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Jindal, prompted by Ted Cruz announcement, changes mind; makes official his own presidential bid as head of Anas Party

Posted in ATC, Campaign Contributions, DHH, Economy, Education, Elections, Exemptions, Incentives, Governor's Office, Health Care, Incentives, PACs, Politicians, State Police, Waste on April 1, 2015| 13 Comments »

JINDAL PRESIDENTIAL SWEEPSTAKES

(CLICK ON IMAGE TO ENLARGE)

Bobby Jindal proved Wednesday that he still has a few tricks up his sleeve and the 2016 presidential sweepstakes have taken an unanticipated new look as a result.

With Texas Sen. Ted Cruz becoming the first to officially announce his candidacy for the Republican presidential nomination, Jindal, who had said he would wait until the 2015 legislative session ended in June to make his announcement, surprised all the experts by making his own announcement today—but not, however, to be the Republican standard-bearer.

Instead, Jindal announced that he will head the newly-founded Latin language-inspired Anas Party, the seventh political party that is expected in the November 2016 election, in a dual strategy to siphon off right-wingnuts from the tea party faction as well as disaffected mainstream Republicans in an effort to “do for the nation what I have done for Louisiana.”

Jindal denied that the timing of his announcement was a result of Cruz’s formal entry into the race. “I had planned to make this announcement at this time all along,” he said. “I referenced a timeframe of the end of the session only in order to be sure all the pieces were in place. As you know, I am results-oriented and every move I make is carefully thought out so as to take all possibilities into consideration. That is what has made my two terms as governor such a success.”

Eschewing a national convention—“that’s another area where waste can be eliminated,” he said, adding that money that normally would go for that purpose would be used to hold the most lavish and ostentatious inauguration in the nation’s history—Jindal announced that Commissioner of Administration Kristy Nichols will be his vice presidential running mate.

Going even further, he named several current aides and associates whom he said he will appoint as cabinet members and department heads when elected. Heading up his cabinet will be Secretary of Morality Phil Robertson of Duck Dynasty fame. “I realize there is no such cabinet position in existence at this time,” Jindal said, “but as I’ve said many times before, this country needs to right itself and embark on a course of morality and righteousness as determined by the only person qualified to set those standards—Phil Robertson.”

Jindal said that given his public stance on gays, women and blacks, “he is an obvious choice for Morality Secretary.”

Other appointments announced nearly two years in advance include:

  • Ruth Johnson: Secretary of Defense owing to her ability to jerk subordinates in line for the temerity of simply talking to someone not considered friendly to the administration;
  • Mike Edmonson: FBI Director because of his unflagging loyalty to Jindal and his background in law enforcement;
  • Troy Hebert: Director of the Bureau of Alcohol, Tobacco and Firearms, for obvious reasons;
  • Stephen Waguespack: Executive Counsel, the same position he held in Baton Rouge for Jindal;
  • Timmy Teepell: Chief of Staff, likewise the same position he held previously in Jindal’s state administration;
  • Tim Barfield: Treasurer, following his tenure as head of the Louisiana Department of Revenue;
  • Stephen Moret: Secretary of Commerce, where he will continue in his efforts to lure business and industry….back to the U.S.;
  • Alan Levine, Bruce Greenstein, Kathy Kleibert: Secretary of Health and Human Services, because her record at Louisiana DHH speaks for itself;
  • Curt Eysink: Secretary of Labor based on the decimation of workers compensation claims in the state;
  • Kyle Plotkin: Press Secretary, a lateral move and closer to his New Jersey home;
  • Jimmy Faircloth: Special Counsel, in case Jindal ever gets in trouble with the House Judiciary Committee, which will be inevitable if he is elected.

“I’ve given much thoughtful prayer to this and I feel led to form a seventh party. After all, the world was created in seven days and I believe a seventh political party is symbolic of what God wants me to do,” Jindal said.

“In that same vein, I have formed seven separate super PACs through which illicit, illegal and immoral campaign funds may be funneled in order to protect the identities of my supporters,” he added. “In today’s political atmosphere, it’s critical that there be a sufficient number of super PACs to support a candidate’s efforts. There are those who would prefer that their names not be put out there for the public but who nonetheless wish to support my candidacy. The super PACs provide an avenue for them to do just that.”

As President, Jindal said he “will continue to implement the same programs nationally that I have in Louisiana. I am leaving Louisiana better than I found it. Three things:

  • “I have downsized government by reducing the number of state employees by 400,000; “Louisianans are earning more than anyone else in any other state;
  • I’ve created two million new jobs through incentives and tax exemptions;
  • “Our highways and bridges are in the best of shape;
  • “Our colleges and universities are funded at a higher level than at any time in Louisiana history;
  • “Our elementary and secondary school students have the highest scores in the nation;
  • “The bond rating agencies have bestowed the highest ratings on Louisiana;
  • “Our health care takes a back seat to no one, thanks to our wise decision to privatize state hospitals;
  • “I have given the state balanced budgets in each year of my term.

