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Archive for December, 2012

Office of Alcohol and Tobacco Control (ATC) Director Troy Hebert, one of those former legislators to whom Piyush Jindal appointed to a six-figure state job, made a big production this week of his so-called “audit” of personal use of state cell phones by agents working under him.

Hebert, of Jeanerette, resigned from the State Senate in November of 2010 to accept the appointment as ATC director at $107,000 per year and has conducted a reign of terror in the ensuing two years.

While Hebert claims that only a half-dozen or so employees have left his agency, a survey by LouisianaVoice learned that the number was closer to 50. Some of those were fired only days after being hired by Hebert while others quit out of disgust.

Hebert obviously considers his status in more grandiose terms than most elected officials, much less appointed department heads, though there are rumors floating around that he considers himself as a potential candidate for governor.

Though he is merely a mid-level department head, he nevertheless requires his employees to stand when he enters a room and to address him with a cheery, “Good morning, Commissioner.”

Such courtesy is normally extended only to heads of state, not obscure state bureaucratic appointees.

This is the same guy who expresses such indignation at his employees’ use of state cell phones for personal calls who thought nothing of blowing a couple of thousand on low-profile, 22-inch rims for his state vehicle.

This is the same guy who, though he has zero training as a law enforcement official, demanded—and got—emergency lights installed on his state vehicle so he could play cop.

This is the guy who suspended an employee after her physician refused to provide weekly status reports despite the physician’s prior written certification that she was physically unable to work.

This is the same administrator who more than once transferred an employee from one end of the state to the other with as little as two days’ notice.

This is the same agency head who directed an agent to return to uniform status and to re-enter a New Orleans bar for inspections—after that same agent had purchased drugs during an undercover investigation in that same establishment—a directive that might well have served as the agent’s death sentence had things gone badly.

And this is the same guy who made a big production a few months back over a $10,000 expenditure to purchase and train a “synthetic drug-sniffing canine.”

“ATC Commissioner Troy Hebert says (the) new canine will be a great asset when it comes to detecting synthetic marijuana,” the news release said. ‘“It’s a very, very dangerous substance,’ said Hebert. ‘We think this new addition’s going to help us with some of that.’”

The only problem is, the “certificate of certification” from the National Police Canine Association in Waddell, Arizona, dated Nov. 2, certifies the new dog only for marijuana and cocaine, not synthetic drugs.

There’s a reason for that: synthetic marijuana is virtually impossible to detect reliably because the chemical ingredients of synthetic drugs is constantly changing, meaning there is no reliably consistent pattern for animals to learn.

LouisianaVoice earlier reported his propensity to fire employees with little or no reason and that he has settled a couple of discrimination lawsuits brought by former employees.

Hebert fits right into the Piyush Jindal mold of arrogance that permeates this entire administration, from cabinet members who refuse to divulge the identities of contract winners to administrators who refuse to provide reports to legislative committees to the governor himself, who ignores requests for information.

But back to those state cell phones.

ATC agents are often away from home for stretches of 12 hours or longer and upon their hiring, Hebert informs agents that as long as they handle ATC business, they may use their state phones for personal calls.

There you have it. It’s policy.

And now Hebert is trying to come off as a diligent agency head hell bent on keeping recalcitrant employees in line. This from a guy who consistently disregards civil service rules and regulations and gets himself backed into EEO corners that cost the state thousands upon thousands of dollars in payments to former employees and legal fees.

You do not tell your employees it’s permissible to use state cell phones for personal calls and then throw them under the bus for purposes of painting yourself as the noble guardian of the public trust—especially when your own motives are called into question.

The bottom line appears to be that he is setting up a few agents to persecute through a complicit news media at Press Release Central who simply takes press handouts and runs them with no questions asked.

There can be only one explanation for such action: he hopes to deflect criticism of his own administrative actions and misdeeds by tagging his subordinates with perceived wrongdoing.

To that end, he fits right in with this administration.

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“Never have seen an eagle successfully make off with a baby…but the idea they’d take a poke at a human is by no means off the table; I’ve seen it. This happened in Montreal.”

—MacAoidh, publisher of The Hayride blog, commenting on the video of an eagle attacking an infant, which he purports to be real (It isn’t; it’s a hoax).

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If you need any help identifying the types who drink the Piyush Kool-Aid, you need only log onto The Hayride http://thehayride.com/.

The blog, with the help of ultra-connoisseur of eau de Piyush Jeff Sadow, has consistently stood on the sidelines and applauded attempts by the administration to privatize state agencies, gut state employee retirement, dismantle public education, slash higher education budgets, cripple health care for the poor of Louisiana and even the firing of LSU Healthcare System director Dr. Fred Cerise.

Through their rose-colored glasses, they can see no wrong in what Piyush is doing to the state and, apparently, see no wrong in what he is doing for his political campaign supporters.

