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Archive for the ‘Revenue’ Category

A confrontation reminiscent of the one nearly 50 years ago between the managing editor (yours truly) and the family news editor at the Ruston Daily Leader has arisen between Gov. Bobby Jindal and the Louisiana Public Service Commission (PSC) and if the late Wiley Hilburn were alive today, he might well find the latest one just as amusing.

Hilburn was on hand when I needed a camera to cover a breaking news story. The only problem was, the news camera was broken and the only one available was a cheap one Publisher Tom Kelly had purchased for use by family news editor Virginia Kavanaugh for her section. “Give me your camera,” I said as I hung up the telephone and stood from my chair across from her. “I have to get a picture of a wreck on I-20.”

“No,” said Mrs. Kavanaugh. “You can’t have it. It’s for my use.”

In complete exasperation and more than a little frustrated at this unexpected lesson in humility, I looked over at Hilburn who had just walked in with a news release from Louisiana Tech University. The look I got in return told me I was on my own. “But I’m the managing editor!” I finally blurted. It was the only thing that came to mind in response to her unexpected insubordination. As I write this, I swear I can still hear Hilburn laughing at the absurdity of the scene that unfolded before his eyes. He would repeat that story for my benefit for years to come, laughing just as hard as he did that morning at the very audacity of my naïve belief that in some parallel universe, my managing editor badge trumped her title as family news editor.

And I never got that camera.

Now the PSC has ripped a page from Mrs. Kavanaugh’s playbook and it’s just as funny.

Jindal, in a desperate attempt to scrape together a few pennies to cover what at last estimate was a deficit of about $141 million, is conducting a fire sale of what state assets still remain after he disposed of state buildings and parking garages in years past to patch similar budget holes.

The administration wants to sell some 700 state vehicles, including 13 assigned to the PSC but commissioners voted unanimously Wednesday (Dec. 17) to direct the PSC staff not to relinquish the vehicles because, the commission lacks funds with which to rent cars and to sell them would hinder its work.

Jindal planned to confiscate the vehicles to be sold with the others early next year in yet another cost-cutting move. The administration says the PSC vehicles aren’t used enough to justify their upkeep.

(The same might be said for some of the governor’s highly-paid appointees. And let’s not even discuss the cost of overtime, lodging, travel and meals for state police security details that accompany the governor on all of those trips to Iowa, New Hampshire and Washington.)

It should be noted that the $141 million shortfall was before the latest plunge in oil prices which Jindal conveniently blames for the fiscal mess in which the state finds itself—again. Legislative Auditor Daryl Purpera is scheduled to give a presentation tomorrow (Thursday, Dec. 18) to the Joint Legislative Committee on the Budget and early indications are the governor’s office and Commissioner of Administration Kristy Nichols aren’t going to be very happy.

The $1.4 million anticipated from the sale of the vehicles represents a shade less than 1 percent of the $141 million deficit (which may be even more after the legislative auditor’s report) and is only a tiny fraction of the $25 billion state budget.

“Of the 13 state vehicles at the Public Service Commission, 11 of them are driven less than 15,000 miles a year,” said Jan Cassidy, Assistant Commissioner of Administration for Procurement. “The cost of maintaining underutilized vehicles is greater than the cost of reimbursing employees for travel when it’s necessary,” she said.

The $1.4 million anticipated from the sale of the vehicles would not be net since the state would be required to either pay employees for use of personal vehicles or pay for rental of cars through a contract the state has with Enterprise Car Rentals.

The administration put agencies on notice about the planned sale last week, giving them two weeks to turn over vehicles designated for auction.

“Reducing state expenses requires all state agencies to review their priorities and ensure they are spending taxpayer dollars appropriately,” Cassidy said.

One of those voting to defy the governor was Scott Angelle who once served in Jindal’s cabinet. A dispute between the PSC and the governor’s office has been simmering and the vehicle flap is only the latest issue as things have reached a boiling point.

The PSC has been critical of a recent practice by the administration and the legislature to take over funds paid to the PSC as fees by regulated companies. Members say the action amounts to an unconstitutional tax levy while the governor and legislator argue for the right to use the fees as part of the state budget. That outcome of that argument is now pending in court.

