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Archive for the ‘Budget’ Category

Bobby Jindal has completely lost touch with reality.

To be perfectly blunt, he is an imbecilic moron. (For those of you who think I should apologize for that characterization: okay, I’m sorry he’s an imbecilic moron.)

There, we’ve said it. We’ve tried to take the high road in our criticism of his actions and policies in the past but when he chooses to spend $2 million that the state does not have to build a monument that it does not need to his mentor who isn’t particularly memorable other than for the fact that he imposed and inflicted Bobby Jindal on the state, we can only throw up our hands in abject exasperation.

Our college and university physical plants are in desperate need of repairs and renovations—but there’s no money for that.

Most state employees have gone four years without pay raises because there’s no money.

The various state retirement plans have gigantic unfunded liabilities mostly because the state does not live up to its obligation to pay its share into those funds.

Higher education has been cut to the bone by this administration but there’s money to house the archives of former Gov. Mike Foster.

Our roads and highways are in deplorable condition—and there’s no money fix them. But we can erect a shrine to a former governor for the first time in the state’s history.

The administration has been conducting a fire sale of state property in order to raise one-time money to meet recurring expenses in an effort to plug a gaping deficit in the state budget but somehow we seem to need a museum for a governor who likes to ride a motorcycle without a helmet (and Lyndon Johnson once said that Gerald Ford played “too much football without a helmet.”)

Nearly a half-million people are without health care but Medicaid benefits have been cut.

What the hell?

Has anyone taken a look at some Jindal’s veto messages?

  • He killed a $190,000 appropriation for support services to the elderly;
  • He slashed $500,000 for the arts;
  • Appropriations for individuals with development disabilities in Jefferson Parish ($50,000), the Florida Parishes ($200,000), Capital Area ($200,000), the Metropolitan Human Services District ($50,000), the Northeast Delta ($50,000), Acadiana ($200,000), Calcasieu ($50,000), Central Louisiana ($50,000), Northwest Louisiana ($50,000): all vetoed because of a reduction to Medicaid utilization;
  • Continued operation of the Children’s Special Health Services Clinics across the state ($794,000);
  • Prevention and Intervention Services Program for the Family Violence Program ($1.17 million);
  • A $2 million reduction in the value of state contracts;

Yes, we are aware that these vetoes were from Act 1, the General Appropriations Budget and the $2 million appropriation for the Mike Foster Shrine comes from Act 2, the Capital Outlay Budget and yes, we know these are two different buckets. We know that, but waste is waste and payback is payback and this is both.

The state is spending the money to renovate the third floor of an old elementary school in Franklin (Foster’s home town) to house the archives of Jindal’s benefactor who served as governor from 1996 to 2004.

The first two floors of the former school building presently serve as the Franklin City Hall.

There are three very good reasons why the state should not be paying for this. One we’ve already mentioned: the state is broke, as in destitute—mostly because of Jindal’s penchant for giving away the store in the form of tax incentives, tax breaks and tax exemptions to business and industry and for the Louisiana Department of Economic Development’s designation of enterprise zones to businesses and industries, which awards more tax incentives even though the designation does not always translate to jobs.

The other two reasons are:

  • Mike Foster is a very wealthy man. If he wants to immortalize himself with a trophy room, let him pay for it.
  • Bobby Jindal should pay for it personally because he owes everything he has attained in his political life to the glaring blunder of Foster back in 1996: appointing Jindal head of the Department of Health and Hospitals at the tender age of 24 when he knew even less than he knows now about how things work.

The most absurd utterance of this entire sordid affair came from Foster himself when, in saying that the project came as a surprise to him, added, “I never liked to be the center of attention.” That ranks right up there with Jindal’s “I have the job I want.”

State Sen. Bret Allain (R-Jeanerette) said he included the project in the Capital Outlay Bill because he did not want Foster’s papers to be buried among a university’s collection, whatever that meant. Maybe he wants Foster to make him a governor the way he did Jindal.

No governor in Louisiana’s history has had his own library, museum or archives building. That’s what makes Jindal’s approval of Allain’s project so absurd—and outrageous and irresponsible.

Most Louisiana governors simply turn their papers over to the Secretary of State’s office where they are stored in the State Archives but Foster sent only those records involving state boards and commissions. Supposedly, everything else was taken to Franklin in a U-Haul towed by Foster on a Harley-Davidson 1450 cc V-twin (yeah, we had to Google that).

