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Why the secrecy, Ascension? $450 million in tax exemptions for four fictitious projects, and only 32 new jobs? Seriously?

Posted in Boards, Contract, Contracts, Corruption, Economy, Ethics, Exemptions, Incentives, Finances, Governor's Office, Jobs, Lawsuits on October 16, 2017| 10 Comments »

Only in Louisiana.

A lawsuit filed in 23rd Judicial District Court in Ascension Parish challenging the legality of the proposed approval of $450 million in industrial tax exemptions raises two immediate questions:

  • What are Projects Magnolia, Zinnia, Bagel and Sunflower/Sunflower Seed?
  • Why is the Ascension Parish Council being so secretive about the true identities?
  • Why did the Ascension Parish Council’s Finance Committee not follow the law in considering the proposed tax exemptions?
  • Most important of all, what is the Ascension Parish Council trying to hide?

These are all questions to which plaintiffs Dr. Henrynne Louden, George Armstrong and Lana Williams are seeking answers in their petition filed last Friday.

On Sept. 12, the council’s Finance Committee, which in truth is comprised of all 11 council members, met and added to its agenda for the full council meeting of Sept. 21 Item 7, calling for the consideration of “resolutions to award industrial tax exemption at levels recommended by the Ascension Economic Development board for the following projects:

  • Project Magnolia;
  • Project Zinnia;
  • Project Bagel;
  • Project Sunflower/Sunflower Seed.

Altogether, the four projects would cost Ascension Parish $55.6 million—for a grand total of 32 new jobs, or $1.7 million per job.

To see the lawsuit in its entirety, click HERE.

Ascension_code_names.PNG

“The identity of the projects on the agenda for the meeting of the council held on September 21, 2017, are fictitious,” the lawsuit says, adding that neither the plaintiffs “nor any other member of the public could determine, from a review of the consent agenda:

  • The identity of the company (or companies) seeking the benefit of an industrial tax exemption;
  • The amount of the exemption sought for each project;
  • The cost of granting each of the exemptions;
  • Whether any of the projects comply with requirements of the Louisiana State Constitution, or
  • Whether any of the projects comply with requirements of Executive Order Number JBE 2016-73.

“There are two things at issue in this suit,” said a spokesperson for an organization calling itself Together Louisiana: “Whether public subsidies can be approved by a public body without disclosing the identity of the entity receiving the subsidies, and whether reasonably specific public notices must be provided regarding approval of such subsidies.”

Article 7, Section 21(F) of the Louisiana State Constitution of 1974 spells out the requirements for approval of the ad valorem tax exemptions for new manufacturing facilities.

“After being elected,” the lawsuit says, Gov. John Bel Edwards determined that the Board of Commerce and Industry “…had approved industrial tax exemptions contracts ultimately resulting in an average of $1.4 billion in foregone ad valorem tax revenue each year for the next five years for parishes, municipalities, school districts and other political subdivisions of the state that directly provide law enforcement, water and sewage, infrastructure, and educational opportunities to Louisiana citizens.”

On Oct. 21, 2016, Gov. Edwards issued Executive Order Number JBE 2016-73 entitled “Amended and Restated Conditions for Participation in the Industrial Tax Exemption.”

The executive order requires that the governor and Board of Commerce and Industry be provided with a resolution adopted by, among others, “the relevant governing parish council, signifying, “whether it is in favor of the project,” the lawsuit says.

The executive order further says that contracts for industrial tax exemptions which do not include a resolution by the relevant local governing authority “will not be approved by the governor.”

The agenda for the Sept. 12 Finance Committee meeting, the plaintiffs say in their petition, “failed to indicate that (it) would be considering whether or not to approve a resolution signifying that the council was in favor of one or more industrial tax exemption.” Despite failing to include the item on its agenda, the Finance Committee did, in fact, recommend approval by the council of such a resolution, placing the committee, the lawsuit says, in violation of the state’s open meeting laws.

“Not only are meetings of the public bodies to be open,” the lawsuit says, (but) “citizens have the right to know—in advance—the subject matter upon which governing bodies will deliberate and vote.”