We can only assume that state police vehicles were exempt from the fire sale order. But with this administration, who knows?

Nor was there was any immediate word on whether or not the administration would attempt to seize the PSC vehicles, which would just be another log on that smoldering fire.

But somewhere within the walls of the Governor’s mansion (he’s rarely on the fourth floor of the State Capitol, we’re told), Bobby Jindal must be incredulous as he exclaims perhaps to wife Supriya or, to a curious butler, “But I’m the governor!

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Baton Rouge Mayor Kip Holden has formally announced his candidacy for lieutenant governor to succeed Jay Darden in next fall’s election. And even though the field for the state’s second highest office is starting to get a little crowded, it’s expected to attract little attention.

That’s because all eyes will be focused on the battle to succeed Bobby Jindal as governor. Already, we have Lt. Gov. Jay Dardenne, Public Service Commissioner Scott Angelle, U.S. Sen. David Vitter, and State Sen. John Bel Edwards vying for the state’s top job with more anticipated between now and next year’s qualifying.

Whoever your favorite candidate for governor, you may wish to reconsider wishing the job on him. In sports, there is a saying that no one wants to be the man who follows the legend. Instead, the preference would be to be the man who follows the man who followed the legend.

No one, for example, could ever have stepped in as Bear Bryant’s immediate successor at the University of Alabama and succeeded. That person was former Alabama receiver Ray Perkins who in his four years, won 32 games, lost 15 and tied one. He was followed by Bill Curry who went 26-10 in his three years. Gene Stallings was next and posted a 62-25 record that included a national championship over seven years before he retired.

Then came in rapid succession five coaches over the next nine years who combined to record a composite losing record of 51-55 before Nick Saban came along in 2007 to pull the program from the ashes.

No one in his right mind should wish to follow Jindal. It is not because of Jindal’s success as governor; just the opposite. When he walks out of the Governor’s Mansion for the final time, Jindal will leave this state in such a financial and functional mess that no one can succeed in righting the ship in a single term—and that may be all the patience Louisiana’s citizens will have for the new governor. Bottom line, voters are weary of seven years of budget cuts and depleted services. Ask anyone waiting and DMV to renew their driver’s license.

The electorate, at least those who pay attention to what’s going on, are bone tired of a governor who is never in the state but instead is flitting all over the country trying to pad his curriculum vitae for a run at the Republican nomination for president.

They are jaded at the hypocrisy of a first-term Gov. Jindal who kept popping up in Protestant churches (he’s Catholic) to pander the Baptists, Methodists and Pentecostals when he was facing re-election compared to a second-term and term-limited Gov. Jindal who has not shown his face in a single Protestant church anywhere in the state.

Some, though admittedly not all, are unhappy with the manner in which he has consistently rejected federal Medicaid expansion and $80 million in federal grants for broadband internet and $300 million for a high-speed rail line between Baton Rouge and New Orleans—money state taxpayers have already paid into the system and now have to chance to recoup that money. (It’s sort of like refusing your federal tax refund because you feel it’s not free money. Well, no, it’s not free money but it is money you’ve already paid it in and now you have a chance to get some of it back.)

And there are those who are not at all pleased with the salaries paid Jindal appointees (not to mention raises they’ve received while rank and file employees have gone five years without raises). The administration has been free and loose with salaries paid top unclassified employees in every state agency, from Division of Administration on down. Those salaries are a huge drain on the state retirement systems. That’s one of the reasons there was so much controversy over Jindal’s attempted backdoor amendment to an obscure Senate bill that would have given State Police Superintendent Mike Edmonson an annual retirement increase of $55,000—more than many full time state employees make.

With that in mind, we have what we feel would be a meaningful proposal for some enterprising gubernatorial candidate. It’s an idea that we feel has considerable merit and one we feel would resonate with voters.