Of course with Jindal’s obsession with secrecy and the “deliberative process,” there won’t be a need for a museum or a library; any papers and records that he leaves behind can probably be stored in a cabinet beneath the bathroom sink—with room to spare.

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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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Some things are just downright difficult to understand;

  • Item: On June 20, Gov. Bobby Jindal signed HB 629 (Act 399) into law. The bill, passed during the 2013 legislative session, created the Office of Debt Recovery within the Louisiana Department of Revenue for the collection of delinquent debts owed to certain government entities—taxes that one source said far exceed the official estimates.
  • Item: A month later, on July 21, Jindal signed HB 456 (Act 421) into law that created a tax amnesty program whereby those owing taxes to the state may have 100 percent of their penalties and half the interest waived. The letters being sent out this week to delinquent taxpayers, however, could provide them with an argument on a legal technicality that also won’t have to pay the tax principal amounts.

As we said, some things just don’t make sense.

On the one hand, the legislature passes and Jindal signs into law a bill creating an agency whose specific purpose is to collect debt—lots of debts—owed to the state.

The new agency, according to the Legislative Fiscal Office will create 23 new state positions (the antithesis of the Jindal philosophy of government) at a cost of $1.7 million per year in salaries and benefits and another $4.4 million in administrative costs.

But with nearly $1.4 billion in payments owed to state government that are at least six months overdue, that would seem to be a good investment in that one estimate says that if the state increases debt collection efforts on such outstanding debts as delinquent college tuition installments and unpaid environmental monitoring fees by as little as 10 percent, it could generate an additional $100 million per year for the state.

On the other hand, Jindal’s new $250,000-a-year Secretary of Revenue and the Louisiana Legislature, by virtue of Act 421, will let delinquent taxpayers off the hook for all penalties and half the interest owed on those back taxes.

The Legislative Fiscal Office estimates about 300,000 persons and businesses who owe some $700 million in delinquent taxes will be eligible for the amnesty program, though only about 30,000 are expected to take advantage of the amnesty date, which will begin on Sept. 23 and end on Nov. 22.

The state anticipates receiving $200 million from the program for the current fiscal year with the revenues earmarked for health care bills. Any shortfall will result in even more health care cuts.

LouisianaVoice, however, has received information that indicates the amount of delinquent taxes, interest and penalties may be far larger than the $700 million estimate—almost three times that much, in fact.

Figures provided us shows that the total owed exceeds $2 billion. That includes taxes of $1.03 billion, interest of $687,000 and penalties of $301 million.

“It is amazing how many taxes are not paid,” said our source. “Amnesty will give us another few years in ‘garage sale’ money and then when it runs out, say four years from now in the middle of the next administration (the) Jindalites can cry foul and push for more of the same type programs.”

The amnesty letters are being printed this weekend and will be mailed out within the next few days. “The letter tells taxpayers what they owe and explains that they owe half the interest and no penalty,” the LDR employee said. “But it doesn’t mention anything about paying the tax. A good lawyer could mount a good argument on this.

“The word is that the error was discovered this week and the change would have been minimal (by) adding the words ‘tax and’ before the interest comment,” the employee said. “The really interesting thing is this form letter was put together some time ago and at the last minute someone decided to proofread it. Still, it seems as though someone, maybe in the legal department, would have been given this to read.”

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BATON ROUGE (CNS)—Before we leave the Non-Governmental Organization (NGO) funding controversy (for now; we can always return to it when events warrant), we thought we’d review a few of the more interesting NGO funding requests that came before the Louisiana Legislature this year.

We interrupt this story for a tip of the hat to our friend C.B. Forgotston who provided us with some background information on one of the 36 organizations that State Treasurer John Kennedy said earlier this week were a tad negligent in providing an accounting of how their NGO funding from the state was spent.

Forgotston pointed out that one of those, The Colomb Foundation in Lafayette, is being asked to account for $300,000 of $361,000 in funding it received.

All non-profits are required by law to file Non-Profits 990 Reports with the IRS each year. These reports are public record but search of Non-Profits 990 Reports by Forgotston produced no results under the name The Colomb Foundation, Inc.

Oops.

The foundation’s registered agent is Sterling Colomb, according to the Louisiana Secretary of State’s office.

Sterling Colomb is married to Yvonne Dorsey-Colomb.

Yvonne Dorsey-Colomb is a state senator from Baton Rouge.

Oops again.