“Going forward, I am prepared and equipped to deal with radical Islam by cutting social programs, education and health care in order to quadruple the Pentagon’s budget. There will be no “no-go” zones in my presidency—except in New Orleans and certain parts of Baton Rouge and Shreveport. Obamacare will be but a distant memory and Americans can be proud of the fact that they will be masters of their own medical fate and not dependent upon federal giveaway programs fraught with corruption, fraud and waste. I will reduce the number of federal employees by 135 million, just as I did in Louisiana while getting the country moving in the right direction—again, as I did in Louisiana.”

For the remainder of his term as governor, Jindal said he will turn the House chamber on the State Capitol’s first floor into a full gospel church, complete with faith healing and exorcisms. “The chamber is never used except for three months a year during the legislative session,” he said. “If we fill the House chamber, we can move a spillover service into the Senate chamber. We will turn the governor’s mansion into a parsonage for visiting preachers because I’m never there anyway.”

Where Ted Cruz used Liberty College as his launching pad for the Republican nomination, Jindal said he will draw heavily on support from the American Family Association (AFA) in Tupelo, Mississippi, and from the Westboro Baptist Church of Topeka, Kansas.

“We’re excited about the coming months of this campaign,” he said. “We feel that between Fox News, AFA, Westboro Baptist, and Duck Dynasty, we will sweep all the lunatic fringe crumbs off the table and onto our lap. It’s a great time to be doing what divine inspiration has called upon me to do for America.”

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Did AG’s office engage in witness tampering in CNSI civil trial? With this administration, nothing would surprise us

Posted in Attorney General, Contract, Contracts, Corruption, Courts, Crime, DHH, DOA, Ethics, Fraud, Governor's Office, Guest Columnist, Judges, Lawsuits, Transparency on March 30, 2015| 7 Comments »

By Robert Burns (Special to LouisianaVoice)

LouisianaVoice readers may recall a December 15, 2014 post outlining state defense attorneys desperately fighting to block a deposition of Stephen Russo,  Secretary of the State Department of Health and Hospitals (DHH), to be conducted by Lewis Unglesby, lead plaintiff attorney in the Client Network Services Inc. (CNSI) civil lawsuit against the state.  CNSI alleges that Gov. Jindal’s office, in “consultation” with AG Caldwell’s Office, unjustly cancelled its contract to provide Medicaid processing services to DHH after news of a federal grand jury having convened to consider potential improprieties in the awarding of the contract broke.  The federal grand jury probe went nowhere, but Caldwell nevertheless continued a probe with a state grand jury.  Ultimately, that state grand jury indicted former DHH Secretary Bruce Greenstein for nine counts of alleged perjury entailing testimony to that grand jury or statements made at his senate confirmation hearing.

At that December hearing, Judge Kelley ruled that Russo could be deposed and that any attorney-client privilege had clearly been waived.  The AG’s Office filed an immediate appeal writ with the First Circuit (notwithstanding the fact Judge Kelley stated, “There’s nothing to appeal because this matter is clear,”).  The First Circuit upheld Judge Kelley’s ruling and denied the appeal.  During that December hearing, Unglesby stated AG Caldwell’s Office had “quite likely acted illegally” in publicly releasing Greenstein’s grand jury testimony.  A hearing to quash that testimony transpired in Greenstein’s criminal trial on March 20, 2015.

At that hearing, Greenstein criminal defense attorney, John McLindon, argued for protection of the grand jury “body” not only for the Greenstein case but for all future criminal trials.  He stated that denying his motion to quash the grand jury testimony would send a horrible signal that grand jury secrecy was a “sham” in Louisiana.  He also stated that AG Caldwell’s Office essentially engaged in an ex-parte maneuver in that the AG’s motion to file the grand jury transcript into the public record was “buried” at the end of the order.  McLindon also argued that David Caldwell had been deceptive in describing the motion in court on the day it was presented as a “routine procedure” to enable McLindon to obtain a copy of the testimony, which McLindon indicated he was entitled to anyway.  Judge Daniel ruled that the AG’s office acted properly in filing the transcript into the public record, but McLindon indicated he may likely appeal Judge Daniel’s ruling.

Louisiana Voice has now reviewed extensive court filings in the civil case in which CNSI attorneys lodge even more allegations of serious wrongdoing on the part of Caldwell’s Office.  Those allegations entail the testimony of CNSI whistleblower Stephen Smith.

Smith is the CNSI employee who sent an anonymous email to Jeffrey Branch with the Center for Medicare/Medicaid Services (CMS) under the alias of “Kunego.”  The email was sent sometime after a meeting which Smith had with Norm Nichols, President of Molina Medicaid Services, and the company which has managed Louisiana’s Medicaid processing for decades and which filed a protest after CNSI won the contract.  Smith testified that Nichols indicated that, although Molina lost the protest, “there were still things in the process that were questionable.”    Smith has moved on to Orlando, Florida where he serves as Vice President for Sellers Dorsey, LLC, which is a health policy consulting company.

