Archive for the ‘State Agencies’ Category

In a state drowning in consulting contracts, what’s one more?

Bobby Jindal is a lame duck governor who long ago set his sights on bigger and better things. He has abdicated every aspect of his office except the salary, free housing and state police security that go with the title. In reality, he has turned the reins of state government over to subordinates who are equally distracted in exploring their own future employment prospects.

His only concerns in almost eight years in office, besides setting himself up to run for President, have been (a) appointing generous campaign donors to positions on state boards and commissions and (b) privatizing state agencies by handing them over to political supporters.

To that end there has been a proliferation of consulting contracts during the Jindal years. The legislative auditor reported in May that there were 19,000 state contracts totaling more than $21 billion.

So as his term enters its final months and as Commissioner of Administration Kristy Nichols has less than a month before moving on to do for Ochsner Health System what she’s done for the state, what’s another $500,000?

LouisianaVoice has learned that Nichols signed off on a $497,000 contract with ComPsych Corp. and its affiliate, FMLASource, Inc. of Chicago, to administer the state’s Family and Medical Leave Act (FMLA) program. FMLA CONTRACT

It is no small irony that Nichols signed off on the contract on May 19, less than two weeks after the legislative auditor’s report of May 6 which was highly critical of the manner in which contracts are issued with little or no oversight.

The latest contract removes the responsibility for approving FMLA for state employees and hands it over to yet another private contractor.

Apparently FMLA was just one more thing the Jindal administration has determined state employees are incapable of administering—even though they have done so since the act was approved by Congress in 1993.

Because no state employees stand to lose their jobs over this latest move, the contract would seem to simply be another consulting contract doled out by the administration, obligating the state to more unnecessary expenditures.

Whether it’s farming out the Office of Risk Management, Office of Group Benefits, funding voucher and charter schools, or implementing prison or hospital privatization—it’s obvious that Jindal has been following the game plan of the American Legislative Exchange Council (ALEC) to the letter. That plan calls for privatizing virtually every facet of state government. If you don’t think the repeated cuts to higher education and health care were calculated moves toward ALEC’s goals, think again.

The contract runs from May 17, 2015 through May 16, 2016, and the state agreed to pay FMLAServices $1.45 per state employee per month up to the yearly maximum of $497,222.

Agencies for which FMLAServices will administer FMLA include the:

  • Division of Administration;
  • Department of Economic Development;
  • Department of Corrections;
  • Department of Public Safety;
  • Office of Juvenile Justice;
  • Department of Health and Hospitals;
  • Department of Children and Family Services;
  • Department of Revenue;
  • Department of Transportation and Development.

The legislative auditor’s report noted that there is really no way of accurately tracking the number or amount of state contracts. STATE CONTRACTS AUDIT REPORT

“As of November 2014, Louisiana had at least 14,693 active contracts totaling approximately $21.3 billion in CFMS. However, CFMS, which is used by OCR to track and monitor Executive Branch agency contract information, does not contain every state contract.

“Although CFMS, which is a part of the Integrated Statewide Information System (ISIS), tracks most contracts, primarily Executive Branch agencies use this system. For example, Louisiana State University obtained its own procurement tracking system within the last year, and most state regulatory boards and commissions do not use CFMS (Contract Financial Management System). As a result, there is no centralized database where legislators and other stakeholders can easily determine the actual number and dollar amount of all state contracts. Therefore, the total number and dollar amount of existing state contracts as of November 2014 could be much higher.”

The audit report also said:

  • State law (R.S. 39:1490) requires that OCR (Office of Contractual Review) adopt rules and regulations for the procurement, management, control, and disposition of all professional, personal, consulting, and social services contracts required by state agencies. According to OCR, it reviews these types of contracts for appropriateness of contract terms and language, signature authorities, evidence of funding and compliance with applicable laws, regulations, executive orders, and policies. OCR also reviews agencies’ procurement processes against competitive solicitation requirements of law. The contracting entity is responsible for justifying the need for the contract and conducting a cost-benefit analysis if required.
  • However, state law does not require that a centralized entity approve all state contracts.
  • According to the CFMS User Guide, OCR is only required to approve seven of the 20 possible contract types in CFMS. The remaining 13 types accounted for 8,068 contracts totaling approximately $6.2 billion as of November 2014. Exhibit 2 lists the 20 types of contracts in
  • CFMS and whether or not OCR is required to approve each type, including the total number and dollar amount of these contracts.
  • In fiscal year 2014, 72 agencies approved 4,599 contracts totaling more than $278 million.