With the state facing a billion-dollar shortfall for next year, the suggestion is more symbolic that a real fix, but what if a candidate would pledge publicly that he would draw on the pool of retired educators and executives for his cabinet? And what if he purposely avoid appointing anyone with political ambitions such as Angelle, who went from Secretary of Natural Resources to Public Service Commission and who is now an announced candidate for governor?

If a candidate said he could immediately save the state in excess of $2 million a year by hiring retired executives to head state agencies at salaries of $1 per year each, that would strike a chord with every registered voter in the state—or it should.

If a candidate would say, “I will not appoint any member of my cabinet who is dependent upon the position for his living, nor will I appoint any member who has aspirations of public office for himself,” what a refreshing breath of air that would be, vastly different from the standard hot air rhetoric of the typical political campaign.

Where would he find these types of people willing to give of their time? That would be for the candidate himself to recruit but James Bernhard would be a good start. Bernhard certainly has the experience, having founded and built up the Shaw Group to the point that he was able to sell the company for $3 billion while selling off some of his personal company stock for another $45 million.

That spells success by every definition of the word. And Bernhard certainly would have no need for a salary. He would be a logical choice for Commissioner of Administration.

And then there is his father-in-law, retired Louisiana Tech University President Dan Reneau. What better choice could a governor have for Commissioner of Higher Education?

There are scores of others, from retired doctors and hospital administrators, to retired military personnel like Gen. Russel Honoré to head up the Department of Veterans Affairs to retired federal and state law enforcement personnel to retired scientists and educators, and the list goes on and on.

This would by no means be a guaranteed ticket to success for Jindal’s successor; there is just too much mess he will be leaving behind.

But it would be a huge psychological advantage for anyone wishing to take on that unenviable job of being the one to follow Jindal.

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If you think Gov. Bobby Jindal has bankrupted this state with his squirrely economic policies, you need to read this.

If you are the least bit concerned about his decimation of higher education, you need to read this.

If his repetitive patchwork budgets and annual budget cuts alarm you, you need to read this.

If it bothers you that he has given away state hospitals, raided the reserves of the health plan for public employees and attempted to slash state employees’ retirement benefits while secretly having legislation introduced to augment the retirement of the state police commander by some $55,000 a year, you definitely need to read this.

If you believe he should have stayed at home to tend to the state’s business instead of gallivanting off to Iowa and New Hampshire in pursuit of a Republican presidential nomination, then by all means, you should read this.

In short, if you believe he has been a major disappointment in administering the affairs of a single state—Louisiana—you need to examine his grandiose plans for America, his plans to do to the nation what he has done to our state. You owe that much to yourselves and your children.

You see, an outfit called Friends of Bobby Jindal has a web blog of its own which, of course, is certainly their right. But curiously, in addition to touting the latest pronouncements, op-ed pieces written by Jindal and his appearances on Fox News, the page has a “DONATE” button that allows supporters to contribute to Jindal’s political campaign.

Jindal Weekly Update

But wait. What’s he running for? He is term-limited and cannot run for re-election as governor next year and he has steadfastly refused to divulge whether or he plans to run for President (though there are few who doubt it; his family members were discussing openly during his first inauguration in 2008).

We don’t know how we got on the mailing list, but we’re certainly glad we did. Otherwise, how else could we keep up with the activities of a man on the run like Bobby Jindal?

On the latest mail-out, a “quick recap of the news about the governor’s week,” we have stories about:

  • The First Lady’s travels to Eunice to promote the Supriya Jindal Foundation;
  • Gov. Jindal’s announcement of the expansion of Oxlean Manufacturing in Livingston Parish;
  • Louisiana’s joining other states in suing President Obama over his immigration order;
  • An op-ed piece by (yawn) Jindal criticizing Obama and calling for a repeal of Obamacare;
  • Jindal’s appearance on (yawn again) Fox News where he criticized Obama for trying to redefine the American Dream;
  • Another op-ed criticizing Obama for the president’s apparent failure to believe in American exceptionalism;
  • Jindal’s speech at a foreign policy form in Washington, D.C. in which he called for increased military spending.

