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Archive for the ‘Ethics’ Category

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

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

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

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

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

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

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

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

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

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

Anonymous (but probably claimed by many)

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

New Orleans stand up comic Lance Montalto.

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

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

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

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

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

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

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

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

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

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

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

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

That was on Monday.

We’re still waiting for the phone to ring.

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Chas Roemer could be in violation of state ethics laws governing conflicts of interest every time he votes on any matter coming before the Board of Elementary and Secondary Education (BESE) pertaining to any of the state’s charter schools.

Roemer, the son of former Gov. Buddy Roemer, represents BESE District 8 which includes all or parts of the parishes of Avoyelles, Evangeline, Lafayette, St. Landry, Pointe Coupee, East and West Feliciana, East and West Baton Rouge, Iberville, Ascension, St. James, and St. John the Baptist parishes.

He is the former co-chair of the School Innovation & Turnaround Committee which addresses charter school performance and oversight and which also manages the Recovery School District (RSD) in New Orleans.

Louisiana’s Charter School Law was enacted as Act 192 of 1995 as a pilot program to allow up to eight school districts to participate on a voluntary basis. The law was expanded in 1997 by Act 477 to establish BESE and local school board as charter authorizers. Act 477 defined four types of charter schools: Type 1, a charter with local school boards (new start-up); Type 2, charter with BESE (new start-up or conversion:; Type 3, charter with local school board (conversion); Type 4, school board charter with BESE (new start-up or conversion), and Type 5, charter with BESE (pre-existing public school under the jurisdiction of RSD).

In 2003, ACT 9 created a new type of charter for the operation of pre-existing schools that were transferred to the jurisdiction of RSD.

RSD was charged to take underperforming schools and transform them into charter schools. Since Hurricane Katrina in 2005, the number of public schools in New Orleans has dropped from 123 to four while the number of charter schools has ballooned from seven to 31.

Charter schools operate as independent public schools under five-year contracts granted by BESE or a local school board.

Caroline Roemer Shirley, Chas Roemer’s sister is executive director of the Louisiana Association of Public Charter Schools and therein lies the potential for a conflict of interest and possible ethics violations.

Almost a year ago, on April 21, 2010, the Louisiana Board of Ethics issued an opinion at the request of attorney Richard Easterling of the law firm Adams and Reese of Baton Rouge that said Shirley was prohibited from appearing before BESE and from representing the associations in matters before BESE.

A partial text of the opinion reads as follows:

The Louisiana Board of Ethics, at its April 16, 2010 meeting, considered your request concerning Caroline Roemer Shirley’s employment with the Louisiana Charter School Association while her brother Charles Roemer, IV serves as an elected member of the Louisiana Board of Elementary and Secondary Education (BESE). Caroline Roemer Shirley is the Executive Director of the Association.

In 2000, the board concluded that Section 1113A of the code would prohibit Ms. Shirley from discussing with individual members of BESE matters or positions of the Association and that the Code would prohibit Ms. Shirley from interacting with the staff of the Department of Education on matters that are under the jurisdiction of BESE.

With respect to the following specific questions raised, the Board concluded and instructed me to inform you of the following:

• If the Association and the Louisiana State Director of Charter Schools partner to host a meeting pertaining to the future of the Recovery School District, may the director and Ms. Shirley speak to one another to discuss the date, time, location, invitees, agenda, etc. for this event? May Ms. Shirley speak at such a meeting?

The Code prohibits Ms. Shirley from 1) appearing before BESE; 2) representing the Association in matters before BESE; 3) discussing with individual members of BESE matters or positions of the Association, and; 4) from interacting with the staff of the Department of Education on matters that are under the jurisdiction of BESE. However, Ms. Shirley is not prohibited from discussing with individual members of BESE or the staff of the Department of Education issues that do not involve matters or positions of the Association on matters that are under the jurisdiction of BESE such as those items involving the incidentals of a planned event.

• When legislation is pending that will have an impact on charter schools, may Ms. Shirley bring charter school leaders together for discussions with BESE and/or the Louisiana Department of Education (LDE) on these matters?

Ms. Shirley is not prohibited from contacting charter school leaders for discussions with BESE and/or LDE on pending legislation. However, she is prohibited from discussing with individual members of BESE matters or positions of the Association involving the proposed legislation and from interacting with the staff of the Department of Education on issues involving legislation on matters that are under the jurisdiction of BESE.

