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When the State of Louisiana purchased the assets of financially troubled Tournament Players Club (TPC) golf club in Marrero in Jefferson Parish on September 10, 2009, it’s no wonder the Division of Administration did not inform the State Land Office for a full year.

State Land Office (SLO) Administrator Charles St. Romain said his office is responsible for the identification, administration and management of state public lands and waterbottoms, but that he was unaware that the state had purchased the TPC facilities until September of this year.

The Act of Sale, dated September 10, 2009, was signed by then-Commissioner of Administration Angele Davis. The purchase price was $9,150,000. Davis resigned in August of this year.

Marrero Land and Improvement Association, headed by real estate developer Buckner Barkley, a financial backer of the Louisiana Republican Party and Gov. Bobby Jindal, donated about 250 acres of land in 2001—during the administration of then-Gov. Murphy Foster. The state in turn spent about $12.8 million to pay for the cost of building the course which hosts the Zurich Classic PGA Tournament each year.

The state then leased the property to TPC and Foster agreed to a deal whereby the state guaranteed a minimum number of rounds of golf at the facility each year. The rounds were to be purchased through hotel concierges in New Orleans but the hotel industry was not informed of the deal initially and the state found itself shelling out $5.1 million in the club’s very first year.

The club continued to lose money and in 2009, the state purchased the facility. The Division of Administration in November of 2008, more than nine months before the execution of the sales agreement, entered into an agreement with the Louisiana Stadium and Exposition District (LSED) to administer the club. LSED also manages the Louisiana Superdome.

LSED in turn executed a “golf facility management agreement” with TPC Louisiana under which TPC would manage the club for 30 years for a minimum of $100,000 per year, plus an incentive management fee of 2.5 percent of gross revenues and 10 percent of net revenues not to exceed $150,000 per year with annual increases not to exceed 3 percent per annum. That agreement was dated September 10, 2009, the same date as the sales agreement between TPC and the state.

No explanation was given as to why the state bailed out a failing facility for nearly $9.2 million and immediately turned the operation of that facility back over to the company that had been running it at a financial loss.

Even more puzzling is why the state saw the need to invest in a golf course in the first place. Or in the case of the Louisiana Legislature, four golf courses. The state is also financing the construction of courses in Lake Charles and Alexandria and it assumed operation of Black Bear Golf Course at Poverty Point in 2006. Since 1997, the state has spent in excess of $141 million on golf courses—all at a time when the state budget is hemorrhaging red ink and designer golf courses are on the decline in popularity and shutting down all over the country.

The Louisiana Municipal Police Employee Retirement System (MPERS) in October 2009 lost its $24 million investment in the Hal Sutton designed Boot Ranch Development golf club in Fredericksburg, Texas. That would be bad enough if that were the only such loss by MPERS, but it’s not. The retirement system has also dropped $12.1 million on Olde Oaks Golf Club in Haughton (and still losing $500,000 a year) and $3.1 million on The Club at Stonebridge, also in Bossier Parish. MPERS also lost an additional $15.7 million on its purchase of and improvements to the development of Olde Oaks properties, bringing its total losses just on golf courses to more than $39 million.

Golf courses that have recently closed in Louisiana include:

• The Bluffs Country Club in St. Francisville, designed by Arnold Palmer and which opened in 1988, closed in March of 2009;
• Sherwood Forest Country Club, Fairwood Country Club, and Shenandoah Country Club in Baton Rouge;
• Santa Maria Golf Course in Baton Rouge, designed by Robert Trent Jones (closed for a year before being re-opened by East Baton Rouge Parish);
• Carter Plantation Golf Club in Springfield in Livingston Parish, designed by David Toms, while not closed, has not performed up to expectations and is currently mired in litigation;
• Belle Terre Golf and Country Club in LaPlace in St. John the Baptist Parish (closed in August of this year).

In Georgia, the Fairways of Canton has closed, leaving that city on the hook for annual payments of $300,000. Other golf courses that have closed in Georgia include courses in Jones Creek, Tucker, and Roswell. In all, at least 15 golf courses in Georgia currently are on the market.

