In the seven-plus years of his administration, Gov. Bobby has pretty much had his way with the legislature in passing his so-called reform programs. The lone exception is his aborted effort to abolish the state income tax a couple of years ago.
Everything else—education reform, state employee retirement reform, privatization of the Office of Risk Management, the Office of Group Benefits, the state’s charity hospital system, rejection of Medicaid expansion, cutting funding for higher education, the sell-off of state property, and of course, all those generous corporate tax exemptions, credits and incentives for—sailed through the legislature, to borrow a phrase from my formative years, like crap through a goose.
Only the courts were able to restore some degree of sanity to the education and retirement changes.
So how has all that change worked out for the state?
Well, according to Marsha Shuler, writing in today’s Baton Rouge Advocate, the OGB reserve fund, which was already largely depleted since the privatization of that agency, has now fallen below that financial advisers believe to be a “safe” level. Those reserve funds, which were more than $500 million before Gov. Bobby’s meddling, are now at a dismal $102.8 million and at a burn rate (paying out more than it’s taking in) of $14.9 million a month (spending $1.14 for every dollar in revenue), the fund is on a trajectory of hitting less than $30 million by June 30. http://theadvocate.com/news/11705445-123/group-benefits-reserves-continue-to
The privatization of the state’s charity hospital system has resulted in a $190 million state liability to Medicaid even after the privatization deal was approved in part by the Centers for Medicare and Medicaid Services. http://www.thenewsstar.com/story/news/local/2015/01/11/hospital-decision-good-jindal-less-others/21538739/
The ripple effect of the hospital privatization has also resulted in the decision by Baton Rouge General Mid-City to close its emergency room facilities next month because of operating losses generated by the closure of Earl K. Long Medical Center which served the poor community of Baton Rouge.
But never one to pass up an opportunity to put a positive spin on bad decisions, Gov. Bobby, while taking pot shots at the Obama administration for everything from Obamacare to his Mideast policies to the threat of an imminent Islamic coup in Europe, keeps telling us (on those rare occasions when he is in the state) how wonderful things are and how Louisiana continues to outpace the rest of the nation in economic growth and business climate. http://gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&articleID=4156
His head cheerleader, Rolfe McCollister is right behind him, lending the influence of his publication, the Baton Rouge Business Report, to augment Gov. Bobby’s rosy proclamations.
http://www.businessreport.com/business/columns/la-makes-biggest-leap-in-forbes-rankings
But one should keep uppermost in mind that McCollister was treasurer of Gov. Bobby’s re-election campaign and as Bobby’s appointee to the LSU Board of Stuporvisors, was instrumental in securing the Pete Maravich Assembly Center for that prayer rally attended by about 3,500 people in the spacious 18,000-seat arena.
But let’s look at the latest survey, one which Gov. Bobby undoubtedly will ignore as he traipses about Iowa, New Hampshire and South Carolina in search of enough commitments to get him to even register in polls of likely Republican presidential contenders.
24/7 Wall St. is a corporation which runs a financial news and opinion company. The company publishes up to 30 articles per day which are published throughout the world.
Its latest survey, issued today (Feb. 27) puts Louisiana at the very bottom of its list of the Best and Worst States for Business. http://247wallst.com/special-report/2015/02/26/the-best-and-worst-states-for-business/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=FEB272015A&utm_campaign=DailyNewsletter
That’s right, Mississippi no longer owns the anchor spot in 24/7 Wall St.’s multitudinous surveys of things good and bad. This one belongs to Louisiana.
Here’s what the survey says about Louisiana:
- No state fared worse on 24/7 Wall St.’s business climate Index than Louisiana. The state is not the worst place to run all businesses, however. The manufacturing sector accounted for more than 20% of Louisiana’s economic output in 2013, the fourth highest such contribution in the country. Despite the strong sector, Louisiana generally provides poor conditions for business.
- Nearly one in five residents lived in poverty in 2013 — nearly the worst rate in the nation — contributing to both the low quality of the labor force as well as a low quality of life in the state. The working-age population was projected to decline by 3.2% from 2010 through 2020, one of the worst declines in the nation. While nearly 30% of Americans had at least a bachelor’s degree as of 2013, only 22.5% of Louisiana adults had at least such a degree, also nearly the lowest rate. Poor education contributed to poor scores in innovation. The state was one of only a handful of states where the average venture capital investment was less than $1 million.
There were several factors that went into the evaluation of the state’s lowly status as a place to do business:
- The state’s gross domestic product growth of 1.3 percent was 17th lowest in the nation;
- Average wages and salaries of $44,828 were 23rd lowest;
- The percentage of adults with bachelor’s degrees was 5th lowest at 22.5 percent;
- The 395 patents issued to residents were 13th lowest;
- The negative 3.2 percent projected working-age population growth was 13th lowest.
The survey also noted that Louisiana ranked:
- 47th in infrastructure;
- 48th in the quality of life (the lack of adequate health care for many could be a factor in that statistic);
- 49th in labor and human capital
Mississippi? As far as Louisiana and Gov. Bobby are concerned, that state is up there in the stratosphere at only the 4th worst in the nation.
