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Archive for December, 2012

Fiscal Year 2012-13 is just half over but more deep budget cuts will be announced on Friday and, in the words of one state official, “It ain’t gonna be pretty.”

And the latest fiscal problems haven’t even encountered a looming tax rebate program being offered to encourage financial viability of state charter schools, a centerpiece of the Jindal administration.

With health care and higher education already devastated by previous cuts, it’s anyone’s guess who will suffer in the new round of belt tightening.

Higher education has already been hit with more than $426 million in cuts since 2009—$25 million since June—and Gov. Piyush Jindal has been conducting a fire sale to unload state hospitals and prisons, so it’s difficult to pinpoint where other cuts can be implemented.

The Revenue Estimating Conference will meet on Thursday and the Joint Committee on the Budget will meet on Friday to officially hear the bad news.

Without specifics (because they weren’t available when this was written), that bad news is:

• Personal income tax revenue is below projections;

• Corporate income tax revenue is below projections;

• Severance tax revenue is below projections (because of an unexpected drop in the price of natural gas);

• Sales tax revenue is below projections.

With the bulk of state revenue coming from income taxes and sales taxes, the news, it seems, couldn’t be much worse.

But it might.

Remember the alternative fuel tax credit?

That’s the bill authored by former Rep. Jane Smith (R-Bossier City) that promised a tax credit of up to $3,000 for vehicles that burn “alternative fuel. It was estimated at the time that the tax credit would cost the state $907,000 over five years.

After losing her bid to move up to the Senate in 2011, Jindal rewarded her loyalty (read: dedication to tax breaks) by appointing her as deputy secretary of the Department of Revenue.

The intent of the bill was to encourage the conversion of vehicles to propane but between the passage of Smith’s tax rebate bill and its implementation, flex-fuel vehicles that run on a blend of up to 85 percent ethanol hit the market.

These vehicles immediately qualified for the rebate and the real cost turned out to be more like $200 million, an increase of almost 1,900 percent after then-Revenue Secretary Cynthia Bridges got around to creating rules for the program.

Caught in a potential fiscal crisis over the tax credits, Jindal promptly fired Bridges, promoted Smith (who authored the bill in the first place) to interim secretary and rescinded the tax credits.

Now, a similar scenario may have arisen in the form of last session’s House Bill 969.

HB 969, by Rep. Kirk Talbot (R-Baton Rouge), which was subsequently signed into law by Piyush as Act 25, offers tax rebates to those making contributions to charter schools.

Piyush vetoed a similar bill by Rep. Katrina Jackson (D-Monroe) that would have given tax rebates of up to $10 million to those making contributions to public schools because, he said, there was no provision in the state budget for the rebates.

The only problem is, the provisions of Act 25 contain no dollar cap which, like the alternative fuel tax, could blow a gaping hole in the state’s budget should a sufficient number of people make contributions to the private scholarship program.

It’ll be interesting to see how the Boy Blunder handles the latest financial crisis since the state is running out of one-time money with which to plug budget holes, thousands of state jobs have already been eliminated, there are few remaining assets that can be sold off, and health care and higher education have already been cut just about as much as they can stand and still function.

Perhaps Piyush might actually see the need to jettison a few six-figure appointive positions handed out to former legislators like Smith, Noble Ellington, Troy Hebert, Lane Carson and numerous others.

That would be a start—a show of good faith, at least.

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Gov. Piyush Jindal has apparently produced more smoke and mirrors in the unveiling of the administration’s plans to lease four LSU Health System hospitals in South Louisiana to private medical facilities.

Bruce Greenstein, Jindal’s Secretary of Health and Hospitals, and LSU Executive Vice President Frank Opelka made major productions of the announcement on Monday that Louisiana Children’s Medical Center (LCMC) would take over operations of the LSU Interim Hospital in New Orleans and eventually the as-yet unfinished $1.1 billion new academic medical center.

At the same time, it was announced that Lafayette General Health System would assume operations of University Medical Center in Lafayette and that Ochsner Health System and Terrebonne General Medical Center would partner to run Leonard J. Chabert Medical Center in Houma.

Jindal and DHH officials are calling the deals “partnerships,” but a closer look into the arrangements reveals that the administration may well simply be shuffling Medicaid dollars in a circuitous route in an effort to secure more federal Medicaid matching dollars, a practice that could be frowned upon by the Center for Medicare and Medicaid Services (CMS).