It was that last one (actually first on the Friends web blog because we listed them in reverse order) that caught our attention. http://freebeacon.com/national-security/2016-gop-hopefuls-call-for-boost-in-defense-spending/

Our first reaction was: What the hell is he thinking, commenting on foreign policy and military spending when he can’t even balance the budget of a single state? But then we remembered it was Jindal and typically, he panders to the fringe element that adheres to the concept that we are the world’s policeman and that we must impose our will on others despite their resentment of our failure to respect their traditions and cultures. And we’re not just talking about Islam here. Remember Vietnam? For that matter, go back and familiarize yourself with how we took land north of the Rio Grande from Mexico. And to the American Indians (Native Americans, we one insists on political correctness), we are the original illegal immigrants.

Okay, we got off-track and started talking about his American exceptionalism op-ed and while the two issues are interlinked, let’s get back to his advocacy of increased military spending.

First and foremost, it is important to know that America already spends more on defense than the rest of the world combined. President George W. Bush’s defense spending, for example, eclipsed that of the Cold War.

Historian Paul Kennedy, in his book The Rise and Fall of the Great Powers, noted that powerful nations have an unsettling habit throughout history of becoming the leading economic and leading military power and then “overreaching with their military ambitions while their economies sputter past their prime.”

Kennedy said that even as the economic strengths are on the decline, growing foreign challenges force greater and greater military expenditures at the sacrifice of productive investment which he said leads to the “downward spiral of slower growth, heavier taxes, deepening domestic splits over spending priorities and a weakening capacity to bear the burdens of defense.”

He said the U.S. currently runs the risk of “imperial overstretch where our global interests and obligations are larger than our ability to defend them all simultaneously.

Kennedy wrote that back in 1987 but during her run for the Democratic nomination in 2008, Hillary Clinton, like her or not, said if $1 trillion spent in Iraq had been applied instead to domestic programs, it would:

  • Provide healthcare for all 47 million uninsured Americans;
  • Provide quality pre-kindergarten for every American child;
  • Solve the housing crisis once and for all;
  • Make college affordable for every American student, and
  • Provide tax relief to tens of millions of middle-class families.

A classic example of our failure to heed the warning of President Dwight Eisenhower when he warned of the importance of resisting the influence of the “military-industrial complex” is the tar baby this country is stuck to in the Mideast.

Ike warned the country during his farewell address of Jan. 17, 1961, when he said, “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex.”

http://coursesa.matrix.msu.edu/~hst306/documents/indust.html

Back during the elder Bush’s administration, it was the defense of Kuwait against Saddam Hussein and Iraq—way back in 1991. That’s a quarter-century ago. Later, with Bush II, it was Saddam Hussein and WMD that have yet to be found. No sooner did W announce “Mission accomplished,” than we found ourselves in a conflict that, believe it or not, has now lasted longer than the Vietnam War—with no end in sight. That war has expanded into Afghanistan and now Iran with an invisible enemy called the Islamic State (IS) whom we cannot find, let alone fight.

And how much have those skirmishes cost this country? Click on this link to find out.

http://costsofwar.org/article/economic-cost-summary

That $4.4 trillion includes not only the immediate $1.7 trillion cost of America’s Mideast policy, but the interest on loans to finance the war, the cost of support bases elsewhere in the world, homeland security, nation building (building infrastructure on the war-torn countries while neglecting our own infrastructure), retirement, disability and medical benefits for war veterans, etc., costs our grandchildren will be paying off after we are long gone.

And just how do we pay for these wars in Vietnam, Bosnia, Iraq, Afghanistan, Iran, and Pakistan? World War II was financed by raising taxes or selling war bonds. Not so these modern wars, beginning with Lyndon Johnson and Vietnam; they’re financed almost entirely by borrowing which has raised the U.S. budget deficit (something of which Jindal should have a working knowledge), increased the national debt. The interest alone on Pentagon spending from 2001 through 2013 is approximately $316 billion.