The Office of Contractual Review was since been merged with the Office of State Procurement last Jan. 1.


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Furtive plans by some agency heads to move certain unclassified employees into Civil Service classified positions before Bobby Jindal leaves office could be thwarted by Civil Service rules designed expressly to prevent such maneuvers.

LouisianaVoice received reports on Wednesday (Sept. 23) of plans to move some of Jindal’s appointees from unclassified to classified positions as a means of protecting them from potential termination by the new governor when he takes office on Jan. 11.

“Since the clock is ticking on the Jindal administration,” wrote one state employee, “his department heads are converting…unclassified folks into classified positions. Only trouble is, those positions don’t pay that well. [I] overheard a conversation by some HR (Human Resources) folks that they don’t know how to make the slip switch and include a $30,000 add-on to the classified position.”

But former Civil Service Director Shannon Templet, in one of her last actions before accepting the position of director of human resources for the Louisiana House of Representatives, may have put the kibosh on any such plans—or at least made any such attempt considerably more difficult.

General Circular 2015-033, issued to heads of state agencies and human resource directors on Sept. 1, addresses that very scenario although there still may be a small window of opportunity to circumvent a prohibition against converting appointees to unclassified positions. CIVIL SERVICE CIRCULAR 2015-033

The circular alluded to Civil Service Rule 22.2 which says all appointing authorities shall obtain the Civil Service Director’s approval before making a permanent appointment to any job at specified pay grades.

But the policy governing such appointments is applicable only between the date of any election for a statewide elected office (Oct. 24, 2015) through Inauguration Day (Jan. 11, 2016).

There appear to be no restrictions to such transfers between now and Oct. 24, which is nearly a full month away and some movement may have already occurred.

“Unless the director grants permission, vacancies covered under this rule cannot be filled on a permanent basis through a probationary or permanent appointment into a regular ongoing position,” the circular says. “This also applies to promotions and transfers into an agency while on permanent status.

“The process will be handled as follows:

  • Vacancies affected by this rule shall not be announced without obtaining prior approval of the director by means of a letter which includes justification explaining why the vacancy needs to be filled.
  • Agencies are to send letters requesting approval to fill to the Staffing Division.
  • Agencies will be notified via email of the director’s decision.
  • Verification of approval must be attached to the exam plan…for audit purposes.

Even if an appointive (non-classified) position should be converted to a classified one, the additional task of adjusting the position’s salary poses yet another problem—unless the appointee would agree to a major pay cut.

Because Civil Service classifications govern pay scales for every classified position in state government—as opposed to unclassified positions, which have no such restrictions—appointive posts generally pay much higher salaries than civil service jobs. Converting from unclassified to classified necessarily would dictate significant reductions in pay.

But even if that wrinkle could somehow be worked out, there is one more deterrent to such an underhanded tactic. Any transfer, lateral or otherwise, or new appointment generally carries with it a six-month (180 days) probationary period during which the employee may be terminated without cause.

As of today (Sept. 23), there are exactly 110 days until a new governor takes office.

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Troy didn’t want me there and, as if it might be his rights instead of a subordinate’s that were being violated. “Are the media allowed in here?” he asked, almost pleading.

Assured by the hearing referee that I could stay, he was reminded that it was a public hearing and anyone could attend, including the media.

The referee was presiding over a civil service appeal of the firing of one of the Louisiana Office of Alcohol and Tobacco Control (ATC) agents by agency director Troy Hebert and Hebert clearly did not want the proceedings to become public.

Hell, yes, the media are allowed Troy and you can expect to see a lot of me at the various civil service hearings, EEOC hearings, and court trials currently pending against you. But Troy, I can understand your reluctance to operate in the open and in plain sight.

