Feeds:
Posts
Comments

Archive for the ‘Commissions’ Category

Campaign finance ethics fines mount up; collections? not so much since Gov. Jindal’s ethics ‘reform’ hyperbole of 2008

Posted in Commissions, Ethics, Governor's Office, Politicians, Transparency on June 19, 2013| 10 Comments »

Gov. Bobby Jindal loves to travel across the country telling anyone who will listen about the “gold standard” of ethics reform he singlehandedly passed to strengthen Louisiana’s ethics laws as one of his first acts upon taking office in 2008.

Except it simply isn’t so.

There are more than 981,000 reasons that indicate Jindal’s boasts are just so much hot air, devoid of any substance.

More than 300 candidates for local, state and national offices, many of them attorneys (and more than a few disbarred attorneys) owe more than $891,500 in fines for filing campaign finance reports late or not at all.

Moreover, 25 political action committees (PACs) owe an additional $90,000, according to figures provided by the Louisiana Board of Ethics.

So, just how is it that so many fines and such a large amount—at least four candidates had accrued penalties in excess of $25,000 each—have managed to go uncollected for so long (some dating as far back as 1999)?

For the answer to that, we have to go all the way back to January, 2008, Jindal’s first month in office. One of his first acts was to call a special session of the legislature to pass his “ethics reform” package that effectively gutted the State Board of Ethics. Ten of the board’s 11 members resigned in protest—seven of those because the “reform” legislation transferred ethics enforcement power from the state ethics board to administrative law judges, a move that rendered the board useless.

Next question: What’s so wrong with turning enforcement power over to administrative law judges? Well, for starters, the administrative law judges are selected by an appointee of the governor, hardly a hands-off, arms-length, non-political approach to ethics. In fact, Elliot Stonecipher, a Shreveport demographer and political analyst, observed the Jindal package created a situation in which “we could have people with a relationship with the governor (enforcing ethics laws).”

For decades the ethics commission had full authority to bring charges, hear cases and impose penalties on public officials accused of wrongdoing. No more.

Former Ethics Chairman Frank Simoneaux, who has been critical of the manner in which the ethics board and the administrative judges have interacted on issues, said he agrees that the responsibility for investigating and deciding ethics cases should be split but that administrative judges are not the method that should be employed.

Oh, and there’s this: Jindal proposed the legislation while he was under investigation by the Louisiana Board of Ethics. The timing of his “reform” measures has to be considered at least somewhat suspect, given that the ethics commission cited Jindal’s campaign for campaign finance disclosure violation just before Jindal pushed through his package.

Examples of outstanding ethics fines for late campaign finance reports include:

• Richard C. Bates, a 2006 candidate for 24th Judicial District Judge (Jefferson Parish) who has since been disbarred: $2,600;

• Michael Bell, former legislative assistant to former Sen. Wilson Fields (now a district judge) and himself an unsuccessful 2011 candidate for the state senate: $3,260;

• District Judge Wilson Fields, unsuccessful 2010 campaign for First Circuit Court of Appeal: $1,000;

• William Bowman: unsuccessful 1997 candidate for St. Helena Parish Clerk of Court: $2,720;

• Raymond Brown: unsuccessful 2004 candidate for Orleans Parish Sheriff: $9,500;

• Douglas Castro: unsuccessful 2005 candidate for Orleans Parish Clerk of Court: $10,420;

• Albert Donovan, former legal counsel to Gov. Edwin Edwards, 2003 unsuccessful candidate for Secretary of State: $39,500;

• James Fahrenholtz: 2000 and 2004 candidate for Orleans Parish School Board: $41,000;

• Sandra Hester: unsuccessful 2004 candidate for Orleans Parish School Board: $10,660;

• Percy J. Marchand: unsuccessful 2007 candidate for Orleans Parish state representative: $26,600;

• Robert Murray: unsuccessful 2003 and 2007 candidate for state representative: $16,900;

• Donald Ray Pryor: unsuccessful 2002 candidate for Orleans Parish Registrar: $36,200;

• Gary Wainwright: unsuccessful 2007 candidate for Orleans Parish District Attorney: $30,700;

The Ethics Commission is so weakened by Jindal’s 2008 ethics revamp that it is not only unable to collect outstanding fines but it is even powerless to prevent those with unpaid fines from running in subsequent political races.

