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On-LSU-presidents-revenue-secretary-and-the-proper-use-of-hyphens: it’s-just-another-day-in-the-Piyush-World-of-Oz

Posted in ALEC, American Legislative Exchange Council, BESE, Boards, Governor's Office, Higher Education, LSU, Politicians, Regents, Revenue, Transparency, Vouchers on August 17, 2012| 12 Comments »

Baton Rouge has always been a city rife with favoritism and appointments bordering on the outrageous and absurd. But now, with a new level of exorbitant salaries pitted against wholesale layoffs of rank and file employees during Piyush Jindal’s administration, the intensity of rumors, hyphens, retreads and big salaries from the “do more with less” governor has been ramped up a notch.

You may wish to sit down to prepare yourself for what may well be the most astounding appointment in Jindal’s tenure—one that should have every LSU alumnus and every LSU professor and instructor, active and retired, metaphorically storming the Governor’s Mansion with torches and pitchforks.

The object of their outrage, however, won’t be there of course.

But before we get too far into the latest developments surrounding the world’s largest state monument to corruption and excess (that would be the 24-story State Capitol building), we are going to go out on a limb and predict that the latest boy genius, State Superintendent of Education John White, is going to realize just how inept and unqualified he is for his job and will be gone by this time next year.

He has quickly become Boy Blunder to Jindal’s Batty Man.

Meanwhile, the Jindalista continues to pillage the state with layoffs, cutbacks, sell-offs and closures, all the while continuing to add to the already top-heavy administrative payroll with more appointments at ever-dizzying salaries.

Jindal apparently is making his appointments these days by remote control because he is rarely in Louisiana to attend to pressing state business.

The latest example of Jindal’s spot-on imitation of Nero was the announcement on Thursday, Aug. 16, that Jindal has been given a speaking role at the Republican National Convention in Tampa, Florida, later this month.

It’s odd to the point of being downright bizarre that on the 35th anniversary of the death of Elvis Presley, the Republican Party would carry out such a public suicide attempt. The obvious question has to be: What the hell were they thinking? Doesn’t anyone in a decision-making position remember that dreadful 2009 response to President Obama’s State of the Union address?

Now Comedy Central and Youtube will have two separate clips to (pick one) amuse/embarrass/nauseate us.

We can almost hear him now as he blathers on to bored, drunk, or in at least one case, womanizing delegates: “Two things…,” “At the end of the day…,” “Three things…”

Meanwhile, Rome, aka Louisiana, continues to burn at the altar of spurned federal grants, Medicaid and higher education cutbacks and the tragicomedy now known as school vouchers…er, scholarships.

So, how has the state’s Émigré Executive addressed these problems?

For one, he dredges up former staff member Jim Barfield to appoint as the new Secretary of Revenue at more than double the salary of former Secretary Cynthia Bridges who was forced out for doing her job after Jindal signed an alternative fuel tax credit that threatened to break the bank even further.

Then, the Board of Elementary and Secondary Education (BESE), led by Wondering Woman Penny Dastugue and Chas Roemer, appointed Heather Cope, who appears to be even younger and, if possible, more unqualified than White, to the post of BESE executive director.

But more important than either of these is the rumored appointment of current Secretary of the Louisiana Department of Economic Development (LED) Steve Moret as LSU president/chancellor.

The fix is reportedly in already for Moret’s appointment to replace former LSU President John Lombardi who was fired in April at Jindal’s behest (despite any protestations to the contrary) after being openly critical of budgetary cutbacks to higher education.

Interim President Bill Jenkins, of course, denies the report, but what else could he be expected to do? He didn’t get the call to come back after Lombardi’s firing because of any independent streak of his own. Jindal, as is well known by now, simply does not tolerate independence, candor or free thinking on the part of subordinates.

Jindal already had a solid majority on the LSU Board of Supervisors—quite possibly one of the more politically-charged and possibly the most controversial board in state government—when it voted to fire Lombardi in April. Now he has solidified that majority with the appointments last month of Scott Ballard of Covington and Lee Mallett of Iowa to the board.

Ballard’s company, WOW Franchising, parent company of WOW Café & Winery, contributed $5,000 to Jindal’s campaign in 2007.

Mallett had separate contributions of $5,000 each in 2003 and 2006 and five of his companies contributed another $20,000 between 2007 and 2011.

Moret was appointed head of Economic Development when Jindal took office in January of 2008 and has presided over the giveaway of $5 billion a year in corporate tax incentives and exemptions that have been putting the state deeper into the fiscal abyss with each passing year.

Before coming to LED, Moret had a lackluster tenure as president and CEO of the Baton Rouge Area Chamber, though at the time of Moret’s appointment, Jindal’s spindoctors lauded his accomplishments at the chamber.

Like Jindal, Moret is an alumnus of the McKinsey Group, a Washington, D.C., think tank that consults with governments and corporations worldwide.

One of McKinsey’s more notable contributions was working with Allstate Insurance to train the company in the best way to deny claims stemming from losses suffered by Gulf Coast residents in the wake of hurricanes Katrina and Rita in 2005.

