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Archive for the ‘Campaign Contributions’ Category

Much has been written about the efficient fundraising capabilities of Gov. Bobby Jindal, and rightly so.

He has traveled to the four corners of the nation soliciting campaign funds ostensibly for this year’s re-election campaign and has raised, depending on whose figures one chooses to use, between $9 million and $12 million.

Virtually unmentioned in all the coverage of his numerous trips and his weekly visits to Protestant churches for the purposes of either direct fundraising or building a base for future solicitations is his propensity to spend his money with out-of-state vendors in efforts to further his political career.

Since 2003, Jindal has spent an estimated $16.5 million on polling, political advertising, printing, direct mail, telephone banks, office rent, fundraising expenses, and campaign staff.

Of that amount, $6.2 million, or 37.6 percent of the total, has gone to pay out-of-state companies for such services as direct mail, polling, printing, and for automated telephone calling—businesses one might justifiably expect to find operating in Louisiana.

That could emit a hollow ring to his oft-repeated lament of the state’s losing its “best and brightest” young people to other states that offer better employment opportunities.

One of his favorite vendors is a company called Olsen & Shuvalov of Austin, Texas. He paid that firm $827,400 in 30 separate transactions between April of 2007 and March of this year for printing and mailing expenses. The payments ranged from a low of $6,353.86 last August to a high of $94,432.30 in June of 2007.

That amount, however, pales in comparison to the money paid to two separate firms in Alexandria, Virginia. His campaign, in fact, seems to favor Virginia companies.

The Jindal campaign paid Todd & Castellanos Creative Group nearly $2.7 million in 24 separate payments for media advertising buys, all during 2003 in his unsuccessful first run at the governor’s office. He didn’t use the firm during his 2007 campaign.

His campaign paid Onmessage, Inc., more than $1.3 million in 30 payments between March 2007 and February of this year for research, advertising, production, and consulting expenses.

A partial list of other out-of-state Jindal campaign expenditures includes:

The Anderson Group of Bowie, Maryland—$300,000 in 13 payments between May 2003 and March 2004 for polling, consulting and statewide surveys;

National Media of Alexandria, Virginia—$176,600 in 19 payments, all in August, September, and October of 2007, for advertising expenses;

FLS-DCI of Phoenix, Arizona—$122,500 in seven payments between February 2004 and October 2007 for telephone bank costs and fundraising expenses;

Mary Kate Johnson of Bethesda, Maryland—$99,000 in 22 payments between August 2008 and January 2010 for fundraising expenses;

Stormo & Associates of Caledonia, Michigan—$86,600 in 11 payments for research and consulting from February 2007 through January 2008;

Advanced Mailing Services of Woodbridge, Virginia—$84,400 in eight payments from October 2009 through February 2010 for mailing expenses;

Political Solutions of Washington, D.C.—$81,500 in three payments for printing expenses, in July, September and October of 2007;

National Cable Communications of New York, New York—$75,200 in two payments in September 2003 for television advertising;

Southwest Publishing and Mailing Corp. of Topeka, Kansas—$69,400 in seven payments for mailing expenses from March of 2010 through January of this year;

Aristotle International of Washington, D.C.—$65,300 in 30 payments from December 2006 through January of this year for office expenses, “E-donation fees,” and computer software;

Strategic Direction.com of Tallahassee, Florida—$53,000 in three payments for automated calling and campaign consulting in October and November of 2003 and February 2004;

Nova List, LLC, of Herndon, Virginia—$41,600 in five payments from September 2009 and March 2010 for mailing expenses;

The McIntosh Company, Inc., of Dallas, Texas—$29,600 in six payments from June of 2009 through February of this year for fundraising expenses;

Response America of Arlington, Virginia—$23,900 in five payments for mailing expenses from April of 2010 through January of this year;

Praxis List Co. of Austin, Texas—$16,100 for mailing expenses in January and March of this year.

Given the fact that 47 payments totaling $581,700 were made to out-of-state firms for mailing expenses from August 22, 2008—about seven months after he took office—through March 31 of this year, one has to wonder what those mail-outs were for. His campaign for re-election has barely gotten underway and there doesn’t seem to have been an unusually large number of Jindal campaign mail-outs in Louisiana residents’ mail boxes over the past three years.