On May 1, 2014, CNSI attorneys conducted a video deposition of Smith in Orlando.  During the deposition, Unglesby presented Smith with a copy of what the AG had supplied as the “Kunego report.”  That report, which was filed under seal soon after CNSI’s lawsuit was initiated, contained notations of AG investigator Scott Bailey’s interview of Smith (but identified as “Kunego”) on May 10th and May 11th of 2012.  Unglesby then asked Smith to take a pen and underline those portions of the interview notes for which he wished to claim were his words and recollections of the interview and to refrain from underlining those items for which he did not wish to assess as having originated from him.  As readers can readily tell from reading the 7-page report, Smith was only willing to claim responsibility for between 50-60% of it as evidenced by what is underlined.  Nevertheless, the report contains some rather intriguing allegations, not the least of which is contained on page five.  On that page, the report states:  “Bobby Jindal has what Kunego calls an India to India ancestor driven background and network of connections that brought CNSI and Jindal together.”

The deposition continued for an extended period, so the parties agreed to recess and reconvene on a later date, which turned out to be July 8, 2014.  Upon reconvening the deposition, Unglesby made an inquiry of Smith regarding whether he’d had any communication with anyone from the AG’s Office.  Smith responded that Scott Bailey, the AG investigator who had interviewed him for the Kunego report, had telephoned him twice and had flown to Orlando to meet with him on June 28, 2014.  Smith indicated that Bailey stated that he needed to clarify the timeframe of the meeting with Nichols and also to inform him that the AG’s office had provided CNSI attorneys with the “wrong version” of the Kunego report.  Smith testified that Bailey informed him that, on May 1, 2014, he’d been provided with the “unedited” Kunego report when he should have been provided with the “edited” report, which is the report the AG’s Office intended to supply to CNSI attorneys.

Smith then explained that the unedited report, which CNSI attorneys provided at the May 1, 2014 deposition, was what had confused him so much because it had statements in the report which he knew he hadn’t made and therefore caused confusion as to how such statements were in a report of an interview of him.  When Unglesby pressed Smith on whether he asked Bailey how such allegations, including that of Jindal’s “India to India ancestor driven background” and that being responsible for bringing CNSI and Jindal together, got in his interview report, Smith indicated that he did not press Bailey for any explanation.

CNSI attorneys, upon learning of these phone conversations between Bailey and Smith, the in-person meeting between the two on June 28, 2014, and the fact that two reports of Smith’s interview responses even exist, prompted strong accusations of witness tampering on the part of AG Caldwell’s Office.  CNSI attorney Michael McKay of the law firm Stone Pigman, in a Motion to Conduct Discovery Regarding Certain Activities of the AG’s Investigator, accuses AG investigator Scott Bailey of “outrageous witness tampering,” and seeks to depose Bailey about his conduct and actions and also have the AG surrender documents, including the “edited” Kunego report, which were shared between Bailey and Smith, along with documents and dates of correspondence between Smith and Nichols.

CNSI attorneys allege that the AG’s Office filed the “unedited” version of the “Kunego report” under seal with the full knowledge that it contained material not attributable to Smith as a means to “influence the public” and to justify a six-month stay being sought by the AG’s Office for all proceedings.  Although the motion to stay was denied (and the First Circuit upheld the denial on June 7, 2013), the AG’s Office filed a motion to limit discovery and a motion for Judge Kelley to recuse himself on the basis Unglesby had previously represented him.  Judge Caldwell denied the recusal motion on July 1, 2013; however, Judge Kelley granted a motion to stay all proceedings on July 30, 2013.  CNSI attorneys asserted that Kelley’s decision was based largely on the “unedited” Kunego report which they contended the AG’s Office knew full well contained material not supplied by Smith and for which the foundation is unknown.  CNSI attorneys also expressed frustration that, as of the date of their filing, August 22, 2014, they still had not been provided with the “edited” Kunego report.

The hearing on CNSI’s motion to depose Bailey was argued before Judge Kelley on October 7, 2014, and he granted the motion.  At a bare minimum, CNSI attorneys have already exposed a high level of ineptitude on the part of AG Caldwell’s Office in that it provided the wrong “version” of the Kunego report given how critical that report is to both the civil and criminal trials.  It is mind boggling that a document that critical wouldn’t be triple checked as being the one the AG’s Office wanted to ensure CNSI attorneys received.  The mere fact they would later have to admit to Smith that “we gave the CNSI attorneys the wrong version” speaks volumes as to the AG Office’s ineptitude.  Of course, as CNSI attorneys argued in their support memorandum, it begs the question as to why two versions of the report even exist at all.