• May Ms. Shirley be a member of and participate in a Charter Advisory Board created to work with and provide the Superintendent of Education, the Louisiana Recovery School District Superintendent and/or the Louisiana State Director of Charter Schools information on matters involving charter schools? This Advisory Board would be a volunteer group of charter leaders representing all five types of charter schools that would meet every other month.

Ms. Shirley is not prohibited from being a member of a Charter Advisory Board created to work with and provide the Superintendent of Education, the RSD Superintendent and/or the Louisiana State Director of Charter Schools information on matters involving charter schools. However, she is prohibited from discussing with individual members of BESE matters or positions of the Association involving those matters and from interacting with the staff of the Department of Education on issues involving matters that are under the jurisdiction of BESE.

• As Executive Director, may Ms. Shirley organize and participate in charter school meetings, bringing together the principals and board members of the charter schools to hear from the Superintendent of Education, the Louisiana Recovery School District Superintendent and the Louisiana State Director of Charter Schools? Such meetings would serve as a means for the charter schools to be both better informed about policies and regulations, as well as having the opportunity to discuss other related issues.

Ms. Shirley is not prohibited from organizing and participating in charter school meetings as long as she does not discuss with individual members of BESE matters or positions of the Association and does not interact with the staff of the Department of Education on matters that are under the jurisdiction of BESE.

• If Ms. Shirley is invited by the LDE, BESE or the RSD to attend workshops, meetings, discussions, etc. that pertain to charter schools, may she attend and participate in these meetings, such as a meeting with the RSD hosted for principals and board members of the charter schools and the staff from BESE to discuss Bulletins that outline policies regulating charter schools.

Ms. Shirley is not prohibited from attending workshops, meetings, discussions, etc. that pertain to charter schools. However, she is prohibited from participating in the discussion and her participation in those events are restricted by the Board’s conclusions in BD 2008-122 prohibiting her from 1) appearing before BESE 2) representing the Association in matters before BESE 3) discussing with individual members of BESE matters or positions of the Association, and 4) from interacting with the staff of the Department of Education on matters that are under the jurisdiction of BESE.

• As one of the leading advocates for charter schools in the state, Ms. Shirley is often called by the Superintendent of Education, the Louisiana Recovery School District Superintendent, BESE members, BESE staff, and LDE staff to provide information about charter schools, contact information for national charter leaders, best practices of other states, etc. May she respond to these requests?

Ms. Shirley is prohibited from discussing with individual members of BESE matters or positions of the Association and from interacting with the staff of the Department of Education on matters that are under the jurisdiction of BESE. It is the conclusion of the Board that Ms. Shirley is prohibited from handling these type of requests for information.

While that opinion addressed only Caroline Shirley’s interaction with BESE members, there have been numerous opinions by the Ethics Board that cite Section 1112B(1) which specifically addresses the participation of a public service or elected official in a vote on any matter “in which a member of his immediate family has a substantial economic interest. Section 1120 of the code provides that an elected official shall recuse himself when the vote would be a violation of Section 112 of the code.

A review of minutes of BESE meetings over the past year reveal that Chas Roemer consistently made motions on agenda items dealing with charter schools and then voted on each one.

In December of 2010 alone, he made motions to approve charter school contracts of $50,000 and under, made motions to approve Crescent City School, the NET Charter High School, the Collegiate Academy Charter School, the Sarah T. Reed Charter Middle School, the ReNEW K-8 Charter School, the ReNEW Alternative High School, and in one case, made the motion to deny an application to commence operation of Joseph A. Craig charter school in New Orleans.

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There exists something of a double standard in Louisiana state government between elected officials and civil service employees, or as some would describe it, between the haves and the have nots.

Members of the Louisiana Legislature may reinstate their currently suspended annual, automatic pay raises at their pleasure. Likewise, unclassified employees (appointees) may be given annual pay raises at the pleasure of the administration but for the second straight year state classified (civil service) employees have their pay frozen—at the behest of the legislature and Gov. Jindal.