To put expenditures in better perspective, consider that American taxpayers are paying:

  • $312,500 every hour for military action against ISIS (total thus far almost $1.4 billion);
  • $10.17 million per hour for the cost of the war in Afghanistan (nearly $800 million to date);
  • $365,000 per hour for the cost of the war in Iraq ($818 billion so far);
  • $10.54 million per hour for the total cost of wars since 2001 ($1.6 trillion);
  • $58 million per hour for the Department of Defense ($602.7 billion budget);
  • $861,000 per hour for the F-35 Joint Strike Fighter ($9 billion);
  • $2.12 million per hour for our nuclear weapon arsenal ($22 billion);
  • $37,000 each hour for Tomahawk Cruise Missiles ($385 million);
  • $1.33 million every hour for foreign military assistance ($13.8 billion to date);
  • $8.43 million per hour for Homeland Security ($804.5 billion since 9/11);

By comparison, here are some hourly expenditures by U.S. taxpayers for other services in 2014 (with the year-to-date expenditures in parenthesis):

  • $7.81 million for education ($81.14 billion, and don’t forget, Rick Perry wanted to abolish the Dept. of Education);
  • $3.04 million on the environment ($31.6 billion–ditto Perry on the EPA);
  • $2.71 million on foreign aid ($28.2 billion);
  • $4.9 million on housing assistance ($50.8 billion);
  • $36.91 million for Medicaid and CHIP ($383.6 billion);
  • $13.3 million for nutrition assistance ($138.1 billion).

https://www.nationalpriorities.org/cost-of/

And Gov. Jindal would have the U.S. commit even more money to the Pentagon, according to a grizzled old reporter a whole year out of college (University of North Carolina-Chapel Hill).

Daniel Wiser, writing for something called the Washington Free Beacon (a sister publication to the Hooterville World Guardian of the TV series Green Acres, no doubt), placed Jindal squarely in the same camp as gunslingers John McCain (R-Ariz.) and Lindsey Graham (R-S.C.), a couple of veteran Senate saber rattlers.

Wiser said that Jindal released a paper in October calling for allocating 4 percent of the nation’s GDP to defense spending.

Jindal said the U.S. is “in the process of hollowing out our military,” the article said. Jindal added that “The best way for America to lead… is for America to rebuild our tools of hard power.”

It would be bad enough if an otherwise comparatively level-headed candidate like Rick Perry or Rand Paul (everything, after all, is relative) were elected, but if Jindal had a prayer of becoming president, this would be some horrifyingly scary stuff.

The good news is we don’t have to worry about that. Perry or Paul, on the other hand…

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By James D. Kirylo

Guest Columnist

Governor Jindal recently appeared on Meet the Press. The host Chuck Todd peppered the Governor with a variety of questions, asking why he didn’t expand Medicaid, being that it would be helpful for the 200,000 uninsured people in the state (although the number is likely more toward the 750,000 range).

Todd also reminded the Governor how Louisiana nearly has a billion dollar hole in our budget; how at every midyear review, our deficit has grown; how the big tax cut at the beginning of the governor’s term has not been followed by revenue; and that a majority in Louisiana disapprove of his job as governor.

Governor Jindal predictably deflected much of what Todd said, and stated at the onset that he doesn’t care about the poll numbers and never has. He also proudly mentioned that he’s cut our state budget 26 percent, cut the number of state employees 34 percent, and declared how not spending on Medicaid is another dollar we don’t have to borrow from China, and that we shouldn’t waste those federal tax dollars.

Furthermore, the Governor asserted how we’ve actually improved healthcare access and outcomes here in our state.  Citing an example—how it used to take ten days to get a prescription filled—now one can get it done in ten minutes. Finally, the Governor also touted his so-called school choice program, and concluded that he has balanced the budget every single year without running deficits, and without raising taxes.

As I watched Meet the Press, listening to the least transparent governor in the nation, I was amazed, though not surprised, by what the Governor did not mention, some of which I will, therefore, do here. First, when the Governor says he does not care that the majority of Louisianans disapprove of his job as governor, it obviously means he doesn’t care what I think, what state workers think, and what the hundreds and thousands of us who have been greatly harmed by his policies think. It is obvious there is only one person the Governor cares about.

