Feeds:
Posts
Comments

Archive for the ‘Budget’ Category

ff3983c8e6102e450f2cf54fe91d2ce9_jno7[1]

CLICK ON IMAGE TO ENLARGE

Alvarez & Marsal, Gov. Bobby Jindal’s favorite consulting firm, has submitted invoices totaling more than $2.1 million thus far, accounting for a tad more than the firm’s $5 million contract to ferret out $500 million in savings to the state, according to documents provided by the Division of Administration.

And so far, all taxpayers have to show for that is a 2 ½ page preliminary report provided to legislators earlier this month recommended $74 million in spending cuts, some of which have already been rejected by the administration.

A&M’s invoices included an $80,000 charge for an assessment of the Office of Group Benefits (OGB) conducted in December at the specific request of Commissioner of Administration Kristy Nichols.

But…but…but didn’t the administration conduct a full blown assessment of OGB before it made that decision to privatize the agency a couple of years ago? Is this administration determined to study and consult this state into financial oblivion?

And speaking of OGB, that $500 million reserve fund it had when Jindal came up with the bright idea of privatization—an economy move, he said; it would save the state gazillions—has shrunk like hemorrhoids in a Preparation H commercial and both the Legislative Fiscal office and the Legislative Auditor’s office are projecting an end of year balance of only $55 million or so.

And Jindal’s ploy of reducing premiums—the by-product of that action being that it would also reduce the state’s portion of premiums by 9 percent, freeing up money Jindal would use to patch yet another state budget—has now done a 180 with the word going out this week that premiums for state employees and retirees and their dependents will be increased by 5 percent, effective July 1.

Talk about your voodoo economics…

So why blow $80,000 to conduct the OGB “assessment when the Legislative Fiscal office and/or the Legislative Auditor’s office would probably have performed the same service for free.

Wait…they did already.

Yep, both conducted their own separate assessment and came up with remarkably similar numbers for the anticipated reserve fund reduction by the end of 2014. The picture isn’t pretty and no consultant’s study is going to change that.

Legislative Auditor Daryl Purpera said the reserve fund is currently being reduced by about $17 million a month and even with the 5 percent premium increased announced by the administration, the drawdown will be reduced by less than half—$7 million, leaving the monthly deficit at $10 million a month.

Nichols, in typical fashion, continues to spout the party line, assuring us that everything is peachy and the fund is in no danger of going broke. So now with this prediction coupled with previous pronouncements, we now know her to be a legal authority, an economist, an actuary and a wellness expert. Given her track record, we should be worried, very worried.

But we digress. Back to those A&M invoices and the firm’s recommendations.

In case there may be those whose memories are short, A&M is the same firm that Jindal hired last year to come up with his brainstorm of eliminating state income taxes, a plan that crashed and burned before ever lifting off.

It’s also the same firm that advised the Orleans Parish School Board to fire 7,500 teachers after Hurricane Katrina, an action that prompted a class action lawsuit which in return produced a judgment in favor of the teachers that could end up costing the state $1.5 billion.

So, what did that 2 ½ page preliminary report contain? Oh, great things, like requiring women on Medicaid to use midwives or doulas for delivery (these would be women who often go without prenatal care), finding jobs for prison inmates, cutting the thickness of asphalt in future highway overlays, and cutting back hours of operation for the Cameron Parish ferry.

It didn’t take Jindal long to cave to pressure to keep the ferry open.

Scratch that big savings.

Then Jindal decided against a plan not part of the A&M recommendations, that of closing 18 motor vehicle offices throughout Louisiana.

Out with that savings plan.

Now, having already been paid 40 percent of its contract amount, A&M still has not submitted the overall plan for saving $500 million—a plan originally given the deadline of April 30 but extended to the end of May.

That gives A&M three days to come up with an additional $426 million in savings.

Could it be that the one-month extension was timed to have A&M submit its savings plan only hours before the legislature adjourns on Monday, thus giving lawmakers no opportunity to review the plan or to offer any input of their own?

With this governor, stranger things have happened.

