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Sen. Robert Adley, a consistent advocate for transparency, craters to oil contributors in opposing wetlands litigation

Posted in Boards, Campaign Contributions, Coastal Erosion, Commissions, Ethics, Governor's Office, House, Senate, Legislature, Legislators on February 22, 2014| 12 Comments »

By general consensus, State Sen. Robert Adley (R-Benton) is regarded as one of the most principled, most respected members of the Louisiana Legislature.

Over the past several legislative sessions, he has annually introduced bills to force more transparency in the governor’s office by requiring greater accessibility to records kept under protective wraps by a governor already vested with more power than virtually all of his 49 contemporaries.

It has been a lonely fight with his fellow lawmakers mysteriously reluctant to stand up to Gov. Bobby Jindal. Still, he has soldiered on, willing to strive in near solitude for more openness in the executive branch.

So why, then, has he suddenly pre-filed Senate Bill 79 which would only give Jindal even more power by giving him greater freedom in appointing members of a levee board, specifically the Southeast Louisiana Flood Protection Authorities of both the east and west banks?

Adley, in reflecting on experiences with four previous governors—Edwin Edwards, Buddy Roemer, Mike Foster and Kathleen Blanco—said he had “never seen the kind of things I’ve seen in this administration.”

He cited the Louisiana Transparency and Accountability Web site on which Jindal is quoted as saying, “I have advocated for transparent government, as I believe that the bright light of transparency and public access should extend to every corner of the state budget. An honest government has nothing to fear from openness.”

That being case, Adley said, “Why does the governor fight attempts to open his office’s records? You’re either for transparency or you’re not.”

Adley’s bill would do two things: give Jindal the authority to reject nominees to the two boards and require the committee that chooses nominees to present him a longer list of candidates from which to select members.

The bill, as written, would all but abolish restrictions that prohibit politicians from determining who is appointed to the two boards. It would serve as a major boost to Jindal who has sought to replace members of the east bank authority to support litigation against more than 90 oil and gas companies.

The bill also provides that rejected candidates would be ineligible for re-nomination and if new names were not submitted by the nominating committee, the governor would then be enabled to make the selections himself.

On the surface, given Adley’s penchant for openness and accountability, the bill defies logic since it is obviously a counteroffensive to attempts by The Southeast Louisiana Flood Protection Authority East (SLFPAE) to push for a historic lawsuit that would hold oil and gas companies responsible for damages to coastal wetlands.

Jindal has made no secret that he would refuse to appoint members to the board who support the lawsuit and he has already kicked three members off the authority who supported the litigation, including former chairman John Barry.

SLFPAE is attempting to force the oil and gas companies to restore the wetlands or pay SLFPAE for damages, with the money going to the state’s coastal restoration efforts.

The lawsuit claims that the companies destroyed the state’s coastal wetlands by dredging canals that contributed to erosion. The marshes heretofore had served as a natural buffer that mitigated storm surge, a reality abundantly clear to residents of New Orleans. The suit, if successful, could cost the companies billions of dollars.

Adley’s SB79 should come as no surprise, given his opposition to the lawsuit but some might question why Adley would oppose the legal action against the companies in the first place.

As that AT&T commercial says, it’s not complicated.

Adley has owned Pelican Gas Management Co. since 1993, was president of ABCO Petroleum from 1972 to 1993, is affiliated with the Louisiana Oil and Gas Association, and, more importantly, has been the recipient of more than $150,000 in campaign contributions over the years from companies, political action committees, and individuals affiliated with or controlled by oil and gas interests.

Adley could claim that the contributions had no bearing on his opposition to the litigation or to his filing a bill that flies in the face of his call for more openness on the part of the governor’s office, but such an argument would be disingenuous at best and downright dishonest and self-serving at worst.

Adley’s bill was assigned to the Senate Transportation, Highways & Public Works Committee.

Somehow, it seems to us that a more appropriate committee assignment might have been the Natural Resources Committee. Or perhaps the Environmental Quality Committee or even the Commerce, Consumer Protection and International Affairs Committee.

We are told, however, that the assignment to that committee is appropriate in that Senate rules vest jurisdiction of legislation affecting levee boards with Transportation, Highways & Public Works, though an argument could be made that because the bill deals with appointments subject to confirmation, that it could have been assigned to the Senate & Governmental Affairs Committee.

The chairman of Transportation, Highways & Public Works?

Robert Adley. (318) 965-1755, adleyr@legis.la.gov

Oops.

Other members and their oil and gas-related contributions in descending order (and their contact information that we gave you earlier):

  • Troy Brown (D-Napoleonville)—(985) 369-3333, brownte@legis.la.gov, $0 (as in nothing, nada, zilch).