Of course, he didn’t mention that when he talks about how he has sliced and diced the state budget, it has resulted in the near decimation of higher education. Indeed, universities have been cut 80% in the last several years, tuition has exponentially risen, and the LA Grad Act is simply a devious scheme that fosters a system that unduly taxes students in order to fund higher education. In a poor state like ours, this is simply a formula that further widens the opportunity gap, and further widens the gap between the proverbial “haves” and “have-nots.”

He also didn’t mention that numerous underpaid university people have endured near poverty wages, have endured furloughs, have had no cost of living allowances now inching toward the ten year mark, that numerous individuals can’t afford health care, that top flight faculty have left the state, that public school teachers have been blamed for everything that ails our state, that Louisiana has the nation’s fourth highest high school dropout rate, that our high school graduation rate ranks 45th in the nation, that we have one of the highest childhood poverty rates in the country, and that we have the highest incarceration rate in the country, if not the world.

Of course, he didn’t mention that Louisiana ranks 50th among the states in overall health, and that we lead the nation in the highest infant mortality rate, the highest diabetes-related death rate, and the highest rate of death from breast cancer, and third-highest rate of cancer deaths overall.

And of course, he wouldn’t mention that according to a Washington Post report a short while back, the state of Louisiana is expecting a $1.2 billion budget shortfall next year, which has now risen to 1.4 billion. And this is despite the Jindal administration hiring a New York-based consulting firm for $7.3 million to find ways to generate and save revenue. Finally, he didn’t mention what can be characterized as the Office of Group Benefits (OGB) scandal, where many are asking about the half of the $500 million dollars that was in the OGB reserve fund, but is now gone.

It should be no surprise critics are calling Jindal’s handling of the budget his blind-spot. But that is not his only blind spot. The other one is that he is blind to the fact that he has hurt the lives of so many hard-working Louisianans.  And the irony of ironies when the Governor concluded his visit with Meet the Press, he stated that the American Dream was in jeopardy and that should he run for president, he would focus on restoring that dream.

It was then I turned off my television set, had to shake my head, and grabbed my dictionary to double-check the definition of delusional.

James D. Kirylo is an education professor, a former state teacher of the year, and his most recent book is titled A Critical Pedagogy of Resistance.  He can be reached at jkirylo@yahoo.com

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What will Gov. Bobby Jindal say when he appears on Meet the Press Sunday?

Of course we know he will attack President Obama and the Affordable Care Act, aka ObamaCare while ignoring the fact that his decision not to expand Medicaid may end up costing the state hundreds of millions of dollars. That’s a given.

At the same time he is criticizing Obama for not being more proactive on the Ebola crisis, he will fail to mention his rejection of the Medicaid expansion has been at the expense of health coverage for a couple hundred thousand low-income Louisianans.

He will condemn the president for his lax immigration policy while turning a blind eye to the indisputable fact that Latin Americans who do enter this country generally take low-paying jobs no one else wants. He won’t mention companies like IBM, Dell, ACS, and Pfizer, to name but a few, that have taken advantage of an obscure work visa (the H-1B program) to lay off more than 250,000 Americans from high-tech IT jobs. These companies lay Americans off in favor of importing hundreds of thousands of Indians who work for far less, thus saving these companies billions of dollars.

He will no doubt boast of his accomplishments as governor—claims that simply will not stand up under close examination—apparently pulled off by remote control. This is especially the case during his second term when his title would more accurately be governor in absentia. He has spent an inordinate amount of time traveling outside the state in an attempt to build support for a anemic campaign for the GOP presidential nomination that, despite his near-desperate efforts, is gaining no traction.

He could lambast the Common Core curriculum, once again ignoring that fact that he was in favor of Common Core before he was against it.

There are so many other things he could discuss but probably won’t.

He won’t mention, for instance, his abysmal record in the state’s courtrooms. One of these was his miserably failed effort to jerk retirement benefits from under the feet of active state employees, some of whom would have seen their retirement income plummet to as little as $6,000 a year—with no social security—had he been successful.

He will attempt once again to convince the nation—those of us in Louisiana know better, of course—that he has balanced the state budget while cutting taxes and reducing the number of state employees.