The state’s open meeting laws require posting written notices of the agenda of all meetings “no later than 24 hours, exclusive of Saturdays, Sundays, and legal holidays, before the meeting” and “shall include the agenda, date, time, and place of the meeting.”

The committee’s violation of the open meeting laws, the plaintiff say, deprived the public of the right to:

  • Know what was being considered by the Finance Committee;
  • Directly participate in the deliberations of the Finance Committee;
  • Protect themselves from secret decisions made without any opportunity for public input.

The lawsuit is asking the court to declare actions of both the Finance Committee and the full council void as provided by law.

The plaintiffs and their attorneys, Brian Blackwell and Charles Patin of Baton Rouge are, in all probability, correct in their interpretation of the state’s open meeting laws (Article XIL, Section 3 of the 1974 Louisiana State Constitution and Louisiana Revised Statute 42:19).

But this is Louisiana and it has been the experience of LouisianaVoice and other members of the media that the law is whatever some judge says it is. Judges apparently have wide discretion in concocting their own interpretations of the law to accommodate whomever the judges wish to accommodate—usually campaign donors.

The three plaintiffs in this case have the full moral support of LouisianaVoice but the reality is there is usually negligible correlation between law and justice once you walk through those courtroom doors.

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State Treasurer’s race boils down to See, Speak, Hear and Know no truth; candidates take Louisiana voters for fools

Posted in Congress, Education, Elections, Ethics, Finances, Fraud, House, Senate, Jobs, Legislature, Legislators, Politicians, Revenue, Taxes, Waste on October 5, 2017| 6 Comments »

If you really want to know what’s wrong with our political system and the people we elect to office, it can be summed up in the current race for State Treasurer.

Here are the Duties of that office:

According to Article IV, Section 9 of the Louisiana Constitution, the treasurer is head of the Department of the Treasury and “shall be responsible for the custody, investment and disbursement of the public funds of the state.” The Treasury Department website outlines the treasurer’s duties:

  • receive and safely keep all the monies of this state, not expressly required by law to be received and kept by some other person;
  • disburse the public money upon warrants drawn upon him according to law, and not otherwise;
  • keep a true, just, and comprehensive account of all public money received and disbursed, in books to be kept for that purpose, in which he shall state from whom monies have been received, and on what account; and to whom and on what account disbursed;
  • keep a true and just account of each head of appropriations made by law, and the disbursements under them;
  • give information in writing to either house of the Legislature when required, upon any subject connected with the Treasury, or touching any duty of his office;
  • perform all other duties required of him by law.
  • advise the State Bond Commission, the Governor, the Legislature and other public officials with respect to the issuance of bonds and all other related matters;
  • organize and administer, within the office of the State Treasurer a state debt management section

https://www.treasury.state.la.us/Home%20Pages/TreasurerDuties.aspx

Nowhere in al that does it even once say or even imply that the job has once scintilla to do with:

  • standing with President Trump to create new jobs or to cut wasteful spending, as former Commissioner of Administration Angele Davis would have us believe in her TV ads;
  • fighting to make drainage and infrastructure top priorities in the state budget, as State Sen. Neil Riser insists in his TV ads;
  • having the guts to say “No! No to bigger government, no to wasteful spending and to raising your taxes,” as former State Rep. John Schroder proclaims in his TV ads, or
  • stopping cuts to education, healthcare and wasteful government spending, as the TV ads of Derrick Edwards insist.

http://www.wafb.com/story/36425632/la-treasurer-candidates-launch-tv-ads-analyst-calls-them-flimsy-on-duties-of-office

So, why do they insist on campaigning on issues in no way related to the actual duties of the position they are seeking?

For the same reason candidates for Baton Rouge mayor (former Mayor Kip Holden and State Sen. Bodie White, who ran unsuccessfully for the job, come to mind) consistently campaign every four years on improving schools and reducing the number of school dropouts when the mayor’s office has zilch to do with the school board:

They consider the average voter to be unsophisticated, ignorant fools who don’t know any better. Or they’re so stupid they don’t know any better themselves. Those are only two choices.

Period.

Their campaign ads clearly illustrate the complete and total disdain the treasury candidates have for Louisiana voters. They obviously think they can throw up (ahem) fake news and pseudo issues that leave voters in complete darkness about each candidate’s relative qualifications to hold the job.