This lawsuit, as District 5 Public Service Commissioner and former gubernatorial candidate Foster Campbell (D-Elm Grove) has said on many occasions, is about holding the oil and gas companies accountable for the damage done to Louisiana’s coastline. “If your neighbor runs his car into your fence and knocks it down, you would expect him to pay for the repairs,” the Bossier Parish native said. “That’s all this litigation is about—holding someone accountable for the damage done to our property.”

Opponents, including the ultra-Tea Party blog The Hayride, have latched onto the claim that the lawsuit has earned Louisiana the designation as a “judicial hellhole.”

By providing the contact information of the committee members who will be considering Adley’s bill, we have given both opponents and proponents an opportunity to pass their sentiments on to their elected officials.

And that, friends and neighbors, is called democracy in action in a representative government.

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Firm’s advice to fire Orleans teachers after Katrina may cost taxpayers $1.5B; hired for $4M by Jindal to save state money

Posted in Boards, Budget, Commissions, Contract, Contracts, Courts, Education, Governor's Office, Jobs, Judges, Layoffs, Legislature, Legislators, ORM, Office of Risk Management, Privatization, Revenue, Teague on January 17, 2014| 9 Comments »

It’s small wonder that Gov. Bobby Jindal wanted to get out of town quickly—he departed the state for an extended trip to Asia to recruit business and industry investment in Louisiana—given the flak he is receiving from the legislature and radio talk show hosts over his hiring of a consulting firm at a cost of $4.2 million to somehow magically find $500 million in state government savings. http://theadvocate.com/csp/mediapool/sites/dt.common.streams.StreamServer.cls?STREAMOID=sZuDzNJoJK2fudmeRm9FJpM5tm0Zxrvol3sywaAHBAlauzovnqN0Cbyo1UqyDJ6gE0$uXvBjavsllACLNr6VhLEUIm2tympBeeq1Fwi7sIigrCfKm_F3DhYfWov3omce$8CAqP1xDAFoSAgEcS6kSQ–&CONTENTTYPE=application/pdf&CONTENTDISPOSITION=Alvarez%20Marsal%20Government%20Savings%20Contract.pdfhttp://theadvocate.com/news/8045923-123/vitter-super-pac-raises-15

And that contract doesn’t even take into account Pre-Jindal recommendations by the firm that may ultimately end up costing taxpayers $1.5 billion which, of course, would more than offset any $500 million savings it might conjure up that the Legislative Fiscal Officer, the State Treasurer, the administration, the legislature and the Legislative Auditor have been unable to do, largely because of a time honored political tradition affectionately known as turf protection.

One might even ask, for example, why representatives of the consulting firm, Alvarez & Marsal, who somewhat smugly call themselves “efficiency engineers,” were wasting their time Friday at the gutted Office of Risk Management. Isn’t there already a promise of $20 million in savings on the table as a result of Jindal’s privatization of that agency four years ago? For just that one small agency, that’s 4 percent of the entire $500 million in savings Jindal is seeking through the $4 million contract. (The elusive $500 million savings, for the real political junkies, represents only 2 percent of the state budget.)

The Baton Rouge Advocate also got in on the act on Saturday with Michelle Millhollon’s excellent story that  noted that the actual contract contains no mention of a $500 million savings. http://theadvocate.com/home/8131113-125/vaunted-savings-not-included-in

That revelation which is certain to further antagonize legislators, including Senate President John Alario (R-Westwego) whom Jindal will now probably try to teague for his criticism of the governor’s penchant for secrecy.

Hey guys, your contract is only for four months, so why waste your time in an agency that supposedly is on the cusp of a $20 million savings? That ain’t very efficient, if you ask us.

Legislators immediately voiced their displeasure at the contract. “There’s a lot of people who don’t like it,” said Rep. John Schroder (R-Covington), a one-time staunch Jindal ally.

Rep. Tim Burns (R-Mandeville), chairman of the House Governmental Affairs Committee (if he hasn’t been teagued by now), said when the dust settles any cost cutting will ultimately be the responsibility of state officials. “Even the best PowerPoint presentation isn’t going to cut government,” he said. “The trick is to make the political choices.”

The contract raises immediate questions how Jindal, now entering his seventh year in office, could justify the move in light of his many boasts of efficiencies his administration has supposedly initiated.

Ruth Johnson, who is overseeing the contract for the Division of Administration, defended the deal with the simplistic and less than satisfactory logic that “Sometimes you have to spend money to save money.”

And while Jindal has indicated he wants a final set of recommendations in April, the contract runs through 2016, meaning the final cost could far exceed the $4.2 million Alvarez & Marsal is scheduled to receive for its review.