Yes, he has reduced the number of state employees, but at what cost? The Office of Group Benefits (OGB) is a shell of the once smooth-running state office that handled the medical claims of some 230,000 state employees, retirees and dependents. Not that that matters to Commissioner of Administration Kristy Nichols who, we are told, is a member of the LSU health plan and thus unaffected by the changes.

And of course Jindal, through his smoke and mirrors game of premium reductions, has managed to siphon off more than half of OGB’s $500 million reserve fund. He also recently attempted to slash benefits and pile unaffordable co-pay and deductible increases onto the backs of state employees and retirees. In short, his grand scheme to privatize OGB has proven nothing less than an unmitigated disaster of politically humiliating (to him) proportions. His firing of respected CEO Tommy Teague and the mess that has ensued stand as a monument to unparalleled mismanagement and political meddling.

And his budget balancing has produced unprecedented cuts to higher education. Colleges and universities in Louisiana have seen their appropriations gouged by nearly 70 percent during Jindal’s almost seven sorry years in office. God help us if he should somehow be placed in the position of inflicting such carnage on the nation as he has on Louisiana.

And what of that claim of balancing the budget, anyway?

Let’s review.

We will take figures provided to us by State Treasurer John Kennedy that reflect the general fund balances as of Oct. 31. And while we are quick to acknowledge the fact that the numbers will certainly improve next spring when revenues start picking up from state income tax and corporate tax collections, a comparison of the last five Octobers is both startling and sobering.

As of Oct. 31 of this year, the general fund balance reflected a deficit of $924.6 million. That’s just $75.4 million shy of $1 billion—and OGB alone is losing $16 million each month.

And yes, the numbers will improve next spring but let’s look back just one year. As of Oct. 31, 2013, the balance reflected a deficit of $656.7 million. That’s nearly $268 million less in negative spending than for this year.

Still not convinced? Well, for Oct. 31, 2012, the deficit was $476.6 million, about $448 million less than for the same month in 2014.

And while it was slightly higher at $565.2 million on Oct. 31, 2011, the number for 2010 was only $181.5 million—almost three-quarters of a billion dollars billion better than this year.

In five short years, the October deficit for the state general fund balance has increased fivefold.

The historically high negative balance, which arrives just a few months into each new fiscal year (which begins on July 1), “is forcing fund borrowing to sustain cash flow,” Kennedy says. “It darkly foreshadows the challenge ahead for lawmakers and the governor in the 2015 regular session. A budget shortfall of at least $1.2 billion is expected, but it’s clearly a figure that could move. It also increases the likelihood of midyear budget cuts in the minds of some.” (The administration finally admitted this even as this post was being written on Friday. Spending for the next seven months will have to be slashed by at least $171 million because of lower than anticipated revenues.) http://theadvocate.com/news/10833948-123/state-needs-mid-year-budget-correction

And here is the rub that has Kennedy and Nichols crossing swords: Kennedy says to some lawmakers, “the negative balance is at a critical high because the state started the fiscal year with a deficit cash balance of $141 million and because expenses actually are greater than revenues,” Kennedy said.

Nichols, however, vehemently disagrees, claiming instead that the administration stumbled upon some $320 million in extra cash from prior years lying around in agencies scattered across the state which she claims gives the state an actual surplus of nearly $179 million.

The problem she has, however, is that no one believes her—including two former commissioners of administration interviewed by LouisianaVoice, both of whom say it’s just not feasible that that much money could have been just lying around all these years without anyone’s knowing of its existence.

Nichols, of course, has to maintain a brave face in order that her boss can save face.

You see, as Bob Mann points out in his latest posting on his blog Something Like the Truth, Jindal “must never have raised a tax” and “must never have presided over an unbalanced state budget” if he wishes to cling to any fading hopes of the GOP presidential nomination.

“All your advantages—your personality, your policy credentials, the importance of your state in Electoral College politics—won’t help you much if you don’t meet these basic qualifications,” Mann said. http://bobmannblog.com/

“Jindal knows Republican audiences in Iowa and elsewhere will pay him little mind if they learn about his fiscal recklessness,” he said. “So, he and Nichols tried to cover their tracks, including dishonestly blaming their budget deficit on state Treasurer John Kennedy.”

