Attorney General James “Buddy” Caldwell punted, Gov. Piyush Jindal wouldn’t listen and State Treasurer John Kennedy…well, he is, after all the state treasurer.
The three statewide Republican officeholders were named defendants in a lawsuit filed by two Republican state representatives on Tuesday. One of those was Cameron Henry of Metairie who Jindal had bounced from his vice-chairmanship of the powerful House Appropriations Committee in November after Henry voted for a motion by Rep. Katrina Jackson (D-Monroe) that the administration opposed.
Rep. Joe Harrison also was removed from the Appropriations Committee in the showdown vote in which the administration came perilously close to losing its move to award the third party administration contract for the Office of Group Benefits.
The other plaintiff in Tuesday’s lawsuit was Rep. Kirk Talbot of River Ridge.
Reached for comment, Talbot said the suit simply seeks a declaratory judgment on three major issues with which he, Henry and other legislators disagree with Piyush.
“We are not seeking an injunction,” he said. “We’re not trying to shut state government down. We are simply seeking a ruling on the constitutionality of the governor’s submitting an executive budget with contingency revenue and the spending of one-time money on recurring expenses.”
He said last year’s budget contained contingency expenditures. “That would be, for example, the inclusion of anticipated revenue for the sale of prisons or state hospitals. If the sales don’t materialize (they didn’t in the 2011 session), then we have a problem, a financial shortfall.”
Likewise, he said the suit is also seeking a decision on the requirement under state law that the governor’s executive budget “shall not exceed the official of the Revenue Estimating Conference (REC)” estimates and also per state law, appropriations from the state general fund and dedicated funds in the final, enacted bills comprising the state budget “shall not exceed the official forecast in effect at the time the appropriations are made.”
The official revenue forecast for fiscal year 2012-2013 at the time House Bill 1 was passed, as issued by the REC on April 24, 2012, reflected just over $8.1 billion in state general fund revenue available for appropriation.
Instead, the amount actually appropriated in HB1 was $8.34 billion, thus exceeding the REC estimate and the constitutionally-mandated appropriation limit by $240 million, the suit says.
The REC is required by law to meet at least four times per year—by Oct. 15, Jan. 1, the third Monday in March and Aug. 15 subsequent to final adjournment of the regular session. State law requires the REC to establish, by Oct. 15 of each year, an official revenue forecast for the ensuing fiscal year, that runs from July 1 to the following June 30.
State law requires that legislative enactment of the state budget must conform with a subsequent revised forecast issued by the REC by the third Monday in March.
“The REC did not meet by Oct. 15, 2011, by the third Monday of 2012, by Aug. 15, 2012 after adjournment of the 2012 regular session, or by Oct. 15, 2012, as required by law,” the petition says.
The Jindal budget also included $35 million in contingency revenue from the anticipated sale of New Orleans Adolescent Hospital and HB 822 directed State Treasurer John Kennedy to transfer $35 million of the proceeds from the sale or lease of the facility to the Overcollections Fund.
After numerous delays, the Jindal administration finally released the appraisals on the hospital property in November. That appraisal showed the property worth, at most, $20.9 million.
Rep. Neil Abramson (D-New Orleans) has questioned how the Jindal administration arrived at a $35 million estimate. “I was surprised to see the money in the budget at all because that property’s in my district and no one had ever said anything to me,” he said.
Welcome to the real world, Mr. Abramson. That the way the Jindalistas do business.
“…There is no reasonable basis for expecting the New Orleans Adolescent Hospital to, in fact, sell or lease for $35 million during the 2012-2013 fiscal year,” the lawsuit said. “As such, appropriations of those funds are, in fact, prohibited contingent appropriations.”
Henry, reminded that Piyush had already demoted him once, jokingly feigned innocence at first. “This is all Talbot’s fault,” he said. “I thought I was signing up to buy Girl Scout cookies. Next thing I know, I’m a plaintiff in a lawsuit.”
He quickly turned serious, however.
“We first sought a legal opinion from the attorney general and he told us he would not render an opinion on the constitutionality because that was a matter for the courts.
Gov. Jindal forced us to do this. He thinks he is right and we think we’re right. If we are ultimately found to be right, we can avoid a repeat of the practices that have put us in such a fiscal dilemma,” he said.