Jim Engster, host of a talk show on public radio in Baton Rouge, on Friday predicted during an interview with State Treasurer John Kennedy that Alvarez & Marsal’s final report will most likely bear an uncanny resemblance to the 400-plus-page interim report of Dec. 18, 2009, by the infamous Commission on Streamlining Government.

The hearings by that commission, you may remember, gave birth to the term teaguing, a favorite tactic employed by the Jindal administration when a state employee or legislator refuses to toe the line. A state employee named Melody Teague testified before that commission and was summarily fired the following day. Six months later her husband, Tommy Teague, was fired as head of the Office of Group Benefits when he was slow in getting on board the Jindal Privatization Express. Mrs. Teague appealed and was reinstated but her husband took employment elsewhere in a less volatile environment.

The Alvarez & and Marsal representatives have pleaded ignorant to questions of whether their report will draw heavily from the four-year-old commission report and even professed to not know of its existence.

A curious denial indeed, given that Johnson was also the ramrod over the streamlining commission during Jindal’s second year in office. Does she not share this information with the firm or was all that commission work for naught? Or part of Jindal’s infamous deliberative process? Curious also in that Alvarez & Marsal is specifically cited—by name—no fewer than six times in the report’s first 51 pages, each of which is in the context of privatizing the state’s charity hospital system. The report quoted the firm as recommending that:

  • “The governor and the legislature authorize and direct the LSU Health System to adopt the recommendations of Alvarez and Marsal for the operation of the interim Charity Hospital in New Orleans. The governor and legislature direct every other charity hospital in Louisiana to contract for a similar financial and operational assessment with a third party private sector consulting firm, such as but not necessarily Alvarez and Marsal, that specializes and has a proven track record in turnaround management, corporate restructuring and performance improvement for institutions and their stakeholders.”

That’s right. That is where the seed was apparently first planted for the planned privatization of the LSU Hospital system, even to the point of directing the LSU Board of Stuporvisors to vote to allow a Shreveport foundation run by one of the LSU stuporvisors to take over the LSU Medical Center in Shreveport and E.A. Conway Medical Center in Monroe. Alvarez & Kelly performed that bit of work under a $1.7 million contract that ran for nine months in 2009, from Jan. 5 to Sept. 30 (almost $200,000 per month).

Alvarez & Marsal also received a $250,000, contract of a much shorter duration (10 days) from Jindal on April 9, 2013, to develop Jindal’s proposal to eliminate the state income taxes in favor of other tax increases. That quickie, ill-conceived plan was dead on arrival during the legislative session and Jindal quickly punted before a single legislative vote could be taken

But Alvarez & Marsal’s cozy if disastrous relationship with state government goes back further than Jindal, even. http://www.alvarezandmarsal.com/case-study-new-orleans-public-schools It’s a relationship that could become one of the most costly in state history—unless of course, the state chooses to ignore a court judgment in the same manner as it has ignored a $100 million-plus award (now in the neighborhood of a quarter-billion dollars—with judicial interest) stemming from a 1983 class-action flood case in Tangipahoa Parish.

In fact, the state probably has no choice but to ignore the judgment as an alternative to bankrupting the state but that does little to remove the stigma attached to a horrendous decision to accept the recommendation of Alvarez and Marsal which subsequently was rewarded with a $29.1 million three-year state contract from April 4, 2006 to April 3, 2009 to “develop and implement a comprehensive and coordinated disaster recovery plan in the wake of Hurricane Katrina.”

In December of 2005, the Orleans Parish School Board adopted Resolution 59-05 on the advice of the crack consulting firm that Jindal somehow thinks is going to be the state’s financial salvation.

That resolution, passed in the aftermath of disastrous Hurricane Katrina was specifically cited in the ruling earlier this week by the 4th Circuit Court of Appeal that upheld a lower court decision the school board was wrong to fire 7,500 teachers, effective Jan. 31, 2006. The wording contained in the ruling said:

  • “In December 2005, the OPSB passed Resolution No. 59-05 upon the advice and recommendation of its state-selected and controlled financial consultants, the New York-based firm of Alvarez & Marsal. The Resolution called for the termination of all New Orleans Public School employees placed on unpaid “Disaster Leave” after Hurricane Katrina, to take effect on January 31, 2006.1 On the day that the mass terminations were scheduled to take place, Plaintiffs amended their petition to seek a temporary restraining order preventing the OPSB from terminating all of its estimated 7,500 current employees at the close of business on that day. The trial court granted the TRO and this Court and the Louisiana Supreme Court denied writs on the issue. The TRO was later converted into a preliminary injunction that restrained, enjoined and prohibited the OPSB, et al, from “terminating the employment of Plaintiffs and other New Orleans Public School employees until they are afforded the due process safeguards provided in the Orleans Parish School Board’s Reduction in Force Policy 4118.4.” Nevertheless, Plaintiffs and thousands of other employees were terminated on March 24, 2006, after form letters were mailed to the last known address of all employees of record as of August 29, 2005.”