Enforcement is just as ineffective with political action committees.

The United Democratic Ballot, Inc., for example, owes $14,000 in unpaid fines dating back to 2002.

Others include:

• The Westbank Independent Coalition (Jefferson Parish): $8,000 in 2003;

• The African American Voters League: $9,000 in 2002;

• Baton Rouge Youth Movement: $8,000 in 2011 and 2012;

• Home Builders Association of Central Louisiana: $8,000 in 2010;

• Independent Rx PAC: $3,500 in 2010;

• Shreveport Committee on Political Education: $4,400 in 2006 and 2010;

As a reward for his comments critical of Jindal’s ethics reform package, Simoneaux was not re-nominated to another five-year term on the board—effectively fired—by the Committee on House and Governmental Affairs in April of 2012.

Ethics, like beauty, are in the eye of the beholder. Put another way: those who have the gold are making the rules.

Read Full Post »

CMS wants more answers to Louisiana hospital privatization plan; millions of dollars in Medicaid funding hang in balance

Posted in Commissions, Governor's Office, Health Care, Layoffs, Privatization on June 12, 2013| 17 Comments »

The Louisiana Civil Service Commission notwithstanding, the state may not yet be out of the woods with its plan to privatize nine of 10 LSU hospitals and clinics that provide medical care for the state’s poor and uninsured and which provide training sites for many of the state’s medical students.

A spokesman for the Center for Medicare and Medicaid Services (CMS) in Dallas said on Wednesday that it still has not received answers to all its questions put to the state in a Jan. 30 letter and the continued flow of hundreds of millions of dollars in federal Medicaid funds could hinge on satisfactory responses by the state to those questions.

The Civil Service Commission on Monday reversed an earlier vote and approved the contracts for the takeover of four hospitals in Houma, Lafayette, New Orleans and Lake Charles.

That approval, however, was based on criteria that did not appear to fall within the purview of the commission. Commission member Scott Hughes of Shreveport said since the commission’s previous vote of last week, the legislature approved a budget for next year that assumed the privatization of the hospitals. That action, he said, would leave no money available to operate the hospitals through LSU if the deals had been rejected.

A lawsuit against the City of New Orleans by the New Orleans Civil Service Commission—not unilateral administration or legislative actions—has traditionally been the precedent the commission considers when presented with layoff plans from state agencies. That decision said that administrations “do not have the unfettered discretion to potentially decimate the civil service system by eliminating all civil service positions to privatization.”

That ruling also said the city must turn over “all documents and other evidence which (might) enable the commission to determine (1) whether any civil service employees will be involuntarily displaced from civil service and if so, (2) whether the contract was entered into for reasons of efficiency and economy and not for politically motivated reasons.”

The question of whether the contracts will produce greater efficiency and economy remain unanswered because the contracts for the privatization of the four hospitals contained insufficient financial details.

Hughes changed his vote of opposition last week to one of approval on Monday after Michael Kaiser, chief executive officer of the LSU Health Care Services Division described the financial arrangements in a general overview with few specifics.

Kaiser said a reduction in federal Medicaid financing to the state would force the closure of facilities. He even listed a number of closures that were under consideration before the lease deals—all of which apparently helped Hughes see the light and to become a convert. “If we were to deny these contracts, we will not be able to provide these services to the citizens,” he said. “I believe these hospitals would close.”

So apparently the procedure is to delete funding from the state budget, thereby creating a crisis by throwing the continued operation of the hospitals into doubt and forcing the Civil Service Commission to do the governor’s bidding by accepting the contracts and in the process, throwing some 4,000 employees out of work.

The CMS spokesperson on Wednesday said, “CMS does not play any role in the actual privatization of the hospitals. “However, as part of the privatization, the State of Louisiana is modifying the Medicaid reimbursement to those hospitals. The change in reimbursement requires the submission of State Plan Amendments (SPA). CMS currently has received some of the necessary SPA and they are under review.”

When asked to be more specific as to the number of SPA responses, he replied, “We’ve received two or three but we don’t have a firm number on how many the state would need to submit.”