It remains to be seen how successful CNSI’s attorneys may be in exploiting their allegation of witness tampering by the AG’s Office.  Obviously, their ultimate goal is to have Smith’s testimony at trial declared inadmissible based on inconsistency and the actions of AG Caldwell’s Office.  If they succeed, a huge defense to CNSI’s alleged wrongful contract termination may go by the wayside and expose Louisiana taxpayers to a substantial monetary award.  Further, if Smith’s testimony is ruled inadmissible, a spillover benefit to Greenstein’s criminal trial may also arise.

When combined with the recent scathing WWL investigative report on AG Caldwell, one can only question if the biggest beneficiary of all of the extensive focus of the ineptitude and controversies of Gov. Jindal has been AG Caldwell himself.  It certainly appears that for an extended period, he was able to fly below radar on his office’s ineptitude and potential serious wrongdoing.  Perhaps recent revelations of his actions may provide an excellent source of campaign fodder for the October election for Louisiana’s next attorney general.

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State fiscal cupboard bare but 80 NGOs seek $241 million; which campaign contributors will Jindal, legislators fund?

Posted in Budget, Campaign Contributions, Corruption, DHH, Economy, Education, Ethics, Finances, Golf Courses, Governor's Office, Health Care, Higher Education, Legislature, NGOs, Politicians, Privatization on March 21, 2015| 17 Comments »

By now, everyone who isn’t emotionally involved with Dancing with the Stars or Bachelor, is acutely aware that the state, going into the 2015 legislative session, is flirting with a $1.6 billion budget deficit.

And that doesn’t even take into consideration the growing backlog of sorely needed infrastructure repairs for state highways and universities totaling well over a billion dollars. Nor does it include previous deep cuts to health care and higher education.

Things are so bad that an increasingly desperate Bobby Jindal, running out of state buildings, vehicles and hospitals to sell or agency funds to raid, is even looking to sell the remainder of the state tobacco settlement money and the State Lottery in order to generate yet even more one-time revenue to cover recurring expenses.

And remember, this is the man who told the Monroe News-Star he was leaving the state in better shape than he found it. http://www.thenewsstar.com/story/news/politics/2015/03/13/gov-jindal-want-finish-strong/70262992/

Still, every year those non-government organizations (NGOs) make the obligatory trek to Baton Rouge with hands out, asking that legislators appropriate funding for their organizations. This year is no exception as 80 individual entities have submitted requests for funding of 89 separate projects totaling nearly $241.3 million.

Of that amount, $116 million, or 48 percent, were for NGOs in the greater New Orleans area.

Many of the requests are from the usual worthy organizations like councils on aging, youth groups and charitable organizations.

Among the larger requests:

  • $26 million for the Foundation for Science & Math Education in New Orleans;
  • $17.2 million for the Girl Scouts of Louisiana East in New Orleans;
  • $4.4 million for Kingsley House in New Orleans;
  • $1.6 million for the Louisiana Arts & Science Museum in Baton Rouge (two projects);
  • $8 million for the Louisiana Children’s Museum in New Orleans;
  • $5 million for the Louisiana Food Bank Association in Baton Rouge;
  • $4 million for the Louisiana Regional Leadership Council in Lafayette;
  • $27.7 million for a National Hurricane Museum and Science Center in Lake Charles;
  • $1.4 million for renovations to VFW Post 8852 in Alexandria;
  • $14.9 million for the North Desoto Water System in Stonewall;
  • $4.1 million for the Ogden Museum of Southern Art in New Orleans;
  • $1.2 million for Sci-Port (Louisiana’s Science Center) in Shreveport;
  • $10.7 million for repairs at the State Fair of Louisiana in Shreveport;
  • $2.1 million for Administrators of the Tulane Education Fund in New Orleans;
  • $4.3 million for Lighthouse for the Blind in New Orleans;
  • $4.9 million for the Louisiana Association for the Blind in Shreveport;
  • $3 million for the Baton Rouge Empowerment Foundation;
  • $10 million for the Gulf Coast Restoration and Protection Foundation in Baton Rouge;
  • $7 million for the Second Harvest Food Bank of Greater New Orleans and Acadiana;
  • $2 million for the New Orleans Jazz Orchestra;
  • $2.6 million for Loyola University in New Orleans;
  • $1.1 million for WYES Educational Television in New Orleans;
  • $11.8 million for University Hospital & Clinics in Lafayette (two projects);
  • $37.3 million for the Audubon Nature Institute in New Orleans;
  • $5.68 for the Biomedical Research Foundation Northwest in Shreveport;
  • $4.5 million for the NOLA Motorsports Hospitality Committee in New Orleans.

The last four warrant particular attention.