The appellate court upheld the award of more than $1 million to seven lead plaintiffs in the case of Oliver v. Orleans Parish School Board but adjusted the lower court’s damage award, ordering the school board and the Louisiana Department of Education to pay two years of back pay and benefits and an additional year of back pay and benefits to teachers who meet certain unspecified requirements.

Immediately following Katrina, state-appointed Alvarez and Marsal set up a call center to collect post-Katrina addresses for a majority of staff members in time for the anticipated layoffs. But when the state began the hiring process for schools that had been taken over, the terminated employees were never called, prompting plaintiff attorneys to charge that the entire procedure was intentional and part of the state’s plan to take over the Orleans Parish school system.

Plaintiffs said that then-State Superintendent of Education Cecil Picard chose Alvarez & Marsal to prevail upon the school board to replace acting parish Superintendent Ora Watson with an Alvarez & Marsal consultant.

So, Watson was replaced, 7,500 teachers were fired, and the teachers sued and won, leaving the Orleans School Board and the state liable for a billion-five and the firm that started it all is hired by Jindal to find savings of an unspecified amount. What could possibly go wrong?

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As 2013 college football bowl season kicks off, Gov. Jindal reveals proposal for another controversial privatizaton plan

Posted in Boards, Governor's Office, Higher Education, Layoffs, LSU, Privatization, RFP, Request for Proposals on December 23, 2013| 23 Comments »

Just in time for the college football bowl season, Forbes magazine has rated the LSU football program as the fourth most valuable in the country, prompting an announcement by the Jindal administration to capitalize on the latest data.

With an estimated value of $105 million, the LSU programs ranks behind only the University of Texas ($139 million), Notre Dame ($117 million) and Alabama ($110 million) and ranks ahead of such traditional football powerhouses as Michigan, Florida, Oklahoma, Georgia, Ohio State, Nebraska, Auburn, Arkansas, Southern Cal, Texas A&M, and Penn State—5th through 15th, respectively.

http://www.forbes.com/sites/chrissmith/2013/12/18/college-footballs-most-valuable-teams-2013-texas-longhorns-cant-be-stopped/

Upon learning of the ranking, Gov. Bobby Jindal, always the political opportunist, immediately pressured the LSU Board of Stuporvisors to approve a request for proposals (RFP) aimed at the privatization of the LSU football program in time for the start of the 2014 season.

The board approved the plan without discussion or objection.

“We actually have been considering this opportunity for some time,” Jindal said. “The latest story by Forbes simply provides us with the opportunity to negotiate the most favorable contract for the people of Louisiana.”

Jindal said the timing is such that it will be impossible to issue the RFP before the Feb. 5 LSU Bayou Bash recruiting party but he said he felt logistical problems of dealing with new signees could be overcome with assistance from legal counsel Jimmy Faircloth.

“The fact of the matter is, long story short, at the end of the day, there are two things: the LSU football team is overloaded with unproductive players. Applying my well-known ‘do more with less’ mantra, the new team owners will drastically cut the excess fat from the program. All players who do not make the first team on either offense or defense will be dismissed from the team. The kickers and punters will come from the remaining 22 starters.”

He said that move alone would save the program millions of dollars in housing and meal costs as well as costs for extra uniforms, equipment, game tickets and tutors. Other cost saving measures to be initiated by the privatization move include the termination of medical treatment for injured players and suspension of any athletic department financial contributions to academics. “We have already seen that academics can do more with less; now they will have the opportunity to do even more,” he said.

Jindal said in his prepared statement that the 22 players will each be paid on a sliding scale beginning at $100,000 per year. “That should allow LSU to attract the very best starting players in the nation and prevent the raiding of the top two or three high school players that Louisiana produces each year by other colleges—especially by Nick Saban and Alabama,” he said.

“This move will represent a new gold standard of athletic competition,” he said.

He said that a player who is injured and unable to continue in a game will be replaced from a pool of about a dozen standby contract players who will be employed in administrative positions within the Department of Education. In some cases, players will be asked to play on both offense and defense as an example of his “do more with less” crusade.

“The fact that the new owners will schedule only home games also should help us move forward with all due speed,” he said.

Jindal said his latest plan represents a “bold new move” for LSU football. “This should allow us to win the BCS championship virtually every year,” he said. “That fact alone should dispel all arguments that privatization doesn’t work.”

Confidential sources confirmed that one unidentified administration official who raised questions about possible NCAA sanctions for paying players was summarily teagued, a claim that was immediately denied. “That person left on his own accord,” an administration spokesman said. “We had nothing to do with his decision to leave.”