That should square up pretty well with the American Legislative Exchange Council (ALEC) anyway.

Other than those two entries on his curriculum vitae, Moret has little else to qualify him to lead the state’s flagship university. But hey, who needs an academic mind at the helm of a large university?

Such an appointment would further lower the school’s esteem, already pummeled by draconian budget cuts that forced tuition increases and threaten the very existence of the LSU School of Medicine and state teaching hospitals while reducing the position of president to nothing more than political puppet status—even more so than it already is—and heap ridicule on the state in general and LSU in particular.

Oh, well, there’s always football.

The LSU board will be on retreat Saturday (a legally-questionable procedure in that it appears to violate the state’s open meeting law—specific personnel matters certainly may discussed in executive session, but political bodies, including the LSU board, must first convene in public session and then vote to go into executive session) to discuss combining the jobs of president and chancellor.

Jenkins, responding to reports that the decision had already been made to select Moret, snapped, “That’s nuts!” he said, “irrational” that the board would pay a consultant and go through the motions of a national search if the decision were already made.

You could almost envision Jindal’s arm extending from Jenkins’ backside but you could still see Piyush’s lips moving.

Barfield worked as president and chief operating officer for the Shaw Group until becoming Jindal’s first secretary of the Louisiana Workforce Commission (formerly the Department of Labor) before being brought in to serve briefly as Jindal’s executive counsel.

While serving as secretary of the workforce commission, he helped Jindal to fight off legislators’ attempts to overturn Jindal’s rejection of $98 million in federal stimulus money for unemployment benefits–the first of hundreds of millions in federal dollars rejected by MIA Piyush.

Barfield left the administration in January of 2010 to become the chief development officer for Amedisys, a home health and hospice care company. Three months later, on March 17, he and Amedisys each contributed $5,000 to Jindal’s campaign and last December the company contributed another $1,000.

Barfield’s salary will be $250,000 a year, more than twice the $124,000 being paid Bridges and $83,000 more than the $167,000 per year he was earning in his last job in the administration. That $83,000 bump, by itself, could pay the salaries of a couple of laid-off state employees.

Because state law prohibits a cabinet member appointed while the legislature is not in session from making more than his or her predecessor, Jindal simply “created” through slick political subterfuge the position of executive counsel for the Department of Revenue and set the salary at $126,000 in addition to the $124,000 that was paid Bridges.

How’s that for transparency, openness and accountability?

But it does pose three intriguing questions:

• Since Barfield will now be his own legal counsel, does he have a fool for a client?

• Is the proposal to combine the positions of LSU president and chancellor being put on the table for the same reason as creating the position of executive counsel for Barfield—to double the salary for the new appointee to be named by Jindal’s rubber-stamp proxy, the LSU Board?

• And finally, is there any level to which this governor will not stoop to get what he wants, even to the point of circumventing the law?

BESE, meanwhile, apparently was unable to find anyone in Louisiana qualified for its executive director’s post despite Jindal’s oft-expressed desire to “keep the best and brightest in Louisiana.”

Heather Cope comes to us from Seattle, the same place where Jindal reached out and touched Bruce Greenstein for the position of secretary of Health and Hospitals.

Cope brings a boatload of qualifications, none of which would appear to apply to her new post. She reportedly has a desire to expose the problems in education, which led her to work for an education think tank, the prestigious League of Education Voters, which calls itself an advocate of systemic changes in public schools. Ever heard of it? Didn’t think so.

She also enjoys “immersing herself in foreign cultures (domestic and international).” So what, exactly would qualify as a “domestic” foreign culture? Other passions include watching historical dramas, quoting Monty Python sketches and giving lessons to co-workers on the proper use of hyphens.

The only thing missing to wrap up the Miss Congeniality title was world peace but there apparently was enough there to qualify her for a salary of $125,000 per year.

Most of the cabinet level positions pay more than the state’s top elected officials, including Jindal, receive in salary.

A quick review of a partial list of cabinet level salaries in the Piyush Jindal administration as reported by the Baton Rouge Advocate:

• Economic Development Secretary Stephen Moret: $320,000;
• Department of Health and Hospitals Secretary Bruce Greenstein: $236,000;
• Commissioner of Administration Paul Rainwater: $204,400;
• Department of Environmental Quality Secretary Peggy Hatch: $137,200;
• Louisiana Workforce Development Executive Director Curt Eysink: $137,000;
• Department of Corrections Secretary Jimmy LeBlanc: $136,700.
• Wildlife and Fisheries Secretary Robert Barham: $123,600.

And that doesn’t include the secretaries of Natural Resources, Department of Transportation and Development, Veterans Affairs, Commissioner of Higher Education, Superintendent of Education and all those former legislators (including two cabinet level positions—Veterans Affairs and Wildlife and Fisheries) appointed to all those six-figure income positions.

The more things change, the more they remain the same.

Laissez les bon temps rouler.