Last Jan. 30, Bill Brooks, associate regional administrator for the CMS Division of Medicaid and Children’s Health Operations in Dallas, sent a six-page letter to Ruth Kennedy, director of the Bureau of Health Services Financing for the Department of Health and Hospitals (DHH) in which he requested additional clarifying information which he cautioned had the effect of “stopping the 90-day clock” for CMS to take action on the proposed State plan amendment (SPA) which “proposed to revise the reimbursement methodology for inpatient hospital services to establish supplemental Medicaid payments to non-state owned hospitals in order to encourage them to take over the operation and management of state-owned and operated hospitals that have terminated or reduced services.”

Brooks said a new 90-day clock would not begin until his office had received satisfactory responses to his requests.

A CMS spokesperson on Wednesday clarified that stipulation. “By regulation, we have 90 days from initial submission to review, disapprove or request additional information,” he said. “When we request additional information and the state formally responds, we have an additional 90 days to review and approve or disapprove.”

He said CMS has no control on how long it may take the state to respond. “These are complex state plan amendments, so you can assume that requests for additional information will occur.”

One of the requirements that Brooks cited was one which said CMS “must have copies of all signed standard Cooperative Endeavor Agreements.” He also asked the state to provide all Intergovernmental Transfer (IGT) management agreements and “any other agreements that would present the possibility of a transfer of value between the two entities.”

He said, “CMS has concerns that such financial arrangements meet the definition of non-bona fide provider donations as described in federal statute and regulations.

“Detailed information needs to be provided to determine whether the dollar value of the contracts between private and public entities had any fair market valuation. There can be no transfer of value or a return or reduction of payments reflected in these agreements,” he said.

“Additionally, whether the State is a party to the financial arrangement or not, the State is ultimately responsible to ensure that the funding is appropriate.”

Brooks asked, “How many entities does the State anticipate will participate in this arrangement? Please submit a list of all participating hospitals, all transferring entities doing the IGT, and the dollar amount that the transferring entities will IGT. Please describe how the hospitals are related/affiliated to the transferring entity and provide the names of all owners of the participating hospitals.”

In the case of the Leonard Chabert Medical Center in Houma, the lessee is listed as Terrebonne Medical Center of Houma but in reality, Ochsner Medical Center of New Orleans will be taking over operations of Leonard Chabert.

“What is the source of all funds that will be transferred?” Brooks asked. “Are they from tax assessments, special appropriations from the State to the county (parish)/city or some other source?

“The State plan methodology must be comprehensive enough to determine the required level of payment and the Federal Financial Participation (FFP) to allow interested parties to understand the rate setting process and the items and services that are paid through these rates,” Brooks said. “Claims for federal matching funds cannot be based upon estimates or projections. Please add language that describes the actual historical utilization and trend factors utilized in the calculation,” he said.

Brooks also asked if the private hospitals destined to take over operations of the state facilities are required to provide a specific amount of health care service to low income and needy patients. “Is this health care limited to hospital only or will health care be provided to the general public? What type of health care covered services will be provided?” he asked.

The CMS spokesperson on Wednesday said if CMS disapproved an amendment, “there would be no federal dollars provided for the changes proposed in the State Plan Amendment.”

“No federal dollars” could translate to hundreds of millions of dollars for a state already wrestling with suffocating budgetary constraints.

Read Full Post »

Energy-efficiency program by PSC in Dec. may be short-lived; campaign money, of course, is of no consideration

Posted in Campaign Contributions, Commissions, Exemptions, Incentives on February 26, 2013| 3 Comments »

State officials apparently sees no problem when it comes to rushing through legislation that affects tens of thousands of Louisiana public school students or locking Louisiana into long-term tax relief for industries with little or no tangible benefits to the state but less than three months after its passage, a program approved by the Louisiana Public Service Commission (PSC) to give consumers an avenue to reduce energy costs may be scrapped.

The PSC is scheduled to vote on Wednesday to repeal the statewide energy-efficiency program to develop ways to cut down on power consumption to help save money for hundreds of thousands of homeowners and businesses.

Utilities would be required to file annual reports with the PSC that provide energy savings estimates and annual load reductions. The first phase, Quick Start, is scheduled to last a little less than four years from which point utilities will develop longer-term plans.

The problem? The program is expected to cost utilities between $25 million and $30 million. And guess who pours money into the campaigns of PSC members?