“There is a reason the NCAA would take issue with our proposal,” Jindal said. “I don’t believe it’s a coincidence that the head of the NCAA is a former president of LSU and that he is envious of LSU’s success since his departure. If you recall, when Dr. Mark Emmert was at LSU he was the one who hired Nick Saban and because of that, he has a vested interest in the continued success of Coach Saban. So it’s understandable that he would be opposed to this move.”

Jindal then proceeded to verbally attack Emmert and the NCAA over the anticipated encroachment. “Dr. Emmert and the NCAA want to deny a voice to the very people who will be harmed by such ridiculous sanctions,” he said. “They are trying to muzzle fans who simply want to express their support for what will be the most successful football program in the history of intercollegiate athletics. The only thing our fans want is for the finest athletes in the nation to have the opportunity to escape failing programs.

“Dr. Emmert is attempting to tell our fans to sit down and shut up. That’s never going to happen. Despite whatever evolving legal argument the NCAA comes up with, the voices of hundreds of thousands of fans will be heard,” he said.

“I have already indicated that the NCAA’s effort to deny these kids the right to equal opportunity in football is both cynical and immoral,” Jindal continued. “They (the NCAA and Emmert) can’t have it both ways. Our fans know the real result of any NCAA action, should it be successful, would be to keep great football players in failing programs like those at Alabama, Auburn, Georgia and Florida.”

Key losses to Alabama “have pushed a significant number of players to go out of state,” Jindal said. “Threatened sanctions are another intrusion by the NCAA on players’ personal decisions. Players who wish to play for a premier program should not have to seek approval of Dr. Emmert or the NCAA. It is our moral obligation to ensure that every top player who we recruit has access to the best program available.

“America is a nation of opportunity and a quality football program opens the door to opportunity, no matter the social background of the player.

“We in Louisiana are rejecting the status quo because we believe every player should have the opportunity to succeed.”

He said the Tiger Athletic Foundation (TAF) has been contracted to help draft the RFP for the administration.

Insiders have intimated that TAF is likely to be the sole bidder on the project, although Spectacor Management Group (SMG), which operates the Mercedes Benz Superdome, the New Orleans Arena, Zephyr Field in Metairie and the Baton Rouge River Center, has not been ruled out.

Economic Development Secretary Stephen Moret said whoever wins the contract will receive generous tax incentives and exemptions “for bringing new jobs to Louisiana.”

Jindal said the privatization should save the state “approximately $500 million a year, give or take a few hundred million.”

(We wanted to hold off on this story until April 1, but we just couldn’t wait.)

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Jindal has more snakes than he can kill with coastal lawsuits against oil companies; whatcha gonna do now, Bobby? Those parishes (Jefferson and Plaquemines) got their own lawyers

Posted in Boards, Coastal Erosion, Earl Long, Huey Long, Governor's Office on November 19, 2013| 9 Comments »

In June of 2012, Gov. Bobby Jindal signed into law Acts 754 and 779, both of which were designed to curtail the so-called legacy lawsuits and thereby curbing landowners’ rights to hold oil companies responsible for damages to private property where they had drilled.

Everyone it seemed, especially the oil companies and the Louisiana politicians who were beholden to them, rejoiced. Handshakes and back slapping abounded. Those mean old trial lawyers had finally got their comeuppance. More important, the new legislation would ensure the uninterrupted flow of oil money into the campaign coffers of friendly legislators—and governors.

Even U.S. Sen. David Vitter weighed in on the discussion to sputter that the new laws “will ensure that Louisiana remains a leader in responsibly producing great American energy—AND great American energy jobs.”

But before we cue the brass band and break out the flags and apple pie, consider another very telling part of Vitter’s official statement of Nov. 14, 2012:

“To correct the situation (of legacy lawsuits), the Louisiana Oil and Gas Association (LOGA), the Louisiana Association of Business and Industry (LABI), and other business groups proposed reforms that were introduced as bills at the start of this past state legislative session.”

That’s right. LOGA and LABI proposed the reforms. Apparently, the input of landowners whose property had been ravaged by drilling operations and left cluttered with abandoned equipment was not needed—or wanted. Vitter, never one to back away from an issue important to his Republican constituency, continued:

“The message began to resonate. As a result, the House voted overwhelmingly—82 to 19 — in support of the strong legislation that LOGA and others helped draft. And momentum grew.

“Within a few short weeks, this led to a so-called compromise on the issue, which was passed and signed into law. But, it’s not just a compromise; it’s a solution, because it included all of the major elements of the strong proposed legislation.”

But as my favorite poet, Bobby Burns of downtown Shongaloo once wrote: “The best laid plans of mice and men oft go kaput.”

Just when legislators, LABI, LOGA and Jindal thought it was safe to go back into the courtroom, along comes the Mother of All Legacy Lawsuits.