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Remember, ‘it’s not who you know but what you know’ in choosing board and committee members for most ethical, transparent and accountable administration in America

Posted in Boards, Campaign Contributions, Commissions, Economy, Education, Ethics, Governor's Office, Higher Education, Louisiana Purchase, LSU, Politicians, Public Records, Regents on August 15, 2012| Leave a Comment »

For one who insists—to the point of banality—that he has the job he wants, Gov. Piyush Jindal certainly spends a minimal amount of time doing it.

He also is the same Piyush Jindal who insisted that his appointments would be made on the basis of “what you know, not who you know.”

When you examine his appointments against campaign contributions, that second proclamation quickly takes on the same empty ring as the first. But those contributions do go a long way in explaining how he got that job that he loves so much.

Remember, Jindal also said the bulk of his contributions were in amounts of $100 or less. What he did not explain was that he was the talking about the number of contributions, not the amounts. The large contributions—$500 to $5,000—easily eclipsed the amounts given by small donors.

But extensive research by Capitol News Service shows that the high rollers, the big money backers, tended to garner highly desirable appointments to important boards and commissions—and in some cases, high-paying state jobs.

Appointees to six major boards or commissions produced more than $963,000 in campaign contributions to Jindal, according to campaign finance records.

So much for “what you know, not who you know.”

Those boards/commissions include:

• The LSU Board of Supervisors, possibly one of the more political of all the boards;
• The State Board of Regents for Higher Education;
• University of Louisiana System Board of Supervisors;
• State Board of Commerce and Industry;
• Louisiana Economic Development Corp. Board;
• Louisiana Stadium and Exposition District (Superdome) Board.

Following are some examples of Jindal’s appointments and their contributions, dating from his 2003 campaign for governor to July 31, 2012:

LSU Board of Supervisors

• Chester Lee Mallet, Lake Charles—$30,000 in personal contributions and contributions from five separate corporations;
• Scott Ballard, Covington—$5,000 from his company, WOW Café & Winery Franchising;
• Jack Lawton Jr., Lake Charles—$26,000 from Lawton, his company and family members;
• Robert “Bobby” Yarborough, Baton Rouge—$15,000;
• Garrett “Hank” Danos, Larose—$18,500 from Danos, his company and family members;
• Ray Lasseigne, Bossier City—$17,232 from Lasseigne and his company, TMR Exploration;
• Ben Mount, Lake Charles—$1,000 from his wife, then-State Sen. Willie Mount;
• James E. Moore of Monroe—$21,500 from Moore and his company, the Marriott Courtyard of Monroe;
• R. Blake Chatelain of Alexandria—$28,000 from Chatelain and his wife.

Louisiana Board of Regents for Higher Education

• Raymond J. Brandt of Metairie—$5,000
• Roy O. Martin of Alexandria—$17,000 from Martin, family members and his business, Roy O. Martin Lumber Co.;
• William “Bill” Fenstermaker of Lafayette—$20,500 from Fenstermaker and C.H. Fenstermaker & Associates;
• Chris Gorman of Shreveport—$20,000 from Gorman and his company, Tango Transport;
• Joe Farr of Monroe—$5,000;
• Ed Antie of Lafayette—$10,500 from Antie and his company, Network USA (Antie withdrew his nomination when it became clear he would not be confirmed by the Legislature because of a contract one of his companies had with the Regents—a conflict of interests.)
• Robert Bruno of New Orleans—$5,000;
• Charlotte Bollinger of Lockport—$52,850 from Ms. Bollinger, various other family members and seven different companies run by the Bollinger family;
• W. Clinton Raspberry Jr., of Shreveport—$10,000 through his two companies, W. Clinton Raspberry, Jr., Investments, and Crestview Woods Timber and Minerals;
• Roland Toups of Baton Rouge—$9,500;
• Joseph C. Wiley of Gonzales–$7,125 from Wiley and his company, the Excel Group.

University of Louisiana System Board of Supervisors

• E. Gerald Hebert of Kenner—$16,000;
• Jimmie “Beau” Martin, Jr., of Cut Off—$19,278 from Martin and his company, B&J Martin, Inc.;
• Carl Shelter of Lake Charles—$6,000;
• Jimmy Faircloth of Alexandria—$25,000 from Faircloth and his law firm (Faircloth was later appointed Jindal’s executive counsel);
• John LeTard of Zachary—$5,000;
• Andre Coudrain of Hammond—$30,000 from Coudrain and his law firm;
• Edward J. Crawford, III, of Shreveport—$11,000 from Edward Crawford, Edward J Crawford, III, of the same address, and Edward J Crawford, IV;
• Greg Hamer, Sr., of Morgan City—$16,750;
• Paul Dickson of Shreveport—$39,000 from Dickson and his pharmaceutical company.

