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As Arkansas office holders resign in separate ethics probes, Louisiana officials thrive under our ethics ‘gold standard’

Posted in ALEC, American Legislative Exchange Council, Ethics, Finances, Governor's Office, House, Senate, Legislature, Legislators, Politicians on January 14, 2014| 8 Comments »

Apparently Arkansas has ethics laws that are a bit stronger than those in Louisiana.

Lt. Gov. Mark Darr announced last week that he will resign, effective Feb. 1, in a move to avoid impeachment by the Arkansas House of Representatives after he was fined for 11 separate counts that included his personal use of more than $30,000 in campaign funds.

Earlier this year, Democratic State Sen. Paul Bookout also resigned after he was fined $8,000 by the State Ethics Commission for using thousands of dollars in campaign funds for personal purchases.

In that case, reports totaling more than 35 pages revealed that Bookout spent more than $5,000 alone on clothes and accessories at a Jonesboro, Ark., clothing store.

And then there is Martha Shoffner, the Democratic State Treasurer who resigned last May under pressure from both Democrats and Republicans and who was arrested the following month on 14 counts, including receipt of a bribe and extortion—not quite the same thing as using campaign funds for personal purposes, though we do have a legislator who awarded a $4 million contract to a firm when he was head of a state agency only to resign and go to work for the firm within weeks of signing off on the contract. He apparently continues to represent the company even while now serving in the legislature.

The personal use of campaign funds, while a common practice among Louisiana politicians, is apparently frowned upon in Arkansas to such an extent that even Darr’s fellow Republicans urged him to resign in the wake of his ethics problems.

Darr signed a letter on Dec. 30 in which he agreed to pay the Ethics Commission $11,000 in fines and to reimburse the state for findings in a legislative audit, which said he improperly spent $3,500 on his state credit card and then filed for an equal amount in travel reimbursements.

Remember back on Feb. 10, 2008, when Gov. Bobby Jindal signed Senate Bill 1 into law which, among other things, banned legislators and other state officials from contracting with the state?

SB-1, which became Act 2 with Jindal’s signature, was the centerpiece of the new governor’s agenda (he had been in office little more than a month at the time). “Today, we take the first step towards building a better Louisiana where our ethics laws are the gold standard,” he boasted as he signed the bill.

Well, not so much, it turns out.

Jindal’s “gold standard” removed enforcement from the State Ethics Board and gave it to some creature called the Ethics Adjudicatory Board whereby ethics cases are now heard by administrative law judges. Enforcement became such a joke that 10 ethics board members, including its chairman and vice-chairman resigned in disgust.

Today, we have a Teach for America (TFA) director serving on the Board of Elementary and Secondary Education (BESE) which administers funding for TFA, the BESE president voting on charter school matters while his sister serves as director of the state charter school association, another BESE member whose company has a multi-million contract with another state agency; a member of the LSU Board of Supervisors voting to turn over operations of the LSU Medical Center in Shreveport and E.A. Conway Hospital in Monroe to a foundation which he serves as CEO.

And worse, no one in a position to take appropriate action appears to want to step up to the plate.

Apparently, that “gold standard” in Louisiana means whoever has the gold sets the standard.

Campaign funds in Louisiana appear to serve as a handy slush fund for legislators who use the money for any purpose they wish—even, in one case, to pay a legislator’s federal income taxes not once, but for four straight years.

Take for example the Louisiana Election Code (Title 18:1505.2-I, paragraph 36 on page 36): “No candidate, political committee, person required to file reports under this chapter, nor any other person shall use a contribution, loan, or transfer of funds to pay a fine, fee or penalty imposed (by the State Ethics Board.)”

Yet The Louisiana Board of Ethics web page lists dozens of individual occasions in which ethics fines were paid with campaign funds. Some of these were paid by political action committees (The Alliance for Good Government paid $1,600 from its campaign funds and the Better Government Political Action Committee paid $5,000 from its campaign funds), some by lobbyists and these, by current or former legislators:

  • Rep. James Armes, III (D-Leesville)—$2,600 (two fines);
  • Rep. Roy Burrell (D-Shreveport)—$2,000;
  • Former House Speaker Charles DeWitt (D-Alexandria)—$5,000;
  • Former Rep. Tom McVea (R-St. Francisville)—$720;
  • Former Sen. Walter Boasso (D-Chalmette)—$1,000;
  • Former Rep. Irma Muse Dixon (D-New Orleans)—$600;
  • Former Rep. Dale Sittig (D-Eunice)—$800;
  • Former Sen. Joel Chaisson, II (D-Destrehan)—$5,000 (two fines);
  • Sen. Richard Gallot (D-Ruston)—$1,000.