A lot has transpired in the four months since the Southeast Louisiana Flood Protection Authority-East (SLFPA-E) raised Jindal’s hackles when it filed that massive lawsuit against 97 oil and gas companies for damages to the disappearing Louisiana coastline, not all of it good for the guv.

His courtroom setbacks are stacking up like dead armadillos on a busy Louisiana highway in the hot summertime but he nevertheless sticks with attorney Jimmy Faircloth, the recipient of more than a million dollars in fees while winning…what was it? Oh, yes, zero cases. Jindal could probably paper the walls of the governor’s mansion with the adverse legal decisions handed down thus far. His national political stock has gone into a free-fall that has him grabbing onto any issue that will give him face time on Faux News or CNN.

Distracted by his ongoing feud with President Obama over health care and the federal lawsuit that has thwarted his school voucher program, his pressing duties as Chairman of the Republican Governors’ Association and his yeoman’s work on behalf of failed Republican candidates (see Virginia governor’s race and Louisiana congressional election), Jindal has had precious little leisure time to tend to pesky little issues facing the state (see health care, budget deficits, federal investigations into multi-million contracts, crumbling infrastructure, flood insurance and that ever-expanding sink hole in Assumption Parish).

The one matter that he did tackle head-on, however, was that ridiculous lawsuit by the greedy SLFPA-E against those poor defenseless oil companies for the destruction of that useless Louisiana coastline that’s good for nothing but as a wildlife refuge…and oh yes, hurricane surge protection.

Jindal believes that the litigation is a crime against nature and just to prove his point, he resorted to his favorite tactic—firing those who dare disagree. But before he could fire three members of the authority who pushed for the lawsuit, he took the added measure of removing a $500,000 annual subsidy the authority has received in years past. Of course Jindal said the funding cutback was unrelated to the litigation. Yeah, right.

And of course Jindal only wants what’s fair for those civic-minded oil companies that dredged and then abandoned some 10,000 miles of canals along the Louisiana coast, decimating the hurricane wind and surge protection the coastal lands and marshes provided before their disappearance.

Oh, did we mention that of those 97 companies named in the lawsuit, 16 combined to contribute a minimum of $171,750 to one or more of Jindal’s three gubernatorial campaigns? And one of those, Marathon Oil, in addition to the $15,000 ponied up for Jindal’s campaigns, chipped in an additional $250,000 to the Supriya Jindal Foundation for Louisiana’s Children. Marathon subsidiaries then received a cool $5.2 million in state funds.

For a governor who raked in more than $20 million in his three campaigns, $421,750 seems an awfully cheap price for which to sell out the state’s chance to withstand the onslaught of coastal erosion—to turn the tide, if you’ll forgive the bad pun.

The antithesis to the pomposity of Vitter would be the dogmatic candor of Public Service Commissioner Foster Campbell, the last of the Louisiana populist politicians. Campbell, who ran unsuccessfully against Jindal in 2007, has thrown his unconditional support behind of the authority’s lawsuit and sharply criticized Jindal in the process.

“Jindal’s actions undermine the people and institutions trying to protect Louisiana from coastal erosion and flooding,” Campbell said. “He is shielding from blame the companies partly responsible for the damage.”

It is not the first time Campbell has taken shots at the establishment. He has accused virtually every Louisiana politician, with the exception of former Gov. Dave Treen, of selling out to the big oil interests. “The board (SLFPA-E) has done what virtually no politician in Louisiana has dared to do—confront Big Oil about its destructive coastal practices,” he said. “Mr. Jindal’s response was to replace the board president and vice president with people who will undo the lawsuit.”

Jindal, in arguing against the wisdom of the lawsuit, said it “jeopardizes and undermines our ability to implement the Master Plan.”

Jindal was referencing the 50-year coastal protection and restoration Master Plan which outlines how the state and local governments will restore wetlands and improve on flood protection, particularly for the New Orleans area.

There’re only two problems with that $50 billion Master Plan:

It’s unfunded.

And if something is not done soon, there may not be a New Orleans to worry about in 50 years.

Jindal also called on SLFPA-E to fire its attorneys, claiming they were hired in violation of state law that requires their hiring be approved by the governor.

But then-SLFPA-E Chairman John Barry, author of Rising Tide: The Great Mississippi Flood of 1927 and How it Changed America, said Jindal was dead wrong (nothing new about that) in his contention that the authority needed his permission to file suit. He said Jindal was relying on the wrong state law that applies to state boards and commissions, not the specific legislation creating the authority. (We can’t help but wonder where Jindal got his legal advice.)