Legislators may accept meals from lobbyists but classified employees are strictly prohibited from accepting so much as a cupcake from a vendor for fear that the low-level bureaucrat can do favors for the vendor that a legislative committee chairman obviously is unable to do. One civil service employee was fined $250 by the State Ethics Board a few years ago because a vendor sent her a Christmas ham.

The governor of the State of Louisiana is free to write a book about his career and to hawk it on national television but if an employee of the Division of Administration (DOA) wishes to write a book, he must obtain prior approval from his section head. Those who embrace the First Amendment might suggest that this is a form of prior censorship.

Legislators who happen to be attorneys can—and do—sue the state and no one in any official capacity sees it as a conflict of interest.

The playing field, which has never been level, is poised to become even more tilted in favor of those in power and to the detriment of those who work in the trenches on a day to day basis to keep the state running efficiently.

State classified employees—the same employees whose pay has been frozen for two years—cannot engage in outside employment activities to earn extra income unless the work is approved in advance by that same section head for fear that an employee may be engaging in a conflict of interest.

DOA employees either have already received or will be receiving a copy of DOA Policy No. 95 (not to be confused with Area 51 in Nevada, though the policy may appear to some to have been inspired by alien mind control). The new policy details limitations to any outside work employees may perform outside state business hours.

State civil service employees have for decades been asked to sign affidavits that neither they nor immediate family members worked for any contractors or vendors who did business with their agency but this regulation is far more restrictive.

The five-page memo being sent out via email to DOA employees said the purpose of the policy “is to prevent employees from participating in outside employment that may be detrimental to the DOA’s mission and public image.”

The governor only last week attended a campaign fundraiser hosted by a state vendor who has a $380,000 state contract but it’s not considered a conflict because, the vendor said, it was held “after hours.”

Corporations with lucrative multi-million-dollar contracts with the state are allowed—encouraged, even—to contribute to the governor’s wife’s foundation with no apparent concern about conflicts of interest. The governor, in fact, even posed with his wife for a photo that is featured on the foundation’s home page.

Could that be construed as a subtle solicitation of contributions on the part of the governor, and thus a conflict of interest? Apparently not.

So much for public image.

Outside employment is defined by Policy 95 as “any non-DOA activity for which economic benefit is received,” including but not limited to:

• Employment with any non-DOA employer;

• contracts to provide consulting, personal, or professional services to non-DOA individuals or entities, or

• Self-employment (an individual who operates a business or profession as a sole proprietor, partner in a partnership, or any other type of legal business entity).

Policy 95 defines economic benefit in the context of the policy as “any compensation or benefit an employee receives for his outside employment that has a monetary value, e.g. payroll check, cash payments, share of profits, share of stocks, equity participation, etc.”

Any current DOA employee planning to engage or already engaged in outside employment will be required to complete an Outside Employment Disclosure Statement form and forward it to his supervisor for review and consideration.

The supervisor will review the statement and make a recommendation to either approve or deny the request and the supervisor would forward the form, along with his recommendations, to the section head, who then would make the final decision to approve or deny the request. If the section head is unsure, he will be required to consult with the DOA Office of Human Resources (OHR) and if necessary, OHR would contact the Board of Ethics for further guidance.

On closer examination of the entire five-page document, it appears to be sorely lacking in firm, definitive policy and heavy on vague but subjective policy enforcement by too many section heads on individual whims. In more common venacular, enforcement is strictly fly by the seat of the pants with ever-shifting interpretations that could all too easily hinge on the personalities involved.

“Original disclosure statements for outside employment must be forwarded by the section to OHR for filing and copies should be kept by the supervisor in a confidential file,” the memo says.

The policy and accompanying memo are already causing an undercurrent of discontent among many state employees.

One DOA employee said he has no outside income but nonetheless feels it is no business of the state what he does after 5 p.m. “This just smacks of …. the old ‘1984 Big Brother is watching thing,’” he said in an email to OHR.

“I object strongly, on principle alone. I don’t care if I am a male stripper on Friday nights or if I repair cars in my back yard on Sunday mornings—it is none of your or anyone’s business.”

“At this moment in time, I am so angry that I have no intention of signing this thing…and I am sure that I am not alone,” he said. “What happens if I don’t sign? Would you really fire me—after 36 years?”

There was no indication as to whether or not Policy 95 would also apply to non-classified employees in the governor’s office.

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