional Center in DeQuincy is being closed with its 700 medium security prisoners to be transferred to Angola State Penitentiary.

Again, state employees, about 150 of them, have had their livelihoods jerked from under them with no prior warning. About 70 of those will be given the opportunity to transfer to Angola. As for the rest?

Apparently they’re not Jindal’s problem. After all, he likes to say do more with less.

And now, with such a stellar record to back him up, Jindal is turning his attention to the privatization of the LSU Health System and its 10 affiliated hospitals statewide that treat the state’s poor and which train medical students.

Does anyone see a trend?

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Let the dismantling begin.

The LSU Board of Supervisors, packed with 11 of its 15 members who contributed an aggregate of more than $225,900 to Gov. Piyush Jindal’s political campaigns, voted Friday to take the first official step toward what will likely become the complete destruction of the LSU Health System.

The board, which since April has fired, demoted or reassigned LSU President John Lombardi, health system head Dr. Fred Cerise, Interim LSU Public Hospital CEO Roxanne Townsend and LSU System General Counsel Ray Lamonica, voted on Friday to authorize LSU hospitals in Shreveport, Monroe and Alexandria to develop requests for proposals (RFPs) for public-private partnerships for the three hospitals.

Jindal has already slashed $14 million in appropriations for Lallie Kemp Regional Medical Center in Tangipahoa Parish. That represents nearly 35 percent of the facility’s total budget and will mean the loss of surgery, cardiology and ICU services and dramatic cuts to oncology, gynecology and disease management as well as up to 150 staff members who stand to lose their jobs.

Additionally, the LSU Hospital in Bogalusa had its budget cut by $3 million, forcing the facility to close several clinics and to absorb pediatrics into primary care.

In Mandeville, Southeast Louisiana Hospital is slated for closure beginning next month, leaving the Florida parishes, Orleans, Jefferson, St. Bernard and Plaquemines parishes with no state mental health treatment centers.

W.O. Moss Regional Medical Center in Lake Charles also was designated for massive budget cuts and University Medical Center (UMC) in Lafayette was earmarked for $4.2 million in cuts but Jindal said the LSU plan would “protect critical services.

In an apparent effort to head off employee protests, UMC administrator Larry Dorsey notified employees not to attend a public rally—on or off the clock—protesting the cutbacks subject to disciplinary measures. That email was in stark violation of state civil service rules which specifically allow employees to attend such rallies as long as it is on their own time.

The Shreveport Times Friday morning published a story saying that LSU System supervisors would vote later in the day on beginning the process to develop RFPs on public-private hospital partnerships for hospitals in Shreveport, Monroe and Alexandria.

LSU Health spokesperson Sally Croom said the resolution, which was not added to the board’s agenda until Thursday, apparently after Lamonica was forced to resign as general counsel, and after the reassignment of Townsend, would give officials authority to develop an RFP.

Late Friday, as has become the custom of the administration, the announcement was formally made. Robert Barish, chancellor of LSU Health Shreveport, notified “faculty, staff and friends” by memorandum.

“As promised, I wanted to update you on the most recent activity regarding our continuing efforts to ensure a successful future for LSU Health Shreveport in the wake of the federal cuts to Louisiana’s Medicaid budget,” he said. “As you might recall, we were asked to explore several approaches to address the continuing budget challenges or our hospital system.

“Today, the LSU Board of Supervisors authorized us to explore public-private partnerships for our three hospitals. It is important to note that this is being done to see how collaboration with other hospitals might look and whether this may be a workable option.

“We will follow the Board instructions to explore this option, which is among several we are looking at during this fact-finding process. We have been looking at other hospitals which have faced similar situations successfully.

“We are committed to a thorough fact-finding process and exploring possibilities that would ensure continuation of our important missions of education, patient care and research.

“I will keep you updated as more information becomes available.”

It was not immediately known if similar messages were sent to employees of the facilities in Monroe and Alexandria.