You probably learned that paranoia from your boss, Bobby Jindal. You know, the two of you are a lot alike in that regard; Bobby likes the furtive style of governing and he likes to fire anyone who doesn’t buy whole hog into his B.S. The problem is, Troy, Bobby (and it really hurts to say this) is a little smarter than you.

And it almost seemed there were as many lawyers as witnesses in the crowded hearing room. But this wasn’t like the O.J. Simson trial, it was a civil service hearing. Nevertheless, Hebert strolled into the hearing room in the W.C.C. Claiborne Building across the scenic but polluted Lake from the towering State Capitol accompanied by not one, not two, not three, not four, but (count ‘em) five attorneys—all paid for not by Hebert but by the good citizens of Louisiana. If I didn’t know better, I’d call that a classic case of overkill.

One of those attorneys was Jessica Starnes, officially Hebert’s “counsel of record.” Starnes served as legal counsel for ATC, a civil service classified position, but on March 30, was appointed to the unclassified position of “advisor,” assigned to the Executive Office (governor), all of which raises the question of how she can be an advisor to the governor and defense attorney for Hebert.

Oh, wait. I forgot. Hebert is the governor’s “legislative liaison,” so everything is tied up in a neat little incestuous knot; Bobby Jindal is apparently joined at the hip by Starnes on one side and Hebert on the other in this sordid mess, interchangeable parts, if you will. Remember the image of a beaming Starnes standing behind Bobby at his announcement for the Republican presidential candidacy? http://louisianavoice.com/2015/06/26/just-when-it-seems-jindal-cannot-get-creepier-viral-video-shows-willingness-to-exploit-his-children-for-political-gain/

But an even more pressing question: now that Starnes is no longer legal counsel for ATC but is the “counsel of record” for Hebert’s defense, will her work be billed to ATC along with the other four attorneys? Or was she on the clock, drawing a salary as the governor’s “advisor,” while arguing on behalf of her former boss in a matter seemingly unrelated to day to day activities in the governor’s office? Did she take leave from her current position to represent Hebert?

There wasn’t much at stake at the hearing, just the career and livelihood of former agent Brett Tingle of Prairieville, fired by Hebert in February—a dismissal carried out by letter delivered to Hingle’s home while he was convalescing from a heart attack.

The reasons for the firing were answered in detail in an 11-page letter from J. Arthur Smith, Tingle’s attorney, on March 10, which indicated the basis of the firing appears to stem from Hingle’s support of several black agents either disciplined or fired by Hebert. To learn more about Hingle’s firing and the response by his attorney, go here: http://louisianavoice.com/2015/03/13/atc-director-troy-hebert-rivals-his-boss-in-cold-hearted-demeanor-fires-agent-who-is-recovering-from-heart-attack/

There isn’t much to report about Friday’s proceedings. Settlement negotiations which were initiated by the referee before the scheduled hearing and which lasted about two hours, were done behind closed doors as is proper. When we were admitted back into the room and the hearing resumed, the referee simply informed us that the hearing was continued until Sept. 1-4.

The fact that no settlement was reached between the two parties could be interpreted as bad news for Troy because he is staring down the barrel of that federal EEOC racial discrimination complaint by three black agents filed almost exactly a year ago after two were fired and a third was transferred from Baton Rouge to Shreveport with no prior notice. http://louisianavoice.com/2014/07/14/forcing-grown-men-to-write-lines-overnight-transfers-other-bizarre-actions-by-troy-hebert-culminate-in-federal-lawsuit/

Hebert, known to require agents to stand and greet him with “Good morning, Commissioner” when he enters a room, who in the past has required agents—grown men and women—to write lines, and who once ordered a female agent to patrol dangerous New Orleans bars in uniform after she had already worked narcotics detail in the same bars in plain clothes, cannot easily afford an adverse civil service ruling prior to the EEOC hearing. That just would not bode well for him.

Hebert, who succeeded Murphy Painter who was fired after being set up by Team Jindal on bogus charges, ostensibly for accessing information on individuals on his state computer, ordered one of his agents to conduct a warrantless background check on me (it turns out I was found to be somewhat boring). Hebert also once boasted to another agent that he could easily have his IT people hack into my computer. http://louisianavoice.com/2015/03/25/hebert-like-bobby-jindal-stumbles-from-one-ill-fated-fiasco-to-another-in-oblivion-and-without-a-trace-of-embarrassment/

So what happened to Hebert after those two little episodes were revealed? Well, he was promoted to Jindal’s legislative liaison, whatever that may entail. We see it as simply a synonym for lap dog. Oh, and he also held a state contract for debris cleanup after Hurricane Katrina—while simultaneously serving in the Louisiana Legislature. No conflict there.