Another problem may arise when the University Medical Center Medical Corp. Board is supplanted by the LCMC which will run the academic medical center as the “sole member” of the University Medical Center’s management board.

That’s because when private property was expropriated for the construction of the academic medical center, it was for a “public purpose,” the operation of a state-run hospital to serve as a safety net for New Orleans’s indigent population. Because the facility will no longer be a state-run hospital under the auspices of LSU, the legality of the expropriations could be called into question.

Opelka, however, said the plan is for LCMC, which already operates Touro Infirmary, to be the parent corporation over Touro, LCMC and the UMC boards.

Monday’s memorandums of understanding (MOU) announced by the administration commit the private hospitals to continue care of the poor and uninsured and to train the state’s future physicians.

As recently as September, the LSU Board of Supervisors approved a plan to lay off 600 personnel at the Interim LSU Public Hospital in New Orleans.

Now, suddenly, the MOUs are announced that miraculously, will make all the planned layoffs unnecessary.

It’s enough to make one wonder what transpired in the three months between September and the first week in December—especially since no official explanation has been given for the sudden reversal. It seems unlikely that such a complex agreement involving the transfer of upwards of $2 billion—or more—in buildings and equipment could be worked out in such a short time.

Negotiations, in fact, will continue in secret on financial arrangements that will be instrumental in any final agreement for the private entities to take over operations of the state hospitals.

The agreements, in addition to requiring nearly $30 million in payments from the private hospitals, call for the state to make higher Medicaid payments to those same facilities.

Hospitals are paid the same rate for Medicaid patients but there are avenues by which additional payments may be made for higher volumes of Medicaid patients. These are Disproportionate Share Hospital (DSH) allotments and the state’s relative new Low-Income and Needy Care Collaboration Agreement (LINCCA).

Additionally, a supplemental Upper Payment Limit (UPL) program for physicians was developed by the state to pay physicians the difference between the average commercial rate and the Medicaid rate.

Under terms of the agreement, the three private hospitals will pay the state almost $30 million in advance financial committees, according to documents provided by Opelka and DHH. Those documents provided little additional information about how the lease agreements will be structured.

So, why would these private medical facilities agree to pay the state to take over state hospitals that are losing money?

The answer to that could lie in those DSH and LINCCA payments made by the state to the hospitals.

If that is the case, the hospitals would be using Medicaid money received from the state to pay back to the state the so-called Milestone lease payments and the state, in turn, would use the lease payments—that same Medicaid money—to leverage more federal Medicaid money with which Jindal would plug a $300 million hole in the state’s Medicaid budget.

Smoke and mirrors.

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“Certainly we believe that conducting public business, even when using personal means of communication, is subject to public records law.”

—Commissioner of Administration Kristy Nichols, apparently trying to explain that the administration never, ever intended to conceal informatin from the public—no way, no how.

“Please be careful to send stuff from Kyle (π-yush Jindal communications director Kyle Plotkin) like what you just sent….only to my gmail. May have accidentally hit my state addy (address), but they (the governor’s office) are very particular.”

—Department of Health and Hospitals Secretary Bruce Greenstein health policy adviser Calder Lynch, directing a DHH employee not to use a state government email account. (No word if this was cleared through Kristy Nichols.)

“People use private accounts to hide things. If government business is conducted or information about it is sent or received on personal computers or through personal email accounts, that does not keep it from being the public’s business.”

—Kenneth Bunting, executive director of the National Freedom of Information Coalition at the University of Missouri.

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Sneaky. Duplicitous. Underhanded. Deceitful. Devious. Dishonest. Fraudulent. Mendacious. Untruthful. Despicable.

Those are just a few words to describe the latest tactic employed by Jindal-Teepell & Co. in the administration’s ongoing almost five-year campaign of deliberate misinformation, distortion and obfuscation in an effort to conceal the state’s business from the public.

We normally attempt to mix in a little humor, sarcasm and snarky comments when we write about Piyush, but his act is beginning to wear a little thin.

Between his flitting about the entire country while ignoring pressing problems at home, lying to the public, making himself inaccessible to state media (while courting Fox Network, CNN, and other national media) and running roughshod over state employees, legislators, and anyone else who appears even slightly hessitant to drink his Kool-Aid, he simply is no longer funny.

His coy response to inquiries about national political aspirations that he “has the job he wants” no longer sells.

His insistence that he has “the most transparent, open and accountable” administration in Louisiana history is nothing more than a blatant lie. And like Joseph Goebbels, he apparently believes that if he tells a lie, makes it big enough and repeats it often enough, people will believe it.