Louisiana State Board of Commerce and Industry

• Richard Lipsey of Baton Rouge—$28,000 from Lipsey, his wife and his company, Lipsey Properties;
• R.K. Mehrotra of Baton Rouge—$6,000;
• Kevin Langley of Baton Rouge—$14,000;
• Millie Atkins of Monroe—$13,000 from CenturyTel, for whom she is employed as a corporate communication associate;
• Lance B. Belcher of Baton Rouge—$20,000 from Belcher and three of his companies;
• Bryan L. Bossier, Sr., of Woodworth—$33,500 from Bossier, his wife, Phillip Bossier of the same address and two of his companies;
• Gorgon Burges of Amite—$9,000;
• Mark Delesdernier, Jr., of New Orleans—$5,500 from Delesdernier and Fiver Marine Services, for whom he serves as chief executive officer;
• P. Andre Fruge of Lafayette—$1,000;
• Richard A. Gonsoulin of Houma—$31,000 from Gonsoulin, family members and his company, Lebeouf Brothers Towing;
• Ronnie Harris of Gretna—$1,000;
• Jerry N. Jones of Shreveport—$11,000 from Jones and his law firm;
• William V. “Bill” King of Lake Charles—$10,000;
• Marty A. Mayer, Jr., of Covington—$5,000 from his company, Stirling Properties;
• Stephen Moret of Baton Rouge, Secretary of the Louisiana Department of Economic Development—$2,000;
• Gale Potts Roque of Natchitoches—$5,000 from Mac-Re, LLC, for whom she is employed as government relations and property manager;
• Charles J. Soprano of Alexandria—$13,000;
• Greg Walker of Baton Rouge—$6,000.

Louisiana Economic Development Corp. Board of Directors

• Mike Saucier of Covington—$7,000 from Saucier and his company, Gulf States Real Estate;
• Rob Stuart, Jr., of Baton Rouge—$11,000;
• Harry Avant of Shreveport—$5,000;
• A.J. Roy, III, of Marksville—$8,750;
• Thomas A. Cotten of Baton Rouge—$500;

Louisiana Stadium and Exposition District (Superdome) Board of Commissioners

• Robert Bruno of New Orleans—$28,500 from Bruno, his wife and his law firm;
• Davie Chozen of Lake Charles—$18,238 from Chozen and his company, Chozen Business Services;
• Tim Coulon of Harvey—$7,500 from Coulon’s political campaign and Coulon Consultants;
• Ron Forman of New Orleans—$2,000;
• Julio Melara of Baton Rouge—$25,500 from Melara and Rolfe McCollister, Jr.; Melara is president and McCollister is publisher of the Baton Rouge Business Report;
• William C. “Bill” Windham of Bossier City—$25,000 from William and Carol Windham;
• William Henry Shane, Jr., of Kenner—$21,000 from Shane and his architectural firm;
• Mike Polito of Baton Rouge—$20,000 contributed through three of his companies;
• Dave Roberts of Baton Rouge—$10,000;
• John Amato of New Orleans—$15,000 from Amato and his wife;
• Peter Egan of Covington—$19,400 from Egan and five of his companies;
• Ed Markle of New Orleans—$17,000 from Edward and Gloria Markle and two of his companies.

There are many others but space does not permit running all at one time. We will have follow-up stories detailing other major contributors who received appointments from Jindal.

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LouisianaVoice set to launch online newspaper ‘Louisiana Free Press’ to be devoted exclusively to state political news

Posted in Attorney General, Auditor, BESE, Boards, Civil Service, Commissions, Contract, Contracts, Education, Ethics, Governor's Office, Health Care, Higher Education, House, Senate, Jobs, Legislature, Legislators, Lobbyist, Politicians, Privatization, Public Records, Recovery School District, Regents, Retirement, Revenue, State Agencies, Taxes, Transparency, Veto, Vouchers, Waste on August 10, 2012| 19 Comments »

LouisianaVoice will soon have a sister publication in the form of an online state newspaper, according to publisher Tom Aswell.

The new feature, which will be published online in newspaper format, will be a weekly publication geared exclusively to Louisiana political news.

“This will be a free-subscription publication because we want everyone in Louisiana—and elsewhere—to have access to what elected and appointed officials are doing that affect the daily lives of Louisiana’s citizens,” Aswell said.

The name of the new publication will be Louisiana Free Press and will be accessible via the link http://www.louisianafreepress.com, Aswell said.

Louisiana Free Press will be supported 100 percent by advertising revenue and our coverage will be broadened from publishing a single story at a time. There will be multiple stories posted each Friday and the coverage will vary greatly.

Several writers will be contributing coverage of many more agencies than have historically been covered by LouisianaVoice.

These writers will be covering the Louisiana Supreme Court proceedings, Louisiana Attorney General opinions, audit reports of all state and local agencies as they are provided by the Legislative Auditor’s office. Moreover, coverage of agencies will be increased—agencies like the Department of Health and Hospitals, Department of Environmental Quality, Department of Natural Resources, Department of Wildlife and Fisheries, and the Department of Education, the Board of Elementary and Secondary Education, Board of Regents, University of Louisiana System Board of Supervisors and the Public Service Commission, the governor’s office, the lieutenant governor, state treasurer and the legislature, as well as other more obscure state boards and commissions.

“We feel it is important that Louisiana’s citizenry remain informed about what their public officials are doing in Baton Rouge, New Orleans and elsewhere,” Aswell said.