Connect the dots and follow the money, folks.

Thanks, C.B.

We return you now to our regular story.

Altogether, about 100 applications were received from the same NGOs which submit their paperwork each year in hopes of receiving funding from the state.

In the past, it’s been pretty much a routine procedure to ask for—and receive—funds from the state. It is, after all, a scheme strikingly similar to vote buying, only more respectable, we suppose. Who could vote against a legislator who brought home funding for the local Council on Aging or for a community activity center or a kids’ baseball park?

That was then when the state had money. There was little to no oversight provided on the disposition of these funds. Give ‘em the money and remind them who to vote for next election.

But this is now when funding is hard to come by and when the governor is pulling money from higher education, health care and developmentally disabled programs and using one-time money to plug budget holes.

Still the applications came in from those councils on aging, local civic clubs, arts museums, the YMCAs and substance abuse centers.

Even the Treme Community Education Program, Inc. which was on that list of 36 organizations that State Treasurer John Kennedy is asking to provide an accounting for the use of past funding—or pay the state back—submitted a request.

In the case of Treme Community Education Program, it is being asked to account for the expenditure of $425,000 but that didn’t prevent the organization from submitting a request this year for $475,000 “to provide transportation for senior citizens to all offsite field trips; wholesome nutritious means, and organized physical, academic and social activities specifically for their age group.”

Small potatoes. Check out some of the other requests, some of which were approved in House Bill 1, the state’s general appropriations bill signed into law by Gov. Bobby Jindal as Act 13. First, those that received funding:

  • $1 million for the 2013 NCAA Women’s Final Four Basketball Tournament Host Committee;
  • $544,020 for the Greater New Orleans Sports Foundation;
  • $280,577 for the New Orleans Bowl;
  • $151,140 for Healing Hearts for Community Development in Metairie;
  • $400,000 for the Avondale Booster Club.

Here are some of the other requests:

  • New Orleans Jazz & Heritage Festival and Foundation (Jazz Fest): $2,470,586;
  • State Fair of Louisiana (Shreveport): $12,664,960;
  • 2014 NBA All-Star Host Committee; $3,250,000;
  • Teach for America: $5 million (at least $1 million of that request was approved by the Board of Elementary and Secondary Education). TFA, in addition to the money received from the state outright, also receives $3,000 per teacher placed from local school districts that hire TFA teachers. The local school districts must also pay the salaries of the TFA teachers.
  • Biomedical Research Foundation of Northwest Louisiana: $6.53 million (approved for $4.8 million in Priority 2, or second year funding).

This is the same Biomedical Research Foundation of Northwest Louisiana that was recently awarded a blank contract by the LSU Board of Stuporvisors to assume administrative and operational control of the LSU Medical Center in Shreveport and E.A. Conway Medical Center in Monroe.

This is the same Biomedical Research Foundation whose President and CEO, Dr. John F. George, Jr., is a member of the LSU Board of Stuporvisors—the same public agency that somehow skirted all existing conflict of interest laws to award that blank contract to an organization run by one of its board members.

That’s the same John F. George, Jr., M.D., who made two campaign contributions of $5,000 each to Jindal.

That’s the same Biomedical Research Foundation whose board members, including John F. George, Jr., M.D., combined to contribute $31,000 to various Jindal campaigns. Besides George, those board members and the amounts contributed include:

  • Roy L. Griggs of Griggs Enterprise: $5,000;
  • Thomas Pressly, III, M.D.: $3,500;
  • John F. Sharp, past President/CEO: $2,500;
  • Craig Spohn of the Cyber Innovation Center: $10,000.

Oh, and this is the same Biomedical Research Center of Northwest Louisiana that currently has five active contracts with the state, excluding that blank contract with LSU, totaling $26.2 million. These include:

  • $14 million “for capital improvements for the wet-lab business incubators.”
  • $995,966 “to facilitate economic development by developing infrastructure need to provide technology transfer assistance to the university systems of Louisiana and to help commercialize technologies through the operations of a wet lab facility.”
  • $8.75 million for research equipment.
  • $1.9 million for “scanner acquisition for the positron emission tomography imaging center.”
  • $563,700 the “provide PET and PET/CT scans for patients who are financially and medically indigent.”

Going back a few years, the Biomedical Research Foundation of Northwest Louisiana, which will henceforth operate the LSU Medical Center in Shreveport and the E.A. Conway Medical Center in Monroe with a blank contract, also had eight contracts (now expired) totaling another $14.1 million.