A quick internet check revealed clubs for sale all over the country, including three in Louisiana (Florien, Ethel, and Monroe). Others on the market in neighboring states include four each in Mississippi and Alabama, three in Arkansas, and a dozen in Texas.

It remains to be seen what, if anything, the state will realize on its investments in the four golf courses but should any or all of them fail, it’s pretty certain some hard questions will need to be asked—and answered.

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Once upon a time the State of Louisiana owned a vast scrap yard in the middle of nowhere.

The Legislature said, “Someone may steal from it at night.”

So they created a night watchman position and hired a person for the job.

Then the Commissioner of Administration said, “How does the watchman do his
job without instruction?”

So they created a planning department and hired two consultants, one person
to write the policy manual, and one to do time studies.

Then the governor said, “How will we know the night watchman is doing the tasks correctly?”

So they contracted with a Quality Control expert and hired two people:
one to do the studies and one to conduct motivational workshops.

Then the Legislative Fiscal Office said, “How are these people going to get paid?”

So they created two positions: an HR director and a payroll officer, then hired two clerks.

Then the Inspector General said, “Who will be accountable for all of these people?”

So they created an administrative section and hired three people: an
Administrative Officer, an Assistant Administrative Officer, and an in-house
Legal Counsel.

Then the Legislative Auditor said, “We’ve had this agency for one year
and we’re $918,000 over budget. We must cut back.”

So they laid off the night watchman.

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Louisiana’s Superintendent of Education doesn’t seem to be very smart. But don’t worry, he appears to have plenty company.

Paul Pastorek, originally appointed by Gov. Kathleen Blanco and retained by Bobby Jindal, is quick to blame the teachers of any school or school system that is shown to be failing.

But when test scores improve, guess who takes full credit? Okay, that was too easy.

But to repeat, he doesn’t seem to be very smart, especially for a lawyer, the occupational genus from which he was plucked to save Louisiana public education.

Taking the typical legal approach, Pastorek, without ever admitting actual culpability, earlier this month said he would repay the state $4,185 for dozens of private trips taken in a state vehicle by Paul Vallas, head the department’s Recovery School District. Both Pastorek and Vallas have insisted they were unaware that it was improper to take the Dodge Durango out of state on personal business, including several trips to visit family in Chicago. It was on one of the Chicago trips that Vallas wrecked the state car, the incident that led to the discovery of its out-of-state use.

What part of “improper use” don’t they understand?

In June, Higher Education Commissioner Sally Clausen resigned after it became public that she had furtively retired in August of 2009 without informing the Board of Regents, her bosses, only to be rehired after missing exactly one day of work. While entirely legal, the resulting flak caused her to become, in her own words, a “constant distraction.” The retire-rehire move netted her a $90,000 payout for unused sick leave and vacation time and entitled her to an annual pension of $146,400 on top of her regular salary.

It is still not certain as to who was responsible for “re-hiring” her. The Board of Regents is the hiring authority for the commissioner’s position and no member of the board has ever acknowledged knowing of her move in advance or indeed, for a full nine months after the fact. And she couldn’t very well re-hire herself, given the fact that she had resigned her position.

For questionable actions that may not necessarily be illegal but which have raised eyebrows for their apparent indiscretion, one need only pick a year. Take 2005, for example. In March of that year, Commissioner of Insurance Robert Wooley apparently felt his department needed a $40,000 special Harley-Davidson edition Ford truck, complete with heated seats, a camper package, diesel engine, red flames painted on the side, and a CD changer.

Wooley said he saw the vehicle on a car lot and wanted it so he traded in a year-old Eddie Bauer-designer edition Ford Expedition with only 30,000 miles on it. “I ain’t going to jail,” Wooley sniffed. “I sleep well every night.”