But the real eye-opener is the list of more than 50 legislators and former legislators who had expenditures for LSU athletic season and individual game tickets, New Orleans Saints, Sugar Bowl, Jazz/Pelican and NCAA event tickets and in some cases, vehicle leases (including Senate President John Alario, who leased a Jaguar for his use) and gasoline purchases and even federal income tax payments. Here are a few examples of current members of the House and Senate who have dipped into campaign funds to pay for athletic event tickets that total more than $500,000 (car leases, gasoline, travel, parking and other personal expenditures are in parenthesis):

  • Rep. Neil Abramson (D-New Orleans)—$12,200 in 2009, 2011 and 2012 (Abramson also spent an additional $13,563 on legislative travel, airline tickets, Washington, D.C., Mardi Gras events and hotel fees in New York);
  • Senate President John Alario (R-Westwego)—$88,441 in 2009, 2010, 2011, 2012, and 2013 on athletic and Jazz Fest tickets, $62,365 in auto lease payments from 2009 through 2012 (Jaguar), another $12,000 for fuel, more than $16,000 in meals during that same time frame, more than $10,000 on entertainment, $13,840 in rent for his Pentagon Barracks apartment in Baton Rouge; $1,200 for cable TV for his Pentagon Barracks apartment;
  • Rep. John Anders (D-Vidalia)—$9,142 in 2009, 2010 and 2011;
  • Rep. James Armes, III (D-Leesville)—$11,688 in 2008, 2010 and 2011;
  • Rep. Jeff Arnold (D-New Orleans)—$3,000 in 2011;
  • Rep. John Berthelot (R-Gonzales)—$7,770, all in 2011;
  • Sen. Sherri Smith Buffington (R-Keithville)—$10,798 in 2009, 2010 and 2011;
  • Rep. Thomas Carmody, Jr. (R-Shreveport)—$11,556 in 2009, 2010 and 2011;
  • Sen. Karen Carter Peterson (D-New Orleans)—$3,738 in 2009 and 2010;
  • Sen. Norbert Chabert (R-Houma)—$3,015 in 2010;
  • Rep. Patrick Connick (R-Marrero)—$25,026 (Connick also paid $5,073 in lease payments for an Infiniti automobile in 2010, 2011 and 2012 and also paid $2,107 for lodging at the Baton Rouge Hilton Hotel;
  • Rep. George Cromer (R-Slidell)—$14,228 in 2008 2009, 2010, 2011 and 2012 (Cromer also paid $1,709 to the Sandestin Hilton on Aug. 3, 2008, for a Louisiana Forestry Association meeting and eight days later paid himself $1,500 for “expenses Hilton Hotel—hotel $969, mileage $285 and food and drink $250” and he paid $1,254 to the Hilton Washington for expenses for the Washington Mardi Gras in January of 2009. He also paid two New Orleans hotels a combined $1,141 for lodging for a legislative retreat and for a freshman retreat. He also paid himself a $500 cash advance for that 2009 Washington Mardi Gras;
  • Rep. Herbert Dixon (D-Alexandria)—$2,750 in 2011 (Dixon also paid $1,593.26 out of his campaign funds for hotel bills in Phoenix, Arizona, and Chicago.);
  • Rep. Brett Geymann (R-Lake Charles)—$1,500 in 2008 (he paid another $10,500 in rent for a Pentagon Barracks apartment in Baton Rouge);
  • Rep. Hunter Greene (R-Baton Rouge)—$6,394 in 2010 and 2011;
  • Rep. Frank Hoffman (R-West Monroe)—$11,106 in 2008, 2010 and 2011;
  • House Speaker Charles Kleckley (R-Lake Charles)—$17,492 in 2008, 2009, 2010 and 2011;
  • Rep. Bernard LeBas (D-Ville Platte)—$11,316 in 2009, 2020 and 2011;
  • Sen. Dan Martiny (R-Metairie)—$69,529 from 2002 through 2012 (Martiny also spent $12,351 on travel and another $12,976 for rent and furniture for his Pentagon Barracks apartment in Baton Rouge);
  • Sen. Jean Paul Morrell (D-New Orleans)—$8,043 in 2007, 2009, 2010 and 2011;
  • Rep. James Morris (R-Oil City)—$2,735 in 2009;
  • Sen. Dan Morrish (R-Jennings)—$2,978 in 2009;
  • Rep. Kevin Pearson (R-Slidell)—$20,660;
  • Sen. Jonathan Perry (R-Kaplan)—$16,653 in 2009, 2010 and 2011;
  • Rep. Stephen Pugh (R-Ponchatoula)—$5,900, all in 2011;
  • Rep. Jerome Richard (I-Thibodaux)—$2,678 in 2009;
  • Sen. Neil Riser (R-Columbia)—$2,000 (Riser spent an additional $8,138.84 in 2012 for his personal vehicle, another $6,656.86 for fuel for the vehicle, $1,013.67 to Riser & Son Funeral home—his business—in Columbia for reimbursement for purchase of an I-Pad, and $1,005.72 for insurance coverage on his truck;
  • Rep. Joel Robideaux (R-Lafayette)—$19,756 in 2004, 2005, 2006 2009, 2010, 2011 and 2012;
  • Rep. John Schroder (R-Covington)—$1,708 in 2009;
  • Sen. Gary Smith (R-Gonzales)—$14,952 in 2007, 2008, 2009, 2010 and 2011;
  • Rep. Regina Barrow (D-Baton Rouge)—$5,238 in 2008 and 2009;
  • Rep. Roy Burrell (D-Shreveport)—$6,100 in 2010 and 2011;
  • Rep. Patrick Connick (R-Marrero)—$8,448 in 2008, 2010 and 2011;
  • Rep. Mike Danahay (D-Sulphur)—$11,386 in 2008, 2009, 2010, 2011 and 2012;
  • Sen Daniel Martiny (R-Metairie)—$7,466 in 2007, 2009 and 2011;
  • Rep. Jack Montoucet (D-Crowley)—1,010 in 2010;
  • Sen. Kevin Pearson (R-Sulphur)—$3.010, all in 2010;
  • Rep. Harold Ritchie (D-Bogalusa)—$810 in 2005;
  • Rep. Alan Seabaugh (R-Shreveport)—$8,075 in 2011 and 2012 (Seabaugh also spent $1,309.74 for a hotel stay for an American Legislative Exchange Council (ALEC) conference in Baton Rouge in 2011;
  • Sen. Francis Thompson (D-Delhi)—$11,958 in 2009, 2010 and 2011(Thompson also paid $3,456 for hotel rooms on three trips to Sandestin Beach Golf Resort in 2009, 2010 and 2012, ;$11,958 in gasoline and auto insurance for those same years and $2,725 in dues to the Delhi Country Club and the Black Bear Golf Course. Even more curious, he $11,367 from his campaign funds for his federal income taxes for the years 2008 through 2011;
  • Sen. Mike Walsworth (R-West Monroe)—$1,785;
  • Sen. Bodi White (R-Central)—$5,858 in 2009, 2010 and 2011 (White also spent $2,543 on hotel stays in Destin, Fla., and in Washington, D.C. and another $1,398 on air travel to Phoenix and Atlanta;