So it only makes sense that the foundation would be seeking an additional $6.53 million in NGO funding for “acquisitions.”

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The Louisiana Board of Regents in May estimated there was a $1.7 billion backlog in repairing and renovating campus facilities in colleges and universities across the state.

But even with sewer systems that backed up into classrooms, leaky roofs, outdated laboratories and even mold among the deficiencies cited by the Regents, it’s certainly good to know that Gov. Jindal and the Louisiana Legislature could scrape together $1.2 million to make improvements to athletic facilities at Nicholls State University in Thibodaux in order to make life easier for the Manning family.

Don’t get us wrong. We have nothing against the Mannings. We were not among those who got up in arms when Peyton and Eli opted to ply their trade for the University of Tennessee and Ole Miss, respectively. In fact, Eli’s gravitation to Oxford was just natural, given that Dad Archie played there. But didn’t our Bert Jones embarrass Archie and the Rebels 61-17 back in 1970? And two years later, Jones somehow managed to get off two passes in the final four seconds, the second one to Brad Davis for a 10-yard touchdown and a 17-16 win (We know, set your watches back two seconds…).

No, this is not about Archie, Eli, Peyton and Cooper and their football camp at Nicholls.

This is about priorities.

Jindal somehow can’t find money to help the developmentally disabled in this state but he can find $1.2 million (with the assistance of State Sen. Norby Chabert, R-Houma, and State Rep. Lenar Whitney, R-Houma), to make improvements to the 25 football fields on which the Manning Passing Academy teaches some 1200 football campers—campers who, we are reasonably certain, pay a hefty fee for the privilege of receiving tutelage from the quarterbacking legends.

Pardon us for not fawning all over the Mannings and praising Jindal’s efforts to keep the passing camp at Nicholls (even though Archie Manning said he had no intentions of moving the camp). So what if they were to move the camp? Where would they take it? In all likelihood, they’d simply go to another Louisiana city.

“The improvements are good for the academy (no kidding?) but it is good for Nicholls (which classroom or professor benefits from this?) and I want to thank the folks here and the people at the South Louisiana Economic Council for working to get this done,” Jindal said, apparently forgetting for the moment the pressing need for better classroom facilities at institutions of higher education all over the state.

And did it slip his mind that he has slashed the higher education budget by 80 percent since he became governor?

“This academy has a $1.8 million impact to our state,” the governor said.

Wait. What? Did anyone at that staged announcement in the John L. Guidry Stadium’s Century Club Room on July 12 have the presence of mind to challenge that statement? Did anyone asked the governor to quantify those numbers?

If not, we will. Right here. Right now.

How does Jindal and/or the South Louisiana Economic Council calculate the economic impact of this event? Campers who stay overnight pay the Mannings, not local hotels or eateries. We love the way in which political leaders, for the sake of political expedience, pluck such numbers out of thin air.

The biggest economic impact, we would guess, would be the fees charged by the Mannings for their “academy.” And that money goes into their bank accounts, not the Lafourche Parish economy. Does anyone seriously believe the Mannings stage their annual academy for free?

Based on the academy’s fee schedule (see comments by GJD), the Mannings take in something between $500,000 and $700,000 for the four-day camp.

We let our civic proud show through when Peyton won his one Super Bowl and Eli his two. Okay, we were also thrilled when Peyton lost that one special Super Bowl to the Saints. And we were a little smug when he had that great comeback season for Denver last year. But to take funding away from needed projects and lavish it on these millionaires who are promoting…football? A game?

“They don’t have to spend their summers here,” Jindal said of Daddy Archie and sons. “They don’t have to rearrange their schedules to be here. They choose to do that.”

Wow. Talk about gooneybabble. Talk about mindless spin. Talk about convoluted logic.

Spend their summers here? Try four days. Rearrange their schedules? What the hell is Jindal talking about? They specifically arrange their schedules around this annual event to rake in a small fortune—far more than the average state employee earns in a year—even more than some of Jindal’s non-classified appointive positions (readers’ collective gasps would go here). You’re damn right they choose to do that, Governor. Anyone in his right mind would choose to do that for the money they get.

Come to think of it, though, they probably spend more days at their passing academy each year than you do in Louisiana, Governor.

It’s one thing to turn your back on those in need in order to help your wealthy friends, Guv, but don’t blow smoke up our togas while you’re doing it.

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