So now, while the ink is still wet on the regulation approved last Dec. 12, new PSC Chairman Eric Skrmetta (R-Metairie), himself the recipient of $45,000 in campaign contributions from energy-related firms and political action committees, has deemed that the ugly break for low- and middle-income consumers is a bad, bad thing and should be repealed henceforth.

It’s okay to hand out $5 billion a year in corporate tax breaks, exemptions, waivers and rebates but apparently taboo to take any action beneficial to consumers.

Remember what they say about money and B.S. and talking and walking.

Forty-six states currently offer Energy Efficiency programs to help consumers save energy costs (a program beneficial to everyone except the utility companies).

Heavy industrial users, which make up about half of Entergy’s Louisiana power consumption, are ineligible to participate if they use more than five megawatts of electricity, or about five times the average household consumption.

The initiative passed by 4-1 vote in December with Skrmetta voting in favor despite his stated opposition.

Contact numbers for PSC members are:

Eric Skrmetta (Metairie): 504-846-6930
Scott Angelle (Baton Rouge): 225-342-6900
Lambert Boissiere (New Orleans): 504-680-9529
Clyde Holloway (Forest Hill): 318-748-4715
Foster Campbell (Elm Grove): 318-676-7464

Read Full Post »

With π-yush, the word ‘friends’ has become synonymous with the word ‘cash’ when it comes to state board appointments

Posted in Boards, Campaign Contributions, Commissions, Governor's Office, Louisiana Purchase on January 6, 2013| 3 Comments »

Never let it be said that Piyush Jindal doesn’t remember his friends. As long as the word “friends” is synonymous with the word “cash.”

Of the seven new appointments and one re-appointment to the University of Louisiana System board, six of those combined to contribute nearly $147,000 to Jindal political campaigns from 2003 through 2011, according to state campaign finance records.

The terms of seven of the 16 member board expired on Dec. 31. The eighth position was vacated when attorney Jimmy Faircloth, Jindal’s former executive counsel, resigned after two years on the board and was replaced by his wife, Kelly Faircloth, a chiropractor.

Faircloth, while serving on the board, recently was contracted by Jindal to represent the State Department of Education in a pair of lawsuits challenging the state voucher system and the teacher tenure revisions, both enacted last year by the state legislature as part of Jindal’s education reform package.

Faircloth contributed $14,000 and his former Alexandria law firm contributed an additional $9,000 to Jindal campaigns in 2003, 2006 and 2010. Of that total, Faircloth and his firm each contributed $5,000 to Jindal on the same date in December of 2006.

Only one of three re-appointees, Jimmie “Beau” Martin, Jr. of Cut Off, contributed to Jindal. Martin, family members and three family-owned businesses combined to contribute $34,278.30, records show.

Jimmy Long, Sr. of Natchitoches and Winfred Sibille of Sunset were also re-appointed to new six-year terms but neither was found to have contributed to Jindal.

The other four new appointees and their contributions include:

• Gary Solomon of New Orleans, chairman of Crescent Bank and Trust (replacing Renee Lapeyrolerie): $35,000 from Solomon and family members in 2003, 2007 and 2008 and another $7,199 from Crescent Bank in 2007 and 2009;

• Mark Romero of New Iberia, executive vice president of Brown & Brown Insurance (replacing Paul Aucoin of Morgan City): $1,000 from Romero in 2008 and $9,000 by his insurance firm in 2008, 2009, 2010 and 2011;

• Robert Shreve of Baton Rouge, CEO of Gulf South Business Systems and Consultants (replacing Russell Mosely of Baton Rouge): $11,000 in 2007 and 2009 and $1,000 by his firm in 2011;

• John Condos of Lake Charles (replacing Louis Lambert): $20,500 by Condos and his wife.

No one expects any governor to appoint political opponents to state boards and commissions but some elected officials might choose to appoint small-time contributors; appointment considerations with this governor, however, just don’t work that way.

Instead, Piyush has displayed a disturbing propensity to favor the big-dollar contributors in making his appointments and the same old names keep popping up, indicating that his solid core support base may be a smaller fraternity than one might assume.

It’s either that or he simply chooses to bestow appointments on only his biggest contributors and ignore the rest.

