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Archive for March, 2015

Administration’s cover story is Louisiana too broke to afford presidential primary: only LouisianaVoice has the real story

Posted in Budget, Elections, Finances, Governor's Office, Media, Politicians on March 20, 2015| 9 Comments »

The state is so broke that the budget for the coming fiscal year failed to include an appropriation to fund the 2016 presidential primaries.

That was the gist of the story in the Washington Post on Thursday. http://www.washingtonpost.com/blogs/govbeat/wp/2015/03/19/louisiana-is-so-poor-that-it-cant-afford-to-hold-presidential-primaries-in-2016/?postshare=1031426855232281

Yeah, right.

The story goes on to say that Bobby Jindal signed a law last year that moved up the state’s primaries by two weeks in order to give Louisiana a jump on some other presidential primaries in order to attract more national attention to the state—and, presumably, to Jindal’s own presidential aspirations.

And therein lies the real story.

Legislators on Wednesday discovered that money to fund the primaries was absent from Jindal’s budget proposal for the coming year. “I have no funding for elections past the fall elections,” Secretary of State Tom Schedler told the House Appropriations Committee.

Washington Post reporter Jeff Guo, either playing along or oblivious to the political realities, dutifully wrote that it was “something of a mystery” how such an important budget item managed to be deleted.

LouisianaVoice, of course has the real story.

Guo noted accurately that Commissioner of Administration Kristy Nichols is responsible for the executive budget, adding that her staff annually meets with state agency heads to arrive at the appropriate funding levels to be recommended by the administration.

Schedler said he left his final budget meeting with Jindal’s people under the impression that the $3.5 million necessary to finance the primary elections next March was there, only to later learn it wasn’t.

And of course, Jindal’s people, never known for accepting responsibility when things go south, pointed the finger at the Secretary of State. “Ultimately, the discretion on cuts comes from the head of the agency,” sniffed Meghan Parrish in speaking for Nichols who doubtless was off to another boy band concert in New Orleans.

“He (Schedler) decides…what’s funded and what’s not,” she added.

Schedler had originally requested a budget of $52.6 million for his office but got only $47 million. That budget will be necessary to fund the governor’s race this fall and legislative races.

The dialog quickly degenerated into a he said, she said exchange.

Schedler said he gave a heads-up to Jindal’s people (aka whiz kids without the whiz) in his reports that the primary elections would be among the things that would be deleted if his budget continued to shrink.

Parrish, however, (again speaking for Nichols who must have been enjoying the concert) said her boss doesn’t remember any such conversation during budget talks.

Budget or no budget, state law mandates that the primaries be held—and that they be paid for. It would require a legislative vote to skip the 2016 primaries and that’s not unprecedented.

In fact, legislators did skip the 1984 primary, claiming there were insufficient funds to finance the primary anticipated to cost between $1.3 million and $2 million.

So what is that real story that LouisianaVoice has the exclusive on?

A 28 percent approval rating for Jindal in Louisiana.

Jindal may be a lot of things: an idiot, a delusional egoist, a ruthless politician who would—and will—do whatever it takes to promote Bobby Jindal, but one thing he is not: stupid. He can read the numbers and while he still harbors a passionate belief that he can con voters outside Louisiana, he knows that after nearly eight years of his mismanagement, aimless policies, and quid pro quo favors for benefactors, the people of this state have seen quite enough of Bobby Jindal.

Robert Mann, in his blog Something Like the Truth, today had one of the best articulated arguments in favor of Jindal’s immediate resignation. http://bobmannblog.com/2015/03/20/gov-jindal-its-time-to-resign/

To bring the picture into focus, let’s review the chronology of events as reconstructed in the fertile minds of the staff of LouisianaVoice:

  • A year ago, Jindal was really beginning to ramp up his presidential campaign. He had begun his repeated trips into Iowa and New Hampshire and appearing on TV and radio shows and writing op-eds to talk up the “Louisiana Miracle.” So when the bill came sliding across his desk as he, Timmy Teepell and Kyle Plotkin were mapping out his presidential strategy, it seemed only natural that the Louisiana primary would be his opportunity to make a decisive statement to the rest of the country.

