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Archive for the ‘Economy’ Category

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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There’s nothing left to be said other than to say Bobby Jindal is bat guano crazy.

The Louisiana Office of Group Benefits (OGB) was cruising along in 2011, providing virtually complaint-free quick turnarounds on medical claims for state employees, retirees and their dependents.

But then Bobby Jindal saw a way to undercut premiums in his privatization scheme which allowed the state to be obligated for less in its share of matching premiums so that Jindal could rake in some extra cash to cover his backside, aka budget deficit.

The result, as just about everyone who follows this sham of an administration knows, was that the $500 million reserve fund was all but wiped out.

Bobby Jindal, after having first jerked $40 million in funding for state colleges and universities, reversed himself again by taking $30 million from a federal hurricane recovery fund.

Bobby Jindal has shrunk the state’s rainy day fund from $730 million when he took office to $460 million and a $450 million fund to subsidize companies for investing in the state has evaporated as is the $800 million balance in the Medicaid Trust Fund for the Elderly.

And after giving away billions of dollars in tax breaks, incentives, rebates and exemptions for business and industry in an effort to spur economic development, we learned today (March 18) that Louisiana’s unemployment rate was third highest in the nation. http://www.politico.com/magazine/story/2015/02/bobby-jindal-campaigning-114948_Page2.html#.VQoeJ005Ccw

The one constant in all this is the Louisiana State Lottery, which since a 2004 Constitutional amendment has dedicated proceeds to the Minimum Foundation Formula (MFP) for public education.

Since the lottery’s approval by voters in 1990 and its implementation in 1991, the lottery, which is mandated to transfer 35 percent of proceeds to the state treasury, has contributed $2.8 billion to the state.

In 2014, sales were $450 million and $161 million of that was transferred to the state.

Also, 2014 marked the 13th consecutive year that the lottery has transferred more than $100 million to the state.

Why do we tell you all this?

Well, only because the administration of Bobby Jindal is currently entertaining the notion of selling bonds that guarantee future State Lottery profits in order to raise some $467.7 million in one-time money to help plug a $1.6 billion hole in the state budget.

Wait. What? Sell the State Lottery?

Yup.

State Treasurer John Kennedy tells LouisianaVoice that the administration is “seriously considering” two separate proposals to take over the lottery and to pay the state one time money.

The two proposals were from Wall Street banking firms Goldman Sachs and Citigroup. While Citigroup did not specify an amount, Goldman Sachs said, “Based on lottery revenue growth of at least 1.5 percent annually, the state could raise approximately $428 million and preserve a minimum contribution to the MFP of $160.2 million.” Goldman Sachs Presentation – March 2015

Citigroup Presentation – March 2015

With 13 consecutive years of receipts of more than $100 million and total receipts of $2.8 billion since 1992, $428 million in quick cash appears to be a terrible deal for the state—not that Bobby Jindal gives—or ever gave—a flying fig about this state.

Let’s first take a look back at the history of lotteries in Louisiana.

In 1868, the Louisiana Lottery Co. was authorized and granted a 25-year charter after a carpetbagger criminal syndicate from New York bribed the Legislature into approving the lottery and establishing the syndicate as the sole lottery provider.

Because it was an interstate venture, 90 percent of the syndicate’s revenue came from outside Louisiana. Because it was so profitable, when efforts were made to repeal the charger, bribes to legislators ensured the effort’s failure.

Ten years after it was approved, Louisiana had the only legal lottery remaining in the company. When Congress passed a prohibition against operating lotteries across state lines, the Louisiana Lottery was finally abolished in 1895. When it was disbanded, reports of ill-gotten gains and bribery surfaced. http://www.library.ca.gov/crb/97/03/chapt2.html

But even more worrisome are the histories of the two Wall Street banking firms who submitted proposals for taking over the Louisiana Lottery.