Former Rep. Noble Ellington who spent $32,380 of his campaign funds since 2007 on athletic event tickets, more than $8,000 of which was spent in 2011 when he did not seek re-election. He spent another $40,755 in rent payments for his Pentagon Barracks apartment and another $2,400 attending meetings of the American Legislative Exchange Council (ALEC), of which served as national president during his last year in office.

Ellington, within weeks of leaving office, was named the second in command at the Louisiana Department of Insurance at $150,000 per year, a position which will greatly enhance his retirement benefits at the same time Gov. Jindal is asking state employees to work longer, pay more in employee contributions and accept fewer benefits.

Other former legislators who found no problem soliciting campaign contributions from supporters and to use the money for LSU athletic tickets and other personal expenditures included:

  • Former Rep. Bobby Badon (D-Carencro)—$8,448 in 2008, 2010 and 2011;
  • Former Rep. Damon Baldone (R-Houma)—$8,865 in 2007, 2008, 2010 and 2011;
  • Former Sen. Nick Gautreaux (D-Meaux)—$3,060 in 2010;
  • Former Rep. Walker Hines (R-New Orleans)—$5,688 in 2010;
  • Former Sen. Mike Michot (R-Lafayette)—$14,797 in 2008, 2009, 2010 and 2011;
  • Former Sen. Rob Marionneaux (D-Maringouin)—$6,075 in 2010 and 2011;
  • Former Rep. Billy Montgomery (R-Bossier City)—$4,075 in 2011 (Montgomery has not served in the legislature since 2008.);
  • Former Rep. Ricky Templet (R-Gretna)—$8,638 in 2009, 2010 and 2011;
  • Former Rep. Ernest Wooton (R-Belle Chasse)—$4,755 in 2009 and 2011;
  • Former Rep. Troy Hebert (D-Jeanerette)—$10,425 in 2009, 2010 and 2011 (Hebert also $1,505.70 for lodging at a Hilton Hotel in Washington, D.C., and $691.80 on an airline flight to Washington in 2010, and  $500 at the Hotel Monteleone in New Orleans, which he listed as a “donation” in 2011;
  • Former Rep. Nickie Monica (R-Metairie)—$9.670 in 2008, 2009, 2010 and 2011;

Some of the current and former legislators listed their expenditures as “donations,” but the “donations” often were in multiples of $1,010: $1,010, $2,020 and $3,030, which correspond to the price of LSU tickets. Interestingly, other legislators listed identical amounts, but their reports said the expenditures were to purchase LSU tickets which would seem to make the donations claim appear somewhat duplicitous.

And apparently there is no inclination—or desire—on the part of the legislature to enact appropriate legislation to keep such rampant abuses in check.

Rank indeed has its privileges.

And what Louisiana’s legislators get away with is pretty damned rank.

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Zounds and zowie! Jindal awards $34 million contract to firm that dropped the ObamaCare web page rollout ball!

Posted in Attorney General, Audit Reports, Auditor, Contract, Contracts, Governor's Office, Health Care, IT, OGB, Office of Group Benefits, Privatization, RFP, Request for Proposals on January 6, 2014| 16 Comments »

A company holding two state contracts worth $32.8 million was the lead IT contractor of the ill-fated Affordable Health Care enrollment web page rollout late last year, LouisianaVoice has learned.

CGI Technologies and Solutions, headquartered in Quebec Province, has experienced problems with other contracts in Canada and the U.S. even before the Obamacare debacle.

The largest tech firm in Canada, CGI also has offices in the Washington, D.C. area—Fairfax and Manassas, VA., Washington and Baltimore, and is part of the CGI Group which has 72,000 employees in 400 offices worldwide—many of those in India.

CGI Technologies and Solutions was awarded a $32.5 million contract with the Office of Community Development’s (OCD) Disaster Recovery Unit (DRU) on March 2, 2012 to provide computer software hosting, support and training for OCD’s Hazard Mitigation Grant Program (HMGP), small rental programs.