So Jindal took the only action he knows: he fired Barry, Ricardo Pineda and David Barnes and replaced them with New Orleans attorney Lambert Hassinger, Jr., Jefferson Angers, president of the Center for Coastal Conservation, and Kelly McHugh of Madisonville, president of the Kelly McHugh and Associates civil engineering and land surveying firm.

And, oh yes, he yanked the authority’s $500,000 annual state subsidy.

But then a strange thing happened. The parishes of Jefferson and Plaquemines filed their own lawsuits against a spate of oil companies. Jefferson filed seven lawsuits and Plaquemines 21, claiming a variety of environmental law infractions, including dredging canals without proper permits and without employing erosion prevention techniques to prevent the encroachment of salt water from the Gulf of Mexico.

And Jindal is powerless to fire the parish leaders or to require that they seek his permission to file suit or that they fire their attorneys.

It brings to mind the 1958 battle between the U.S. Justice Department over desegregation. Then-Gov. Earl Long saw the inevitability of things to come as well as the futility of continued resistance against the federal government. Leander Perez, boss of Plaquemines Parish, that last bastion of segregation, however, did not and vowed to continue the fight. This prompted Long to chide Perez, saying, “Whatcha gonna do now, Leander? The feds got the A-Bomb!”

That quote could be paraphrased today with, “Whatcha gonna do now, Bobby? Those parishes got their own attorneys!”

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For mega dose of humility, try testifying before legislative committees without having answers to important questions

Posted in Auditor, BESE, Boards, Budget, Commissions, Education, Health Care, House, Senate, Legislature, Legislators, LSU, Privatization, Public Records, Recovery School District, RSD on October 21, 2013| 11 Comments »

If public humility is your thing, all you have to do is appear before a state legislative committee or state commission unprepared to provide answers to even the most basic of questions.

That’s what happened last Friday in two separate legislative committee rooms during meetings of the State Bond Commission and the Joint Legislative Committee on the Budget (JLCB) during discussions of capital outlay projects and BA-7 requests, respectively.

BA-7s are budget request forms used to make changes in revenues and/or expenditure line items during the year. Agencies submit them to the Division of Administration (DOA) Budget Office and if approved there, they are placed on the monthly agenda of the JLCB for consideration.

Bond Commission Chairman State Treasurer John Kennedy was particularly rankled over the shifting of construction projects to be replaced by $5 million in capital improvements to the LSU Health Sciences Building in Shreveport which is being taken over by Biomedical Research Foundation of Northwest Louisiana (BRF).

After Mark Moses of State Facility Planning and Control submitted changes to the commission, Kennedy said, “In July, you said the list was top priority and shovel ready. Now you’re saying they are not. What changed?”

“Cash flow needs have changed,” Moses said. “We’re shifting money. Eighteen projects are complete and on 76 others, there has been no activity and if the need is not there, we shift the dollars.”

“Why did you say in July that they were top priority?” Kennedy asked again. “The problem is if we replace them with something else, the original projects go to the back of the line. We’re shutting 90 projects down even though we have already spent money on some of them and now we’re sending those projects to the back of the line.”

Kennedy then launched into his ongoing criticism of the privatization of the Louisiana Medical Center at Shreveport and E.A. Conway Medical Center in Monroe. “We’re making $5 million in capital improvements to the Health Science Center. Who’s going to own that?”

Liz Murrill, DOA chief legal counsel, said, “We own the building. They (BRF) are leasing it.”

“We’re spending $4.8 million on scanner clinical and research imaging equipment for Biomedical Research Foundation…”

“This is a non-state entity. The dollars are being used for a public purpose,” Murrill said.

“Like an NGO (non-government organization)? We’re just giving it to them?”

“We’re providing money for this piece of equipment,” she said.

“Do we require them to file quarterly reports?”

“It’s contemplated it will be used for a public purpose,” she said, failing to answer his question.

Kennedy then asked if the legislative auditor would be able to audit the expenditure of the funds to which Murrill said, “I assume so, just as with any capital outlay projects.”

“One of the conditions of the agreement is there would be no public record,” Kennedy said, referring to a clause in the certificate of agreement between the LSU Board of Stuporvisors and BRF which says, “Financial and other records created by, for or otherwise belonging to BRF or BRFHH (BRF Hospital Holdings) shall remain in the possession, custody and control of BRF and BRFHH, respectively,” and that “such records shall be clearly marked as confidential and/or proprietary,” and thus protected from Louisiana public records laws.

“A public record is a public record,” Murrill said somewhat tentatively. “We have procedures to decide what is public record.”

“Who decides what’s public?” Kennedy asked.

“It depends on who gets the request.”

“Do you have a problem adding a condition to these purchases on the legislative auditor’s being able to audit the purchases?”

“I think that’s the case now,” Murrill said.

“Why are we buying this for the Biomedical Center instead of LSU?” Kennedy asked.