Read Full Post »

Angelle’s performance before congressional committee embarrassing; Ponti embellishes his accomplishments

Posted in BESE, Campaign Contributions, Commissions, Governor's Office, Politicians on November 5, 2012| 11 Comments »

Editor’s note:

Within a couple of hours of posting this story, LouisianaVoice received a telephone call. The display on our phone indicated it was from one Holly Boffy. Boffy is the District 7 member of the Louisiana Board of Elementary and Secondary Education (BESE). That is in the southwest corner of Louisiana. Why would she be calling us? we wondered.

It turns out that it was a robocall on behalf of the candidacy of Scott Angelle for the District 2 Public Service Commission seat.

So, why was a BESE member from the Lake Charles area allowing her telephone to be used on behalf of a Public Service Commission candidate from the Baton Rouge area? In all likelihood, she doesn’t know bean dip about the machinations of the Public Service Commission.

The answer is simple.

Boffy, of Youngsville, Louisiana, received two $2,500 campaign contributions in her run for office last fall from Jindal—one on Aug. 25 and a second on Aug. 29. Angelle was originally appointed by former Gov. Kathleen Blanco but held over by Jindal as Secretary of Natural Resources—until he abandoned his post in the middle of the crisis over that toxic sinkhole on Bayou Corne in Assumption Parish.

Connect the dots.

The Piyush Jindal dynasty won’t be satisfied until it has complete control of the state, every agency, board and commission, from top to bottom.

Read on:

Whatever your sentiments about the resumption of offshore drilling in the Gulf of Mexico, voters in Louisiana Public Service Commission District 2 would do well to examine the records of the top two contenders in Tuesday’s election to replace retiring commission member and Vice-chairman James Field.

In spite of the erroneous claim by one crackpot blogger that Scott Angelle faked that TV ad showing him addressing thousands of rabid supporters (oh, wait; that was LouisianaVoice, wasn’t it?), it is still worthwhile to take a close look at the candidate. His performance before a congressional committee nearly a year following BP’s disastrous Deepwater Horizon explosion that killed 11 men and injured 17 others and which produced a oil spill that spewed 4.9 million barrels of oil into the gulf over a three-month period would be comical were it not so pathetic.

At the time of his questioning by Congressman Ed Markey (D-Mass.) during the March 16, 2011, hearing by the House Natural Resources Committee, Angelle was Secretary of the Louisiana Department of Natural Resources.

He recently resigned that position in the midst of the still-ongoing Bayou Corne sinkhole disaster in northern Assumption Parish to seek the District 2 Public Service Commission seat, leaving it to others to grapple with a potentially disastrous situation that has produced the sinkhole that is now more than five acres in size and which has caused the evacuation of scores of residents.

Nor has his former boss, Gov. Piyush Jindal shown his face at the sinkhole site despite his propensity to seek camera face time anytime an oil spill or hurricane threatens the state. That’s because the Bayou Corne situation came about because of permits issued on his watch.

And lest we be accused of being a shill for his leading opponent, State Rep. Erich Ponti, rest assured we have some pointed remarks about his misleading TV ad campaign as well.

Besides touting his business acumen, Ponti makes the claim in his ads that he balanced the state budget which, for those even vaguely familiar with the Louisiana legislative process, is an outrageous claim, a preposterous misrepresentation.

First of all, state law mandates that the legislature pass a balanced budget. Unlike Congress, the legislature is forbidden from approving a deficit budget. So, Ponti and his 104 colleagues in the House and the 39 in the Senate in reality had no choice in balancing the budget. It is a claim that each of the other 143 legislators have just as much right as Ponti to make—none.

Second, Ponti is not even a member of any of the House committees that consider the budget before it goes to the House floor. He is chairman of the House Commerce Committee, but it does not consider the budget. Neither does the House Committee on Homeland Security or the Joint Committee on Homeland Security, on both of which he sits. Nor does the Capital Region Legislative Delegation or the Louisiana Republican Legislative Delegation, the two caucuses of which he is a member.

He is not a member of the House Appropriations Committee. Nor is he a member of the Joint Budget Committee or even the Legislative Budget Control Committee.

So, any claim on his part that he had a hand in balancing the state budget is, at best, disingenuous and at worst, an outright lie.