 

Read Full Post »

“We’re taking money away from the disabled community and giving it to motor sports?”

—State Sen. Dan Claitor (R-Baton Rouge), questioning the transfer of $4.5 million for the developmentally disabled to fund repairs to an auto race track in Jefferson Parish.

“The answer to your question, Sen. Claitor, is ‘yes.’ All right, any other questions?”

—State Sen. Jack Donahue (R-Mandeville), chairman of the Senate Finance Committee, in his response to shut down discussion of the move and to silence Claitor.

 

Read Full Post »

The best thing about blogging is that we are not bound by the constraints of pseudo-objectivity as are the reporters for your local daily. Every post for us is an op-ed piece in which we are free to express our disgust with or enthusiasm for people and events.

At this stage of the 2014 legislative session in Baton Rouge, we tend to get a little confused so excuse us if we can’t quite remember if it was Billy Wayne Shakespeare or Forrest Gump who said, “Stupid is as stupid does.” Despite the rapid onset of CRS Syndrome, we have no trouble or hesitancy in calling something—or someone—stupid if that is the way we perceive it.

And sometimes we are willing to go a step further in injecting words like “corruption,” “duplicity,” “sleaze” (we especially like that one), or even “malfeasance.”

And so it is that after receiving a heads-up from our friend and fellow blogger C.B. Forgotston, we employ each of these adjectives in describing the actions of the Senate Finance Committee on Sunday after 10 of its 11 members (Sen. Dan Claitor was the lone member to cling to his principles) discarded their oaths of office—their sworn duty to protect the interests of the people of Louisiana—in favor of political expedience of the very lowest sort by ripping $4.5 million from the budget for Louisiana’s developmentally disabled and allocating the money for a Verizon IndyCar Series race at the NOLA Motorsports Park in Jefferson Parish.

It’s bad enough that this state, thanks to the idiotic fiscal foolishness of Gov. Bobby Jindal, is so deep into the financial dumpster but still places a priority to lavishing millions of dollars on things like something called an IndyCar Series race, but to take that money from developmentally disabled citizens who so desperately need state services just to survive is nothing short of criminal.

Jindal, while traipsing all over the country with his goofy grin, rejects expansion of Medicaid that might alleviate some of the suffering, and after vetoing last year’s appropriation of extra funding to help shorten the waiting list for services for the developmentally disabled, now displays the sheer callousness, or stupidity, of committing to find the money for facility and track improvements. http://www.auctioneer-la.org/Disable_to_Racetrack.mp3

That’s correct. He made a commitment to the owners of the facility to drop $4.5 million on them. And who benefits from this largesse? The state? Teachers? Health care? State employees?

You can check those boxes no, no, no and no. A privately owned auto racetrack would be the correct answer.

Our first impulse was to plunge into the campaign contributions of campaign fund abuse poster boy Republican Sen. John Alario of Westwego in Jefferson Parish, president of the Senate. The whole deal just had that smell to it.

But, no, that was not the connection. His contributions from the principals were negligible in the overall scheme of things—something in the area of $3,500. That’s not enough to pay for one of Alario’s legendary meals at a fancy New Orleans eatery or to pay for one of his luxury boxes at the Superdome.

Nor were there any contributions to any of the Finance Committee members from NOLA Motor Club, LLC., operators of the raceway.

Our next step was to check in with the Secretary of State’s web page and conduct a corporations search for NOLA Motor Club, LLC. Voila! Whose name should pop up as one of the principals? Laney Chouest, that’s who.

So, who is Laney Chouest, you ask?

Well, he also showed up as an officer in a few other corporations run by the politically active Chouest family of Galliano. Their main business is in shipbuilding and marine transportation and Laney Chouest was listed as an officer in Edison Chouest Offshore, Inc., Alpha Marine Service Holdings, LLC., and Beta Marine Services, LLC., to name only three.

So, armed with that information we did a campaign contribution search of only the last name of Chouest and we hit the mother lode.

Between 2007 and 2010, members of the Chouest family and their various businesses contributed a whopping $106,500 to Jindal.