And by so doing, they send a loud message that neither is qualified for—or deserving of—the job.

When John Kennedy, who had previously served as Secretary of Revenue, an appointive position, ran for treasurer in 1995, he ran a somewhat relevant ad that said, “When I was Secretary of the Department of Revenue, I reduced paperwork for small businesses by 150 percent.”

That ad carried a message that actually resonated with small business owners drowning in paperwork and which at least sounded germane to the office of state treasurer—never mind that it was physically impossible to reduce anything by 150 percent. Once you reduce something by 100 percent, you’re at zero.

All of this rant about the four candidates for treasurer and the lame campaign rhetoric of candidates for Baton Rouge mayor—and just about any other political office you can name—just illustrates to what lengths politicians will go to cloud the real issues and to shy away from discussing matters they can actually address when in office.

How many times have you heard a candidate for U.S. Representative or U.S. Senate implore you to send him to Washington so that he can “make a difference”?

It’s disingenuous at best, fraud at worst.

So, on Oct. 14, be sure to go to the polls and cast your vote for one of the four frauds running for treasurer.

It’s the Louisiana way.

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Lots of finger-pointing, throwing Edmonson under the bus by two State Troopers demoted for Oct. ’16 San Diego trip

Posted in Corruption, Ethics, Finances, Fraud, State Police on October 2, 2017| 14 Comments »

The fallout from last October’s cross-country drive to San Diego via the Grand Canyon, Hoover Dam and Las Vegas in a state police vehicle has resulted in the demotion of two state troopers who took part in the drive.

Lt. Rodney Hyatt was demoted to sergeant, and Capt. Derrell Williams was bumped down to lieutenant. Both troopers received corresponding reductions in pay along with their demotions.

Both men have the option of appealing their respective disciplinary actions.

But they didn’t go down without a fight and without throwing former State Police Superintendent Mike Edmonson, who was forced into retirement over the trip that also included a dozen other state police personnel, under the bus. It all comes down to “who do you believe?”

And Hyatt, so sure was he that he was blameless in the circuitous route taken by the four, recently applied for promotion to captain despite his pending demotion.

Moreover, Williams was cited for receiving a semi-nude photograph from a female friend on his state police email account via his state-issue cell phone and for transmitting a suggestive photo of himself to that same female friend on his state email account.

Both men fired off lengthy letters defending their actions to the State Police Internal Affairs Section that Williams once headed. In Hyatt’s case, his letter was 12 pages in length while Williams’s letter was 10 pages.

Hyatt, in particular, attempted to shift the blame for driving the state vehicle (which was assigned to then-Assistant Superintendent Charles Dupuy, for overstating his overtime, for staying in expensive hotels, and for visiting Vegas, the Grand Canyon and Hoover Dam along the way, to Edmonson.

Williams, for his part, said simply that “None of the (other) officers in the state vehicle were in my chain of command,” and that upon his return to Baton Rouge, Edmonson “signed off on my state credit card expenditures showing the prices and places where we stayed.”

The disciplinary letters from State Police Superintendent Col. Kevin Reeves to Hyatt and Williams were each 10 pages in length but the letter to Hyatt appeared to pack the most punch and its entire 10 pages were summed up in a single sentence:

“Your response merely attempts to shift responsibility for your actions to others,” Reeves said.

Still, it’s difficult to imagine that the four would have gone off on a sightseeing trip in a state vehicle without Edmonson’s knowledge and blessing.

Reeves also said that Hyatt not only submitted padded time sheets for hours not worked but that he forwarded copies of his time sheet to Troopers Thurman Miller and Alexandr Nezgodinsky, who also made the trip in the state vehicle, “to show them how to claim their time for the travel and training.”

Hyatt, in his letter said he was initially asked by Edmonson if he wanted to attend the International Association of Chiefs of Police (IACP) conference that was held in conjunction with the State and Provincial Police Planning Officers Section (SPPPOS) meeting. Hyatt said he told Edmonson he did wish to attend both conferences at which point Edmonson said, “If you go, you have to drive.” He said Edmonson then said, “Take your wife and have a good time.”