But back to that hearing in March of 2011:

Here are excerpts from the questioning by Markey, the ranking member of the Natural Resources Committee, and Angelle’s responses:

• Markey, discussing safety comparisons that show better safety records for rigs in European waters than those in U.S. waters even though the same companies were operating in each, asked: “Don’t you think we need to insure that these rigs are operating safely in order to protect lives of workers on these rigs? Don’t you think that the safety recommendations of the BP Commission should be implemented?”

• Angelle: “I’m not familiar with the safety recommendations.”

• Markey: “You haven’t analyzed the recommendations?”

• Angelle: “I have not.”

• Markey: “Given your job, don’t you think you should’ve looked at those safety recommendations?”

• Angelle: “I have not analyzed those recommendations, sir.”

• Markey: “Could you analyze them and give a set of responses to the safety recommendations back to the committee?”

• Angelle: Sir, I have not analyzed all those recommendations. I will tell you that in my comments, I indicated it would not be business as usual and we support it not being business as usual.”

• Markey: “Does that include implementing the safety recommendations of the BP Commission?”

• Angelle: “I am not aware of all of the safety recommendations of the BP Commission.”

• Markey: “Are you aware of any of the safety recommendations of the BP Commission?”

• Angelle: “I am aware of some of the safety recommendations, yes sir.”

• Markey: “Are there any of those safety recommendations that you recommend be implemented? Can you tell us what those are?”

• Angelle: “I would just simply say that generally, I believe that repetitive safety measures as…blow out preventers and those kinds of things are very important. I certainly understand containment issues (as) being very, very important but I would say again that having the new regulations that have been promulgated, we are now at a point that the industry has demonstrated to the government the ability…”

• Markey: “Even though you are not familiar with the safety recommendations of the BP Commission, you’re ready to say it’s safe and people should go out there, is that what you’re saying?”

• Angelle: That’s not what I said. I said that it’s my understanding that the Bureau of Ocean Energy has promulgated new rules and regulations and the industry has demonstrated an ability to comply with those and now is the time to begin issuing permits inasmuch as industry has begun to comply with those recommendations.”

• Markey: “And they issued those recommendations last month. So we’re ready to go. Are you satisfied with the recommendations that were promulgated by the…”

• Angelle: “It’s not for me to be satisfied. I come here not to blame but to bring about a solution and that is the industry has demonstrated an ability and we need a sense of urgency in issuing permits.”

• Markey: “In your testimony, you say that seven rigs have already left the Gulf since the moratorium was declared. But according to the Department of the Interior, at least four of these seven rigs have returned to the Gulf in 2011 and five new rigs have already arrived or are scheduled to. Overall, there are 125 (rigs) in the Gulf of Mexico today compared to 122 one year ago. Doesn’t it misrepresent what is happening in the Gulf to only mention the rigs that have left without mentioning the new ones that have come in?”

• Angelle: I would say that whatever new ones that have come in, they are not working. It’s just inventory and it’s like having automobiles on a lot; you can have a lot of automobiles on the lot but if you’re not selling them, you’re not creating economic activity.”

• Markey: “But we have the new regulations and we’re ready to go and the administration is now issuing new leases and the rigs are returning. These companies are capitalists; they are returning and new ones are arriving, so it represents a confidence on the oil industry in what is happening or else they would not be returning and they would not be adding new rigs.”

• Angelle: “The Obama administration is not issuing new leases. The Lease sales scheduled for this year have been cancelled.”

• Markey: “I do not think oil companies are sending rigs back just to sit idle. That’s not how oil companies operate. They’re sending them back because there are new opportunities for them.”

So what this race boils down to—or at least what it should boil down to is these two questions:

• If Scott Angelle would walk into a congressional hearing totally unprepared to discuss something as important as proposed safety regulations for offshore drilling—an issue that was certain to impact the Louisiana economy and hundreds of jobs for Louisiana workers—what makes voters think he would adequately prepare himself for such matters as utility rate increases and regulations for, say, the trucking industry in Louisiana as a member of the Louisiana Public Service Commission?

• Is Scott Angelle simply being opportunistic in trying to set himself up for a run at the governor’s office in 2015?

Read Full Post »

« Newer Posts - Older Posts »