Laney Chouest was active in the political arena during that same period, contributing tens of thousands of dollars to minor candidates, but he was smart—or lucky—enough to stay away from Jindal and members of the Senate Finance Committee, thus making the direct link difficult.

The question then becomes why the hell is the state bailing out this family, which can well afford to make its own updates and repairs to the racetrack? Why indeed.

To take money from Louisiana’s very most unfortunate citizens and hand it to the Chouest family on a silver platter is not only unconscionable, reprehensible, irresponsible, immoral, or whatever other appropriate word you may wish to invoke in condemning this classic example of political corruption, it should be criminal and should carry the same penalties as embezzlement, public bribery or child abuse.

Instead of retreating to reality TV, those of us fortunate enough to have mentally and physically healthy children, siblings, parents and spouses should take a few minutes and consider the plight of our neighbors who are not so fortunate. They are the ones who can never enjoy dining out in a restaurant, going to a movie, taking family vacations or watching your reality shows because providing care to family members in dire need is a full time job without the downtime of cheering for LSU, Southeastern or ULL in this year’s regionals, super regionals or College World Series.

Extreme? Strident? Outraged? Damn right, hell yeah on all three.

The oath of office our elected officials take comes with a huge responsibility to place the welfare of our citizens uppermost above all else. Jindal and 10 members of the Senate Finance Committee have turned their backs on that promise by once again knuckling under to our absentee governor (and demanding this appropriation on his part) and in so doing, have committed the most disgraceful form of malfeasance.

Accordingly, here are the names of the 11 members of the Senate Finance Committee, how they voted on the amendment to take the $4.5 million away from the developmentally disabled, and their email addresses—just in case you might have something to add to what’s already been said here.

Sen. Jack Donahue (Chairman) (YES)R-Mandeville  donahuej@legis.la.gov
Senator Norbèrt N. “Norby” Chabert (Vice-Chairman) (YES) R-Houma  chabertn@legis.la.gov
Senator R.L. “Bret” Allain, II (YES) R-Franklin  allainb@legis.la.gov
Senator Sherri Smith Buffington (YES) R-Keithville  smithbuffington@legis.la.gov
Senator Dan Claitor (NO) R-Baton Rouge  claitord@legis.la.gov
Senator Ronnie Johns (YES) R-Lake Charles  johnsr@legis.la.gov
Senator Eric LaFleur (YES) D-Ville Platte  lafleure@legis.la.gov
Senator Fred H. Mills, Jr. (YES) R-New Iberia  millsf@legis.la.gov
Senator Edwin R. Murray (YES) D-New Orleans  murraye@legis.la.gov
Senator Gregory Tarver (YES) D-Shreveport  tarverg@legis.la.gov
Senator Mack “Bodi” White (YES) R-Baton Rouge  whitem@legis.la.gov

Read Full Post »

By Dayne Sherman, guest columnist

Students are graduating from universities across Louisiana this May, and high school students are heading to college campuses this summer and fall. It’s an exciting time of year for students, parents, extended families, professors, and teachers. Nothing could be better.

But we need to be frank. Louisiana colleges and universities have been cut $700 million, 80 % of state funding since 2008. The tuition is increasing at an unsustainable and crippling rate, and many students will be strapped with student loan debt for decades to come.

This was done because Gov. Bobby Jindal doesn’t care about higher education for Louisiana residents and because his minions in the Legislature allowed him to steal from higher education in order to fund patronage from Shreveport to Port Sulphur. In fact, much of this patronage was devised as a way to pay off his cronies—often out of state—and garner future political favors. It doesn’t take an Albert Einstein to figure this out. Just read the newspapers.

The primary avenue to pay off the campaign favors and buy votes is through bloated consulting contracts. They keep Jindal’s as well as legislators’ supporters and campaign contributors happy, happy, happy.

But it’s time to stop the stupidity and fund higher education. We have students to educate and no funding to do so. Higher education has been starved while consulting contracts have been fed like meat hogs headed to market.