And even though Kennedy said Commissioner of Administration Kristy Nichols has said the lottery won’t be sold, the mere fact that two proposals for just that scenario have been simultaneously submitted by Goldman Sachs and Citigroup cannot be considered as coincidence. Both investment banking firms pointed that similar actions have been taken by Oregon, Florida, Arizona and West Virginia.

And what about the integrity and professional ethics of the two companies?

That’s a fair question, so let’s look at the records.

Goldman Sachs:

Citigroup:

So now the administration suddenly receives “unsolicited” proposals for the sale of the Louisiana State Lottery from two Wall Street banking firms with checkered backgrounds. (But admittedly, it would be difficult to find a Wall Street bank—or banker—these days that is not under a similar cloud.)

A Division of Administration (DOA) source said Bobby Jindal feels that, unlike his desire to sell the remainder of the tobacco settlement in yet another desperate effort to raise one-time revenue, he would not need legislative approval to sell the State Lottery. “We feel legislative approval would be required, but the governor apparently feels otherwise,” Kennedy said.

The State Treasurer added that he felt if Bobby Jindal does intend to sell the State Lottery, “he will wait until after the legislative session has adjourned and then direct the Lottery Corporation to take the action.”

The nine lottery corporation members are appointed to staggered terms by the governor. Kennedy serves as an ex-officio member. Three members, Christopher Carver ($2,000), Heather Doss ($1,000), and Lawrence Katz, combined to contribute $8,000 to various Jindal campaigns since 2003.

 

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“I’m leaving Louisiana in better shape than I found it.”

—Bobby Jindal, in an interview with Monroe News-Star editor Greg Hilburn, apparently ignoring the fact that he “found” the state with a $1 billion surplus and today is facing a $1.6 billion deficit.

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There comes a time when those surround Bobby Jindal must return to earth and come to grips with a realistic fact about their boy.

Pick one:

  1. He cannot seriously consider himself real presidential timber;
  2. His quest for POTUS is simply a cruel joke he’s playing on the rest of us;
  3. He told an unforgivable lie when he said, “I have the job I want”;
  4. He has no clue as to how to govern a state, let along an entire nation;
  5. The little boy should never try on big boy pants;
  6. He may actually be qualified to lead the Stupid Party;
  7. All of the above.

The correct answer is….well, you know.

As Jindal’s numbers continue to shrink to less than single-digits in GOP presidential preference polls, his efforts to garner attention have ramped up accordingly and in the process, have made him a national—if not international—laughingstock.

His handlers should take note and rein him in—for his own sake. While once fun to watch him as he writhes and issues forth preposterous utterances, people are starting to exchange nervous, embarrassed glances. It’s kind of like the drunk uncle you want to keep away from reunions, weddings, funerals and any other social gatherings—at all costs—in order to prevent his bringing further shame on the family.

That’s what happens when you have someone who doesn’t know when to shut up or when he’s had too much to drink—in Jindal’s case, some unknown Kickapoo ego-boosting joy juice that has him convinced he’s democracy’s answer to the rest of the world (Hint: George W. Bush already tried that and it didn’t work).

In recent weeks, we have seen the following:

And even before the recent rash of brashness on his part, Jindal set the tone right after the 2012 presidential election loss by Mitt Romney when he said the Republican Party needed to “stop being the stupid party.” http://thehill.com/video/in-the-news/279243-jindal-republicans-must-stop-being-the-stupid-party

There seems to be no end to his string of banalities—unless one wishes to include his duties as governor of Louisiana. In that case, he appears to have punted, to have taken a powder, abdicated, as it were.

But for the true picture of the depth of his silliness, we need to go all the way back to February 2, 2005, and then-President George W. Bush’s State of the Union Address—a full four years before Jindal’s disastrous Republican response to the Obama State of the Union Address.

The 2005 Jindal was in stark contrast to the January 2015 Jindal.

