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Archive for January, 2012

A politically astute friend who shall remain nameless has been quick to challenge last week’s suggestion that Gov. Bobby Jindal may have lost his Midas touch. He described, in so many words, the notion that Jindal’s luck may have been pushed to the breaking point as about as realistic as Newt Gingrich’s chances of capturing the GOP presidential nomination.

“Don’t believe it,” our friend, longtime political observer, cautioned. “The governor got exactly what he wanted with the committee assignments in the House and Senate. Those (who) dared criticize him in the past have been removed from the money committees and banished to Labor or cultural Affairs and other backwater committees.”

Strong words indeed. But he wasn’t finished. “He has a hand-picked Education Committee in both chambers to do his bidding, not to mention the rubber-stamp BESE. And speaking of education, the governor finally announced his agenda for the 2012 session.”

He went on to say of that education plan released by Jindal on Jan. 17 that if people read it carefully and also read between the lines, they will understand that it is nothing more than a blueprint “to destroy public education in Louisiana.”

“If he can pull off even half of what he is proposing for education, it will be the most sweeping changes in the history of public education in Louisiana,” he said. Note that he never said that he thinks the plan is good.

“Teachers are going to be furious,” he said. His (Jindal’s) strategy to drive a wedge between superintendents, principals and school boards is ingenious. Divide and conquer!

“I’m not sure the public will see this plan for what it is: to destroy public education in this state and replace (it) with state-controlled charter schools and the like. I am not in favor of that but I’d say he has set himself up for a lot of success.

“The main problem is the teachers unions are their own worst enemies and I’m not sure they understand what approach they need to take to counteract the governor. If they set themselves up as simply opposed to any change just to be opposed to change, the governor will eat them alive. The public realizes that the education system is broken and they want change. Jindal will use that to get what he wants.”

Never one to be labeled as a one-trick pony, our friend dug the knife in a little deeper with his observations about the flare-up between Jindal, aka Booby Jihad, and Attorney General Buddy Caldwell, a flare-up that sputtered and died a quick death once Caldwell got a quick lesson in political realities.

Caldwell had earlier had the temerity to challenge Jindal’s decision to pay attorneys representing the state in the BP Gulf spill litigation a percentage of any recovery as opposed to an hourly rate favored by Caldwell.

Caldwell, supposedly the state’s top legal expert (excluding judges, who always have the final say), accused Jindal of interfering with his (Caldwell’s) handling of the case. Jindal further outraged Caldwell by signing off on a legal document in which Jindal agreed not to appeal any awards made for legal fees, and Caldwell, who doubles as a part time Elvis impersonator, said so.

You’ll just have to forgive us here, but Jindal thought Caldwell’s Suspicious Mind was Too Much and got All Shook Up. The governor, through an intermediary, sent Caldwell the message that it was all about the Money Honey and by the time it was over, Caldwell was singing Don’t Be Cruel.

Okay, that’s enough of that. In reality, our friend said, “Caldwell forgot a fundamental rule of politics: he who pays the fiddler calls the dance. Caldwell (and most of the other statewide elected officials) thinks he can do what he wants because is independently elected. But he forgot that the governor controls the purse strings (read: agency budget allocations). Oops!’”

Pension Plan Changes Proposed

On Wednesday of this week, Jindal released his plan to overhaul Louisiana’s state employee pension system that would increase retirement contributions for about 54,000 current employees while reducing benefits and extending the eligible retirement age for many of them.

Jindal also wants to move away from the present system for new hires, doing away with the monthly pension check to a lump sum retirement payment based on contributions and earnings. This would abolish the present defined benefits system in favor of a defined contribution one whereby employees no longer would be guaranteed a set monthly retirement payment but instead would make a guaranteed contribution to the pension system with no guarantee of return, much like a 401K program.