Some do. Many of his adoring followers appear to reside north of Alexandria. But those numbers are growing smaller as more and more the citizens of this state are beginning to peel away the layers of pseudo purity, honesty and sincerity with which he has camouflaged himself so as to hide the real Piyush.

This squeaky clean governor refused to return $55,000 in campaign funds illegally laundered through a bank in St. Tammany Parish. His (or Timmy Teepell’s) explanation was that the money was accepted in good faith, so it is Jindal’s to keep. We suppose if he deposited a campaign check that subsequently bounced, Teepell would also suggest that the bank should not look to the campaign for reimbursement because it was “accepted in good faith.”

The long and short of it is this guy cannot be trusted. He will say or do whatever is politically expedient which makes him no different than any other snake oil salesman. He has, it turns out, no moral compass, no conscience and no soul.

But when a governor—or any of his minions—touting his openness and transparency instructs his staff to use private email accounts when discussing state business so as to avoid disclosure under the state’s public records laws, something is terribly lacking in the overall character makeup of the man with whom we have entrusted the state’s leadership.

That’s the story broken by enterprising AP reporter Melinda Deslatte on Monday.

For those of you who still believe Piyush is straightforward and honest with the voters of this state, let’s recap Deslatte’s story.

The Associated Press, she wrote, received copies of emails not provided in response to public records requests that revealed non-state government email addresses were used literally dozens of times by state officials last summer.

The subject of those emails dealt with a public relations campaign for slashing $523 million from the state Medicaid budget.

Piyush can’t even be original with that practice; former Alaska Gov. Sarah Palin had initiated the practice during her administration before her 2008 campaign for vice president. So did former Massachusetts Gov. Mitt Romney. Both got busted.

And now, Mr. Clean is caught with dirty fingers. It is nothing more than a sneaky effort to circumvent state law and Piyush should be held accountable for it.

For 144 state legislators who have shrunk from confronting Piyush, this should serve as a wakeup call; after all, they were also being kept in the dark on this.

One would think closing state prisons without giving area legislators a heads-up would have stirred legislative grumbling.

One would presume that closing hospitals without informing legislators would create some type of legislative backlash.

One would assume that demoting four legislators from committee assignments would bring lawmakers together in a united front.

One would think that firing a university president, agency heads, rank and file employees, and physicians would provoke a public outcry.

One would be wrong on all counts; this, apparently, is a state of sheeple who either have their heads where only their proctologists can find them or just don’t give a damn.

Apparently the only ones who bother to keep informed and who care about what is happening are those directly affected: teachers who are constantly denigrated by an absentee governor who chose as his chief of staff/right-hand man one Timmy Teepell, a man who was home schooled and knows not one whit about what public school teachers go through in dealing with discipline problems, apathetic parents or inadequate classroom resources (that have to be made up out of the teachers’ pockets). Nor do Jindal-Teepell realize—or care—that many teachers remain at school long after the last student has gone home and who work far into the night on lesson plans and grading papers. In short, they don’t have a clue.

There also are college administrators and professors who see their budgets being chopped in half and students who see their tuition costs rising by 40 percent against already prohibitive student loans. And to think, this governor chose as his campaign manager/right-hand man one Timmy Teepell who never set foot in a college classroom and who names to the board of supervisors of the state’s flagship university a man who has one semester of college.

And there are those state employees who have been privatized out of their careers and who faced the very real possibility earlier this year of seeing their retirement benefits slashed by as much as 85 percent (and remember, state employees are not eligible for social security benefits).

And to think, this governor announced that Teepell was leaving his administration in November of 2011 to head up the Baton Rouge office of OnMessage, a Virginia political consulting firm. Only problem is, OnMessage, a year later still has no local address or local telephone number and Teepell’s vehicle is parked on practically a daily basis in the rear parking lot of the State Capitol. Could he be running his private Baton Rouge OnMessage office out of the governor’s office? Hard to say because no one in the governor’s office is talking. But Jindal’s non-profit propaganda organization, Believe in Louisiana, has paid Teepell, through OnMessage, hundreds of thousands of dollars since Teepell supposedly left the governor’s office.

The emails were provided to AP by an administration official who, for obvious reasons, asked not to be identified. That makes us wonder if it could have been the same administration official who once told LouisianaVoice that Jindal was “dysfunctional.”