That contract is scheduled to run out on March 1, 2015.

CGI also has a $300,000 contract with the Office of Information Services to provide technical support for the Division of Administration’s (DOA) advanced financial system (AFS). That contract is set to expire on June 30.

The state also has a $20 million contract with Hunt Guillot & Associates of Ruston through OCD and DRU for grant management activities for infrastructure and other projects undertaken as a result of damages resulting from hurricanes Katrina, Rita in 2005 and Gustav and Ike in 2008.

The Hunt, Guillot contract was first issued for $18.2 million on Oct. 31, 2007—just 10 months after Gov. Bobby Jindal took office, and called for the firm to work in program design, the pre-application and application process, pre-construction and construction of projects related to hurricane recovery. That contract expired on Oct. 30, 2010, but the company was awarded a subsequent contract of $1 million on Dec. 1, 2009 which called for it to review applications for grant funds pursuant to the hazard mitigation grant.

It was not immediately clear how much, if any, overlap there might be between the CGI and Hunt, Guillot contracts, if one was intended to augment the other, or if the two are completely separate, unrelated contracts.

What is clear is that in April of 2013, less than a year ago, the Legislative Auditor issued a report which indicated the state could be on the hook for a minimum of $116 million and possibly as much as $600 million in improperly received or misspent disaster aid following Katrina and Rita.

http://www.nola.com/politics/index.ssf/2013/04/louisiana_on_for_misspent_road.html.

State auditors reviewed 24 loans to property owners through the state’s Small Rental Property Program. The state had allocated $663 million to the program and of the 24 cases reviewed, none had been flagged as problematic by OCD. Though only 24 cases were reviewed, more than 8,000 properties benefitted from the assistance program—increasing the likelihood that the total number and amount of improper payments could go significantly higher.

OCD Executive Director Patrick Forbes said rather than attempt to chase down homeowners to retrieve the misspent funds, he intends to change OCD regulations to provide more assistance to homeowners before “triggering the recapture of funds.”

Despite that statement of intent, a month after that audit report, on May 21, the administration issued a $600,000 contract to the Baton Rouge law firm of Shows, Cali & Walsh to “review and analyze Road Home files for overpayments, ineligible grantees, etc., (and to) negotiate and collect funds due to the state.”

Shows, Cali & Wash, meanwhile, has its own problems stemming from a federal judge’s findings that it manipulated evidence in a federal lawsuit by three death row inmates at the Louisiana State Penitentiary at Angola. https://louisianavoice.com/2014/01/03/baton-rouge-law-firm-with-3-million-in-state-contracts-faces-legal-sanctions-over-evidence-manipulation-in-angola-lawsuit/.

Meanwhile, the ObamaCare project—healthcare.com—disaster appears to have had caused a negative impact on employee morale at CGI, according to a staff worker who asked not to be identified. “There’s a lot of frustration,” he said. “People are getting sick, fainting in conference calls.”

Employee turnover is said to be high at CGI, making matters more complicated when trying to assemble a web page for the health-care exchange. Despite that, the upper management mentality at CGI appears to work toward establishing relations “so intimate with the client that decoupling becomes almost impossible,” according to one company profile. http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/16/meet-cgi-federal-the-company-behind-the-botched-launch-of-healthcare-gov/.

CGI was hired by the Hawaii Health Connector, that state’s new health exchange for providing insurance options under ObamaCare, to build its website and the state portal, like HealthCare.gov, had immediate problems when it launched on Oct. 1, 2013. http://www.foxnews.com/politics/2013/10/23/red-flags-company-behind-obamacare-site-has-checkered-past/.

“The morning I heard CGI was behind (the Obamacare web page development), I said, ‘My God, no wonder that thing doesn’t work,’” said James Bagnola, a Texas corporate consultant who was hired by the Hawaii Department of Taxation in 2008. “The system is broken all the time.” Bagnola said CGI was able to continue work on the Hawaii project despite repeated managerial complaints and a “corrosive environment” in which state employees felt pitted against CGI staff.

CGI’s contract to design and execute a new $46.2 million diabetes registry for eHealth Ontario, part of the Canadian government health care system, was canceled in September of 2012 after a series of delays that rendered the system obsolete.

The state of Vermont as recently as last October, meanwhile, was considering whether or not to penalize CGI for not meeting deadlines for designing and producing that state’s health care exchange as per an $84 million contract with the company.

It may be too early to say that there is an “ominous pattern” of inferior work product from CGI as claimed by some http://www.examiner.com/article/is-cgi-and-white-house-liable-for-obamacare-massive-site-failure and http://www.renewamerica.com/columns/fobbs/131028 but there can be no denial that the failed debut of the ObamaCare web page has cost taxpayers hundreds of millions of dollars.

Which raises the obvious question: What quality of work Louisiana is receiving from the firm? Considering last April’s findings of the Legislative Auditor in its examination of the Road Home program, that’s a fair question.

Contractors are being paid tens of millions of dollars to provide oversight of the grant programs in the hurricane recovery efforts. But what oversight is being provided of the contractors themselves? And if the contractors need oversight, why are they even in the equation to begin with?

How do we know they are doing the jobs they are being paid to do?

If we are to believe the auditor’s report, they well may not be giving the state a return on its dollar.