“This is an ambitious endeavor but for too long, too many agencies, board and commissions have operated under the radar of the media,” Aswell said. “We anticipate that is about to change.

“That is not to say that everything we write will be of an investigative nature or that each story will be some major exposé. Most will be of a routine nature but will provide news otherwise not available to the public.”

LouisianaVoice will issue further updates as the schedule for launching Louisiana Free Press develops.

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Jindal administration in lock-step with national GOP privatization addiction

Posted in Boards, Campaign Contributions, Commissions, Governor's Office, House, Senate, Legislature, Legislators, OGB, Office of Group Benefits, ORM, Office of Risk Management, Prison, Privatization, RFP, Request for Proposals, Taxes, Transparency on March 1, 2011| 3 Comments »

Could it be mere coincidence that the word privatize sounds a lot like privateer?

Remember the clamor to privatize Social Security? Advocates wanted Americans to be allowed to control their own retirement money by investing it in the stock market. To many, it seemed like a good idea at the time.

Fortunately, calmer heads prevailed and all the privatization rhetoric quieted, its disappearance pretty much coinciding with the collapse of several Wall Street investment banking firms and the subsequent trillion-dollar congressional bailout. Millions of Americans saw their 401k funds evaporate. Suddenly, social security privatization didn’t seem like such a hot idea.

Despite that, Gov. Bobby Jindal espouses what he considers a panacea to the state’s fiscal woes: privatization. Even if state property must be sold and the fate of thousands of state workers, along with their retirement and health benefits, are thrown into jeopardy, privatize. In that regard, he is in lock-step with Republican governors all over the U.S.

The answer to every fiscal ill that beleaguers the state is privatization, according to Jindal. Sometimes privatization can even extend into the already private sector, especially if state help for private enterprise through Jindal’s economic development air program happens to benefit campaign contributors.

LaShip, owned by Gary Chouest, was the direct beneficiary of Jindal’s $10 million investment in state funds for expansions to the Port of Terrebonne in 2008. Chouest, his businesses, which also include Chouest Offshore and C-Logistics, and his family members made a minimum of 18 campaign contributions to Jindal totaling $85,000. The funds came from a $1.1 billion state surplus. Ironic, given that the state today is faced with a $1.6 billion deficit.

Then, of course, there is the infamous chicken plant in Union Parish.

When Pilgrim’s Pride decided to close its plant in Farmerville, Jindal scurried to find a buyer for Pilgrim founder Lonnie “Bo” Pilgrim. California-based Foster Farms eventually purchased the plant after the state put up $50 million. Lonnie Pilgrim and Foster Farms both contributed generously to Jindal’s campaign.

Anyone who has followed Jindal should not be surprised. More than 200 key Jindal appointees combined to contribute more than $784,000 to his campaign.

Coincidence, says Jindal Press Secretary Kyle Plotkin who added that those contributors supported Jindal’s plans for reforming Louisiana and for improving the state’s image.

Nor does Jindal consider his repeal of the Stelly Plan in 2008 to be detrimental to the state’s financial well-being even though experts said the action would create a $350 million revenue loss in the first year, 2009. The Stelly Plan was approved by a majority of Louisiana voters but Jindal repealed it, saying his action would save single income tax filers as much as $500 a year and joint filers $1,000. That sounded great until one peeled back the layers and found that the $500 savings would be realized only by single filers making as much as $90,000 a year and to save $1,000, joint filers would have to make more than $150,000 per year.

Louisiana’s median household income was $43,635 in 2010.

It was little more than a year ago, in January 2010, that then-Commissioner of Administration Angelé Davis released the highlights of the administration’s “streamlining measures implementation plan.” Among those highlights were a 10 percent reduction in the numbers of cars in the state’s automobile fleet, sale of unneeded state property, better contractor oversight, and the establishment of a “Privatization and Outsourcing Unit” within the Division of Administration (DOA) “to serve as a resource for all departments and agencies for identifying and implementing appropriate privatization and outsourcing initiatives.”

To that end, the report said a Request for Proposals (RFP) had already been issued by the Office of Risk Management (ORM) “to evaluate the potential cost savings and/or service improvements with outsourcing the claims management and loss prevention services for all lines of coverage to a private company.”

The privatization of ORM was, in fact, accomplished when Mandeville-based F.A. Richard and Associates (FARA) was awarded the contract to take over operations of the agency, beginning with its Workers Compensation unit. The phased-in takeover is scheduled to be complete in 2013 at a cost of $68 million under terms of FARA’s contract with the state.

Proposals were taken on the privatization of at least one other agency but none of the proposals were attractive enough to gain administration approval.

No matter. Even without waiting to see if the privatization of ORM proves to be a wise move, Jindal is plunging ahead in his efforts to privatize other agencies, including state prison facilities, the Office of Group Benefits (OGB), and, if you watch what’s been going on with charter schools, public education.

As was the case of ORM, the privatization of any state agency would require the concurrence of the State Legislature. With recent party switches by several legislatures, Jindal now enjoys a Republican majority in both the House and Senate.