Edwin Edwards went to jail. So did former Commissioner of Elections Jerry Fowler and Commissioners of Insurance Sherman Bernard and Doug Green. Likewise Agriculture Commissioner Gil Dozier, three consecutive sheriffs in St. Helena Parish, and several judges in Orleans and Jefferson parishes. Former Congressman William Jefferson appears headed for jail for corruption and Federal Judge Thomas Porteous just underwent a rigorous impeachment trial with the U.S. Senate expected to render its verdict by Thanksgiving. Insurance Commissioner Jim Brown also went to jail but on the flimsiest of charges, that of lying to the FBI in an informal interview.

Senator David Vitter and former Congressman Bob Livingston both became involved in extra-marital affairs. Vitter’s was with a prostitute and Livingston’s affair was revealed at the same time he was calling for Bill Clinton’s resignation over the president’s Monica Lewinsky scandal. Livingston subsequently resigned from Congress only to emerge as a major player among the K Street lobbyists in Washington.

Vitter was considered vulnerable until Chet Traylor, a former Louisiana Supreme Court justice, decided to run against him and in so doing ended up making Vitter look good by comparison. Not only did Traylor have an affair with a Winnsboro legislator’s wife, but after they married and she later died, he began an affair with his stepson’s ex-wife. Traylor, who initially was considered a viable candidate, ended up with about 7 percent of the vote in the Republican primary.

In August, a federal jury in Shreveport convicted former State Senator Charles Jones of Monroe of tax evasion.

Just last week New Orleans Deputy Mayor Greg St. Etienne resigned. Hired by Mayor Mitch Landrieu to supervise the city’s chief financial office, he is accused of misuse of $500,000 in federal loans at a nonprofit organization he once ran.

Then there is Eddie Jordan, the man who put Edwin Edwards away.

Jordan, who succeeded Harry Connick as Orleans Parish district attorney, became embroiled in controversy almost from the day he took office. He summarily fired all his white assistant district attorneys who promptly filed suit. A jury found in favor of the fired workers and awarded them $3.7 million.

Jordan also came under heavy criticism for releasing suspects in high profile murder cases and in one instance, a suspect sought by police fled to Jordan’s home. In 2007, he released a suspect in the murders of five teenagers, saying that his office was unable to locate a key witness in the case. The New Orleans Police Department promptly produced the witness, who was in their custody all along. Later that same year, Jordan resigned.

But those are the high-profile cases. It’s those lawmakers and agency heads who try to fly just below the radar who sometimes are exposed as guilty of at least questionable behavior.

Whether it’s a legislator voting in favor of a bill that would benefit him financially or a pair of legislators swapping out Tulane scholarships in order to circumvent the prohibition against awarding the scholarships to family members, there are numerous conflicts of interest that often go unreported. Many public officials simply ignored that stipulation and put entire families through Tulane with the scholarships. (The families of former Crowley Judge Edmund Reggie and former New Orleans Mayor Moon Landrieu come to mind.)

But what could any more of a conflict than a legislator’s making it a common practice to sue the state? It would be akin to a member of the board of Wal-Mart, IBM, or Exxon suing their companies on behalf of clients who walk in off the street.

It’s assumed that legislators take an oath to protect the state fisc, or treasury, but that almost seems mythical these days. But don’t try to tell State Sen. Rob Marionneaux (D-Livonia) that. Not only does he sue the state on a regular basis, but he recently found himself in hot water when he attempted to negotiate a settlement between LSU and his client, Bernhard Mechanical. The State Board of Ethics said Marionneaux told LSU representatives that Bernard would accept $7.1 million from LSU and that he would secure a legislative appropriation of an additional $5.5 million.

The board further said that Marionneaux violated the law by not notifying the board that he was representing Bernard Mechanical. Marionneaux countered by saying he was not required to do so. He elaborated by saying the reporting requirement does not apply to lawyers who are legislators.

In June, however, even as the ethics board was investigating him, Marionneaux attempted to slip language into a bill that would eliminate requirements that he disclose his representation of Bernard to the board. The bill failed.