Jindal: “Here’s that presidential primary bill, Timmy. What do you think?”

Teepell (as he fills out a bank deposit slip for his political consulting fee through OnMessage): “Bobby, look what you’ve done for Louisiana. Now you have the chance to show the world what you’re made of.”

Bobby (as he writes another check to OnMessage): “You’re right, of course. I mean, we’ve cut 300,000 deadbeats from state payrolls, we’re on our way to depleting that fat surplus at Group Benefits, we’ve rid the state of those pesky state hospitals that provided health care for people who wouldn’t vote for me on a bet, and we’ve brought the university and college presidents to their knees.”

Teepell (calculating to himself how long he can milk this cash cow): “That’s all true, Bobby, but you know you’re going to have to broaden your horizons by addressing national issues.”

Jindal: “Well, I guess I could attack Obamacare, Common Core, immigration, and radical Islam.”

Teepell: “Now you’re talking.”

  • Now, we fast forward to 2015 as Jindal and Teepell discuss the proposed budget.

Jindal: “Timmy, what the hell happened?”

Teepell (making out deposit slips from both Jindal and Scott Angelle): “I dunno, Bobby. I really thought you’d show up in the polls in Iowa, New Hampshire and South Carolina by now but you’re still flat-lining in all three states.”

Jindal: “I know, right? I didn’t want to peak too early but I’d sure like to see some spike in the polls. But damn! I thought bringing the preachers to the Maravich Center would show the folks in Louisiana how sincere I am about my religious convictions. So, what’re we gonna do about the Louisiana primary next year? I can’t afford to tank in Louisiana.”

Teepell (speaking into his cellphone): “Could you hold on a sec, Scott?” To Jindal: “Bobby, I just don’t know what happened. You should be making a dent in the polls by now. But you’ve got to get your numbers up in Louisiana before you can be taken seriously on the national stage.”

Jindal: “But the primary is already on the schedule. This isn’t good.”

Teepell (speaking into his cellphone): “Let me call you back, Scott.” To Jindal: “Bobby, what does it cost to hold a presidential primary?”

Jindal: “How should I know? I’m never in the state. A couple of million, I guess.”

Teepell: “Well, there you go. Just call Kristy at the concert and tell her to leave funding for the primary out of the budget. No money, no primary.”

Jindal: “Timmy, you’re a genius! That’s why I pay you $30,000 a month.”

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Jindal goes bat guano crazy by entertaining Goldman Sachs, Citigroup proposals to sell LA. State Lottery for quick cash

Posted in Budget, Corruption, DOA, Economy, Education, Ethics, Finances, Fraud, Governor's Office, Legislature, Legislators, Office of Group Benefits, Politicians, Privatization, Revenue on March 19, 2015| 19 Comments »

 

There’s nothing left to be said other than to say Bobby Jindal is bat guano crazy.

The Louisiana Office of Group Benefits (OGB) was cruising along in 2011, providing virtually complaint-free quick turnarounds on medical claims for state employees, retirees and their dependents.

But then Bobby Jindal saw a way to undercut premiums in his privatization scheme which allowed the state to be obligated for less in its share of matching premiums so that Jindal could rake in some extra cash to cover his backside, aka budget deficit.

The result, as just about everyone who follows this sham of an administration knows, was that the $500 million reserve fund was all but wiped out.

Bobby Jindal, after having first jerked $40 million in funding for state colleges and universities, reversed himself again by taking $30 million from a federal hurricane recovery fund.

Bobby Jindal has shrunk the state’s rainy day fund from $730 million when he took office to $460 million and a $450 million fund to subsidize companies for investing in the state has evaporated as is the $800 million balance in the Medicaid Trust Fund for the Elderly.