One must also be wondering if there are no Louisiana firms capable of handling telephone banks, polling, printing, political consulting, and mail-outs.

Or does the governor feel that he needs the business and political resources in other states just in case he should one day decide he does not have the job he wants, after all?

There must be scores of Louisiana printing companies, political consultants, direct mail services, advertising agencies, and polling and phone bank services wondering the same thing.

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BATON ROUGE (CNS)—The Supriya Jindal Foundation for Louisiana’s Children received nine individual contributions totaling $511,500 during 2010, according to the latest tax returns filed by the non-profit foundation.

During 2010, the organization distributed more than 100 interactive whiteboard systems with computers across the state and provided school supplies to more than 5,300 students in 16 different schools in coastal Louisiana, the tax return said.

The foundation came under some criticism earlier this year when it was revealed that several contributors to the foundation received large contracts or favorable legislation from Gov. Bobby Jindal’s administration.

Among those contributors were Blue Cross/Blue Shield ($400 million contract), Marathon Oil (subsidiaries received $5.2 million in state funds), Northrop Grumman ($11.4 million contract), and AT&T (17 contracts totaling $32.2 million, plus cable television legislation favoring AT&T).

The 2010 tax return was prepared by Faulk & Winkler, a Baton Rouge certified public accounting firm. David Winkler, a principal in the firm, contributed $1,000 to Gov. Jindal’s gubernatorial campaign in June of 2007 and contributed an identical another $1,000 in December of 2010.

One unidentified contributor in 2010 gave the foundation $170,000. Others, all unidentified, gave $75,000, $70,000, $62,500, $19,065, $10,000, $5,000, and two who gave $50,000 each, the tax return shows.

The return shows total revenues of nearly $545,000 against $565,655 in expenses for the year.

The tax return indicates interactive whiteboard systems and laptop computers for educational purposes were distributed to the following schools:

Briarfield Academy in Lake Providence, Central School Corp. of Grand Cane, Old Bethel Christian Academy of Clarks, Tallulah Academy/Delta Christian School of Tallulah, St. Charles Borromeo Elementary of Destrehan, St. Edward Catholic School of New Iberia, Tensas Academy of St. Joseph, A.L. Smith Elementary of Sterlington, Bridge City Elementary of Westwego, Calvin High School, Claiborne Elementary of West Monroe, Downsville High School, Emily C. Watkins Elementary of LaPlace, Fairview High School of Grant, Garyville/Mount Airy Math & Science Magnet School, Haynesville Elementary, Hillcrest Elementary of Ruston, James Ward Elementary of Jennings, K.R. Hanchey Elementary of DeRidder, Krotz Springs Elementary, Many Elementary, Monterrey High School, Mulberry Elementary School of Houma, Oak Grove Elementary, Olla-Standard Elementary School, Peabody Montessori Elementary of Alexandria, Pollock Elementary, Port Barre Elementary, Quitman High School, Shongaloo High School, Sicily Island Elementary, South Highlands Elementary Magnet of Shreveport, Start Elementary, and W.W. Stewart Elementary of Basile.

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“I think Congressmen (and certain governors) should wear uniforms like NASCAR drivers so we could identify their corporate sponsors.”

Anonymous (but probably claimed by many)

“NASCAR is an acronym for ‘Non-Athletic Sport Created Around Rednecks.'”

New Orleans stand up comic Lance Montalto.

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Deep Throat , during the cloak and dagger pursuit of the Watergate story by Washington Post reporters Bob Woodward and Carl Bernstein, at one point advised Woodward to “follow the money.”

Nearly four decades later, that’s still good advice for any reporter attempting to develop a cause and effect angle to any political story.

That’s what LouisianaVoice has been doing for some time now with Gov. Bobby Jindal’s campaign finance reports and it’s a long, convoluted path with numerous twists and unexpected changes of direction. But a pattern does appear to be emerging from this work in progress.

Take for example Jindal’s oft-repeated stand on gay rights.