The only hope I see on the horizon is HB 142, a bill filed by Jerome “Dee” Richard (No Party-Thibodaux) and championed by Treasurer John Neely Kennedy (R-Madisonville). It calls for state agencies to cut 10 % from their contracting budgets and the $500 million saved to go to fund higher education. It’s a fair and fiscally conservative plan. The bill has sailed through the House, and now faces the big challenge: Gov. Jindal’s handpicked salons on the Senate Finance Committee. The committee meets on Monday, May 19 at 9:30 AM.

I believe passage of this bill is utterly essential to save public higher education in Louisiana.

There have been ongoing foes fighting Louisiana higher education. Sen. Jack Donahue (R-Mandeville), Chair of the Senate Finance Committee, is one example of someone who has done nothing for higher education. How he can pretend that he’s a supporter of the educational institutions in and around his district is a real mystery. It’s time for him to put up or shut up, and HB 142 is the test.

We have a chance to save higher education. Will Donahue and White stand with the people of his district or with Jindal and his cronies? We will know soon enough.

Dayne Sherman resides in Ponchatoula. He is the author of Welcome to the Fallen Paradise and expects the publication of Zion: A Novel in October. His website is daynesherman.com.

Read Full Post »

Just when you thought the news coming from this administration couldn’t possibly get any more dysfunctional…it does.

In fact, whatever semblance of logic this administration had remaining is fast circling the drain even as our governor attempts to push his agenda onto a national stage while leaving it to high-priced consultants and amateurs like Kristy Nichols to find solutions to mounting problems at home.

This is the same governor, Bobby Jindal, who recently told the graduating class at Jerry Falwell’s Liberty University that the entertainment industry’s intolerance is eroding the very foundation of America’s freedom—even as his Department of Economic Development continues to give away the store in the form of hefty tax incentives to….that very same entertainment industry.

As the Church Lady from Saturday Night Live would say, “Well now, isn’t that special?”

Earl Long might say it another way. He well may have been describing Jindal’s flexibility in spewing his political rhetoric to play to the views of his audience when he told Ruston Daily Leader fledgling reporter Wiley Hilburn in July of 1959 (only a couple of months before Long’s death) that Hilburn’s uncle, former Lt. Gov. C.E. “Cap” Barham, could “talk out of both sides of his mouth and whistle out of the middle at the same time.”

But bizarre as Jindal’s performance has been over the past six-plus years, he would be hard-pressed to surpass the downright preposterous laundry list of proposed cuts in spending rolled out on Monday by Nichols, serving as his proxy while he campaigns to be the Second Coming of Alfred E. Neuman.

All that was missing from Nichols’ theater of the absurd were the orange wig, red nose, big shoes and a seltzer bottle.

To say this administration is delusional is to be overly kind.

To refresh, you will remember that back in January, the administration signed a $4.2 million contract (quickly amended to $5 million in violation of state law requiring legislative concurrence on initial amendments greater than 10 percent) with the consulting firm of Alvarez & Marsal, charging the firm with finding $500 million in savings by April. Well, April has come and gone and now Nichols says the firm’s report will be a month late, now expected at the end of May.

Alvarez & Marsal (A&M), to further refresh the old memory banks, is the same firm that offered up the sage advice to the Orleans Parish School Board in December of 2005, only months after Hurricane Katrina, to fire 7,500 teachers, effective Jan. 31, 2006.

That little bit of economic wisdom may wind up costing the state $1.5 billion following a court decision in favor of the teachers who filed suit after being summarily fired.

A&M also is the same firm that recommended the privatizing of the LSU Medical Center in New Orleans (formerly Big Charity Hospital) in the voluminous Streamlining Commission report initiated during Jindal’s second year in office, thus sowing the seeds of Jindal’s ambitious privatization plan for LSU’s statewide system of hospitals.

And we all know how well that fared, don’t we?

According to friend and fellow blogger C.B. Forgotston, the preliminary report submitted by A&M last Thursday (May 8) was a whopping two and one-half pages in length ($2 million per page—by comparison, this post alone should be worth $10 million) and contained recommendations for only $74 million of the $500 million goal.