Jindal, of course, won’t address any of these issues. But were he of a mind to do so, he could even discuss on his Meet the Press appearance how he tried to frame Murphy Painter, former director of the Office of Alcohol and Tobacco Control after Painter refused to knuckle under to demands that he look the other way on behalf of New Orleans Saints owner Tom Benson over Budweiser’s application for an alcohol permit at Champion’s Square. He could tell how that effort backfired and the state was forced to pay Painter’s legal bills of some $300,000. But he probably won’t

He could discuss how he attempted unsuccessfully to circumvent state law and obtain a hefty $55,000 per year increase in pension benefits for his state police commander. But most likely, he won’t.

And he could disclose how much it has cost Louisiana taxpayers in terms of payroll, meals and lodging for state police security as he jets around the country in pursuit of his presidential aspirations. But don’t expect him to.

Yes, Jindal could discuss these and other matters during Sunday’s program, but he won’t.

The simple fact is, by virtue of his bottom-feeding position as the anchor in the GOP nominee sweepstakes, he just can’t afford to.

And saddest of all, no one on the program’s panel is likely to inquire about these issues.

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Our October fund raiser enters its final five days and we still need assistance to help us offset the cost of pursuing legal action against an administration that prefers to conduct its business behind closed doors and out of sight of the people to whom they are supposed to answer.

We also are launching an ambitious project that will involve considerable time and expense. If Gov. Bobby Jindal does seek higher office as it becomes more and more apparent that he will, the people of America need to know the real story of what he has done to our state and its people. Voters in the other 49 states need to know not Jindal’s version of his accomplishments as governor, but the truth about:

  • What has occurred with CNSI and Bruce Greenstein;
  • How Jindal squandered the Office of Group Benefits $500 million reserve fund;
  • The lies the administration told us two years ago about how state employee benefits would not be affected by privatization;
  • The lies about how Buck Consultants advised the administration to cut health care premiums when the company’s July report said just the opposite;
  • How Jindal attempted unsuccessfully to gut state employee retirement benefits;
  • How Jindal attempted to sneak a significant retirement benefit into law for the Superintendent of State Police;
  • How Jindal appointees throughout state government have abused the power entrusted to them;
  • How Jindal has attempted a giveaway plan for state hospitals that has yet to be approved by the federal Center for Medicare & Medicaid Services (CMS);
  • How regulations have been skirted so that Jindal could reward supporters with favorable purchases and contracts;
  • How Jindal fired employees and demoted legislators for the simple transgression of disagreeing with him;
  • How Jindal has refused Medicaid expansion that has cost hundreds of thousands of Louisiana’s poor the opportunity to obtain medical care;
  • How Jindal has gutted appropriations to higher education in Louisiana, forcing tuition increases detrimental to students;
  • How Jindal has attempted to systematically destroy public education in Louisiana;
  • How Jindal has refused federal grants that could have gone far in developing internet services for rural areas and high speed rail service between Baton Rouge and New Orleans;
  • How Jindal has rewarded major contributors with appointments to key boards and commissions;
  • How Jindal attempted to use the court system to persecute an agency head who refused to knuckle under to illegal demands from the governor’s office;
  • How Jindal has manipulated the state budget each year he has been in office in a desperate effort to smooth over deficit after deficit;
  • And most of all, how Jindal literally abandoned the state while still governor so that he could pursue his quixotic dream of becoming president.

To this end, LouisianaVoice Editor Tom Aswell will be spending the next several months researching and writing a book chronicling the Jindal administration. Should Jindal become a presidential contender or even if he is selected as another candidate’s vice presidential running mate, such a book could have a national impact and even affect the outcome of the 2016 presidential election.

This project is going to take time and involve considerable expense as we compile our research and prepare the book for publication in time for the 2016 election.

To accomplish this, we need your help.

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

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

Capital News Service/LouisianaVoice

P.O. Box 922

Denham Springs, Louisiana 70727-0922

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CORRECTION:

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

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

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

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

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

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

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