He has consistently opposed expanded adoption rights for gays and way back in 2003 he made it clear he had no time to meet with a gay rights group.

As governor, he even created the Louisiana Commission on Marriage and Family which was designed to “propose programs, policies, incentives, and curriculum regarding marriage and family by collecting and analyzing data on the social and personal effects of marriage and child-bearing within the state of Louisiana.” One of his first appointees to the commission was Tony Perkins of Baton Rouge, president of the anti-gay advocacy group known as the Family Research Council.

But there’s that $5,000 campaign contribution in August of 2008 from Paul E. Singer of New York.

Singer is an enormously wealthy New York City hedge fund manager and prominent Republican donor.

Together, he and two other right-wing Republican donors from the financial district contributed nearly $1 million to a new coalition of gay rights organizations in New York.

Politics, it seems, does indeed make for strange bedfellows. Okay, that was too easy but you knew someone was going to say it.

In last fall’s congressional elections, Jindal campaigned vigorously for Republicans in other states but avoided U.S. Sen. David Vitter like the plague.

Some felt that Vitter’s admitted trysts with prostitutes did not square with Jindal’s family value core beliefs. How then, does he explain the $19,000 he accepted from former Congressman Bob Livingston between April 2003 and February of this year?

Perhaps he calculated that Livingston was flying well below reporters’ radar. But remember, Livingston admitted his own dalliance with another woman just prior to the impeachment proceedings of President Bill Clinton.

At the time Livingston was poised to become House Speaker but resigned from Congress instead.

Not that Jindal goes to any great lengths to vet his contributors.

We’ve already seen that he accepted $11,000 from the Louisiana Horsemen’s Benevolent and Protective Association (LHBPA) in apparent violation of state and federal prohibitions against political contributions by non-profit taxpayer-supported bodies.

Actually, that $11,000 figure is from the Legislative Auditor’s office but CNS has documented $22,000 in LHBPA donations from November of 2003 through March of 2009. Apparently, the state auditor only more recent contributions.

The top two administrators of the association at the time are now awaiting trial on 29-count federal indictments of fraud, election rigging, and other charges.

Then there is the $2500 donation made to Jindal in December of 2008 by HCA of Nashville.

In 1997, eleven years prior to that donation, HCA became embroiled in the largest Medicare fraud investigation in history. HCA ultimately paid a record $1.7 billion in criminal and civil fines.

The CEO of HCA at the time was a man by the name of Rick Scott.

Rick Scott is now the Republican governor of Florida for whom Jindal campaigned extensively last fall.

Just last Saturday, the Florida legislature passed a $69.7 billion budget that included Scott’s sweeping program to privatize at least 16 prisons, numerous annexes, juvenile correction facilities, road camps, and work-release centers in 18 counties.

The Florida privatization plan will result in the loss of 1700 jobs in the state prison system as well as reduced benefits for those lucky enough to keep their jobs—all for a promise by the private companies of an annual savings of $40 million, a promise State Sen. Mike Fasano finds vague and unconvincing.

State Rep. Paige Kreegel said the core mission of government is to protect good people from bad ones. “When we shirk our core mission, we lost our legitimacy to govern,” he said.

Both Kreegel and Fasano are Republicans.

Scott had his reasons for wanting to privatize, of course: 25,000 reasons, to be precise. GEO Group, a Boca Raton-based company, contributed $25,000 to Scott’s campaign in January, about the same time he took office.

GEO is the nation’s second-largest private prison operator is currently contracted to run the Allen Correctional Center in Kinder in Allen Parish.

The company contributed $10,000 to the Jindal campaign in separate $5,000 payments in 2007 and 2008.

Other private prison firms contributing to Jindal’s campaign include:

• Corrections Corp. of America (CCA) of Nashville, TN., the nation’s largest private prison firm–$13,000;

• Wackenhut Corrections of Palm Beach Gardens, FL.,–$10,000;

• LaSalle Management, formerly of Rayville but now headquartered in Ruston–$10,000;

• Emerald Correctional Management of Shreveport–$10,000;

• Waterproof Correctional of Shreveport–$2500;

• LCS Corrections Service of Baton Rouge–$2500;

• Richwood Correctional Center of Ruston–$2500, and

• Joseph Russell of Nashville, a member of the CCA board of directors–$2500.