And now Nichols has come before the Senate Finance Committee to inform senators that “Every (cabinet) secretary signed off on the savings.”

Well, DUH! Of course they signed off on the proposals. They may be sycophants but they ain’t stupid. We know what happens to anyone in the state employ who might dare adopt a viewpoint at odds with Jindal. Obviously, these people who could never command comparable salaries in the private sector want to cling to their jobs like so many ticks in a hound dog’s ear.

But enough of the ancient history; let’s allow Jindal and A&M to demonstrate in their own words just how inane the future leader of the free world can be. Among the innovative ideas for saving the taxpayers $74 million are these jewels of pure brilliance:

  • Cutting back the hours of operation of the Cameron Parish ferry;
  • Circling employment ads for prison inmates;
  • Decreasing the thickness of asphalt on roadways;
  • Requiring pregnant women on Medicaid to use midwives or doulas for delivery;
  • Treating the partners of pregnant women in government health care programs for STDs.

Oh, we get it. Very funny. Kristy, you’re quite the card.

What? You’re serious?!!!?? No way! C’mon, guys; a joke’s a joke but now you’re starting to scare us. We’d rather hear something a little less scary—like finding the hook from the one-armed killer in the car’s door handle or about the water skier falling into a nest of water moccasins.

Okay, now sit back, Kristy, and take a reality check here. Where’s the proposal to prohibit offering six-figure salaries to washed-up politicians so they can occupy a desk for a few year to fatten their state pensions? We mean, even with motion sensor lighting, these guys are so useless that they inhabit darkened offices.

You want to cut the hours of operation of the Cameron Ferry from 24 to 16 or 18 hours and you want to cut the thickness of asphalt overlay in half—from two inches to one-inch? You say the two would save the Department of Transportation and Development (DOTD) $10.9 million?

Have you ignored the fact that the only detour along Highway 82 in Cameron Parish would require a drive of 120 miles?

You say Texas has already adopted a new material that allows that state to overlay roadways with one-inch-thick asphalt? Wonderful. Have you taken into account that the soil composition and consistency in Louisiana, particularly South Louisiana, is vastly different than that of Texas? To implement this foolish proposal would place an added onus on already over-burdened DOTD maintenance units when the thinner asphalt produces thousands of potholes that are certain to occur as the base beneath the asphalt deteriorates. If DOTD Secretary Sherri LeBas did agree to this idiocy as Nichols claims, she is grossly unqualified to head up the agency responsible for the construction and maintenance of the state’s roads and bridges.

Circling employment ads for prisoners? Gawd. For this, we’re paying A&M $5 million. We could have suggested that for a buck-fifty.

Nichols explained that the state intends to implement the program whereby low-risk prisoners in Orleans and Jefferson parishes would earn their keep by working by serving the latter portions of their sentences in minimum-security facilities such as parish prisons run by sheriffs and giving part of their paychecks to the prison operators to help pay for their room and board. She said that would save the state $9.4 million. How do you propose to keep the sheriffs honest in reporting actual salaries against what they report to the state? Just a thought.

Midwives and doulas for deliveries for pregnant women on Medicaid? Interesting concept. Has anyone thought of bringing back leeches? How about electric shock for mental illness? And willow bark for treating fever? And now, simply because they are on Medicaid, we propose to deny these expectant mothers the same childbirth facilities to which people like Kristy Nichols or Sherri LeBas or Kathy Kliebert might be privy?

And you propose to treat the sexual partners of pregnant women for STDs after the fact?

Beautiful, just bleeping beautiful.

This aberration of an administration, as we (borrowing a line from Three-and-a-Half Men) have said before, has all the emotional stability of a sack full of rats in a burning meth lab.

Even sadder is the fact that the legislature, in allowing this spoiled brat of a child Jindal to get away with his shenanigans, for failing so miserably to hold him accountable, isn’t far behind.

Read Full Post »

« Newer Posts - Older Posts »