In 2005, then-U.S. Rep. Bobby Jindal drew national attention (what else is new?) when he provided a bowl of purple ink for members of Congress to dip their index fingers in and to hold the fingers aloft during Bush’s address as a show of solidarity with Iraqi citizens who had voted in elections in that country. http://news.google.com/newspapers?nid=1683&dat=20050203&id=GSQqAAAAIBAJ&sjid=Q0UEAAAAIBAJ&pg=6546,792517

“We all watched with joy as Iraqis dipped their fingers in ink and held them high, proudly proclaiming to the world that they had voted,” Jindal said rather naively in a letter to fellow congressmen as he somewhat prematurely launched his one-man celebration of the birth of democracy in Iraq.

That was then.

This is now:

That experiment in democracy apparently did not take in Iraq as the country anticipates a bloodbath between the Sunni and Shiite factions, a rift that pre-dates American democracy by some 1100 years and shows no signs of going away. http://www.cfr.org/peace-conflict-and-human-rights/sunni-shia-divide/p33176#!/

As if that were not enough, our friend C.B. Forgotston points out that today’s (Monday) Baton Rouge Advocate quotes Louisiana Secretary of Revenue Tim Barfield as saying that he “has already been in talks with Grover Norquist’s Americans for Tax Reform to see if the group would consider replacing revenue lost from local inventory taxes with increased collection of remote sales tax revenue neutral.http://theadvocate.com/news/11837337-123/st-james-leaders-brace-for

That’s correct. The administration consults with Norquist before making any decision on the state’s budgetary matters or before even going to the restroom. A governor who is the self-proclaimed expert on all matters dealing with foreign policy apparently cannot make a decision on Louisiana issues without the nod of approval of the most powerful unelected official in America. As Forgotston pointed out this morning, “A group out of D.C. is in talks with Team Jindal on how to tax us.  If the legislators had any courage or self-respect, they’d shut this down NOW!” You simply can’t make this stuff up, he says.

But, hey, our governmental sage has a bowl of purple ink for anyone who’s interested.

To paraphrase our former governor Bobby Jindal, “at the end of the day,” you have “two things:”

  • One, we have a man who, though he repeated ad-nauseam during his first term that he “has the job he wanted” and then proceeded to spend all of his second term chasing the job he really wants to such a degree as to abandon any pretense of being governor.
  • Two, by admitting that the administration has been in talks with Grover Norquist, the tea party guru who doesn’t even live in Louisiana and never has, Barfield has openly acknowledged what we all knew: that Jindal has never—repeat, never—been his own man, and never will be. He is beholden to big business and the no-tax-under-any-condition mantra that the corporate world cherishes.

We can only conclude that he has been snorting too much Koch.

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Gov. Bobby has a serious problem.

Yeah, we know. We have to narrow that down a bit.

We already know about his ethical and moral problems. But more specifically, he has a major constitutional problem.

We’re not talking about the Louisiana State Constitution here; we’re talking about the U.S. Constitution.

And all you birthers out there who have gotten your innards twisted in knots trying to prove that President Obama is (a) not a U.S. citizen and (b) is a closet Islamist working from within to bring this country down, we have a new assignment for you along those same lines.

And you aren’t going to like it because this time the shoe is on the other foot, i.e. the right (as in right-wing) foot. What follows has been alluded to on several occasions in comments to blogs and online news stories but to our knowledge, no one has written extensively on the subject.

Now pay attention because this gets a little dicey and will require that you follow some logic and everyone knows by now that Gov. Bobby’s faithful followers aren’t very logical. They seem to prefer that he do their thinking for them.

It is common knowledge that Gov. Bobby has aligned himself solidly with Tony Perkins of the Family Research Council (FRC) and Gene Mills of the Family Forum. In fact, one might say that Gov. Bobby is joined at the left hip by one and the right hip by the other. Which hip doesn’t really matter.

In fact, not quite two years ago, Gov. Bobby even appointed Perkins to the Louisiana Law Enforcement Commission, though Gov. Bobby’s office, for whatever reason, steadfastly denied the appointment until it finally became the subject of national news. http://cenlamar.com/2013/09/26/bobby-jindal-appoints-unethical-hate-monger-tony-perkins-to-law-enforcement-commission/

About that same time, Gov. Bobby attended a Family Forum banquet and posed with Mills as the two held Mills’s “Gladiator” sword, whatever that is.

