The underhanded attempt to rip off the Louisiana State Police Retirement System (LSRPS) on behalf of State Police Superintendent Mike Edmonson (aka “Precious”) through a shady back door amendment steered through the Legislature by State Sen. Neil Riser wasn’t the first time that the agency charged with protecting Louisiana citizens has illicitly commandeered state funds on behalf of one of its own.
And, it seems, the more deeply we venture down the rabbit hole that is the Department of Public Safety (DPS), the uglier and scarier the unfolding picture becomes.
In April of 2010, the Jindal administration, in an offer to implement across the board savings, made a one-time incentive package offer to various state agencies as a means to encourage state employees to take early retirement.
Handled properly, it appeared at the time—and still does appear—to have been an economical and compassionate way to nudge employees who wanted out but who could not afford to retire, into making the decision to walk away, thus reducing the number of state employees which in turn translated to long-term savings in salaries and benefits paid by the state.
On April 23 of that year, DPS Deputy Undersecretary Jill Boudreaux sent an email to all personnel informing them that the Department of Civil Service and the Louisiana State Police Commission had approved the retirement incentive as a “Layoff Avoidance Plan.”
In legal-speak, under the incentive eligible applicants would receive a payment of 50 percent of the savings realized by DPS for one year from the effective date of the employee’s retirement.
In simpler language, the incentive was simply 50 percent of the employee’s annual salary. If an employee making $50,000 per year, for example, was approved for the incentive, he or she would walk away with $25,000 in up-front payments, plus his or her regular retirement and the agency would save one-half of her salary from the date of retirement to the end of the fiscal year. The higher the salary, the higher the potential savings.
The program, offered to the first 20 DPS employees to sign up via an internet link on a specific date, was designed to save the state many times that amount over the long haul. If, for example, 20 employees, each making $50,000 a year, took advantage of the incentive, DPS theoretically would realize a savings of $1 million per year thereafter following the initial retirement year.
That formula, repeated in multiple agencies, could produce a savings of several million—not that much in terms of a $25 billion state budget, but a savings nonetheless.
The policy did come with one major caveat from the Department of Civil Service, however. Agencies were cautioned not to circumvent the program through the state’s obscure retire-rehire policy whereby several administrative personnel, the most notable being former Secretary of Higher Education Sally Clausen, have “retired,” only to be “rehired” a day or so later in order to reap a monetary windfall.
“We strongly recommend that agencies exercise caution in re-hiring an employee who has received a retirement incentive payment within the same budget unit until it can be clearly demonstrated that the projected savings have been realized,” the Civil Service communique said.
And, to again quote our favorite redneck playwright from Denham on Amite, Billy Wayne Shakespeare from his greatest play, Hamlet Bob, “Aye, that’s the rub.” (often misquoted as “Therein lies the rub.”)
Basically, to realize a savings under the early retirement incentive payout, an agency would have had to wait at least a year before rehiring an employee who had retired under the program.
Boudreaux, by what many in DPS feel was more than mere happenstance, managed to be the first person to sign up on the date the internet link opened up for applications.
In Boudreaux’s case, her incentive payment was based on an annual salary of about $92,000 so her incentive payment was around $46,000. In addition, she was also entitled to payment of up to 300 hours of unused annual leave which came to another $13,000 or so for a total of about $59,000 in walk-around money.
Her retirement date was April 28 but the day before, on April 27, she double encumbered herself into the classified (Civil Service) Deputy Undersecretary position because another employee was promoted into her old position on April 26.
A double incumbency is when an employee is appointed to a position that is already occupied by an incumbent, in this case, Boudreaux’s successor. Double incumbencies are mostly used for smooth succession planning initiatives when the incumbent of a position (Boudreaux, in this case) is planning to retire, according to the Louisiana Department of Civil Service.
Here’s the kicker: agencies are not required to report double incumbencies to the Civil Service Department if the separation or retirement will last for fewer than 30 days. And because State Civil Service is not required to fund double incumbencies, everything is conveniently kept in-house and away from public scrutiny.
On April 30, under the little-known retire-rehire policy, Boudreaux was rehired two days after her “retirement,” but this time at the higher paying position of Undersecretary, an unclassified, or appointive position.
What’s more, though she “retired” as Deputy Undersecretary on April 28, her “retirement” was inexplicably calculated based on the higher Undersecretary position’s salary, a position she did not assume until April 30—two days after her “retirement,” sources inside DPS told LouisianaVoice.
Following her maneuver, then-Commissioner of Administration Angelé Davis apparently saw through the ruse and reportedly ordered Boudreaux to repay her incentive payment as well as the payment for her 300 hours of annual leave, according to those same DPS sources.
It was about this time, however, that Davis left Gov. Bobby Jindal’s administration to take a position in the private sector. Paul Rainwater, Jindal’s former Deputy Chief of Staff, was named to succeed Davis on June 24, 2010, and the matter of Boudreaux’s payment quickly slipped through the cracks and was never repaid.
This occurred, it should be noted, at a time when state employees, including state police, (except for a few of Edmonson’s top aides, who we plan to discuss in future posts) were already into a period of five or six years of going without pay raises because of the state’s financial condition which has deteriorated in each year of Jindal’s administration.
Meanwhile, Jill Boudreaux continues in her position of Undersecretary of the Department of Public Safety at her present salary of $118,600 per year.
Now that we have shone a little light on her retire-rehire ploy, the question becomes this: Will anyone in the Jindal administration look into this matter and demand that she repay the money—with interest?
Or will the governor, who insisted as Candidate Jindal that “it is time we declare war on the incompetence and corruption” https://www.nrapvf.org/articles/20070720/nra-pvf-endorses-congressman-bobby-jindal-for-governor-of-louisiana
and that incompetence and corruption “will not be tolerated,” http://www.npr.org/templates/story/story.php?storyId=15503722
and that he has “zero tolerance for wrongdoing,” http://theadvocate.com/home/5500946-125/federal-grand-jury-looks-at
continue to ignore problems at home as he racks up frequent flyer miles in quest of the presidency that is far beyond his grasp?
Governor, the ball is now in your court.
Put up or shut up.