Oddly, Jindal’s proposal would apply only to the Louisiana State Employees Retirement System (LASERS), which has an unfunded liability of $6.45 billion. He exempts the state’s other three systems—teachers, school employees and state police. The Teachers Retirement System alone has a debt of $10.8 billion.

He said he prefers to leave teachers and school employees alone for the time being because of proposed educational changes on the horizon.

He said legislation will be pre-filed this week for consideration during the upcoming 85-day legislative session that opens on March 12.

Education Fight Looms

In his press conference last week, Jindal chose to unveil his education plans at the annual meeting of the Louisiana Association of Business and Industry (LABI), a virtual slap in the face to teachers, the group that he should have been addressing. But a virtual slap is probably appropriate considering his penchant for charter schools and virtual schools.

Just what is a virtual school anyway? Does it provide a virtual education? Do graduates get virtual jobs? Do they pay virtual taxes and give virtual campaign contributions?

Jindal, as is his custom, continues to paint all teachers with the same broad brush, a tactic that is patently unfair and grossly inaccurate. He talks about failing schools and poor teachers and giving students—the better students, to be sure—into better schools (read: charters).

To say a student fails because of a poor teacher is not only callous, but stupid. For example, in a class of say, 25 students, there are 23 students from poor economic backgrounds. Still, six of these students excel in classroom work and make top grades. Nineteen make Cs, Ds, and Fs. This same scenario is repeated throughout the school so the school is a failing school and the teachers are labeled as poor teachers and fired under Jindal’s plan.

But how does one explain those six students in that class who excel? Did they make top grades without the benefit of good teaching? No, Mr. Jindal, they did not, any more than the nineteen did poorly because of bad teaching. All 25 students were exposed to the same classroom material, had access to the same textbooks and took the same tests.

In my own school, Ruston High School, I sat in the same classroom with students who slept during class, never turned in homework assignments, never participated in classroom discussions, and consistently made D’s and F’s on tests. I also sat in the same classroom with Joel Tellinghusen who would go on to pioneer laser surgery, and Bill Higgs who would one day become an acclaimed heart surgeon in Mobile, Alabama. A couple of years ahead of me was Patricia Wells who would go on to a stellar career as a soprano with the Metropolitan Opera.

So, were the teachers at Ruston High School graded on the basis of those who did poorly or on the basis of the Joel Tellinghusens, Bill Higgs and Pat Wells? We will never know because that absurd method of grading schools wasn’t around then. They just let teachers teach. Wow. What a concept.

When kids come from poor economic backgrounds and parents take little or no interest in the children’s educational progress, kids generally reflect those demographics with poor grades. Motivated students listen to teachers, read assignments, do homework, and do well on tests. Period.

Yet, we have an outfit called Educate Now in this state that lists schools in New Orleans only by whether or not they are Recovery School District (RSD) schools or voucher-accepting private schools. The organization then lists the percentage of students who score above basic on English and math in grades 3-5.

That’s it. There is no attempt to take into account students’ prior achievement, no consideration of demographic variables like economic background, and no consideration of whether or not students are eligible for vouchers only if they had been attending a failing public school.

In short, there is no statistical analysis whatsoever—a pitiful method of judging the merit of voucher schools.

“The governor wants the new untested teacher evaluation program to form the basis for firing or demoting large numbers of teachers based on student test scores,” said Michael Deshotels, a retired educator.

“Never have I seen such a misguided and wrong-headed attempt to implement change in our educational system as was announced by Gov. Jindal on Tuesday,” he said. “If you study the governor’s proposals you can only come to the conclusion that he believes that the teaching profession in Louisiana is rife with incompetent or lazy teachers and administrators, and that if we simply fire and replace them our students will magically start doing much better on the state tests. Almost everything in the governor’s plan is based on this incorrect assumption,” he said.