“I have never taken my wife in my entire 20-year career to any work-related conference,” Hyatt said. “Had Edmonson not told me to, I would not have brought her. However, being a paramilitary organization, I took his order to mean that I am going to the conferences in San Diego, California with my wife, and we were to have a good time and drive there. Additionally, I followed his order because I did not want to violate Louisiana State Police Policy and Procedure, which states that I shall obey and execute all lawful orders of a superior officer.”

Moreover, Hyatt said it was Edmonson who suggested that the four troopers and Hyatt’s wife take the “northern route” because there was “nothing but desert along I-10.” That was the route that included the side trips to the Grand Canyon, Hoover Dam and Vegas.

Edmonson was quoted earlier this year when news of the trip first became public that he did not sign off on the side trip but Williams backed Hyatt’s version of events by saying he had “no doubt” that Edmonson knew the whereabouts of the four “at all times” during the trip.

On telling part of Hyatt’s letter as well as Reeves’s letter of demotion to Williams was the issue of text messages and emails on state cell phones.

LouisianaVoice requested copies of all such messages and photos, particularly those between the four troopers in the state vehicle and Edmonson months ago but was told by State Police Legal Affairs that no such messages existed.

Yet Hyatt, in his 12-page response alluded to emails, text messages and photographs sent by Hyatt’s wife to Edmonson throughout the trip.

And Reeves, in his letter, cited the sexually explicit photo sent to Williams’s state email account by a female friend and received on his cell phone and Williams’s photo of him straddling a cactus that he texted to that same lady friend.

Because the disciplinary letters and the responses are so lengthy, it has been decided that rather than try to relate what they said, it would be better to simply publish the links to the respective documents.

So here is the disciplinary letter to RODNEY HYATT, along with his response.

And here is the disciplinary letter to DERRELL WILLIAMS, followed by his response.

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Treasurer candidate Neil Riser at center of 2013 move to skip bid law in favor of Vantage Health purchase of state building

Posted in Campaign Contributions, Contracts, Corruption, DOA, Elections, Ethics, Finances, Governor's Office, Legislature, Legislators, Politicians, Public Records, Senate on September 26, 2017| 12 Comments »

Before Louisiana voters trek to the polls in record low numbers on Oct. 14, there are a few things to consider about State Sen. Neil Riser, one of four candidates for the job of state treasurer, who, besides failing to help landowners being fenced out of their hunting lands, actually took campaign cash from a family member of the one erecting the fences.

Riser, author of that infamous bill amendment in the waning minutes of the 2014 legislative session that would have given State Police Superintendent Mike Edmonson an additional $100,000 or so per year in retirement benefits, has received some other interesting contributions as well.

The Louisiana Safety Association of Timbermen gave $2,500 to his senate re-election campaign in March 2014 and only 18 months later filed for BANKRUPTCY on behalf of its self-insurance worker’s compensation fund, leaving quite a few policy holders in the lurch.

Several nursing homes have contributed $2,500 each to his treasurer campaign. The nursing home industry, heavily reliant on state payments on the basis of bed occupancy, consistently benefited from favorable legislation by the Louisiana Legislature over the past decade that discouraged home care for the elderly.

But by far the biggest beneficiary of Riser’s legislative efforts is Vantage Health Plan, Inc., of Monroe which contributed $1,000 in 2015 to his Senate re-election campaign and another $1,000 to his treasurer campaign in March of this year.

Vantage has received six state contracts totaling nearly $242 million during the time Riser has served in the State Senate.

But it was Riser, along with Sens. Mike Walsworth of West Monroe, Rick Gallot of Ruston and Francis Thompson of Delhi, who pushed Senate Bill 216 of 2013 through the Legislature which cleared the way for the state to bypass the necessity of accepting bids for the purchase of the state-owned former Virginia Hotel and an adjoining building and parking lot. That was done expressly for the purpose of allowing Vantage to purchase the property for $881,000 despite there being a second buyer interested in purchasing the property from the state, most likely for a higher price.

By law, if a legislative act is passed, the state may legally skip the public bid process to accommodate a buyer. This was done even though a Monroe couple, who had earlier purchased the nearby Penn Hotel, wanted to buy the Virginia and convert it into a boutique hotel. Thanks to Riser and the other three legislators, they were never given the opportunity.