And after giving away billions of dollars in tax breaks, incentives, rebates and exemptions for business and industry in an effort to spur economic development, we learned today (March 18) that Louisiana’s unemployment rate was third highest in the nation. http://www.politico.com/magazine/story/2015/02/bobby-jindal-campaigning-114948_Page2.html#.VQoeJ005Ccw

The one constant in all this is the Louisiana State Lottery, which since a 2004 Constitutional amendment has dedicated proceeds to the Minimum Foundation Formula (MFP) for public education.

Since the lottery’s approval by voters in 1990 and its implementation in 1991, the lottery, which is mandated to transfer 35 percent of proceeds to the state treasury, has contributed $2.8 billion to the state.

In 2014, sales were $450 million and $161 million of that was transferred to the state.

Also, 2014 marked the 13th consecutive year that the lottery has transferred more than $100 million to the state.

Why do we tell you all this?

Well, only because the administration of Bobby Jindal is currently entertaining the notion of selling bonds that guarantee future State Lottery profits in order to raise some $467.7 million in one-time money to help plug a $1.6 billion hole in the state budget.

Wait. What? Sell the State Lottery?

Yup.

State Treasurer John Kennedy tells LouisianaVoice that the administration is “seriously considering” two separate proposals to take over the lottery and to pay the state one time money.

The two proposals were from Wall Street banking firms Goldman Sachs and Citigroup. While Citigroup did not specify an amount, Goldman Sachs said, “Based on lottery revenue growth of at least 1.5 percent annually, the state could raise approximately $428 million and preserve a minimum contribution to the MFP of $160.2 million.” Goldman Sachs Presentation – March 2015

Citigroup Presentation – March 2015

With 13 consecutive years of receipts of more than $100 million and total receipts of $2.8 billion since 1992, $428 million in quick cash appears to be a terrible deal for the state—not that Bobby Jindal gives—or ever gave—a flying fig about this state.

Let’s first take a look back at the history of lotteries in Louisiana.

In 1868, the Louisiana Lottery Co. was authorized and granted a 25-year charter after a carpetbagger criminal syndicate from New York bribed the Legislature into approving the lottery and establishing the syndicate as the sole lottery provider.

Because it was an interstate venture, 90 percent of the syndicate’s revenue came from outside Louisiana. Because it was so profitable, when efforts were made to repeal the charger, bribes to legislators ensured the effort’s failure.

Ten years after it was approved, Louisiana had the only legal lottery remaining in the company. When Congress passed a prohibition against operating lotteries across state lines, the Louisiana Lottery was finally abolished in 1895. When it was disbanded, reports of ill-gotten gains and bribery surfaced. http://www.library.ca.gov/crb/97/03/chapt2.html

But even more worrisome are the histories of the two Wall Street banking firms who submitted proposals for taking over the Louisiana Lottery.

And even though Kennedy said Commissioner of Administration Kristy Nichols has said the lottery won’t be sold, the mere fact that two proposals for just that scenario have been simultaneously submitted by Goldman Sachs and Citigroup cannot be considered as coincidence. Both investment banking firms pointed that similar actions have been taken by Oregon, Florida, Arizona and West Virginia.

And what about the integrity and professional ethics of the two companies?

That’s a fair question, so let’s look at the records.

Goldman Sachs:

Citigroup:

So now the administration suddenly receives “unsolicited” proposals for the sale of the Louisiana State Lottery from two Wall Street banking firms with checkered backgrounds. (But admittedly, it would be difficult to find a Wall Street bank—or banker—these days that is not under a similar cloud.)

A Division of Administration (DOA) source said Bobby Jindal feels that, unlike his desire to sell the remainder of the tobacco settlement in yet another desperate effort to raise one-time revenue, he would not need legislative approval to sell the State Lottery. “We feel legislative approval would be required, but the governor apparently feels otherwise,” Kennedy said.