Privatization has already been tried once with less than satisfactory results.

OGB, beginning on July 1, 2003 offered state employees the option of selecting a Managed Care Option (MCO) administered by FARA, the same firm that is in the process of taking over ORM. A state audit later revealed that FARA was paid $8.6 million more than its $20 million limit, a 43 percent cost overrun.

OGB has since terminated its contract with FARA.

State Sen. Butch Gautreaux (D-Morgan City) has gone on record as opposing the privatization of OGB.

“I am very concerned about the governor’s efforts to sell off OGB,” Gautreaux said in an email. “I sit on the (OGB) board and attend the meetings. We’ve developed a reserve of over $500 million and again the governor is looking at raiding those funds for short term and recurring expenses. This will be a catastrophic move,” he said.

The privatization of state prisons also is also a matter of concern.

DOA recently published a request for information on the privatization of state correctional facilities in Allen and Winn parishes. Both facilities, while state-owned, are presently managed by private firms from Nashville, TN., and Boca Raton, FL.

Figures obtained from DOA show that it presently costs the state about $17.5 million per year to pay the two firms to operate the facilities in Allen and Winn. Avoyelles Correctional Center, which was built from the same architectural plans as those in Winn and Allen and which is state-operated, presently costs about $26 million per year.

The obvious questions then become how can a private company in business to make a profit do so without charging a higher per diem and how can the private companies operate Winn and Allen at one-third less cost than the state spends to run Avoyelles?

Simply put, the private firms pay their employees much less than the state pays its corrections officers. That alone is a major cause for concern among employees of facilities run by the state that might be privatized sometime down the road.

Private firms also offer less in the way of rehabilitation and educational programs. Basically, they operate on the concept of lock and feed. Moreover, because the prisoners will still be the state’s responsibility, the state would continue to bear the cost of prisoners’ medical care. Tough-on-crime types might question the need of rehabilitation and educational programs, being of the “lock-‘em-up-and-throw-away-the-key mindset but medical care can’t be denied.

That might be good for the hard-liners but that philosophy wouldn’t seem to do much to discourage repeat offenders and that flies in the face of Jindal’s highly-touted press release a couple of weeks ago when he boasted that the state’s recidivism rate for first- and second-year prisoners dropped by 33 percent under his administration. It’s the moral equivalent of Jindal’s having his cake and eating it, too.
Privatization necessarily goes against the grain of his stated objective of assimilating prisoners back into society through education and occupational training. He can’t privatize and expect lower recidivism rates, too.

Projecting the current rate of $31.51 per-day per-prisoner now paid parish sheriffs to house state prisoners over the 20-year contract sought by the Department of Public Safety and Corrections, the state would pay a private firm upwards of $700 million. Jindal appears ready to trade that obligation for $66 million in up-front cash sought from the sale of the Allen and Winn facilities.

That $700 million is roughly the same amount the state would pay if it continued to pay the two private firms to operate the facilities. But at least the state would still own the facilities.

But there remains one other factor to toss into the equation that no one has talked about.

While the state is paying $31.51 per day to house its prisoners in the local jails, the federal government is paying upwards of $50 per day to house illegal immigrants.

Given the choice of earning an extra $18.49 per day, a 58.7 percent bump, a lot of sheriffs will opt for the economic consideration of tossing out the state prisoners in favor of dealing with the feds. Where would that leave the state if it has no facilities of its own?

There’s no reason to think that a private firm, once it purchases the state facilities, would not do the same thing when its contract with the state comes up for renewal and the state would have no choice but to acquiesce.

Jindal has also mentioned the possibility of selling several state buildings—buildings that, ironically, were constructed less than a decade ago in an effort to get state offices out of paying rent on privately-owned office space—and of drawing on future State Lottery proceeds.

That would put the state in the position of paying for the buildings twice—all for the sake of obtaining one-time revenue for recurring expenses, according to House Appropriations Committee Chairman Jim Fannin (D-Jonesboro). “We would still have to pay off the mortgage on the buildings while we paid rent to the new owners,” he said.

Privatization has become Jindal’s addiction and he is acting like a desperate street junkie willing to do just about anything to get a quick fix.

And as with the case of all addicts, that can be a dead-end street.

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Bored but can’t sleep? Try counting Louisiana boards

Posted in BESE, Boards, Business, Campaign Contributions, Commissions, Education, Governor's Office, Retirement, Revenue, Transparency on January 24, 2011| 2 Comments »

When attempting to ferret out the hidden costs of state government, one can quickly become board, as in more than 500 boards and commissions—complete with more than 6,000 members.

Alabama, which has 250,000 more people than Louisiana, according to the 2010 Census, has only 25 boards and commissions. Texas, with five times Louisiana’s population, makes do with 110 though it, too, has a glut of education boards with 11.

But back to Louisiana where individual board and commission membership ranges from as few as two to as many as 164.

Sheer logistics makes compiling even a rough cost estimate for office space, utilities, member per diem and mileage payments, or staff salaries virtually impossible. There is, however, sufficient evidence of overlap and duplication to warrant scrutiny, especially in the face of budgetary shortfalls predicted to be as much as $1.6 billion for the coming fiscal year.