The lawsuit has been assigned to 19th Judicial District Court Judge Tim Kelley who is married to Jindal’s one-time commissioner of administration Angéle Davis.
Kelley, in another lawsuit, ruled in December that Jindal’s school voucher program unconstitutionally diverted public funds to private and parochial schools. That ruling is presently under appeal.
Louisiana Voice 
It’s about time!! I don’t agree with everything the Fiscal Hawks stand for, but I am glad that someone is holding the Governor’s office a countable on budgeting issues. Enough is enough!
A good lawsuit and a good judge.
Maybe the rest will find their courage and join their brethren.
How disingenuous. Perhaps had they stepped up and done their jobs during the regular session, or perhaps come up with an alternative budget plan to the governor’s, they wouldn’t have to ask the judicial branch to intervene. Spineless. It really only takes a few committed voices to convince the “corner huggers” to come out of hiding and join in fighting the governor.
Actually, these two opposed the governor’s use of one-time money for recurring expenses and they opposed the inclusion of contingency funds in the budget. When they failed to muster sufficient support from other legislators, they now have filed the lawsuit.
Tom is absolutely right. These two and other legislators known as “fiscal hawks” did everything they could to get their chicken colleagues to address the nightmare that is our state budget. I have seen no more committed voices than theirs in our legislature and there are more than a few of them. Unfortunately, their pleas fell upon the deaf ears of too many of the “corner huggers” to which you refer. Disingenuous? Run for a seat in the state legislature. Once elected, see how easy it is to do what you suggest.
Stephen, see how easy it is to do what? Is it asking too much for our Legislators to have independent thought and analysis on important issues? How hard is it to read the bills that are filed, understand the proposed changes in the law and the impact they will have on the people of this State. Our State Constitution sets forth our collective fiscal priorities. The Governor has a different set of priorities. He also believes that the role of State Government is very different from the traditional or current role our State Government enjoys. The agenda is not that difficult to figure out …. Our legislators either want our state to continue to provide worthwhile public education and state hospital services or they don’t. Our legislators either value the promises made to state employees or they don’t. It’s really not that complicated. Legislators are not drafted into service …. If they don’t want to make difficult decisions they shouldn’t have decided to run for office. We would all do well to remember that the Governor is but one man, holding one office in only one branch of Louisiana’s government. Would you rather put your faith in one elected judge in an uphill battle on constituionality or not enact unconstitutional laws in the first place? Why should this Judge have to do the right thing while we give the legislature a pass? Why aren’t each one of us in our elected official’s office demanding action and accountability? The lesson: even one man can change things when he’s the only one engaged. Lets hope our legislators dig deep and demand better for Louisiana. Our State certainly deserves it.
Nameless, I don’t disagree with anything you have said. Unfortunately, that does not change the bottom-line of my earlier post which is: Should a sufficient number of our legislators do as you say? Yes. Will they? Apparently not.
If our governor would follow the Constitution as it is written, the legislature would not be placed in such a tough position. Imagine having to seek a Declarotory Judgement as to whether Bobby Jindal has been complying with existing law.
Now we will wait to see if the document is only words written on paper? If indeed Judge Kelley rules this to be true, then the political will of the people of the state of Louisiana is no more than their suggestions as to how to proper budget and implement the operations of our state.
At least the new President of Egypt had the cojones to state publicly that his decrees trumped that of the Egyptian Parliament and Supreme Court. Jindal works on the same principle however he prefers to fly under the radar.
It is sad that so many of our legislators misunderstand their position in the concept of three branches of government. Upon even simple examination it is obvious they exist not only to create and pass bills in conjunction with the governor but also to serve as a counter-balance to a governor who constantly oversteps his authority and side-steps constitutionality and due process in his quest to create his super-ego. This ego is very convenient for private interests and support groups who are ony too willing to benefit from the actions of our local despot. BTW, he enriches himself handsomely in the process. As an optimist, it is my hope that this will be the year our legislature has enough of this tin-pot dictator in the capitol and asserts their rightful place in government. How about leges, will you stand up for we the people from now on? Everyone please write your legislators and let them know how you feel.
Really good advice, B. R. Bob.