The State Treasurer added that he felt if Bobby Jindal does intend to sell the State Lottery, “he will wait until after the legislative session has adjourned and then direct the Lottery Corporation to take the action.”

The nine lottery corporation members are appointed to staggered terms by the governor. Kennedy serves as an ex-officio member. Three members, Christopher Carver ($2,000), Heather Doss ($1,000), and Lawrence Katz, combined to contribute $8,000 to various Jindal campaigns since 2003.

 

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Notable Quotables (in their own words)

Posted in Budget, Economy, Finances, Governor's Office, Media, Notable Quotables on March 16, 2015| 10 Comments »

 

 

“I’m leaving Louisiana in better shape than I found it.”

—Bobby Jindal, in an interview with Monroe News-Star editor Greg Hilburn, apparently ignoring the fact that he “found” the state with a $1 billion surplus and today is facing a $1.6 billion deficit.

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Bobby Jindal: a voice of authority on all things regarding foreign policy but woefully inadequate on governing state

Posted in Congress, Economy, Elections, Finances, Governor's Office, House, Senate, Legislature, Legislators, Taxes on March 16, 2015| 11 Comments »

There comes a time when those surround Bobby Jindal must return to earth and come to grips with a realistic fact about their boy.

Pick one:

  1. He cannot seriously consider himself real presidential timber;
  2. His quest for POTUS is simply a cruel joke he’s playing on the rest of us;
  3. He told an unforgivable lie when he said, “I have the job I want”;
  4. He has no clue as to how to govern a state, let along an entire nation;
  5. The little boy should never try on big boy pants;
  6. He may actually be qualified to lead the Stupid Party;
  7. All of the above.

The correct answer is….well, you know.

As Jindal’s numbers continue to shrink to less than single-digits in GOP presidential preference polls, his efforts to garner attention have ramped up accordingly and in the process, have made him a national—if not international—laughingstock.

His handlers should take note and rein him in—for his own sake. While once fun to watch him as he writhes and issues forth preposterous utterances, people are starting to exchange nervous, embarrassed glances. It’s kind of like the drunk uncle you want to keep away from reunions, weddings, funerals and any other social gatherings—at all costs—in order to prevent his bringing further shame on the family.

That’s what happens when you have someone who doesn’t know when to shut up or when he’s had too much to drink—in Jindal’s case, some unknown Kickapoo ego-boosting joy juice that has him convinced he’s democracy’s answer to the rest of the world (Hint: George W. Bush already tried that and it didn’t work).

In recent weeks, we have seen the following:

And even before the recent rash of brashness on his part, Jindal set the tone right after the 2012 presidential election loss by Mitt Romney when he said the Republican Party needed to “stop being the stupid party.” http://thehill.com/video/in-the-news/279243-jindal-republicans-must-stop-being-the-stupid-party

There seems to be no end to his string of banalities—unless one wishes to include his duties as governor of Louisiana. In that case, he appears to have punted, to have taken a powder, abdicated, as it were.

But for the true picture of the depth of his silliness, we need to go all the way back to February 2, 2005, and then-President George W. Bush’s State of the Union Address—a full four years before Jindal’s disastrous Republican response to the Obama State of the Union Address.

The 2005 Jindal was in stark contrast to the January 2015 Jindal.

In 2005, then-U.S. Rep. Bobby Jindal drew national attention (what else is new?) when he provided a bowl of purple ink for members of Congress to dip their index fingers in and to hold the fingers aloft during Bush’s address as a show of solidarity with Iraqi citizens who had voted in elections in that country. http://news.google.com/newspapers?nid=1683&dat=20050203&id=GSQqAAAAIBAJ&sjid=Q0UEAAAAIBAJ&pg=6546,792517

“We all watched with joy as Iraqis dipped their fingers in ink and held them high, proudly proclaiming to the world that they had voted,” Jindal said rather naively in a letter to fellow congressmen as he somewhat prematurely launched his one-man celebration of the birth of democracy in Iraq.

That was then.