But now The Hayride has set itself up for a bit of ridicule. Gentle ridicule, but ridicule, nevertheless.

In today’s blog posting http://thehayride.com/2012/12/in-case-you-arent-freaked-out-enough-about-the-threats-to-your-kids/ includes a video that has gone viral on the internet. The post is entitled “In Case You Aren’t Freaked Out Enough About the Threats to Your Kids…” and includes that now-infamous video of the bird (supposedly an eagle) swooping down to grab an infant playing on the grass in a park only a few feet from an adult, supposedly its mother.

The only problem is, the video is a complete fake and The Hayride got taken in by it the same way it consistently gets taken in by the Jindal administration.

In fact, the bird isn’t even an eagle and the entire sequence is computer-generated. Even Diane Sawyer on ABC News Wednesday night called attention to the flaws in the video that quickly identified it as bogus.

One who watched the video on The Hayride immediately responded with one word: “Fake!”

That viewer was none other than former LSU All-American quarterback Bert Jones of Ruston.

We’ve had more than a few readers say the same about Piyush.

But apparently, however, The Hayride still believes.

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“If you’ve got some states doing it, it’s hard for the others not to do it. It’s like unilaterally disarming.”

—Former Illinois Gov. Jim Edgar, on his unsuccessful efforts to rein in the runaway trend toward tax incentives offered by states to lure industry.

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Unless the Revenue Study Commission’s report on the state’s tax structure is destined to become just another government study that gathers dust, it must address one significant fact: that for every dollar in the state’s budget, 21 additional cents is given away in tax incentives, exemptions and credits.

The report is scheduled to be released sometime shortly after the first of the year.

The state, as has been the case the past several years, is facing a budgetary shortfall of about $1 billion for Fiscal Year 2013-14 and the Jindal administration on Friday, Dec. 14., announced another budget cut, this one $166 million—all in health care for the poor.

For the current budget of $25 billion, the state each year gives away almost $5 billion in various tax breaks which range from enterprise zone credits to 10-year property tax exemptions to sales and use tax rebates.

Louisiana corporate and industrial tax incentives were only $59 million as recently as 2001. The surge, of course, translates to less revenue in the state budget but Gov. Piyush Jindal has refused to offset the revenue losses with increased taxes elsewhere, choosing instead to cut services. As a consequence, higher education and health care have incurred devastating cuts.

Put another way, the Jindal administration continues to insist on transferring money from education and health care to businesses.

Louisiana commits $394 for every man, woman and child each year in tax breaks to manufacturers, retail outlets and movie production companies through the Louisiana Office of Economic Development (LED).

Those include:

• LED FastStart, which creates customized employee recruiting, screening and training solutions for eligible companies;

• Angel Investor Tax Credit of up to 35 percent for start-up and expansion investors;

• Digital Interactive Media and Software Development Incentive;

• Enterprise Zone tax credits of $2,500 for each new job created;

• Industrial tax exemption of 100 percent for up to 10 years on new manufacturing investment;

• Motion Picture Investor transferrable tax credit of up to 30 percent;

• Musical and Theatrical Production tax credit of 25 percent to 35 percent;

• Ports of Louisiana investor tax credit program to promote Louisiana ports;

• Quality Jobs program that offers up to 6 percent in rebates on annual payroll expenses for up to 10 years;

• Research and Development tax credits of up to 40 percent to existing businesses;

• Restoration Tax Abatement of 100 percent for five years for rehabilitation of existing structures;

• Sound Recording Investor Tax Credit of 25 percent;

• Technology Commercialization Credit and Jobs Program offering a 40 percent refundable tax credit and a 6 percent payroll rebate for firms that invest in the commercialization of Louisiana technology.

The New York Times recently conducted an extensive investigation into state tax incentives that revealed that Louisiana’s $1.79 billion in business tax breaks ranks 11th in the nation.

Local governments give up $9.1 million per hour ($80 billion per year) in tax incentives to business and industry, according to the Times story.

Movie maker Oliver Stone criticizes subsidies to industries but defends similar subsidies for movie production, the story noted.

Moreover, the $394 per capita cost is eighth highest in the U.S. and the 21-cent cost per state budget dollar is seventh highest in the country.

That $1.79 billion includes $1.61 billion in corporate income tax credits, rebates and reductions and $75 million in property tax abatement.

But one thing the Times story neglected to point out in its report is that the $1.79 billion in corporate tax breaks represents only about 40 percent of the total tax breaks given by Louisiana through other exemptions, including those for hazardous waste disposal, gift taxes, inheritance taxes, sales taxes on alcoholic beverages, tobacco, food and prescription drugs.

Only six other states had a higher ratio of tax incentives to state budget. Texas granted 51 cents per state budget dollar in corporate tax incentives. Following, in order were Nebraska (39 cents), Oklahoma and West Virginia (37 cents), Vermont (31 cents) and Michigan (30 cents).