While all such organizations are barred from making political contributions because of their non-profit status, officers and members of their boards of directors are not bound by such restrictions. Jindal received $167,000, various members of the Louisiana House and Senate got $65,650, and the Louisiana Republican Party was the beneficiary of another $26,000 from seven principals connected with those four organizations.

University Hospital in Lafayette has been taken over by Lafayette General Medical Center in Jindal’s sweeping state hospital privatization scheme which raises immediate question of why the state should be funding projects at that facility.

Same for the Biomedical Research Foundation of Northwest Louisiana, which last year assumed operation of LSU Medical Center in Shreveport and E.A. Conway Medical Center in Monroe. The foundation received $5.7 million in state largesse last year.

The Audubon Institute receives millions of state dollars every year, much of which goes to the upkeep of the institute’s golf course. Last year, for example, Audubon Institute received $16.8 million in legislative appropriations.

But for sheer audacity, we give you the NOLA Motorsports Hospitality Committee. Here is its summary justifying its request for $4.5 million:

  • NOLA Motorsports Park in Jefferson Parish, through a competitive process, has been selected as the site for an INDYCAR event to be part of the championship Verizon INDYCAR Series. The selection was made, in part, because of the availability of a venue for the Event and related activities, transportation infrastructure, personnel, commitment to comply with the required specifications, and because of the collaborative relationships that have been established with other support entities. The Nola Motorsports Host Committee, Inc., a non-profit corporation, has committed to host a first-class Event and to plan and provide a unique and entertaining visitor experience for all which will include live music from Louisiana artists, regional cuisine, and demonstrations of Louisiana’s culture to enhance the visitor experiences for all participants including drivers, team owners, team supporters, corporate sponsors, family and guests, media, and other attendees; and
  • The public purpose of the Event is to provide supplemental funding to the Nola Motorsports Host Committee, Inc. to host the inaugural Indy Grand Prix of Louisiana which will support the expansion and promotion of tourism by producing an event that is projected to stimulate substantial growth in the Louisiana tourism industry, resulting in job creation and other increased economic activity, including the generation of tax revenue for state and local governments. Nola Motorsports Host Committee has secured a preliminary economic impact analysis from Formula, LLC which indicates an estimated economic impact of $27.8 million annually from the Event. INDYCAR has guaranteed a 3-year lifecycle of the Event with the goal of the Event being an annual occurrence. The goal is to attract visitors to Louisiana and to maintain awareness and a positive image of Louisiana as a unique and desirable travel destination. It is anticipated that the public benefit is proportionate to the obligations undertaken by the State. The State will receive tourism publicity and recognition for its support through verbal acknowledgements, media events, and in other related publicity associated with promoting and publicizing the Event.

But wait. Didn’t this same organization receive $4 million from the state just last year for track improvements after Jindal made a commitment to the track owners to come through with the money?

Well, yes and no.

This is where things get a bit murky.

You see, last year, when Jindal yanked a $4.5 million appropriation away from the developmentally disabled, it was to give the money to NOLA Motor Club (The NGO got $4 million, not the $4.5 it requested), a corporation that was established in September of 2009 and which remains in good standing.

This year, however, the $4.5 million request came from a corporation calling itself NOLA Motorsports Host Committee, established last June.

Both corporations listed their addresses at 11075 Nicolle Blvd. in Avondale, however, but had different officers, according to corporate records on file with the Secretary of State’s office.

But wait. There is a third entity: NOLA Motorsports established in May of 2008 and located at 2251 Drusilla Lane, Suite B in Baton Rouge. But that corporation is listed as inactive and records show its corporate status was revoked on Aug. 16, 2013.

One of the officers of NOLA Motor Club was Laney Chouest.

While Laney Chouest was listed as an officer for NOLA Motor Club, he is not listed among the officers for NOLA Motorsports Host Committee. It is nevertheless interesting to note that he, other members of the Chouest family and their many business enterprises have made $166,300 in campaign contributions since 2003. They include $43,800 to various legislators, $26,000 to the Louisiana Republican Party and $96,500 to Jindal.

What best illustrates the arrogance of that fiscally irresponsible appropriation, the thing that pushed it to the status of virtual malfeasance, is the fact that the Senate Finance Committee, taking its cue from Jindal, ripped $4.5 million from the budget for Louisiana’s developmentally disabled in order to free up the money for the racetrack. The lone dissenting vote was that of State Sen. Dan Claitor (R-Baton Rouge). https://louisianavoice.com/2014/05/26/senate-finance-committee-craters-to-jindal-rips-4-5-million-from-developmentally-disabled-for-racetrack/

But what compounds that unconscionable act was the motivation behind Jindal’s action.

The man who for his entire term of office has railed against government encroachment (see: federal stimulus funds, Common Core, medical care, prisons, etc.), obviously based his justification on political expedience and using state government to take care of his contributors.