Are contracts simply being doled out by the Jindal administration with little or no vetting? When one looks at some of the other contracts awarded since 2008, there seems to be ample cause for concern.

All one has to do is study the administration’s smarmy record of questionable contracts, beginning with the hiring of Goldman Sachs to help write the request for proposals (RFP) for the privatization of the Office of Group Benefits (OGB). Who was the sole bidder on that project at the outset before the project was re-bid? Goldman Sachs. https://louisianavoice.com/2013/12/01/jindal-and-rainwater-preoccupied-with-ogb-privatization-missed-or-chose-to-ignore-obvious-cnsi-contract-red-flags/

And then there was the infamous contract with CNSI http://www.frontpagemag.com/2013/volpe/billionaire-swindlers-line-up-for-obamacare/

and the ensuing investigation by the FBI  https://louisianavoice.com/wp-content/uploads/2013/12/fbireportscnsi3.pdf

https://louisianavoice.com/wp-content/uploads/2013/12/dt-common-streams-streamserver1.pdf and the Louisiana Attorney General’s office https://louisianavoice.com/wp-content/uploads/2013/12/ldoj-interview-report-on-cnsi-from-0514121.pdf

There also is a series of contracts with Affiliated Computer Services (ACS), since absorbed by Xerox. ACS, once represented by U.S. Rep. Bill Cassidy’s sister-in-law Jan Cassidy who now works for the Division of Administration (DOA) as Assistant Commissioner in Procurement and Technology at an annual salary of $150,000). http://www.linkedin.com/pub/jan-cassidy/6/4aa/703

ACS also has its own string of problems as evidenced by stories from other states https://louisianavoice.com/2013/03/15/doa-hires-jan-cassidy-sister-in-law-of-cong-bill-cassidy-at-150000-previous-employers-records-are-less-than-stellar/ and with the Securities Exchange Commission http://www.sec.gov/litigation/litreleases/2010/lr21643.htm

Not to be outdone, Deloitte Consulting which helped the state in planning for a comprehensive consolidation of information technology (IT) services for DOA, was named winner of the state contract for “Information Technology Planning and Management Support Services,” according to an email announcement that went out to IT employees last September.

Never mind the fact that Deloitte Consulting has experienced a multitude of problems in North Carolina, California, Tennessee, and Virginia because of delays, false starts and cost overruns. https://louisianavoice.com/2013/09/05/surprise-surprise-gomer-deloitte-wins-it-contract-after-spending-year-consulting-with-state-on-consolidation-plan/

And yet this governor is so unyielding in his misguided belief that the private sector can perform any and every governmental function better than public employees that now, six years into his eight-year term, he has decided pay yet another contractor, the international consulting firm Alvarez & Marsal, $4 million to conduct an efficiency study to determine possible savings in state government.

Clueless, thy name is Jindal.

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We thought the LSU football story was a joke; now we learn Koch & smart-ALEC is buying entire university departments

Posted in ALEC, American Legislative Exchange Council, Education, Governor's Office, Higher Education, Privatization on December 26, 2013| 14 Comments »

When we wrote what we thought was a parody about Gov. Bobby Jindal’s decision to privatize the LSU football program, little did we know the American Legislative Exchange Council (ALEC) and the Charles Koch Charitable Foundation beat us to the punch—by a good six years.

Only they were dead serious.

Thanks to an alert reader who forwarded us a link to a Tampa Bay Times story from May of 2011, we learned that Koch, one-half of the infamous Koch brothers who are the primary benefactors of ALEC, had pledged $1.5 million to Florida State University’s economics department way back in 2008 (How did we manage to miss this for so long?).

There was one major caveat, however: In exchange for his generosity, Koch received veto power over hiring decisions for the department.

But even the FSU endowment was not precedent-setting. Between 2007 and 2011, Koch and brother David were said to have given more than $30 million to various groups that negotiated deals with more than 200 universities throughout the U.S.

As Rachel Maddow of MSNBC correctly observed, naming rights to a stadium in exchange for an endowment is one thing, but purchasing faculty rights is something else altogether.

http://www.rawstory.com/rs/2013/12/23/rachel-maddow-charles-koch-buying-sway-over-university-hires-is-objectively-insane/

Maddow, while conceding the deal made perfect sense from Koch’s perspective, was still critical of state officials “crazy enough to let him do it.”

She said that Koch “gets to make sure his conservative billionaire economic ideas get taught and published and propagated under the brand name of something that is supposed to look like a university-level education.

“If you don’t like what the facts say, then write your own facts,” she said. “If you don’t like what independent scholarship looks like, then buy some.”

Normally, university benefactors have little input into who fills a chair that they endow. The unfettered power of university administrators to hire professors of their choosing is considered sacrosanct in academia.

Most universities, the University of Florida among them, have strict policies limiting donor input over the use of their gifts and Yale University once even returned a $20 million endowment when the donor wanted veto power over appointments. Such control was “unheard of,” the university said.

And technically speaking, Koch did not get direct authority over hiring decisions but he did receive authority to select members of an advisory committee that screens candidates which, it turns out, is just as good. A year after the grant was awarded, that advisory committee had rejected 60 percent of job applicants suggested by FSU faculty.

Author Jennifer Washburn called FSU’s capitulation to the siren song of the dollar “an egregious example of a public university being willing to sell itself for next to nothing.”