Ron Clark, a teacher who started his own academy in Atlanta, had an interesting perspective on teaching and so-called failing schools: “It’s usually the best teachers who are giving the lowest grades because they are raising expectations. The truth is, a lot of times it’s the bad teachers who give the easiest grades because they know by giving good grades everyone will leave them alone. Parents will say, ‘My child has a great teacher! He made all A’s this year’ and the teacher (parents) are complaining about is actually the one that is providing the best education.”

The problem with Jindal’s plan for education, says Deshotels, is that “it is based upon an untested value-added model similar to one that is already failing in Tennessee and New York. In Louisiana the two chief architects of the new value-added model have resigned from their roles in the program, passing this potential monster on to other staff,” he added.

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“The truth is, these are not very bright guys. I’ll keep you in the right direction if I can, but that’s all. Just…follow the money.”

–Confidential informant Deep Throat, on the ever-expanding Watergate scandal, to Washington Post reporter Bob Woodward, 1973.

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BATON ROUGE (CNS)—Gov. Bobby Jindal’s façade of invulnerability appears to be, if not crumbling, then at least in dire need of some major touch-up work.

Barely past steamrolling an opponent who had only about $39 in campaign funds and who yet somehow still managed 17 percent of the vote, Jindal finds himself:

• at odds with the state’s attorney general;

• joined at the hip with a loser in the presidential primaries;

• linked to a firm with contracts in Louisiana that is under scrutiny for cost overruns on a contract with the State of Texas;

• seeing his Medicaid privatization program, being run by several campaign contributors, get off to a less than auspicious start.

All that without re-hashing the ongoing shell game of just who is administering his first privatization project—the Office of Risk Management—at any given time. ORM has been handed off to the third company in just over a year since initially being taken over by F.A. Richard and Associates (FARA).

Nor have we, or anyone else, for that matter, bothered to mention the undercurrent of resentment between Jindal and Lt. Gov. Jay Dardenne.

It’s a poorly-kept secret that Jindal wanted ally Billy Nungesser as the lieutenant governor so that Jindal could privatize the Office of Culture, Recreation and Tourism in order to get his hands on that agency’s $30 million in statutory dedications. Jindal, in fact, hosted a $5,000-a-pop fundraiser on Tuesday to help Nungesser pay off his $1 million campaign debt. It was one of the few fundraisers Jindal attended in-state.

Which brings up another bone of contention between Jindal and Dardenne: Jindal over the past two years has spent an extraordinary amount of time out of state—and continues to do so—attending fundraisers for himself, for other candidates, and to hawk his book.

Yet, not once has he extended the courtesy to Dardenne the second in line for the governor’s office should something happen to Jindal, of informing the lieutenant governor on those occasions when he was out of the state.

His endorsement of Texas Gov. Rick Perry for the Republican presidential nomination—along with the candidate—is in the tank. After a contentious round of debates, caucuses, primaries and millions of dollars spent by PACs by nearly all the GOP hopefuls, it appears that the nomination, barring a major misstep, is Mitt Romney’s to lose.

Speaking of Texas, the Texas General Land Office has placed tighter controls on Kansas City engineering firm HNTB which encountered cost overrun problems with its contract to manage federal grants to Texas communities hit by hurricanes Ike and Dolly.

Gary Hagood, deputy commissioner for financial management at the Texas General Land Office, last week testified before the Texas Senate Committee on Intergovernmental Affairs that HNTB’s no-bid contract may have been improperly procured and that an amendment more than doubling the contract from its original $69 million to $144 million may also have been improper.

The land office assumed responsibility for the contract after the former agency in charge, the Department of Rural Affairs, was dissolved. If an audit determines that funds were improperly spent, the state could be required to repay millions of dollars to the Department of Housing and Urban Development (HUD).

HNTB was also was the lead consultant for Perry’s proposed Trans-Texas toll road system. Since 2007, the firm was paid $112 million by the Texas Department of Transportation for various projects, including $38 million for the toll road project, which was scrapped in 2009.