Though Laney Chouest is not listed among the officers for NOLA Motorsports Host Committee, it is nevertheless interesting to note that he, other members of the Chouest family and their many business enterprises have made $166,300 in campaign contributions since 2003. They include $43,800 to various legislators, $26,000 to the Louisiana Republican Party and $96,500 to Jindal.

Two members of the Senate Finance Committee, Robert “Bret” Allain (R-Franklin) and Norbert “Norby” Chabert (R-Houma), received $2,500 each from Gary Chouest in 2010 and 2011.

Isn’t it interesting how a state so broke as to find itself unable to fund things like highway and bridge repair, health care, higher education, and a host of other essential services, can find $4 million for a race track, $7.7 million for golf courses across the state, $35.1 million for professional sports facilities, $10.1 million for local sports complexes, and another $3 million for baseball stadiums (including $1.4 million for a baseball stadium in Baton Rouge, when we don’t even have a team here)?

It will certainly be interesting to follow the outcome of some of these NGO requests.

Especially those last four on the list.

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Bobby Jindal finds another asset to sell: remaining tobacco settlement but Kennedy vows to fight junkie’s need for a fix

Posted in Attorney General, Budget, Courts, DHH, DOA, Education, Finances, Governor's Office, Health Care, Higher Education, Legislature, Legislators, OGB, Office of Group Benefits, Revenue on March 13, 2015| 14 Comments »

There’s blood in the water and the sharks are starting to circle.

To clarify the analogy somewhat, the blood is $750 million in tobacco settlement money and the sharks would be 144 state legislators and the guy masquerading as Louisiana’s governor.

Bobby Jindal, the same guy who as Secretary of the Louisiana Department of Health and Hospitals (DHH) in 1996, opposed the state’s participation in the 46-state litigation against the nation’s four largest tobacco companies, now wants to sell off the remaining portion of the 1998 settlement of that suit to generate $750 million for the state treasury.

That’s the same Bobby Jindal who as DHH secretary, was well aware that the state was spending millions of dollars per year in treatment of indigent patients for tobacco-related illnesses at the state’s charity hospitals, but nevertheless signed affidavits along with his boss, then-Gov. Mike Foster, that argued that Attorney General Richard Ieyoub did not have the authority to sue on behalf of the state and DHH.

That’s also the same Bobby Jindal who as governor in absentia, successfully opposed the lawsuit by the Southeast Louisiana Flood Protection Authority-East (SLFPA-E) against 97 oil and gas companies in an effort to hold them accountable for damages to Louisiana’s coastal wetlands, claiming that SLFPA-E did not have authority to file suit on behalf of the state.

No matter. The tobacco litigation was settled for $365.5 billion in 1998 and the state was in line to receive $4.6 billion, or $141.2 million per year for 25 years and continued payments as long as tobacco products are sold within the state as its share of the settlement. http://kff.org/other/state-indicator/tobacco-settlement-payments/

But in 2001, the state, with the support of State Treasurer John Kennedy, sold 60 percent of its settlement income as a hedge against the possibility of bankruptcy by the tobacco companies. That money was placed in a trust fund that generates revenue for health care, education and the Taylor Opportunity Program for Students (TOPS), the program that provides college scholarships to Louisiana high school students to meet curriculum and grade criteria.

Now, though, Jindal is proposing selling off the remaining 40 percent, a move that Kennedy opposes, saying it represents the same disastrous fiscal policy that is responsible for the current $1.6 billion structural deficit in the state budget.

Commissioner of Administration Kristy Nichols, in her usual condescending manner, said Kennedy does not understand what the administration is trying to do.

“The only way we will consider this is if it creates recurring revenue for TOPS,” she said, adding that the money would not be spent all at one time.

But Nichols and Jindal only have a few months left in office and have no way of guaranteeing how the money will be used and Kennedy is more than a little skeptical of Jindal’s motives. “It’s just another gimmick to generate one-time money,” he said. “It’s just not a good idea to sell the family silver.”

He said the administration does not have the authority to dictate how the money is spent. “That will be the decision of the legislature and with the history of the legislature being what it is, you know they can’t wait to get their hands on this money,” he said.

Kennedy said the proposed sale is much like the manner in which the Office of Group Benefits (OGB) saw its reserve fund reduced from $500 million to only about $100 million and still dwindling.

“The administration reduced premiums for OGB members which on the surface, looked like a great thing for the members.” What the administration didn’t say is that the move also reduced the state’s corresponding obligation to match premiums, thus freeing up money the state would have paid into OGB for helping Jindal patch his budget holes. Meanwhile, because of reduction in income from premiums, OGB found itself paying out about $14 million more in benefits each month than it was taking in, thus creating a continuous drawdown on the reserve fund.

Kennedy said the revenue from the sale of the tobacco settlement cannot be used to plug budget holes because it would have to be used for TOPS and higher education. But by dedicating the money for TOPS, it would allow the administration to take the money it would normally use for those two purposes and redirect it to the state budget.