Rounding out the bottom five were West Virginia (49th), Kentucky (48th), and Alabama (46th).
The five best, in order, were Utah, Massachusetts, Wyoming, South Dakota and Delaware, according to the survey.
Iowa and New Hampshire ranked 12th and 14th, respectively, which may help explain why Gov. Bobby spends so much time in those places instead of the state that he was elected to govern.
Nah.
It will be interesting to see how soon the Greater Baton Rouge Business Report picks this up and how they can put lipstick on it if they do.
On the bright side, nowhere to go but up? I sure hope a hero emerges from the rubble to lead Louisiana in the right direction.
Personally I believe Jon Bel Edwards could be such a hero, but since he has a D beside his name, the people of Louisiana won’t elect him.
Voters keep electing the Republicans as they drive our state into the dirt.
Don’t believe it! A Democrat can be our next governor if we – teachers, state employees, retirees, & public school people – spread the word about how John Bel Edwards has stood up for us consistently. Louisiana is a quirky state!
Well I’m not going to blame everything on lil bobby because as you said Tom, had the lege not been enabling him, a goodly part of this might not have happened.
Sorry to quote my 10th grader again ( proud to say he’s smarter than me), about Jindal he said ” he was qualified to get elected but not to govern.”
Maybe when Jindal leaves he can take Rolfe with him.
Furthermore, when one considers the fact that Louisiana has given away more in terms of real dollars in tax credits than any other state, this report is even more insulting to the state. Over the next ten years, “T” Bobby’s business incentives will cost Louisiana an average of $1.5 billion dollars a year.(1) Now, we should keep in mind, there remains many “proposed” business expansions and developments that are still on the drawing board. The yearly average of $1.5 billion is for the projects currently in existence.
I have a humble suggestion. We should take out a billboard at the state line-both west and east entry points on I-10 and I-20 that reads “11 BILLION DOLLARS AND I DIDN’T EVEN GET A KISS” and keep the one that reads “Louisiana For Sale: CONTACT BOBBY JINDAL”.
1. 11 BILLION DOLLARS LATER, LOUISIANA’S INCENTIVES FAIL TO DELIVER, LEE ZURIK, FEBRUARY 2, 2015
On top of this now I read that a couple of the members of the Board of Regents are suggesting privatizing some of the colleges. The whole concept is total idiocy. Roy Martin, et al, have no concept of what an undergraduate college education is supposed to offer students. Instead, they would advocate something along the lines of trade schools or something the speed of University of Phoenix which is a total joke and preys on those who can’t meet admission standards to the state’s four year universities.
Fortunately, some of these political appointments will roll off shortly after the lil’ bas***d leaves office. Want to know how to keep putting crappy people in elected government positions, as well as keep the population easy to rule over? Keep ’em dumb and stupid. These folks as well as the legislators need to get their heads out of their rears and start working on more productive solutions instead of continuing to sell the state’s soul to the highest bidder or some “brother-in-law deal.” The other thing is they need to find their b##ls, tell Jindal he’s wrong, stand up to him, and buck him when necessary. Jindal doesn’t give a damn about the citizens of this state or their quality of life. He just cares about his ambitions. Someone elected a whiz kid who hasn’t lived enough life to appreciate the big picture ….. and is still just a damned kid.
All excellent comments — the last one, by Mark, is the best — out of the park!
Thank you. After I retire from the state I plan to enter politics and my political philosophy will be simple.
A.) We don’t need a bunch of overpaid out of state folks telling us how to run the state. I think we already have citizens who have the smarts and wisdom and are ready to roll their sleeves up to try to make things work.
B.) We look at a bigger picture in terms of what we want as a quality of life for our citizens two and three generations down (grandchildren and great-grandchildren). I project so far out because I think that is how long it will take to put things in place and we start reaping meaningful dividends. That said, we need to do things so that our families will not have to leave Louisiana to better their lot.
C.) Need to work with all elected parties. Treasury Secretary and L. Gov. both have some good ideas. Might not hurt to listen to them. Need to look at having routine meetings with various members of the Legislature so that we can collectively draw up a plan the will benefit the state and its citizens.
D.) A major function of government is to provide adequate infrastructure for its society to function in their business and personal lives. We need to remember that and get back to it.
E.) I wouldn’t be one to preach about ethics, I’d rather just try to live it. Like everyone else, I am an imperfect person, but I am secure enough to internalize that for myself instead of projecting it onto everyone else like our current governor does. There is no need to engage in a bunch of double speak if you just tell the truth the first time.
F.) We need to re-visit our state constitution. We need a new working state document that is not so easy to amend. There are other ways to put safeguards in place.
G.) We don’t need folks who use the governor’s seat as a stepping stone. There is more than enough work to do in this state, and the state needs someone who truly cares about the state, its diverse cultures, and most importantly – its citizens.
H.) The only political ideology that would count would be what is best for the citizens of Louisiana and their future(s).
However, those are just my musings. I have to wonder if either party would claim me. LOL