Ray Sullivan, Perry’s former chief of staff who now works with his presidential campaign, is a former lobbyist for HNTB, which has made nearly $35,000 in political campaigns to Perry since 2007.

The company has at least three contracts totaling $4 million with the State of Louisiana and while it has made several political contributions under its corporate name—$10,000 to the Republican Party of Louisiana, $1,900 to Jindal, and $2,500 to Nungesser, among others—it appears to prefer making its contributions through corporate officers:

• Paul Yarossi, a director in HNTB’s New York corporate offices—$5,000 to Jindal in February of 2011;

• Michael McGaugh of Baton Rouge, a manager for a HNTB-ABMB joint venture—$2,500 to Jindal in June of 2007 and $5,000 in November of 2010;

• John Basilica of Baton Rouge, a manager for a HNTB-CPE joint venture—$2,500 to Jindal in February of 2011;

• Mary D. Hinkebein of Carmel, Indiana—$1,000 to Jindal in February of 2011. Mary Hinkebein is the wife of Keith Hinkebein, a director with HNTB Holdings, Ltd.

HNTB contracts with Louisiana include one for $750,000 with the Department of Natural Resources to provide geotechnical assistance for coastal restoration projects on an as-needed basis; $300,000 with the Department of Transportation and Development to serve as an expert witness “with specialized knowledge of professional engineering fields,” and $3 million with the Office of Coastal Protection and Restoration “to provide the means for engineering assistance for coastal restoration projects on an as-needed basis.”

The $3 million contract is a joint venture with CPE, Inc.

As if that were not enough, barely a month after being hailed as a “hallmark moment,” the first phase of the rollout of the state’s new “Bayou Health” privatized health care system for the state’s poor and uninsured has been plagued by delays, technical difficulties and unanswered questions.

On Dec. 12, Department of Health and Hospitals (DHH) Secretary Bruce Greenstein said all five health plans contracted to manage care under the Bayou Health program were ready to begin operations in nine southeast Louisiana parishes. By mid-2012, he said, the plan would cover two-thirds of the state’s 1.2 million Medicaid recipients.

“This is a hallmark moment in our state’s journey toward improved health outcomes,” Greenstein said.

Instead, callers have complained of long wait times, incorrect information and technical difficulties in dealing with DHH and health-care providers have bombarded DHH with so many questions about how the new privatized system works that DHH has begun holding daily conference calls to address concerns.

The five companies participating in the Bayou Health system include Amerigroup, LaCare, Louisiana Health Connections, Community Health Solutions and United Healthcare.

All five have made campaign contributions to Jindal either directly or indirectly:

• United Healthcare made seven contributions totaling $25,000 to Jindal between November 2003 and December 2009 and $5,000 to the Republican Party of Louisiana in December of 2010;

• Louisiana Healthcare Connections Vice-President Jesse Hunter of St. Louis, MO., contributed $1,500 to Jindal in October of 2008 and McGlinchey Stafford law firm, Louisiana Healthcare’s agent of record, made six contributions totaling $22,000 between September 2003 and March 2011;

• Amerigroup made three contributions totaling $5,500 to Jindal in November of 2003 and in February and September of 2011;

• Community Health Solutions contributed $5,000 to Jindal in January of 2011 and John Fortunato, Jr., vice-president of the corporation’s agent of record, contributed $1,000 to Jindal in May of 2007;

• Neither LaCare nor any of its officers were found to have made any direct contributions to Jindal but the company’s agent of record, Adams and Reese law firm of New Orleans, made five contributions totaling more than $19,000 to Jindal between September of 2003 and December 2008.

Both Adams and Reese and McGlinchey Stafford law firms, it should be noted, also served as registered agents for other corporations, making it impossible to tie their contributions directly to the Bayou Health participating companies.

Recently, when LouisianaVoice made a formal request of the Division of Administration (DOA) for copies of the state contract report provided the Louisiana Civil Service Commission at its monthly meeting, DOA legal counsel David Boggs replied that no such report existed.