The resolution passed by the board said:

BE IT RESOLVED by the Board of Supervisors of Louisiana State University that LSU Health Sciences Center Shreveport and Health Care Services Division are hereby authorized to develop and seek a Request for Proposal for the purpose of exploring public private partnerships for the LSUHSC-S affiliated hospitals, namely the LSU Medical Center in Shreveport, the E.A. Conway Medical Center in Monroe and the Huey P. Long Medical Center in Pineville/Alexandria and each of the hospitals in Health Care Services Division; and

BE IT FURTHER RESOLVED that this is necessary for identifying potential partners and long-term strategies which may help ensure the organization’s clinical services and financial stability in light of budgetary challenges caused by the recent decrease in federal Medicaid funding; and

BE IT FURTHER RESOLVED that the authority to seek a Request for Proposal does not mandate the Request for Proposal be released, nor does it mandate a proposal be accepted should one be released. The President shall have the discretion to authorize the release of the Request for Proposal and to accept the proposal that he deems in the best interest of the university.”

So, there you have it. A figurehead president brought out of retirement to replace a president who had a bad habit of being candid and outspoken is given the final authority to release the RFP and to accept the proposal “that he deems in the best interest of the university.”

What are the odds that this interim president and his hand-picked board will take any action, up and including taking a bathroom break without the approval of Piyush Jindal?

We already have more than sufficient evidence that Jindal is rapidly moving toward successfully destroying public health care in Louisiana. The closure of Charity Hospital in New Orleans following Hurricane Katrina, though nearly three years before he came to power, lay the groundwork for his later actions.

The federal government’s decision to slash Louisiana’s Medicaid appropriation by more than $572 million—along with state cuts of $287 million, bringing the total loss of funding to $859 million—simply gave him a convenient opportunity to accelerate a program he already had in place.

One need only look at what Jindal has done to higher education and public education to see a dangerous trend of cutbacks in crucial public services. His obsession with granting tax exemptions totaling $5 billion a year for corporate donors, transferring funds from parish school boards to private, for-profit schools, and forcing state colleges and universities to increase tuition to cover budgetary cuts has put the state on a dangerous collision course with fiscal reality that will remain long after Jindal has moved on to a cabinet position or in pursuit of higher office.

Jindal won’t be around to answer for his policies…but 144 legislators will be.

And so will Louisiana voters.

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All but lost in the brouhaha over Gov. Piyush Jindal’s overt moves to privatize the Louisiana Office of Risk Management, Office of Group Benefits, state prisons, Medicaid, the Louisiana Office of Student Financial Assistance and K-12 public education is the quiet but steady erosion of state financial support for state colleges and universities that is pushing higher education toward that same precipice.

Once considered sacrosanct, Louisiana’s state colleges and universities no longer are considered untouchable by legislators. Accordingly, administrators find themselves having to seek funding more and more from private endowments and from tuition increases that threaten to push student costs to a prohibitive level for all but the wealthiest.

And Louisiana is by no means the exception. The trend toward pseudo- and outright privatization is becoming more prevalent in all 50 states as state colleges fall victim to cuts in state aid, the depletion of federal stimulus dollars, tuition increases, caps in enrollment and the elimination of positions. Throw in billions upon billions of dollars in corporate tax exemptions and it’s easy to comprehend the fiscal disaster Louisiana has been courting for decades.

Even as this perfect storm gathers momentum, conservative legislators, led by the American Legislative Exchange Council (ALEC) are pushing to recast state universities in the mold of private corporations.

If this sounds somewhat familiar, it is because state colleges across the country are following the same track as K-12 public education in the conversions to charter schools—another of ALEC’s model legislative crown jewels.

In fact, the plan for higher ed was presented at ALEC’s national convention in New Orleans last August. That meeting was hosted by then-State Rep. Noble Ellington (R-Winnsboro), ALEC’s 2011 national president. Ellington, who did not seek re-election, eased from his House seat to a more comfortable position as second in command at the State Department of Insurance at a salary of $150,000 per year.

ALEC, which purportedly espouses increased transparency in government, restricted access to its New Orleans meeting and specifically barred the media.

And, considering Jindal’s dogged determination to privatize everything public and his penchant for secrecy, it must be no coincidence that ALEC bestowed upon him its Thomas Jefferson Freedom Award at last August’s New Orleans closed-door convention.