This is now:

That experiment in democracy apparently did not take in Iraq as the country anticipates a bloodbath between the Sunni and Shiite factions, a rift that pre-dates American democracy by some 1100 years and shows no signs of going away. http://www.cfr.org/peace-conflict-and-human-rights/sunni-shia-divide/p33176#!/

As if that were not enough, our friend C.B. Forgotston points out that today’s (Monday) Baton Rouge Advocate quotes Louisiana Secretary of Revenue Tim Barfield as saying that he “has already been in talks with Grover Norquist’s Americans for Tax Reform to see if the group would consider replacing revenue lost from local inventory taxes with increased collection of remote sales tax revenue neutral.” http://theadvocate.com/news/11837337-123/st-james-leaders-brace-for

That’s correct. The administration consults with Norquist before making any decision on the state’s budgetary matters or before even going to the restroom. A governor who is the self-proclaimed expert on all matters dealing with foreign policy apparently cannot make a decision on Louisiana issues without the nod of approval of the most powerful unelected official in America. As Forgotston pointed out this morning, “A group out of D.C. is in talks with Team Jindal on how to tax us.  If the legislators had any courage or self-respect, they’d shut this down NOW!” You simply can’t make this stuff up, he says.

But, hey, our governmental sage has a bowl of purple ink for anyone who’s interested.

To paraphrase our former governor Bobby Jindal, “at the end of the day,” you have “two things:”

  • One, we have a man who, though he repeated ad-nauseam during his first term that he “has the job he wanted” and then proceeded to spend all of his second term chasing the job he really wants to such a degree as to abandon any pretense of being governor.
  • Two, by admitting that the administration has been in talks with Grover Norquist, the tea party guru who doesn’t even live in Louisiana and never has, Barfield has openly acknowledged what we all knew: that Jindal has never—repeat, never—been his own man, and never will be. He is beholden to big business and the no-tax-under-any-condition mantra that the corporate world cherishes.

We can only conclude that he has been snorting too much Koch.

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Bobby Jindal finds another asset to sell: remaining tobacco settlement but Kennedy vows to fight junkie’s need for a fix

Posted in Attorney General, Budget, Courts, DHH, DOA, Education, Finances, Governor's Office, Health Care, Higher Education, Legislature, Legislators, OGB, Office of Group Benefits, Revenue on March 13, 2015| 14 Comments »

There’s blood in the water and the sharks are starting to circle.

To clarify the analogy somewhat, the blood is $750 million in tobacco settlement money and the sharks would be 144 state legislators and the guy masquerading as Louisiana’s governor.

Bobby Jindal, the same guy who as Secretary of the Louisiana Department of Health and Hospitals (DHH) in 1996, opposed the state’s participation in the 46-state litigation against the nation’s four largest tobacco companies, now wants to sell off the remaining portion of the 1998 settlement of that suit to generate $750 million for the state treasury.

That’s the same Bobby Jindal who as DHH secretary, was well aware that the state was spending millions of dollars per year in treatment of indigent patients for tobacco-related illnesses at the state’s charity hospitals, but nevertheless signed affidavits along with his boss, then-Gov. Mike Foster, that argued that Attorney General Richard Ieyoub did not have the authority to sue on behalf of the state and DHH.

That’s also the same Bobby Jindal who as governor in absentia, successfully opposed the lawsuit by the Southeast Louisiana Flood Protection Authority-East (SLFPA-E) against 97 oil and gas companies in an effort to hold them accountable for damages to Louisiana’s coastal wetlands, claiming that SLFPA-E did not have authority to file suit on behalf of the state.

No matter. The tobacco litigation was settled for $365.5 billion in 1998 and the state was in line to receive $4.6 billion, or $141.2 million per year for 25 years and continued payments as long as tobacco products are sold within the state as its share of the settlement. http://kff.org/other/state-indicator/tobacco-settlement-payments/

But in 2001, the state, with the support of State Treasurer John Kennedy, sold 60 percent of its settlement income as a hedge against the possibility of bankruptcy by the tobacco companies. That money was placed in a trust fund that generates revenue for health care, education and the Taylor Opportunity Program for Students (TOPS), the program that provides college scholarships to Louisiana high school students to meet curriculum and grade criteria.