The same request was then made to Civil Service and that agency complied immediately.

The report from Civil Service shows that the contracts with LaCare (through its parent company, Amerihealth Mercy of LA., Inc.), Louisiana Health Connections and Amerigroup are for $985.8 million each while Community Health Solutions and United Healthcare have contracts for $68 million each.

The combined amount of the five contracts is almost $3.1 billion.

Finally, there is the simmering rift between Jindal and the state’s elected legal representative, Attorney General Buddy Caldwell, over procedural differences in the ongoing litigation over the BP Gulf oil spill.

Caldwell accuses Jindal of interfering with his handling of the case while Jindal’s chief of staff Stephen Waguespack, himself an attorney, claims the governor has every right to involve himself as the state’s chief executive officer.

At issue is the method in which each prefers to pay attorneys representing the state. Caldwell wants to pay the lawyers a set rate as work is performed while Jindal wants to pay a percentage of the final judgment.

The difference could mean millions of dollars to the state.

Federal Judge Carl Barbier of New Orleans has ordered plaintiff states, of which Louisiana is one, to set aside 4 percent of what could be billions of dollars in settlement money.

Jindal, to the outrage of Caldwell, signed off on a legal document in which he agreed not to appeal any awards made for legal fees.

It is rare, if not virtually unheard of, for one to sign away rights to appeal a verdict. Such action locks the party in on whatever unpredictable decision might come down.

Caldwell said that by agreeing to the 4 percent set-aside for lawyers, Jindal is in violation of both state law and the state constitution to direct money away from the state treasury to private lawyers.

He said his attempts to settle the dispute met with accusations by Jindal’s aides that Caldwell was trying to intimidate the governor.

Waguespack countered that Jindal is not afraid to meet Caldwell.

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BATON ROUGE (CNS)—Did the Legislative Auditor’s office allow itself to be used to build a case against an employee of the Louisiana Department of Wildlife and Fisheries (LDWF) as part of a political vendetta?

If not, investigators certainly went to great lengths to build a case against Wayne Sweeney, manager of the White Lake Wetlands Conservation Area.

An investigation by the auditor’s office indicates that Sweeney was paid $505, excluding benefits, for hours he did not work and that he used a state vehicle to run personal errands.

The audit report, however, has all the overtones of a personal dispute between Sweeney and his supervisor, LDWF Biologist Director Osborne Baker.

And the case could also be made that the state spent considerably more on its investigation of Sweeney than the amount for which he is accused of being overpaid.

In his cover letter, Legislative Auditor Daryl Pupera said the audit was conducted “to determine the credibility of certain allegations regarding the management of White Lake Wetlands Conservation area.

“Our audit consisted primarily of inquiries and the examination of selected financial records and other documentation. The scope of our audit was significantly less than that required by Governmental Auditing Standards,” he added.

The audit noted that on Friday, Aug. 19, 2011, Sweeney submitted his time sheet for the two weeks ended Aug. 21. State work weeks run Monday through Sunday. Sweeney’s time sheet reflected that he worked 83.5 hours for the two week period. That included 80 regular hours and 3.5 hours of compensatory time.

However, from Aug. 15 to Aug. 18, the audit said, “we monitored Mr. Sweeney’s daily activities and found he worked 22.5 of the 32.5 hours he recorded on his time sheet for these days.” Accordingly, Sweeney should not have claimed nor been paid for the additional 10 hours and was not entitled to 3.5 hours of compensatory time. Sweeney is an unclassified employee earning a salary of $105,040 per year. That computes to an hourly rate of $50.50 per hour.

“By claiming hours for which he did not work, Mr. Sweeney may have violated state law,” the audit said.

LDWF provides Sweeney with a 2005 Toyota Sequoia and a Fueltrac card with which to purchase fuel. He was allowed to keep the vehicle at his home when it is not in use for state business. The audit report says that Sweeney used the vehicle to run personal errands for the four days he was observed by auditors.