One of Koch’s favorites, George Mason University, has received more than $30 million over the past two decades. Koch also has underwritten faculty members who push his political beliefs at Clemson and West Virginia universities.

Bruce Benson, chairman of the FSU economics department, denies any suggestion that he agreed to the deal with Koch for economic reasons but did say he makes annual reports to Koch on faculty publications, speeches and classes. He says he has no concerns that agreements with Koch will encourage other donors to seek control over hiring or curriculum.

Yeah, right.

Koch is in political lock step with Florida Gov. Rick Scott who, in one of his first acts as governor, froze all new state business regulations and who has pushed for sweeping tax cuts.

Sound familiar?

The Koch brothers are also political allies of Wisconsin Gov. Scott Walker who likes to tout bogus surveys and reports that make the state appear as the national pacesetter for robust economic health and job growth.

Again, sound familiar?

In fact, one discredited report by Arthur Laffer, who concocted the infamous Laffer Curve nearly 30 years ago, said that Wisconsin’s economic outlook had made a quantum leap in 2013, from 32nd in the nation to 15th. That would be great if only it were true.

But, as they say, there are lies, damned lies and statistics.

It turns out Laffer’s annual report, Rich States, Poor States, is published and distributed by ALEC. Moreover, ALEC solicited funding to underwrite the report from two foundations—the Searle Freedom Trust ($175,000) and the Claude R. Lambe Charitable Foundation ($150,000).

The Koch brothers, by the way, control and run the latter.

The Laffer report, co-written by Wall Street Journal writer Stephen Moore and ALEC director of tax and fiscal policy Jonathan Williams, does not limit its favorable treatment to Wisconsin. Other states with Koch-friendly administrations tend to get the same glowing reports. The Jackson Clarion-Ledger published one of his reports last May with the headline trumpeting that Mississippi’s economic outlook ranked in the top 10 nationally. (Of course, both Mississippi and Louisiana also lead the nation in poverty, obesity, pay disparity between men and women, and the percentage of citizens without health care insurance.)

And Laffer’s report, while serving as a cheerleader for Wisconsin’s economic outlook which he said had jumped 17 spots, was less enthusiastic over data that showed the state’s economic performance moved up only one position, from 42nd to 41st. Obviously, then, there is a huge difference between economic outlook and actual economic performance. Laffer’s recommended formula for the state to improve on economic performance? Lower the state income tax rate for the wealthiest of the state’s citizens while slashing the corporate tax rate in the upcoming 2014 legislative session.

Not to belabor the point, but that should have a familiar ring to Louisiana citizens.

“This is not rocket surgery,” Laffer said. (Yes, he really said that.)

We suppose it’s really not rocket surgery. In fact, it all seems rather easy to comprehend: package your economic philosophy in institutions of higher learning and promote your political and economic agenda in cooperative state legislatures with friendly governors leading the charge.

Once those goals are accomplished, the Koch brothers, through ALEC and their newest organization, the Center for State Fiscal Reform and their corporate membership, can pretty much have their way with us.

And that, of course, would include the elimination of collective bargaining, doing away with the minimum wage, abolishing medical and retirement benefits, discarding worker safety rules, repeal of anything else that stands in the way of their agenda which also includes passage of increased deregulation of business and industry and even more corporate tax cuts.

First, there was Citizens United, and those criteria have already been met, thanks to the 2010 U.S. Supreme Court ruling.

In Laffer’s words, it’s not rocket surgery.

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As 2013 college football bowl season kicks off, Gov. Jindal reveals proposal for another controversial privatizaton plan

Posted in Boards, Governor's Office, Higher Education, Layoffs, LSU, Privatization, RFP, Request for Proposals on December 23, 2013| 23 Comments »

Just in time for the college football bowl season, Forbes magazine has rated the LSU football program as the fourth most valuable in the country, prompting an announcement by the Jindal administration to capitalize on the latest data.

With an estimated value of $105 million, the LSU programs ranks behind only the University of Texas ($139 million), Notre Dame ($117 million) and Alabama ($110 million) and ranks ahead of such traditional football powerhouses as Michigan, Florida, Oklahoma, Georgia, Ohio State, Nebraska, Auburn, Arkansas, Southern Cal, Texas A&M, and Penn State—5th through 15th, respectively.

http://www.forbes.com/sites/chrissmith/2013/12/18/college-footballs-most-valuable-teams-2013-texas-longhorns-cant-be-stopped/

Upon learning of the ranking, Gov. Bobby Jindal, always the political opportunist, immediately pressured the LSU Board of Stuporvisors to approve a request for proposals (RFP) aimed at the privatization of the LSU football program in time for the start of the 2014 season.

The board approved the plan without discussion or objection.

“We actually have been considering this opportunity for some time,” Jindal said. “The latest story by Forbes simply provides us with the opportunity to negotiate the most favorable contract for the people of Louisiana.”

Jindal said the timing is such that it will be impossible to issue the RFP before the Feb. 5 LSU Bayou Bash recruiting party but he said he felt logistical problems of dealing with new signees could be overcome with assistance from legal counsel Jimmy Faircloth.