Alarming examples of this slow trip down Privatization Lane abound in practically any state one chooses to observe.

In Texas, for example, Gov. Rick Perry, whom Jindal backed in his bid for the Republican presidential nomination, has packed the board of regents at all six state college systems with political allies who, like Perry, adhere to the Republican mantra that colleges should be run like businesses whose “customers are students.”

In Arizona, voters in 2010 approved a state referendum banning affirmative action in state universities, replicating the same action taken in Florida in 1999.

At the University of Virginia, the first public college in America and founded by Thomas Jefferson, the state provides less than 8 percent of the school’s operating budget, down from 28 percent 25 years ago. Things are no better at William & Mary and Virginia Tech, prompting Virginia’s three flagship universities to ask the General Assembly to make them “chartered” universities, which would give them freedom to set tuition and to run themselves.

Of the $1.8 billion cost to operate all 27 of Louisiana’s state universities, colleges, junior colleges and technical colleges, only $734.2 million, or 40.2 percent, came from state appropriations but even that figure is deceiving because Jindal has ordered an additional cut of $50 million.

In February, not long after Jindal submitted his executive budget, then-LSU Systems President John Lombardi, no doubt at Jindal’s behest, sent an email to his administrators asking that they not complain about Jindal’s proposed elimination of 2,837 positions in higher education. Lombardi said that Jindal would appreciate it if the administration acknowledged that the budget “gives higher ed special treatment…”

That “special treatment,” it turned out, was a carrot that Jindal dangled before university presidents in the form of a promise of $100 million for higher education should the governor’s retirement package pass.

It didn’t.

Goodbye $100 million.

And on April 27, goodbye Lombardi as the LSU Board of Supervisors, acquiescing to Jindal’s wishes, unceremoniously fired the LSU president.

A spokesperson for the Board of Regents said that the state only a few years ago provided 70 percent of the funding for state colleges and universities with tuition making up most of the balance. That formula is virtually reversed today with the state providing 40 percent and tuition and other resources providing 60 percent.

This trend toward privatization is not new; it has been taking place for more than a decade, but the implications are only now becoming clear.

As state financial support dwindles and colleges begin implementing double-digit tuition increases, the result is that the school’s mission to provide access to higher education for all suddenly becomes a mission more akin to a private university that caters only to those who can afford it.

Sometimes, even that doesn’t work. When Virginia Commonwealth University bumped its tuition by 24 percent to make up for previous cuts in state appropriations, Republican Gov. Robert McDonnell cut the school’s appropriation even more.

Consequently, as flagships gravitate toward the elitism of privatization, poor and middle-class students are priced out of their institutions and into second-tier schools. This then creates the social stratification of higher education in which the elite colleges are filled with kids from upper income families while kids from poorer backgrounds are relegated to less prestigious schools.

What was it again that Romney said about class warfare? Oh, yes, he said that the Occupy Wall Street protests represented class warfare.

So, when state colleges privatize and their tuition, which currently averages around $7,500 a year (not including room and board), escalates to the private college levels of $25,000 to $40,000 a year, many students who do manage get into those schools will do so only by taking out ever-larger student loans and just who will profit from that?

A few clues:

• Sallie Mae currently has $21 billion in student loans on its books;

• Citi Student Loans, part of Citibank: $5.9 billion;

• Wachovia Education Finance: $5.5 billion;

• Bank of America: $4.9 billion;

• JP Morgan Chase (yes, the one that just reported the $2 billion trading loss): $3.5 billion.

And those loans are guaranteed by the federal government so the lenders are betting on a sure thing, which is more than be said of the students. Even taking the low end of $25,000 tuition plus room and board, a student graduating in four years would exit as a 21- or 22-year-old college graduate, possibly with no job, and with a $150,000 debt (Don’t forget the room and board). Add two years of graduate study and presto! His debt is now $200,000. No wonder he moves back home.

ALEC was ostensibly founded to promote the “Jeffersonian principles of free markets, limited government, federalism and individual liberty.”

One has to wonder if this is what Thomas Jefferson had in mind for his school.

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