Sweeney, who lives in Lake Charles, was allowed to maintain an office in Lake Charles in order that he would not have to make the 138-mile round trip to and from the White Lake property in Vermilion Parish.

Because of this, Baker said that even though he suspected that Sweeney was not working 40-hour weeks, he still approved his time sheets because he did not have the resources to verify his hours.

Around Aug. 15, when surveillance was first begun, Sweeney commented to a neighbor that he believed he was being followed. The neighbor, Scott Baily, an investigator for the attorney general’s office confirmed that he observed a vehicle in a nearby parking lot that appeared to be surveilling someone.

By assigning an auditor to follow Sweeney around for four eight-hour days and then compiling the written audit report, it would appear that the amount spent on the investigation more than doubled the $505 for which the report said he was not entitled.

Gov. Bobby Jindal, by contrast, took numerous out-of-state trips during 2011 to promote his book and to attend fund-raisers for himself and others, all while continuing to draw his salary.

Legislators do not generally convene on Fridays, Saturdays and Sundays during legislative sessions even though they are paid per diem for those days.

All of which begs the question of whether the audit report was requested as a means of building a case against Sweeney.

White Lake was owned and managed by British Petroleum America Production (BP) until July 8, 2002, when the property was donated to the State of Louisiana. On that same date, the state entered into a cooperative endeavor agreement with White Lake Preservation, Inc., a 501(c) 3 corporation, for management of the property.

Sweeney, as an employee of BP since 1980, was manager of White Lake and his employment was transferred to White Lake Preservation, Inc., once the cooperative endeavor agreement was executed.

On Jan. 1, 2005, Act 613 of the 2004 regular legislative session became effective whereby management of White Lake was transferred from White Lake Preservation, Inc., to LDWF, effective July 1, 2005.

At that time, Sweeney became an employee of LDWF.

Baker told auditors he attempted to move Sweeney’s office from Lake Charles, take away Sweeney’s vehicle and to restructure the management of White Lake. He said his efforts, if successful, would have resulted in better management of White Lake by Sweeney and would allowed Baker to better supervise Sweeney.

Baker and LDWF Assistant Secretary Jimmy Anthony each said that LDWF management initially support Baker’s plan but subsequently denied the plan after Sweeney spoke to LDWF Secretary Robert Barham who allowed him to keep his Lake Charles office and his vehicle.

Barham confirmed the conversation with Sweeney, according to the audit report. He said he made his decision after being told moving Sweeney to White Lake could result in the loss of some of the White Lake corporate hunters.

Sweeney subsequently reimbursed the state the $505 but his attorney, Thomas Lorenzi of Lake Charles, said he did so while not admitting to not performing work for the pay received. Moreover, Sweeney has been reassigned to the White Lake office and is no longer allowed home storage of his state vehicle.

In a five-page response, Lorenzi noted that Sweeney emailed documents to his home in July of last year so that he could review them that night at his home. Lorenzi provided copies of emails to substantiate his claim.

On Aug. 15, one of the days auditors observed Sweeney, Lorenzi said that Sweeney had two telephone conversations with whooping crane biologist Tandy Perkins. These conversations occurred at 8:34 p.m. and 8:40 p.m. but were not recorded on Sweeney’s time sheet. Lorenzi also cited several occasions in which Sweeney performed work for his office outside normal work hours.

One of William Shakespeare’s plays was entitled Much Ado About Nothing.

That somehow seems an appropriate way to describe Mr. Sweeney’s case.

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“We recognize that there is a delicate balance to be reached between the (civil service) commission’s duty to protect against the spoils system, either by privatization or otherwise, and the…power and authority to operate…in a fiscally responsible manner and to enter into contracts to fulfill that duty.”

–Louisiana Supreme Court ruling of Sept. 9, 2003 on City of New Orleans efforts to privatize operations of the New Orleans Cultural Center.

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