“The fact of the matter is, long story short, at the end of the day, there are two things: the LSU football team is overloaded with unproductive players. Applying my well-known ‘do more with less’ mantra, the new team owners will drastically cut the excess fat from the program. All players who do not make the first team on either offense or defense will be dismissed from the team. The kickers and punters will come from the remaining 22 starters.”

He said that move alone would save the program millions of dollars in housing and meal costs as well as costs for extra uniforms, equipment, game tickets and tutors. Other cost saving measures to be initiated by the privatization move include the termination of medical treatment for injured players and suspension of any athletic department financial contributions to academics. “We have already seen that academics can do more with less; now they will have the opportunity to do even more,” he said.

Jindal said in his prepared statement that the 22 players will each be paid on a sliding scale beginning at $100,000 per year. “That should allow LSU to attract the very best starting players in the nation and prevent the raiding of the top two or three high school players that Louisiana produces each year by other colleges—especially by Nick Saban and Alabama,” he said.

“This move will represent a new gold standard of athletic competition,” he said.

He said that a player who is injured and unable to continue in a game will be replaced from a pool of about a dozen standby contract players who will be employed in administrative positions within the Department of Education. In some cases, players will be asked to play on both offense and defense as an example of his “do more with less” crusade.

“The fact that the new owners will schedule only home games also should help us move forward with all due speed,” he said.

Jindal said his latest plan represents a “bold new move” for LSU football. “This should allow us to win the BCS championship virtually every year,” he said. “That fact alone should dispel all arguments that privatization doesn’t work.”

Confidential sources confirmed that one unidentified administration official who raised questions about possible NCAA sanctions for paying players was summarily teagued, a claim that was immediately denied. “That person left on his own accord,” an administration spokesman said. “We had nothing to do with his decision to leave.”

“There is a reason the NCAA would take issue with our proposal,” Jindal said. “I don’t believe it’s a coincidence that the head of the NCAA is a former president of LSU and that he is envious of LSU’s success since his departure. If you recall, when Dr. Mark Emmert was at LSU he was the one who hired Nick Saban and because of that, he has a vested interest in the continued success of Coach Saban. So it’s understandable that he would be opposed to this move.”

Jindal then proceeded to verbally attack Emmert and the NCAA over the anticipated encroachment. “Dr. Emmert and the NCAA want to deny a voice to the very people who will be harmed by such ridiculous sanctions,” he said. “They are trying to muzzle fans who simply want to express their support for what will be the most successful football program in the history of intercollegiate athletics. The only thing our fans want is for the finest athletes in the nation to have the opportunity to escape failing programs.

“Dr. Emmert is attempting to tell our fans to sit down and shut up. That’s never going to happen. Despite whatever evolving legal argument the NCAA comes up with, the voices of hundreds of thousands of fans will be heard,” he said.

“I have already indicated that the NCAA’s effort to deny these kids the right to equal opportunity in football is both cynical and immoral,” Jindal continued. “They (the NCAA and Emmert) can’t have it both ways. Our fans know the real result of any NCAA action, should it be successful, would be to keep great football players in failing programs like those at Alabama, Auburn, Georgia and Florida.”

Key losses to Alabama “have pushed a significant number of players to go out of state,” Jindal said. “Threatened sanctions are another intrusion by the NCAA on players’ personal decisions. Players who wish to play for a premier program should not have to seek approval of Dr. Emmert or the NCAA. It is our moral obligation to ensure that every top player who we recruit has access to the best program available.

“America is a nation of opportunity and a quality football program opens the door to opportunity, no matter the social background of the player.

“We in Louisiana are rejecting the status quo because we believe every player should have the opportunity to succeed.”

He said the Tiger Athletic Foundation (TAF) has been contracted to help draft the RFP for the administration.

Insiders have intimated that TAF is likely to be the sole bidder on the project, although Spectacor Management Group (SMG), which operates the Mercedes Benz Superdome, the New Orleans Arena, Zephyr Field in Metairie and the Baton Rouge River Center, has not been ruled out.

Economic Development Secretary Stephen Moret said whoever wins the contract will receive generous tax incentives and exemptions “for bringing new jobs to Louisiana.”

Jindal said the privatization should save the state “approximately $500 million a year, give or take a few hundred million.”

(We wanted to hold off on this story until April 1, but we just couldn’t wait.)

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Irony of ironies: Jindal’s quacking about duck commander suspension by A&E in the wake of Murphy Painter acquital

Posted in ATC, Campaign Contributions, Courts, Governor's Office, Teague on December 20, 2013| 13 Comments »

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The echoes of Gov. Bobby Jindal’s silly, incoherent defense of the Duck Dynasty patriarch Phil Robertson had not even died out before the ironic acquittal of former commissioner of the State Office of Alcohol and Tobacco Control (ATC) Murphy J. Painter stung him with perhaps the most humiliating of several recent courtroom defeats.

And before we delve any further into this sordid mess, let us point out that the media, for the most part, have missed the real story in this entire Robertson GQ interview. While everyone is fixated on his comments about gays, his even more moronic claim that African-Americans were happier before the civil rights movement should have been the lead in every story written about the interview. How a writer claiming to be a professional reporter could have missed that elephant in the room is beyond comprehension.

And though he could not find the time to visit that toxic sinkhole at Bayou Corne in Assumption Parish until many months into the crisis, Jindal was Johnny on the spot with his defense of Robertson and in his condemnation of A&E Network for daring to suspend Robertson for exercising his freedom of speech.