Commissioner of Administration Kristy Nichols, apparently backed into a transparent corner said, “Certainly we believe that conducting public business, even when using personal means of communication, is subject to public records law.”

How disingenuous can one be, given the fact that this administration has hidden behind something called the “deliberative process” since Day One?

The emails obtained by AP, however, were not included in the 3,800 documents and emails provided by the Department of Health and Hospitals (DHH) in response to a request for information on discussions surrounding the health care cuts. So where was the public records law on that occasion, Kristy?

In one email exchange, Calder Lynch, a health policy adviser to DHH Secretary Bruce Greenstein, instructed a communications employee to send certain types of items to Lynch’s personal Gmail account instead of his state government email address.

That should come as no surprise to anyone. It was Greenstein, after all, who at his Senate confirmation hearing in June of 2011 refused to divulge the name of the winner of a 10-year, $300 million state Medicaid contract.

It turned out that the winner was a company called CNSI, a company for whom Greenstein had previously been employed. Once the name of the company was released—and then only after senators all but threatened Greenstein with thumbscrews—Greenstein insisted that he had built a “firewall” between him and the selection process and that he had had no contact with the company during that process.

Emails—state emails, no less—however, revealed that Greenstein had been in constant communication with his former employer prior to and during the selection of the contract winner.

Such is the definition of transparency and accountability in this administration.

The question that remains now is just how much longer will the state’s citizens—and a mostly compliant legislature, complete with a lapdog House Speaker (neutered, of course) and equally ambitious Senate President—continue to let Piyush Jindal make a laughingstock of the state and a cruel joke of the strictly theoretical definition of the separation of powers, checks and balances and three branches of government?

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By now, only a recluse living on a houseboat somewhere in the murky bayous of Louisiana is unaware that Piyush Jindal deflects all questions about his presidential aspirations with the stock line, “I have the job I want.”

Yeah, right. That’s why the Boy Blunder spends more time on the road than Hope and Crosby (if you don’t get that, don’t worry about it; you’d have no reason to know the reference unless you’re into really old ‘40s and ‘50s movies).

So, let’s try this one: He’s been absent so much that his photo has appeared on milk cartons throughout Louisiana.

Positioning himself for a presidential run in 2016? Ridiculous!

That’s why he was named chairman of the National Republican Governors’ Association for 2013.

And that’s why he started taking potshots at Mitt Romney literally hours after Romney lost the presidential election to President Obama.

And that, apparently, is why he wrote that sophomoric essay on the so-called fiscal cliff facing Congress for Politico that contains all the intellectual depth of that essay he wrote about his conducting an exorcism on “Susan,” a fellow student at Brown University.

That little article brought appropriate ridicule from New York Times columnist Jonathan Chait who pointed out, correctly, that Jindal has little to no grasp of fiscal realities.

Chait could have been really cruel had he simply pointed out that Piyush has failed to have a balanced budget a single year since becoming governor. And he could have slam-dunked Piyush had he told his readers of Jindal’s patchwork on the state budget with one-time money.

Instead, Chait was satisfied with just smirking a little as he referred to Piyush as a sitting governor “with presidential ambitions.

National aspirations? That’s just crazy talk. Why on earth would he choose to ignore the Louisiana media’s repeated requests for interviews while courting Politico, the Washington Post, CNN and Fox News if he planned on moving up the political food chain?

Presidential ambitions? Why would anyone think such a thing?

Well, if you happen to be LSU mass communications professor Bob Mann, who also has a political blog called Something Like the Truth, you might cruise the internet highway in search of domain names.

That’s what Mann did and the results came quickly. He typed in key words like “Bobby Jindal,” “president,” and “2016.”

Bingo!

Up popped http://www.jindal2016.com/, and when he keyed it in, his search automatically redirected him to Gov. Piyush’s campaign website, http://www.bobbyjindal.com/.

“That really jumped out at me,” Mann said. “To me, it says they want people who think Jindal is running for president to find bobbyjindal.com. Mann, a leading political expert (his curriculum vitae includes work for Sens. Russell Long, John Breaux and Bennett Johnston and former Gov. Kathleen Blanco), said he considers his discovery just another indication that Piyush will run in 2016. “There’s no doubt whatsoever about it; he wants to be president.”

Jindal’s office, to no one’s surprise, did not respond to a request for comment (one has to wonder why he retains a press secretary) on the website. A spokesperson for Jindal’s campaign office, however, disavows ownership of the site and is unsure of the reason it redirects to the governor’s website.

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