Now, though, Jindal is proposing selling off the remaining 40 percent, a move that Kennedy opposes, saying it represents the same disastrous fiscal policy that is responsible for the current $1.6 billion structural deficit in the state budget.

Commissioner of Administration Kristy Nichols, in her usual condescending manner, said Kennedy does not understand what the administration is trying to do.

“The only way we will consider this is if it creates recurring revenue for TOPS,” she said, adding that the money would not be spent all at one time.

But Nichols and Jindal only have a few months left in office and have no way of guaranteeing how the money will be used and Kennedy is more than a little skeptical of Jindal’s motives. “It’s just another gimmick to generate one-time money,” he said. “It’s just not a good idea to sell the family silver.”

He said the administration does not have the authority to dictate how the money is spent. “That will be the decision of the legislature and with the history of the legislature being what it is, you know they can’t wait to get their hands on this money,” he said.

Kennedy said the proposed sale is much like the manner in which the Office of Group Benefits (OGB) saw its reserve fund reduced from $500 million to only about $100 million and still dwindling.

“The administration reduced premiums for OGB members which on the surface, looked like a great thing for the members.” What the administration didn’t say is that the move also reduced the state’s corresponding obligation to match premiums, thus freeing up money the state would have paid into OGB for helping Jindal patch his budget holes. Meanwhile, because of reduction in income from premiums, OGB found itself paying out about $14 million more in benefits each month than it was taking in, thus creating a continuous drawdown on the reserve fund.

Kennedy said the revenue from the sale of the tobacco settlement cannot be used to plug budget holes because it would have to be used for TOPS and higher education. But by dedicating the money for TOPS, it would allow the administration to take the money it would normally use for those two purposes and redirect it to the state budget.

Kennedy said the administration has taken on all the characteristics of a junkie in search of a fix.

He said Jindal’s chronic use of one-time money to fill budget holes has included selling state property, raiding the Medicaid Trust Fund for the Elderly, indirectly taking funds from the OGB reserve fund. “When you get hooked badly enough, you will sell your shoes for a fix,” Kennedy said. “Any farmer knows it’s a bad idea to sell your seed corn because then you don’t have anything to plant next year’s crop.”

Noting that Moody’s and Standard & Poor’s bond rating agencies have already put Louisiana on negative credit watch, he said the rating agencies will take a dim view of the state’s selloff of the remainder of the tobacco settlement which is currently generating about $50 million a year for the state.

Nichols said the proposal to sell the remaining 40 percent of the settlement would have to be approved by the Tobacco Settlement Financing Corp. Board, the Legislature and the State Bond Commission. The board is scheduled to meet Tuesday at 10:30 a.m. in House Committee Room 1 in the State Capitol.

Approval by the board is expected to be a mere formality since the board members are Jindal appointees.

“My fear is that all $750 million of this money will be spent,” Kennedy said. “Everyone will want a piece of the pie. That will only add to our structural deficit and what will we do next once the money is gone? We’ve got to stop thinking about the next election and begin thinking about the next generation. Don’t hold this fire sale.”

If the board does approve it and it goes before the Legislature, “we are going to do everything we can to oppose the sale,” Kennedy said.

The practice of Bobby Jindal’s selling off everything in sight to raise money is reminiscent of a 2011 comment by former State Sen. Butch Gautreaux (D-Morgan City) who, in criticizing Jindal’s practice of selling state property, suggested acerbically that perhaps the administration should consider selling the 24-story State Capitol building because “it would make a great waterslide.” https://louisianavoice.com/2011/04/29/of-water-slides-and-comparisons-between-2-state-health-plans/

 

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