CCA presently operates the state’s Winn Parish facility on a contractual basis while LaSalle runs state lockups in Claiborne Parish (Homer), Ouachita (Richwood), Catahoula (Harrisonburg), Jackson (Jonesboro), LaSalle (Urania), Lincoln (Ruston), and Concordia (Ferriday).

Emerald operates the West Carroll Detention Center in Epps and also operates facilities in Texas, New Mexico, and Arizona.

Wackenhut once ran the state juvenile detention facility in Jena but subsequently returned the facility to the state following claims of brutality by guards.

Abuse of juveniles by private prison concerns is not limited to Louisiana, of course.

Pennsylvania has been rocked by a scandal in which two judges funneled juveniles with only minor offenses into privately-run detention centers in exchange for monetary kickbacks from the companies.

All the controversy swirling around the private companies is of little apparent concern to Jindal, Scott, and Republicans in general, who appear determined to privatize state agencies.

If a little campaign money helps grease the skids, so much the better.

Prison privatization appears dead for this year’s legislative session but it’s pretty much a certainty that it will remain a high priority on Jindal’s agenda.

As we have observed before, he is half-right about his administration’s being the most transparent and ethical in state history.

He is certainly transparent enough but we’re still looking for the ethics.

And we’re continuing to follow the money.

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Federal law prohibits tax-exempt organizations from donating money to a political campaign or endorsing a candidate verbally or in writing.

So how is it that Gov. Bobby Jindal’s campaign accepted contributions totaling $11,000 from the medical trust fund of the Louisiana Horsemen’s Benevolent and Protective Association (LHBPA), whose former top two officers are currently under a 29-count federal indictment?

The association, created by the Louisiana Legislature in 1993, is considered as a non-profit, public body that receives funding from proceeds derived from slot machines at racing facilities, pari-mutuel horse racing, off-track wagering, and video draw poker.

The funds are used to negotiate contracts for horsemen relative to purses, hospitalization, medical benefits, and other matters of concern to horse trainers, jockeys, and owners.

The association is charged with bookkeeping at Louisiana’s four racetracks and pays out purses, retaining 6 percent of the cut, or about $5 million per year, for pension, workers’ compensation, and medical funds. Following Hurricane Katrina, LHBPA also contributed money to horse owners and trainers to help them to deal with losses and medical costs.

A state audit by the Legislative Auditor’s office was released earlier this week that revealed that LHBPA improperly raided more than $1 million from its medical trust account while funneling money into political lobbying and travel to the Cayman Islands, Aruba, Costa Rica, and Los Cabos, Mexico.

The audit report said the association may have violated state law by borrowing from its medical trust while spending $760,000 on political lobbying and $11,000 in contributions to the Jindal campaign fund.

LHBPA also set up its own workers’ compensation insurance firm and domiciled it in the Cayman Islands.

The questionable expenditures surfaced because of internal fights, led by members Stanley Seelig and Arthur Morrell. Seelig is president of the association’s board of directors and Morrell, a state representative for 23 years and father of current State Sen. J.P. Morrell, is first vice-president.

Both men fought the practices of former board president Sean Alfortish and former executive director Mona Romero. Both Alfortish and Romero have 29-count indictments pending against them in connection with alleged attempts to rig elections to the board. Their trial has been scheduled for Sept. 6.

Alfortish, an attorney who was paid $116,000 per year to serve as director of the association’s workers’ compensation and simulcasting operations, and Romero both refused to meeting with state auditors who said LHBPA also paid nearly $347,000 from its medical and pension trust funds to three law firms without a contract “or evidence of work performed.”

A spokesman for Jindal’s campaign headquarters, when asked why the governor would accept contributions from a non-profit against federal prohibitions of such practices, professed to know nothing about the $11,000 contribution but promised to look into the matter and get back to us.

That was on Monday.

We’re still waiting for the phone to ring.

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