There are the usual suspects: the education and retirement boards.

Louisiana somehow has always seen fit to have several education boards:

The Board of Elementary and Secondary Education (BESE), the LSU Board of Supervisors; the Board of Regents for Higher Education; the University of Louisiana Board of Supervisors; the Southern University Board of Supervisors, and more recently, the Community and Technical Colleges Board of Supervisors.

So, why do LSU and Southern warrant their own separate boards? Why is there a need for both a University of Louisiana board (formerly the Board of Trustees for State Colleges and Universities) and a Board of Regents? No one has ever answered that question but each has its very own office space, board members, and staff.

But wait. While much has said about those boards, Louisiana also has the Academic Advisory Council; the Adult Learning Task Force; the Education Estimating Conference (how does one estimate education?); the Louisiana High School Redesign Commission; the Local Education Governance and Administration Task Force, and the Home Instruction Program for Preschool Youngsters (HIPPY) Advisory Board.

Or, how about the Municipal Employees’ Retirement System Board of Trustees; the Municipal Police Employees’ Retirement System Board of Trustees; the School Employees’ Retirement System Board of Trustees; the Louisiana State Employees’ Retirement System Board of Trustees; the State Police Retirement Fund, and the Public Retirement Systems’ Actuarial Committee? And just what is the difference between the Louisiana Retirement Development Commission and the Commission on Public Retirement?

The legalization of gambling in Louisiana produced another whole line of boards. We have the Louisiana Gaming Control Board; the Louisiana State Lottery Corporation Board of Directors; the Louisiana State Racing Commission; the Bossier Parish Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Board; the Calcasieu Parish Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Board, and the St. Landry Parish Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Board.

Then we have the Louisiana Children’s Cabinet; the Children’s Cabinet Advisory Board; the Children’s Cabinet Research Council; The Louisiana Children’s Trust Fund; the Child Care and Development Block Grant Advisory Council; the Louisiana Advisory Committee on Licensing of Child Care Facilities and Child Placing Agencies; the Child Death Review Panel; the Commission on Peri-natal Care and Prevention of Infant Mortality; the Governor’s Advisory Council on Safe and Drug-Free Schools and Communities, and the Select Committee on Women and Children.

Under the Louisiana Department of Agriculture and Forestry, there are a multitude of boards and commissions. These include:

The Agriculture Finance Authority; the Agricultural Commodities Commission; the State Market Commission; the Louisiana Feed Commission; the Louisiana Fertilizer Commission; the Louisiana Forestry Commission; the Livestock Sanitary Board; the Livestock Brand Commission; The Dairy Industry Promotion Board; the Dairy Stabilization Board; the Aquaculture Coordinating Council; the Aquatic Chelonian (turtle) Research and Promotion Board; Oyster Task Force; the Oyster Lease Damage Evaluation Board; the Fur and Alligator Advisory Council; the Identity Task Force of Seafood Standards; the Catfish Promotion Board; the Louisiana Pork Promotion Board; the Sweet Potato Advertising and Development Commission; the Louisiana Egg Commission; the Rice Promotion Board, and, of course, the Rice Research Board.

And how could we ever forget the Boll Weevil Eradication Commission?

In sheer numbers, however, none can top the various levee, port, and sundry water boards and commissions. How could we ever function without them?

Check ’em out:

The Bayou DeSiard Lake Restoration Commission; the Bayou Lafourche Fresh Water District; the Lafourche Basin Levee District Board of Commissioners; the Capital Area Groundwater Conservation District Board of Commissioners; the Cane Waterway Commission; the Ground Water Resources Commission; the Ground Water Management Conservation District Board of Directors; the Groundwater Management Advisory Task Force; the Morehouse Parish Lake Commission; the Poverty Point Reservoir District Board of Commissioners; the West Ouachita Parish Reservoir Commission; the Allen Parish Reservoir District Board of Commissioners; the Washington Parish Reservoir Commission; the White Lake Property Advisory Board; the Bayou D’arbonne Watershed District Commission; the Sparta Groundwater Conservation District; the Amite River Basin Drainage and Water Conservation District Board of Commissioners; the Waterways Infrastructure Bank Board of Directors; the Southern Louisiana Drinking Water Study Commission; the Lake Charles Harbor and Terminal District Board of Commissioners; the Morgan City Harbor and Terminal District Board of Commissioners; the Millennium Port Authority; the South Tangipahoa Parish Port Commission; the Greater Ouachita Port Commission; the Krotz Springs Port Commission; the Port of Greater Baton Rouge; the Port of New Orleans Board of Commissioners; the Red River Port Commission; the Red River Compact Commission; the Red River Development Council; the Red River Waterway Commission; the Red River; Atchafalaya and Bayou Boeuf Levee District Board of Commissioners; the Red River Levee Drainage District Board of Commissioners; the Sabine River Authority Board of Commissioners; the Sabine River Compact Administration; the Southeast Louisiana Flood Protection Authority East; the Southeast Louisiana Flood Protection Authority West; the Morgan City; Berwick Port Pilot Commissioners and Examiners; the River Port Review and Oversight Board; the River Port Pilot Commissioners and Examiners for Port Fouchon Board; the River Port Pilot Commissioners and Examiners Board (Calcasieu); the River Port Pilots for the Calcasieu Bar; Pass; and Main Ship Channel to Lake Charles Orange; Texas Board; the River Port Pilot Commissioners for the Port of New Orleans Board; the River Port Pilots for the Intracoastal Canal; the New Orleans and Baton Rouge Steamship Pilots Association; the New Orleans-Baton Rouge Steamship Pilots Examiners for the Mississippi River Board; the Lafourche Basin Levee District Board of Commissioners; the North Lafourche Conservation Levee and Drainage District; the South Lafourche Levee District Board of Commissioners; the Lafitte Area Independent Levee District; the Lake Borgne Basin Levee District Board of Commissioners; the Bossier Levee District Board of Commissioners; the North Bossier Levee District Board the Caddo Levee District Board of Commissioners; the East Jefferson Levee District Board of Commissioners; the Fifth Louisiana Levee District Board of Commissioners; the Pontchartrain Levee Board; the Board of Levee Commissioners of the Orleans Levee District; the Nineteenth Louisiana Levee District Board of Commissioners; the St. Mary Levee District Board of Commissioners; the Natchitoches Levee and Drainage District Board of Commissioners; and the Terrebonne Levee and Conservation District Board of Commissioners.