Kennedy said the administration has taken on all the characteristics of a junkie in search of a fix.

He said Jindal’s chronic use of one-time money to fill budget holes has included selling state property, raiding the Medicaid Trust Fund for the Elderly, indirectly taking funds from the OGB reserve fund. “When you get hooked badly enough, you will sell your shoes for a fix,” Kennedy said. “Any farmer knows it’s a bad idea to sell your seed corn because then you don’t have anything to plant next year’s crop.”

Noting that Moody’s and Standard & Poor’s bond rating agencies have already put Louisiana on negative credit watch, he said the rating agencies will take a dim view of the state’s selloff of the remainder of the tobacco settlement which is currently generating about $50 million a year for the state.

Nichols said the proposal to sell the remaining 40 percent of the settlement would have to be approved by the Tobacco Settlement Financing Corp. Board, the Legislature and the State Bond Commission. The board is scheduled to meet Tuesday at 10:30 a.m. in House Committee Room 1 in the State Capitol.

Approval by the board is expected to be a mere formality since the board members are Jindal appointees.

“My fear is that all $750 million of this money will be spent,” Kennedy said. “Everyone will want a piece of the pie. That will only add to our structural deficit and what will we do next once the money is gone? We’ve got to stop thinking about the next election and begin thinking about the next generation. Don’t hold this fire sale.”

If the board does approve it and it goes before the Legislature, “we are going to do everything we can to oppose the sale,” Kennedy said.

The practice of Bobby Jindal’s selling off everything in sight to raise money is reminiscent of a 2011 comment by former State Sen. Butch Gautreaux (D-Morgan City) who, in criticizing Jindal’s practice of selling state property, suggested acerbically that perhaps the administration should consider selling the 24-story State Capitol building because “it would make a great waterslide.” https://louisianavoice.com/2011/04/29/of-water-slides-and-comparisons-between-2-state-health-plans/

 

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Gov. Bobby’s decision to opt out of Medicaid expansion looking worse by the day; OLOL refuses indigent patients

Posted in Contract, Contracts, DHH, Governor's Office, Health Care, Legislators, Legislature, LSU, Privatization, Revenue on March 6, 2015| 21 Comments »

Gov. Bobby’s ill-fated, self-serving decision to opt out of a Medicaid expansion for Louisiana is beginning to pay off in an ever-expanding crisis in medical care for the indigent population of Louisiana—on at least two fronts.

An occasional admission of error could go far in establishing a politician’s credibility but it is downright exasperating when this governor is so blind, so stubborn, so obnoxious, so obstinate, so pig-headed, and so disconnected that he cannot bring himself to cross Grover Norquist, the American Legislative Exchange Council, or the tea party—even when his decision endangers the health and even the lives of more than a quarter of a million of his constituents.

http://www.latimes.com/business/hiltzik/la-fi-mh-more-evidence-medicaid-20141027-column.html

Of course it was only a matter of time before the chickens would come home to roost but Gov. Bobby, Timmy Teepell, Kristy Nichols, et al, figured they would long gone and on their way to the White House before the fecal matter hit the oscillating air circulation device.

They were wrong and now they’re covered with the metaphoric filth of their own making with no one to blame but themselves.

The details of the latest developments are so horrific as to defy logic but tragically, they are true.

When Gov. Bobby decided to privatize the state’s charity hospital system (which, by the way, accounts for most of the state employee cuts he loves to crow about on Faux News, in his op-ed pieces, and speeches to his right-wing zealot faithful), he closed Earl K. Long Medical Center (EKL) in Baton Rouge.

That, of course, forced many low-income residents in the northern part of East Baton Rouge Parish to go to Baton Rouge General’s Mid-City medical center for emergency room treatments.

The only problem with that was Gov. Bobby had entered into a cooperative endeavor agreement with Our Lady of the Lake (OLOL) in south Baton Rouge. Consequently, OLOL was—and is—one of only two facilities in East Baton Rouge Parish receiving payments from the state. The other is Woman’s Hospital. Neither of the Baton Rouge General facilities (Mid-City and Bluebonnet), Ochsner Medical Center, nor Lane Memorial in Zachary received a dime from the state.

Because of that, Baton Rouge General recently announced that its Mid-City facility would cease operating its emergency room, effective March 31, because of the financial strain placed on it by the overflow from EKL.