Witnesses were admonished not to discuss the pending Tingle matter with each other or anyone else, including the media. A violation of that dictum, the referee said, could result in disciplinary action, including dismissal from their jobs.

Well, folks, I’m not among the subpoenaed witnesses, I’m already retired, and I can’t be fired.

As the popular ’60s song goes, see you in September, Troy.


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No sooner did we call U.S. Sen. David Vitter out for potential improprieties for using his Senate franking privileges to gain an edge over his three opponents in this year’s gubernatorial election than our old friend C.B. Forgotston send us evidence of an even more flagrant misuse of his office for similar reasons.

It’s enough to make you wonder what the hell goes through these politicians’ minds except that we already know: they are so convinced they are above the law that they couldn’t care less what the great unwashed think about their flaunting of the rules.

We’ve previously reported Jindal’s acceptance of tainted campaign contributions from the Horsemen’s Benevolent and Protective Association (non-profits are prohibited from making campaign contributions), laundered money from a St. Tammany Parish bank board of directors (without the 11 directors’ awareness they were “contributing” $5,000 each to Jindal) and the head of Florida’s largest-ever Ponzi scheme who funneled $30,000 in contributions to Jindal from himself, his wife and his law firm.

Within an hour of posting the story about Vitter’s use of franking privileges to promote his gubernatorial campaign, LouisianaVoice’s email exploded with messages about Jindal’s latest post on the governor’s web page, paid for by Louisiana taxpayer dollars.

The first email was from Forgotston, who has fired off a letter to Inspector General Stephen Street demanding an answer to his inquiry as to the legality of Jindal’s “press release” on Tuesday.

So what, exactly, is all the fuss about?

Quite simply, Jindal used the state computer and web page (and presumably a state employee) to gin out a “press release” personally attacking one of Jindal’s probable opponents for the Republican nomination for president under the headline “Gov. Jindal: Senator Paul unsuited to be Commander-in-Chief.” http://www.gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&articleID=4965

Paul, a U.S. Senator from Kentucky, is an announced candidate for the Republican nomination. https://randpaul.com/

And what did Paul do or say that prompted Jindal to ignore legal constraints on the use of state web pages? Apparently, Paul said something to the effect that ISIS exists because of the U.S. hawkish foreign policy—a claim, by the way, that we cannot entirely disagree with.

“This is a perfect example of why Senator Paul is unsuited to be Commander-in-Chief,” Jindal whined.

Except he did his whining on a state-funded web page and that immediately invoked the wrath of a number of readers and Forgotston, who once worked as a legal counsel for the legislature, is not the one you want to tick off when it comes to matters concerning the state constitution.

In his email to Street, Forgotston began by describing the Jindal press release as “a violation of Louisiana Constitution, Article XI, 4.”

In case you don’t want to take the time to open the link, it says that while there is no prohibition against the use of public funds to disseminate factual information about a proposition appearing on an election ballot, “no public funds shall be used to urge any elector to vote for or against any candidate or proposition, or be appropriated to a candidate or political organization.”

“It (the press release) clearly urges a vote against U.S. Senator Rand Paul for President of the United States,” he said. “The press release was issued by state employees (the release contained the names of Shannon Bates Dirmann and Shannon, Deputy Communications Director for the Governor’s Office) and has no disclaimer that public funds were not used.

“If this is not a violation of the law, please advise why it isn’t,” Forgotston said. He ended his email by writing, in all caps, “A RESPONSE IS REQUESTED,” which he said “is not directed to any recipients of his email other than the State Inspector General.”

In case any of our readers also would like to submit a similar question to the OIG, here is Street’s email address: stephen.street@la.gov.

Forgotston said he will also share his concerns with Legislative Auditor Daryl Purpera.

As Forgotston himself is fond of saying: you can’t make this stuff up.


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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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