Louisiana Voice

The Division of Administration (DOA) has for the third time denied the existence of a report from a New Orleans company. The third denial, however, was more ambiguous than the previous two, stopping just short of saying outright that it does not exist, instead saying the report “has not been finalized and sent to the Division of Administration.”

At the same time, the Louisiana District Judges Association (LDJA) has made good on its decision of two weeks ago to adopt a resolution in opposition to Gov. Bobby Jindal’s proposed privatization of the Louisiana Office of Group Benefits (OGB).

DOA also used somewhat confusing language in denying a request to provide the names of four representatives of Goldman Sachs who met with OGB and DOA officials last fall.

“The Public Records Law does not require the creation of new records to respond to a request,” General Counsel Lesia Batiste said in an April 18 letter emailed to CNS. “Therefore, the Division of Administration has no record which is responsive to this request.”

CNS, in its request, never sought records, only the names of the four Goldman Sachs representatives.

While DOA would not even acknowledge that such a meeting took place, Tommy Teague, who was fired as OGB’s CEO last Friday, said the meeting did indeed take place. “I was called downtown and wasn’t even told why they wanted to see me. When I walked into (Deputy Commissioner of Administration Mark) Brady’s office, there were four Goldman Sachs representatives from New York sitting there,” Teague said.

Chaffe and Associates of New Orleans was contracted to work up last minute figures on OGB for Jindal to plug into his proposed budget in time for its release on March 19. That contract was for $49,999.99—one penny less than the minimum amount requiring approval of the Office of Contractual Review.

In her letter to Capitol News Service, Batiste also said, “The Division has previously provided you the contract, billing documents, and all other supporting documents pursuant to your prior requests.”

In fact, DOA has provided CNS only a single copy of the Chaffe contract. No billing documents or “other supporting documents” were ever provided.

The resolution opposing OGB’s sale was accompanied by a cover letter to Rep. James R. “Jim” Fannin (D-Jonesboro), chairman of the House Appropriations Committee and chairman of the Joint Legislative Committee on the Budget (JLCB) and to Sen. Michael J. “Mike” Michot (R-Lafayette), chairman of the Senate Finance Committee and vice-chairman of the JLCB with copies also sent to Gov. Jindal and Louisiana Supreme Court Chief Justice Catherine “Kitty” Kimball.

The letter, signed by LDJA President Judge Sharon Marchman of the Second Judicial District (Ouachita and Morehouse), said that the association’s membership learned of Jindal’s wishes to auction OGB at the LDJA annual spring judges conference in Lafayette on April 7.

“Because of the lack of details available, as well as the importance of keeping employee and employer health insurance costs as stable as possible, the members of the LDJA voted unanimously to oppose any effort to privatize OGB,” the letter said.

State district judges, like all state employees, are eligible for health insurance benefits through OGB.

“While district judges understand the fiscal challenges currently facing state government, the LDJA is also concerned with any plan to change health insurance plans for our members, their dependents, and all state employees,” Judge Marchman said in her letter.

“OGB has kept rates relatively stable over the years while keep(ing) overall administrative rates low. At a minimum, the LDJA is requesting more time to examine the administration’s proposal as well as a full vetting of such enormous changes through the legislative process, including consideration of a legislative instrument.

“Only through a transparent and open process and careful consideration of the proposal’s effect on all employees will the members of LDJA reconsider its position of full opposition to the proposal,” Judge Marchman said.

Jindal has repeatedly touted his administration as “transparent and open.”

The resolution also said that the proposed sale may eliminate as many as 150 jobs at OGB and “there have been no assurances that the sale would not unduly increase health insurance rates or reduce benefits for thousands of state employees and their dependents.”

Below is the full resolution passed by the LDJA:

RESOLUTION

OF

THE LOUISIANA DISTRICT JUDGES ASSOCIATION

WHEREAS, like all state employees, district judges in Louisiana are eligible for health insurance benefits through the Office of Group Benefits, Division of Administration;

WHEREAS, in a presentation of the Executive Budget on March 11, 2011 to members of the Legislature, Commissioner of Administration Paul Rainwater stated the Governor’s preference to sell the PPO and HMO plans currently administered by the Office of Group Benefits to a private health insurer who would then be directly responsible for administering the plans for the benefit of state employees;

WHEREAS, the proposal may eliminate as many as one hundred and fifty Louisiana-based employees of the Office of Group Benefits;

WHEREAS, there have been no assurances to district judges or others that the proposal would not unduly increase health insurance rates or reduce benefits for thousands of state employees and their dependents;

WHEREAS, the Office of Group Benefits has kept administrative costs low and provided professional and courtesy service to state employees;

WHEREAS, in past years, efforts to reform health insurance benefits for state employees were only followed after careful studies and consideration of all the effects;

NOW, THEREFORE, BE IT RESOLVED that the members of the Louisiana District Judges Association express their opposition to the Governor’s proposal to privatize the Office of Group Benefits and that, at a minimum, the Governor and the Legislature should carefully study privatization proposals before taking action.

BE IT FURTHER RESOLVED that this Resolution be inscribed in the minutes of this Association and that a copy of this Resolution be sent to Chairs of the House Appropriations Committee and Senate Finance Committee and Governor Jindal.

s/ Sharon Marchman
Judge Sharon Marchman, President