Bobby Jindal holding Gene Mills's "Gladiator" sword during last week's Louisiana Family Forum banquet

And just last month, it was learned that Gov. Bobby will be traveling to Israel next fall as the special guest of Perkins’ FRC. http://www.nola.com/politics/index.ssf/2015/02/bobby_jindal_israel_tony_perki.html

Perkins and Mills, both personally and through their respective organizations, have continued to oppose abortion and to maintain that life begins at conception. That, of course, is their right but it’s important to point out here that Gov. Bobby is right there with them on this issue, even vetoing a bill that would have allowed contracts for surrogate births. In vetoing the bill, he said life is created by God, not a test tube.

In fact, Gov. Bobby has claimed that it is a biological fact that life begins at conception.

And therein lies his knotty little constitutional problem.

Are you keeping up? We hope so, because it’s about to get a bit more difficult to follow.

According to the U.S. Constitution, one must be a natural born citizen of this country to become president. And we concede that Gov. Bobby was indeed born in this country on June 10, 1971.

Without wading into the argument ourselves about just when life begins, it is nevertheless important to note that his parents immigrated to America from India when his mother was three months pregnant—meaning that while he may have been born here, he was actually conceived in India.  http://www.nytimes.com/2007/10/22/world/americas/22iht-22louisiana.7991675.html?_r=1&

So here’s the logic: If life begins at conception, a claim Gov. Bobby says is supported by biological fact (and remember, he was a biology major at Ivy League Brown University), and if he was conceived in India, then he would have to necessarily be considered a native of India and therefore constitutionally disqualified from seeking the U.S. presidency.

We know that’s a bitter pill for him and Timmy Teepell to swallow, but the facts are the facts—and they are supported by no less than biological science, according to none other than Gov. Bobby himself.

So, the way we see it, he’s in something of a pickle. He has boxed himself in, outsmarted himself, as it were. Consequently, he now has no choice other than to announce that he not only will not, but cannot, seek the Republican nomination for president because of that pesky little constitutional prohibition.

We are certain that a man of his unimpeachable ethics and high moral character would never wish to ascend to the presidency on the mere technicality that he was born in this country when it must be his inevitable conviction that his life began at conception—in India.

As an added twist to the plot, let’s consider the question of religion.

Some of Obama’s detractors, and there are many (and we’re not exactly fans either, for that matter), have tossed out broad hints that he may just be a secret Islamic agent in disguise with the intent of bringing down this country on behalf of his Islamic brotherhood.

But wait! Isn’t he a Baptist? No matter. That’s just his cover.

Well, then, what about Gov. Bobby?

That’s not fair, his supporters (mostly limited to his staffers by now) might protest. Everyone knows he is a devout Catholic. Why, by his own admission, he even performed an exorcism while a student at Brown.

And what about all those visits to the north Louisiana Protestant churches where he handed out those giant federal checks to communities during his first term?

Pretty clever, eh? Pose as a good Catholic, conduct an exorcism and even write a paper about it later like it was the real deal and then suck up to the Baptists just to support your cover. Quite the chameleon. But deep down, he could be a Hindu—like his parents. Why, his parents could have been dispatched to this country by the Hindu hierarchy with the express intent of grooming him for the presidency just so he could then dismantle the entire country in the same manner that he has destroyed Louisiana’s economy, higher education and health care and then hand the entire country over to India.

We have to be completely honest, however, and admit that scenario is not only lame, but downright ludicrous. Offensive? Maybe. Politically incorrect? Most definitely.

Frankly, we much prefer the life at conception disqualification theory. It smacks of just enough hypocrisy to fit Gov. Bobby like a glove.

Plus, if it gains traction, Timmy Teepell might even actually find it necessary to go out into the private sector and work for a living like the rest of us.

 

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