Mimi Hedgecock of the LSU School of Medicine—and formerly Jindal’s policy advisor—said the purchase was part of the partnership with BRF prior to the certificate of agreement between LSU and BRF.

“Is it accurate to say we have not picked an operator of the hospital yet?” Kennedy asked. “The testimony before the Louisiana Joint Budget Committee was they (BRF) were going to pick an operator. We’re entering a 99-year lease and don’t know who is even going to run the facility. The legislature has no say. How can we audit if we don’t know who’s running it? We can’t audit HCA (Hospital Corp. of America).

“This makes a mockery of the capital outlay procedure,” Kennedy said. “You’re supposed to be building a priority of projects. In July, you cam to us and said these projects were absolutely top priority and (were) shovel ready. Now they’re not shovel ready or top priority. Now we have new projects and these projects are going to the back of the line. I don’t think this is a good way to do business.”

Joint Budget Committee

Things got even testier at the Joint Budget Committee, thanks to the amateurish performance of witnesses appearing on behalf of the Recovery School District (RSD), just another ongoing embarrassment for the Louisiana Department of Education (DOE).

The fun began when committee member Jim Fannin (R-Jonesboro), who also serves as House Appropriations Committee chairman, questioned RSD’s claim to having $34 million in self-generated funds for the projects it was submitting.

“Explain how you self-generated $34 million,” he said. “It’s unusual for RSD to self-generate that many dollars.

The breakdown given was $27.13 million in new market tax credits, $3.37 million from insurance proceeds and $4.05 million from Harris Capital funding for construction of Wheatly and McDonough 42 schools.

Fannin responded that the way the budget was presented was “confusing.” He said he was seeing too many “other” expenditures on the BA-7 submitted by RSD. “You have legal expenses of $800,000,” he said. “I never saw legal expenses of $800,000 to rebuild two schools.”

“Those legal fees pay for 82 schools—the entire master plan,” said RSD spokesperson Annie Cambre.

But it was Sen. Ed Murray (D-New Orleans) who peppered the RSD types with a barrage of withering questions—withering because the RSD representatives were woefully ill-prepared with answers much as State Superintendent John White has been since his appointment in January of 2012.

Murray asked about the expenditure of $375,000 in funds for engineering and architectural costs before RSD had authority to spend the money. “Are we using any of this $375,000 to pay them already?” he asked.

“Most were paid from multiple fund sources,” responded a young, unidentified red-headed RSD representative who more resembled a high school FBLA member than a public education professional.

“Let me ask my question again,” Murray said. “Are we using any of this $375,000 to pay them already?”

“For some of them, yes. Some are eligible from FEMA, some not,” said Red.

“Then why are we just now getting this request if we’re already using the money?”

“We already had some authority but we just realized we need additional authority.”

Murray, beginning to show his exasperation, then asked, “How much of the $375,000 have we spent so far?”

“I don’t know,” said Red. “I can get that for you.”

“It disturbs me that we’re spending money without authority to do so,” Murray said. “Let’s go to the legal expense of $800,000. How much of that have we spent?”

“Again, I don’t have that exact number,” said Red. “I can get that for you.”

“Mr. Chairman,” Murray said to committee Chairman Jack Donahue (R-Mandeville), “can we get them to come back next month when they have answers?”

“That would seem appropriate,” said Donahue. “There’re a lot more questions than answers.”

Bordelon, in a last-ditch effort to salvage the request said, “It’s important that everyone understand the timing of the Wheatly-McDonough projects. There will be several thousand students affected by any delay. The New Market tax programs and closing times are specific. Timing is of the essence.”

“We’d like to help you guys,” Donahue said, “but when you come here you don’t have sufficient information to answer questions. I don’t know how you think we can approve something when you can’t answer questions about the money you’re asking for that you’ve already spent and how many dollars are involved.”

“We were utilizing previously granted authority,” Bordelon said.

“I appreciate that,” Bordelon said, “but on the other hand, you’re already spending it and didn’t come for authority to do that until you started spending the money. And when members ask how many dollars have already been spent, and you can’t answer, that’s a problem.”

“It was my understanding we were operating under previously granted authority,” Bordelon persisted.

“That’s not what was said,” Bordelon said. “That was not the testimony. The testimony was you were already spending that money but you don’t know how many dollars were spent.”

Murray’s motion to defer action until next month passed unanimously and Murray then had one last word of advice to Bordelon.

“You say this is going to affect ‘several thousand students.’ I’m pretty familiar with Wheatly and McDonough 42. You don’t have several thousand students in those two schools. We want you, when you come before this committee, to tell us accurate information.”

Sen. Dan Claitor (R-Baton Rouge) added, “When you come back, be prepared to discuss the oddly round legal expenses and issues related to that.”

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