Thank goodness the state took steps to merge redundant levee boards after Hurricane Katrina.

But just for good measure, we have the:

• Aviation and Military Museum of Louisiana Board of Directors;
• Military Hall of Fame and Museum Governing Board of Directors;
• Military Museum Governing Board;
• Kenner Naval Museum Commission;
• Governor’s Military Advisory Board;
• Military Advisory Commission;
• Military Family Assistance Board;
• Veterans Affairs Commission;
• Louisiana Diabetes Advisory Council;
• Louisiana Diabetes Initiative Council;
• Joint Legislative Juvenile Justice Commission;
• Governor’s Advisory Board of Juvenile Justice and Delinquency Prevention;
• Juvenile Justice Reform Act Implementation Commission;
• Florida Parishes Juvenile Justice Commission;
• Task Force on Legal Representation in Child Protection Cases;
• Integrated Criminal Justice Information System Policy Board;
• Life Safety and Property Protection Advisory Board;
• Louisiana Commission on Law Enforcement and Administration of Criminal Justice;
• Law Enforcement Executive Management Institute Board;
• Louisiana State Police Commission;
• Louisiana Sentencing Commission
• Pardon Board;
• Parole Board;
• Louisiana Commission on Uniform State Laws;
• Forensic Strategic Task Force;
• Domestic Violence Law Enforcement Training Task Force;
• Governor’s Task Force on DWI-Vehicular Homicide;
• Homeland Security Advisory Council;
• State Council for Interstate Adult Offender Supervision;
• Louisiana Law Institute;
• National Consortium for Justice Information and Statistics;
• Council on Peace Officer Standards and Training;
• Interagency Council on Prevention of Sex Offenses;
• Sexual Assault Task Force;
• Eastern New Orleans Interstate Oversight Commission;
• Greater New Orleans Expressway Commission;
• Senate Select Committee for Oversight of Greater New Orleans Expressway Commission;
• Louisiana Byways Commission;
• Manchac Parkway Commission;
• Mississippi River Parkway Commission;
• Mississippi River Road Commission;
• Mississippi River Bridge Authority;
• Crescent City Connection Oversight Commission;
• Highway 1 Task Force;
• I-49 North Extension Feasibility and Funding Task Force;
• I-49 South Project Task Force;
• Ouachita Expressway Authority;
• River Parishes Transit Authority;
• Southern Rapid Rail Transit Commission;
• Incentives for New Ventures and Economic Stimulation (INVEST) Commission;
• Louisiana Investment in Infrastructure for Economic Prosperity Commission;
• Louisiana Economic Development Corporation;
• Economic Estimating Conference;
• North Louisiana Economic Development Board;
• Louisiana Prosper Commission;
• Small Business Entrepreneurship Commission;
• Louisiana Workforce Commission;
• Louisiana Workforce Investment Council;
• Occupational Forecasting Conference;
• Greater New Orleans Biosciences Economic Development District Board of Commissioners;
• Legislative Budget Control Council
• Revenue Estimating Conference;
• Small Business Task Force;
• Small Business Compliance Advisory Panel;
• Solution to Poverty Network Council;
• Southern Growth Policies Board;
• Workforce Competitiveness Task Force;
• Louisiana Commission on Marriage and Family;
• Life Management and Marriage and Relationship Skills Course Study Task Force;
• Marriage/Family Therapy Advisory Committee

All this has given me a migraine so if you will excuse me, I think I’ll go lie down now. There’s probably a board or commission or a study task force for that.

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