When Gov. Bobby announced the cooperative endeavor agreement with OLOL in January of 2010, he was quite specific in saying the agreement to pay OLOL something on the order of $34 million ($14 million as per the agreement, plus the $24 million already appropriated for the LSU Medical Center which previously had trained its residents at EKL; some estimates put the state’s payments as high as $100 million) would “improve and expand access to health care services for the poor and enhance graduate medical education for Louisiana’s doctors, nurses and health care professionals.” (Emphasis ours.) http://dhh.louisiana.gov/index.cfm/newsroom/detail/88

Moreover, the cooperative endeavor agreement with OLOL says on pages 7 and 8:

  • WHEREAS, LSU is obligated by Louisiana law to provide free or reduced cost care to certain patients who qualify for such care;
  • WHEREAS, the State’s purpose of this initiative, which is recognized by OLOL and LSU, is to provide Medicaid recipients with integrated, coordinated care, management of chronic disease, improvement in access to preventive and diagnostic services for children and adults, improve recipient satisfaction with access to care and the care experience and provide the State with improved budget predictability;
  • WHEREAS, in the interest of advancing the State’s goal of improving integration and coordination of health care services for the low-income populations, and recognizing the opportunity presented by the integration of outpatient and community-based services provided by LSU, inpatient and outpatient services provided by OLOL, and a payment mechanism being made available by DHH (Department of Health and Hospitals) that integrates all services through a prepaid model, the State, OLOL, and LSU intend to participate as a coordinated care network within Medicaid as proposed by DHH;
  • WHEREAS, in order to successfully meet their respective purposes, OLOL, LSU, and the State intend to enter into this public/private collaborative whereby certain residency positions in the LSU GME (Graduate Medical Education) programs and patient care services will be relocated to the OLOL campus. (Emphasis ours.)

Click here to read the CEA.

But wait. Could there be a loophole in that agreement?

Apparently OLOL thinks so.

LouisianaVoice has learned that OLOL is taking the position that its only obligation under terms of the now infamous cooperative endeavor agreement is for residency training of LSU medical students. Apparently care for the indigent is off the (examination) table.

That should come as no surprise. After all, OLOL had already dug in its heels and had begun refusing to take indigent transfers from Baton Rouge General Mid-City’s emergency room if they were not already in the LSU system—and some, apparently, who were.

Woman’s also is refusing to take indigent patients.

Of course, it was also to the state’s advantage that OLOL and Woman’s not treat indigent patients or accept indigent transfers from Baton Rouge General because as long as those patients never see the inside of the OLOL emergency room or Woman’s treatment center, the state does not have to pay for their treatment (as in the decision to lower health insurance premium rates for state employees—not so much to help the employees as to lower the state’s premium share which in the long run only resulted in the depletion of Group Benefit’s $500 million reserve fund. Are we seeing a pattern here?).

All of which raises the obvious question: could all this be by design?

Obviously, no one would admit to any conspiracy.

But how could OLOL refuse indigent patients if it is the only facility in East Baton Rouge Parish receiving payments from the state for treating indigent patients?

Good question and the answer to that goes a long way in the decision by Baton Rouge General to shut down its Mid-City emergency room, leaving indigent patients with no apparent place to go for emergency treatment—in flagrant violation of clause in the agreement that says the state is “obligated by Louisiana law to provide free or reduced cost care to certain patients who qualify for such care.” (Emphasis ours.)

Sometimes those WHEREASes can come back to bite you.

LouisianaVoice also has learned that Gov. Bobby’s latest round of budget cuts may have figured in the decision by Children’s Hospital in New Orleans to delay taking over operations of the state’s new billion-dollar University Medical Center New Orleans (UMCNO) from May 15 to at least August. http://www.umcno.org/about-us

Gov. Bobby’s budget cuts, necessitated mainly by his squirrely fiscal policies, leaves all of the LSU hospitals across the state woefully short of the funding needed to keep them open under the various agreements the state has entered into with private hospitals for their management. http://theadvocate.com/news/11751470-123/state-hospital-operators-say-jindal

In the case of UMCNO, built to replace the old Big Charity that was destroyed by Hurricane Katrina, the state is coming up $88 million short of needed funding, according to Children’s CEO Gregory Feirn.

“If the state does not restore the funding, then the state is deciding not to allow for care for the people of New Orleans, deciding not to open their state-of-the-art facility that is nearly finished and striking a crippling blow to medical education in Louisiana,” he said in a prepared written statement.

Strong words indeed, but then Gov. Bobby long ago, with his decision to opt out of the Medicaid expansion, made that decision.

Rep. Walt Leger (D-New Orleans), House Speaker Pro Tem, was especially critical of Gov. Bobby. “The budget is in such a mess,” he said. “We keep hearing from (Commissioner of Administration) Kristy Nichols that they are in negotiations to work matters out.

“We expect to operate a world-class facility that we invested a billion dollars in but now we learn that the date for Children’s Hospital to take it over has been pushed back,” he said.

State Treasurer John Kennedy, appearing on a New Orleans radio talk show, said the news concerned him. “Feirn is a very able administrator and I think they’ll be able to manage that facility better than the state could. We’ve invested and we’ve got to make that facility work. We do not have a choice,” he said. http://www.wwl.com/Garland-Is-the-University-Medical-Center-ready-to-/10773584?pid=461170

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