Not surprisingly, Texas has the most corporate tax exemptions with $19.1 billion.

But Louisiana, like so many other states has plunged headlong into the ever-escalating race for industry and jobs and again, like other states, has placed a tremendous strain on state finances.

The current obsession with tax breaks began with the repeal of the Stelly Plan in Gov. Piyush Jindal’s first few months in office in 2008, a move that has cost the state approximately $300 million per year.

The repeal of the Stelly Plan, according to Jindal, was supposed to save individual taxpayers between $500 and $1,000 per year. But to save $500, a single filer would have to earn as much as $90,000 and joint filers would have to make more than $150,000 a year to save $1,000.

But the revenue losses caused by the ill-advised repeal of the Stelly Plan are dwarfed by the losses to the state treasury that have resulted in corporate tax incentives granted for projects that have produced few or no jobs.

In 2011, for example, the Board of Commerce and Industry approved exemptions totaling more than $2 billion in enterprise zone and property tax exemptions for new and expanded businesses that produced a mere 7,300 jobs, many of those low-salaried jobs.

But not even those comparatively few jobs turn out to be permanent.

• The Ormet Corporation kicked about 200 of its employees in Ascension Parish to the curb in November, only about a year after receiving tax credits worth about $1 million and a performance-based loan of $1.5 million from the state.

• International Paper Co. received more than $55 million in tax breaks while creating only 107 new jobs over the four-year period from 2008-2011. But that did not prevent IP from shutting down its plant in Bastrop in 2008 and another in Minden last May, putting 610 employees out of work.

• The $26.3 million in tax incentives received from the state by General Motors in 2008 and 2009 produced no new jobs and worse, failed to prevent closure of its Shreveport plant which sent 950 workers to the unemployment lines.

• Dow Chemical continued taking tax incentives from the state, even after announcing in 2009 that 2,500 workers would lose their jobs when three Louisiana plants that make ethylene and derivatives would close. Over the four years from 2008 through 2011, Dow accepted $70.3 million in tax incentives that resulted in not a single new job.

That could be because many established plants submit applications for renewals of existing 10-year exemptions, citing plant modernizations or improvements as justification for the continued tax break when in reality, many of the so-called modernization projects involve little more than landscaping, changing a few light bulbs or similar routine maintenance projects.

But even worse is the gnawing appearance of quid pro quo. Many recipients of the state’s generous tax incentives also made generous campaign contributions to Gov. Piyush Jindal.

In all, 29 separate entities received 32 tax exemptions totaling $774 million over the four-year period. Those same 29 have made $135,700 in campaign contributions to Jindal.

Some of the recipients, followed by total tax breaks and campaign contributions to Jindal, include:

• CLECO ($169 million, $14,000);

• Calumet Lubricants ($105 million, $1,000);

• Dow Chemical ($70.3 million, $13,000);

• Exxon/Mobil ($13.3 million, $11,000);

• Century Tel ($24.6 million, $5,000);

• The Coca Cola Co. ($23.9 million, $2,500);

• PPG Industries ($23.2 million, $1,000);

• Marathon Oil ($27.7 million, $11,000);

• Monsanto Co. ($38.7 million, $5,000);

• Conoco Phillips ($37.2 million, $5,000);

• General Motors ($26.7 million, $2,500);

• Stupp Corp. ($25.9 million, $6,000);

• DuPont ($21.3 million, $1,000);

• Select Energy ($14.3 million, $5,000);

• Dynamic Industries ($13.6 million, $5,000);

• General Electric ($11.2 million, $5,000);

• Syngenta Crop Protection ($11 million, $1,000);

• Georgia Pacific ($10.7 million, $4,200);

• Targa Midstream Services ($7.88 million, $5,000);

• Weyerhaeuser ($3.98 million, $5,000);

• Bollinger Shipyards and affiliated companies ($9.36 million, $63,850);

• Chevron ($3.7 million, $1,000);

• Rouse’s Enterprises ($3.48 million, $5,000);

• The GEO Group ($3 million), $5,000);

• Wal-Mart ($2.59 million, $5,000);

• Walgreens ($2.59 million, $5,000);

• Bruce Foods ($2.5 million, $4,500);

• Turner Industries ($2.42 million, $5,000);

• Boh Brothers ($1.76 million, $1,000);

In addition to campaign contributions, which are limited to $5,000 per individual per election cycle, several of the recipients of tax incentives have contributed even more generously to the Supriya Jindal Foundation, established by Jindal’s wife six months after Jindal took office.

Among the contributors are charter members (who give a minimum of $250,000) Marathon Oil, Dow Chemical and Wal-Mart.

Chevron is among the foundation’s Platinum members who pledge a minimum of $50,000.

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