LouisianaVoice has obtained additional information on the proposed privatization of the Louisiana Office of Student Financial Assistance (LOSFA) in which 47 employees are scheduled to lose their jobs next June.
The State Civil Service Commission is scheduled to consider the layoff plan of LOSFA Executive Director Melanie Amrhein when it meets Tuesday and Wednesday of next week.
Certain administrative positions are scheduled to be retained but Amrhein said through LOSFA General Counsel George Eldredge that her agency does not yet have a complete list of certain administrative personnel who will be retained.
LouisianaVoice, however, has learned the identities of three unclassified employees “not targeted in the layoff plan,” according to a confidential source. They are Deputy Executive Director Sujuan Boutté, Assistant Executive Director for Marketing and Outreach David Roberts and Assistant Executive Director for Fiscal and Administrative Affairs Jack Hart.
“Each makes approximately $100,000 a year and most staff do not know what they do all day,” our inside source said by email. “The agency will be top-heavy with 74 staff total and three Assistant Executive Directors—all for two programs, TOPS and the Student Tuition Assistance and Revenue Trust saving program (START).
“The Public Information section will keep 12 staff and IT (information technology) 12…a lot of support staff for two programs.”
LOSFA actually supports far more programs than just TOPS and START. In addition, LOSFA supports the Early Start Program, the Rockefeller State Wildlife Scholarship, the State Matching Funds Grant, Go Grant, Chafee Educatonal Training Voucher Program, the Volunteer Firemen’s Tuition Reimbursement Program, John R. Justice Student Loan Repayment Program, Louisiana Guaranteed Student Loans, Financial Literacy for You (FLY) and College Knowledge.
“The Loan Division was an easy mark, therefore targeted in the layoff,” the email said. “The executive director is protecting the jobs of the unclassified staff at the expense of nearly 50 rank-and-file, hard-working state employees.”
Following the invitation to bid that went out in February, bid submissions for a new privatizing contract are scheduled to be reviewed in April and the contract awarded sometime after that with layoffs scheduled for June 30.
“We have a contract with Sallie Mae Guarantor Services for utilization of software to operate the loan program in compliance with federal laws,” Amrhein said. “This contract will be terminated once the transition to the successful bidding contract is complete.”
Our source, however, noted that response on the request for proposals (RFP) “has been so sparse that it is likely that the loan portfolio may have to be turned over to the U.S. Department of Education, resulting in the State of Louisiana losing the designation as the state guarantor of student loans. This all started at the governor’s office”
In attempting to justify the privatization contract, the proposal to be presented to Civil Service next week said that:
• a reduction of overhead was necessary to maintain support to state programs;
• an attrition of staff leads to ineffective administration and further strain on generating revenue;
• contracting services will potentially result in higher performance on portfolio while allowing the agency to retain a higher net income with reduced overhead;
• the timeline provides an orderly conversion from in-house functions to managed contractor operation;
• adversely affected employees will be given time to fine new employment.
Louisiana Voice 
The layoff is scheduled for June 30,2012. We do administer more than two programs. We administer the Taylor Opportunity Program for Students (TOPS); the Student Tuition Assistance and Revenue Trust (START) program; the State Matching Funds Grant (formerly LEAP); and the Rockefeller State Wildlife Scholarship program, our web site, http://www.osfa.la.gov, and the dissemination of college access information.
Whoopee! And that takes the kind of top loaded staff personnel who will remain? As with most state agencies, I suspect the lower echelon employees (now targeted for layoff) do the bulk of the work.
I think it’s important that these articles be factual. The article implies that there are too many classified personnel at this agency b/c there are only two programs being administered. The agency supports more like 10 programs. That changes the story quite a bit. We classified employees need to stick together now more than ever. Attacking the classified employees at Losfa is inappropriate and sounds like sour grapes from one of those who is being laid off. We all are still in danger of losing our jobs.
Actually, it was one of your employees I quoted as saying there were only two programs being supported by the agency. I am inserting a clarification to what the employee said. I believe if you read my blog regularly you know that have never written anything disparaging of state employees.
Agreed Tom. I do appreciate your blog. It’s vital in our fight for fair treatment with the state. I should have made clear it was the anonymous source who was at fault.
Those “Programs” mentioned above are not divisions or subsections. They are simply programs administered under 1 division….nothing new….nothing major. 10 programs with 17 people to manage those programs. I’M SORRY THE STORY IS STILL THE SAME! To clarifiy, the anonymous source should have stated:
The agency will be top-heavy with 74 staff total and three Assistant
Executive Directors—all for two major DIVISIONS – Scholarships and
Grant Division & the Student Tuition Assistance and Revenue Trust
Saving Program (START Division).
AND just to set the record absolutely straight the remaining support divisions are equally top-heavy, and should be restructured for agency efficiency!
Trobber, I’m not sure I understand. What 17 people are you talking about? The anonymous source stated there are 12 public information employees and 12 IT employees, all of which are classified, and implied there were too many of them to cover two programs. First, why is this anonymous source advocating that classified employees be removed? Secondly, it does make a difference to the story if the staff are supporting 10 programs rather than two. It undermines the point of the anonymous source regarding getting rid of classified support personnel. Whether the agency is top heavy or not is another subject altogether.
Han, there are 17 people who manage those 10 “Programs” 11 people in Scholarships & Grants Division and 6 people in START Division, which comes up with about 17 people. The eliminated Division is LOSFA’S largest division and you mean to tell me none of the 24 support personnel served as support to that division? Why would the agency need 24 people to act as support staff for 2 divisions? Let’s see that’s about 1.4 support person to each SSG/START employee, or would you prefer to view it this way 2.4 support personnel for the 10 programs. Also some of these “Programs” are so small (10-15 awards) they virtually require no support. In my opinion, the anonymous source makes a valid point…there are too many support personnel for the two remaining divisions. Ironically, you are obviously uncomfortable with advocating the removal of any of the 24 classified employees; yet ignore the fact that the 47 “Classified” employees are scheduled to be removed. Interesting…..
Actually, Trobber, many of those being laid off are my friends. So, you are incorrect in implying I’m OK with their being laid off. What I’m upset about is that you are advocating that classified employees be laid off. Those classified employees that will remain had nothing to do with the Loan division being laid off. Yet, you and the anonymous source seem to want revenge against these folks. It sounds to me like you are the anonymous source and you are upset with being laid off and taking it out on those who aren’t yet being laid off. I can understand being upset by losing your job, but I think it’s inappropriate to wage a campaign against other classified employees.