And Vantage, from all appearances, really got a bargain. The building was constructed in 1925 at a cost of $1.6 million and underwent extensive renovations in 1969 and again in 1984, according to documents provided LouisianaVoice, all of which should have made the property worth considerably more than $881,000. Read the entire story HERE.

Internal documents revealed concerns by Vantage that if the building were to be offered through regular channels (public bids), “developers using federal tax credits could outbid Vantage.”

Another document said, “VHP (Vantage Health Plan) fears that public bidding would allow a developer utilizing various incentive programs to pay an above-market price that VHP would find hard to match.”

Finally, there was a handwritten note which described a meeting on Nov. 1, 2012. Beside the notation that “Sen. Riser supports,” (emphasis added) there was this: “Problem is option of auction—if auction comes there is possibility of tax credits allowing a bidder to out-bid.”

All of which raises the obvious question of why did the Jindal administration turn its back on the potential of a higher sale price through bidding, especially considering the financial condition of the state during his entire term of office? We will probably never know the answer to that.

One might think that that kind of effort on its behalf would be worth more than a couple of thousand in campaign cash to Vantage. Vantage could have at least shown the same gratitude as the relative of the owner of 55,000 of fenced hunting property in Riser’s district.

When landowners in Winn, Caldwell and LaSalle parishes felt they were being fenced out of their hunting rights back in 2013, they did what any citizen might do: they went to their legislator for help–in this case, Riser, who paid the obligatory lip service of expressing concern for landowners Wyndel Gough, Gary Hatten, and Michael Gough but who, in the end, did nothing to assist them.

Instead, as so often happens today in politics, he sold out to the highest bidder.

One the $5,000 contributors to Riser’s campaign is none other than Hunter Farms & Timber, LLC, of Lafayette. An officer in that firm is Billy Busbice, Jr., of Jackson, Wyoming.

William Busbice Sr., one-time chairman of the Louisiana Wildlife and Fisheries Commission, and Junior’s father, is a partner in Six C Rentals Limited Partnership of Youngsville, LA. Which purchased and proceeded to fence in some 55,000 acres of prime hunting land a few years back.

The original LouisianaVoice story on that dispute can be read HERE.

All of which only serves to underscore the long-held perception that we in Louisiana, by continually electing the type of public officials who are interested only in the next big deal, get the kind of representation we deserve.

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POST certification of deputy fire marshals: for the protection of the public or are ulterior (read: financial) motives at play?

Posted in Corruption, Crime, Ethics, Finances, Governor's Office, Legislators, State Fire Marshal, Transparency on September 25, 2017| 7 Comments »

Are State Fire Marshal deputies in violation of the law by wearing firearms while on duty?

That’s a fair question.

Many, if not most deputy fire marshals would prefer not to wear a weapon. Some whom we talked with are downright resentful that they are required to go through Police Officer Standards and Training (POST) certification to be qualified to be armed agents. It’s not the training they object to so much as the requirement that they carry a weapon.

But the fact remains that they are required to do just that.

But there may be legitimate questions as to the actual legality of such a requirement.

In 2009, State Fire Marshal Butch Browning wanted a bill introduced that would redefine and expand the authority of deputy fire marshals, a move opposed by command level brass at Louisiana State Police (LSP) who found the proposal to be inappropriate, based on the mission of the Louisiana Office of State Fire Marshal (LOSFM).

In a March 16, 2009, email to State Police command and on which LSP’s Office of Legal Affairs was copied, Browning wrote, “I wanted to follow up on the legislation on full police powers for our investigators. Currently, they have powers to carry firearms and (to) make arrests for the arson crimes and I have the authority to commission them. Arson is now, more than ever, a bi-product of so many other crimes and our folks regularly uncover other crimes and times where their ability to charge with other crimes might help the arson investigation.

“Our people need full powers while conducting a (sic) arson investigation. This can be accomplished with adding to the fire marshal’s act or by your commissioning authority,” he wrote. “I have no preference. I just know they need this ability. You (sic) consideration in this matter is appreciated.”