While Jindal may well have a valid point in invoking the First Amendment, it is interesting to reflect on how intolerant the governor is of dissenting opinions within his own administration. Early on, he jettisoned Board of Elementary and Secondary Education member Tammy McDaniel, Louisiana Highway Safety Commission Executive Director Jim Champagne (because Jindal apparently didn’t want to wear a motorcycle helmet on his Hell’s Angels weekend outings—now just try and get the visual of biker Bobby out of your head), Department of Health and Hospitals Secretary Ann Williamson and virtually every member of the State Ethics Board (though most left in protest over his gutting of that agency).

In quick order followed Melody Teague for testifying against his government streamlining plans (she eventually was reinstated). Then her husband, Tommy Teague, was booted as head of the Office of Group Benefits for not toeing the company line on privatization (Scott Kipper, his successor, would also leave within weeks).

The firing of the Teagues quickly gave birth to the widespread use of the term “teaguing” as the euphemism for being terminated by Jindal.

Others shown the door included Department of Transportation and Development Secretary William Ankner, Office of Elderly Affairs Executive Director Mary Manuel, LSU System Office General Counsel Raymond Lamonica, LSU President John Lombardi, Secretary of Revenue Cynthia Bridges, LSU Health Care System head Dr. Fred Cerise, and Interim LSU Public Hospital CEO Dr. Roxanne Townsend.

And then there were the demotions from key legislative committee assignments. Removed from their positions for not voting with the administration or for simply asking the wrong questions in committee meetings were State Reps. Jim Morris (R-Oil City), Harold Richie (D-Bogalusa), Joe Harrison (R-Gray) and Cameron Henry (R-Metairie).

And of course, there was the showcase teaguing—the very public firing of Painter by Jindal and subsequent criminal charges after Painter refused to issue an alcohol permit for Champions Square across the street from the Mercedes-Benz Superdome in New Orleans.

It just so happens that Champions Square is part of Benson Towers, owned by New Orleans Saints owner Tom Benson who, coincidentally, is a huge contributor to Jindal through himself, members of his family and his various business enterprises—in addition to being the landlord for several state offices in Benson Towers at an annual cost of $2.6 million a year more than the state had been paying before moving into Benson Towers. https://louisianavoice.com/2013/02/06/emerging-claims-lawsuits-could-transform-murphy-painter-from-predator-to-all-too-familiar-victim-of-jindal-reprisals/

When Painter rejected the application of Spectacor Management Group (SMG) because of errors in its application for the alcohol permit, SMG arranged a meeting between Painter and SMG attorney Robert Walmsley, Jr., member of a law firm that contributed $5,000 to Jindal.

Apparently, refusal to crater to Benson is a cardinal sin in Louisiana.

Painter was soon contacted by Jindal executive Counsel Stephen Waguespack, nephew of Wiley Waguespack, who had earlier defeated Painter in the Ascension Parish sheriff’s election. Painter said Stephen Waguespack leaned on him to cooperate with SMG and to cease using ATC’s legal counsel to address concerns with the Champions Square project being pushed by SMG.

Waguespack, Painter said, advised that he, as executive counsel for the governor’s office, “saw no problem with issuing the requested license to SMG,” whereupon Painter said he would defer to Waguespack—if Waguespack was willing to issue a legal opinion in writing to the ATC representing the governor’s position.

“The governor’s executive counsel refused and suggested that issuing such an opinion was not a good use of his time and/or position,” Painter says, adding that he understood from that conversation that he “was being ordered to issue the license requested by SMG in direct contravention of law.”

In more than 15 years as ATC commissioner, Painter said he had never received such a call from the governor’s office.

Painter and ATC again refused to issue the requested license and two days later Painter was summoned to the governor’s office on the fourth floor of the State Capitol where he met with Waguespack, Louisiana State Police Superintendent Mike Edmonson and Jindal’s then-assistant executive counsel Liz Murrill.

Painter was advised that an unidentified law enforcement agency (later identified as the Office of Inspector General) was investigating him for alleged criminal violations, specifically sexual harassment and that Jindal was asking for his resignation.

When Painter refused to resign he was fired and an official announcement was issued by the governor’s office that he had resigned.

In what Painter described as another means of garnering publicity, an investigator from the Office of Inspector General (OIG) obtained a warrant to search Painter’s office at ATC even though a previous investigation by the Department of Revenue had already cleared Painter of any wrongdoing.

So, after losing major court battles over the funding of school vouchers, pension reform, and the teacher tenure and evaluations section of his education reform, Jindal now has egg all over his face in the highest profile case of teaguing in his beleaguered administration. It was, after all, the only one of the many teagued employees Jindal has actually tried to prosecute in criminal court.

On Friday, December 20, 2013, it all blew up in his face. In baseball terminology, he’s oh-for in the courts.

And don’t think for a moment that because it was a federal trial, the Jindal administration was not behind the indictments and subsequent prosecution from the get-go. All of which makes his sanctimonious outrage over the A&E network’s actions more than just a little hypocritical.

The jury verdict: not guilty on all 29 counts of computer fraud and lying to the FBI.

Sadly, for a governor who entered office with such promise, Jindal’s jumping on the Phil Robertson bandwagon is about all that’s left of his fading political career.

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