Browning even prevailed upon then-State Rep. Karen St. Germain of Plaquemine (now Commissioner of the Office of Motor Vehicles) to draft a bill to redefine the role of deputy fire marshals. From what we can determine it appears that despite Browning’s pleas to expand the agency’s law enforcement authority the bill received no support from Gov. Bobby Jindal (likely at the urging of then-State Police Superintendent Mike Edmonson) and was never filed.

Why would a person who trained to be a boiler inspector be required to pack heat?

The same goes for nursing home, child care facilities, and hospital inspectors.

Ditto those who inspect carnival rides.

Likewise, for jail, public school and other public building inspectors.

The fact is, the only conceivable area in which a deputy fire marshal might need to be armed is in the area of explosives and arson investigations, according to highly-placed LSP officials who insist there is little or no need for the creation of yet another police agency to augment LSP, Department of Public Service (DPS) officers, sheriffs’ departments, campus and local police departments.

Yet, just a couple of years ago, there they were: Armed deputy fire marshals patrolling the New Orleans French Quarter during Mardi Gras.

In order for Browning to get around the objections of LSP, he instituted cross-training whereby all deputy fire marshals, no matter their specialized training, must be qualified to inspect any type building, any carnival ride, any boiler, any jail, or any night club—and to be arson investigators to boot. That proposal, coinciding as it did with Jindal’s obsession with downsizing and consolidation of state government, tempered the governor’s initial reluctance to go along with Browning.

But in reality, the issue was never about improving response or streamlining the agency at all. It was about improving retirement benefits.

By allowing deputies—all deputies (and virtually all employees would ultimately be designated as deputies)—to become POST-certified and to carry weapons, it qualified employees (even clerical, if they wore a gun, as some now do), to have their jobs upgraded to hazardous duty as are state police and DPS police.

What that means is employees can now qualify to retire at 100 percent of their average salary for their top three years more than a decade earlier than State Civil Service employees. Here’s how it works:

State classified employees under Civil Service accrue retirement at 2.5 percent per year at a rate based on the average of their three highest earning years (excluding overtime) multiplied by years of service. So, a classified employee whose highest three-year average earnings are $50,000 must work 40 years to retire at 100 percent of his salary ($50,000 X 2.5 percent = $1,250 X 40 years = $50,000. Based on that same formula, if he worked 30 years, he would retire at $37,500). (This equation, of course, works for any pay level, not just $50,000.)

But hazardous duty employees accrue retirement at 3.5 percent of the average of their three highest years. That means the same three-year average pay of $50,000 would accrue retirement at a rate of 3.5 percent, or $1,750 per year, allowing him to retire at 100 percent of salary in just over 28 years.

Accordingly, Chief Deputy Fire Marshal Brant Thompson surmised that if deputies achieved POST certification, then they were fully imbued with general law enforcement authority and not the limited law enforcement authority laid out in state statutes. “That assumption is absolutely not true,” according to one long time law enforcement official familiar with how officers are commissioned. “Just because an individual has POST certification doesn’t empower that person to enforce all laws. That authority flows from the law or via the person issuing the commission. I’m not sure who commissions deputy marshals; I suspect it is Browning rather than the Superintendent of State Police.

“I know that when the LSP Colonel (Superintendent) issues a commission to campus police, for example, the commission makes it clear that law enforcement authority is limited to crimes occurring on the campus,” the former law enforcement officer said.

Browning is nothing if not determined in his quest to acquire full law enforcement authority for his marshals. The debate that began in 2009 has continued into 2016, at least. Gene Cicardo, who was appointed chief legal counsel for DPS upon the death of Frank Blackburn last September, was drawn into the dispute and wrote a memorandum to Edmonson and Deputy Superintendent Charles Dupuy that left Browning upset and unhappy, according to sources.

The contents of that memorandum are not known, but LouisianaVoice has made a public records request to LSP for that document.

Cicardo has since returned to private practice in Alexandria.

Meanwhile, we have armed boiler inspectors, carnival ride inspectors, nursing home inspectors and, conceivably, even State Fire Marshal Office clerical employees (aka Executive Management Officers) patrolling for criminal elements in the New Orleans French Quarter during Mardi Gras.

What could possibly go wrong?

 

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