Perhaps then, it should be no surprise that Pastorek, who said he gave permission to Vallas to use the vehicle on the trips, said of the repayment, “I don’t think legally, technically, I have to, but my feeling is we need to get this behind us and move forward.”

A legislative auditor’s report said Vallas, who doesn’t fly, used the state-owned SUV for dozens of visits to family in Illinois and along the Gulf Coast from the time he was hired in July 2007 through April 2009. Vallas admitted to auditors that 31 of his 41 trips out of Louisiana were not work-related.

Vallas no longer has a state vehicle. Instead, he has been given a $2,200 per month car allowance in addition to his $252,689 yearly salary.

Considering the number of trips taken and time away from the office for Vallas, plus repairs to the Durango, Pastorek may have gotten off light with paying $4,185 (gasoline alone should have exceeded that amount).

If that’s not sufficiently magnanimous of Pastorek, a week later he graciously declined a pay raise after receiving a favorable review of his job performance by the Board of Elementary and Secondary Education but not before making it clear that he had earned the increase had he opted to take it.

It may have come as a surprise that he was even eligible for a pay increase when state classified workers were denied raises by the governor earlier this year. Pastorek, as a political appointee, is unclassified or non-civil service. His salary is $287,907, plus a housing allowance of $57,240 and a car allowance of $31,800. A 6 percent raise would have meant an additional $22,616 in annual compensation for Pastorek.

All things considered, it’s probably no surprise that a writer for the Chicago Tribune rated Louisiana worse than Illinois in public corruption.

Maybe new Southern University President Ronald Mason Jr. knew what he was doing when he brought his own lawyer onto the Southern payroll even as the university was laying off 50 employees.

Mason came to Southern from Jackson State University in Mississippi and brought both his Chief of Staff Evola Bates ($150,000 per year) and Executive Counsel Byron Williams ($120,000).

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As the Jindal administration considers even more budgetary cuts—as much as 35 percent—in an attempt to offset the effects of an anticipated fiscal free fall estimated to be as much as $2 billion next year, the sacrificial lambs of higher education and health care are once again being led to the altar for the ritualistic bloodletting.

Meanwhile, as is usually the case when the legislature is faced with budgetary shortfalls, many other spending programs by lawmakers go on unabated. As puzzling as it must be to taxpayers constantly bombarded with bad news out of Baton Rouge, the elected representatives and senators just can’t seem to bring themselves to exercise the fiduciary discipline to keep reckless spending in check.

They are, to use a time-worn metaphor, the foxes guarding the henhouse.

A good example of the leadership void can be found in the way the legislators spend unexpected financial windfalls. When agencies fail to spend all of their budgets during a fiscal year, the excess funding reverts back to the state treasury where lawmakers are waiting like so many vultures to pounce on it for local pork barrel spending.

Take this year’s HB-76, the so-called “ancillary appropriations bill.” As soon as the extra money was “found,” legislators, instead of allocating all the new money to education and health care, poured $33 million into local funding projects like convention centers, municipalities and parishes, arts councils, councils on aging, and museums.

As irresponsible as all this may seem, it pales in comparison to what the state has spent on golf courses, baseball parks, and other recreational complexes down through the years.

Because figures prior to 1997 are unavailable, this post will address only those expenditures dating back to that year. But those 14 years should be sufficient for even the casual reader to detect a disturbing trend in spending priorities in this state.

Since 1997, the state of Louisiana, through the legislative process, has deemed it necessary to spend $141 million on golf courses.

One doesn’t have to be a math wizard to see that that averages out to $10 million per year. And that doesn’t include various university golf courses. These are private golf courses, one and all.

Another $18.5 million was spent during that same time frame on baseball parks, including nearly $4 million on a baseball stadium in Baton Rouge, which has no baseball team.

The real irony in all this can be found in two 2007 appropriations for the city of Westlake, near Lake Charles. That year, $6.12 million was appropriated in Priority 1 funding for golf course planning and development. That same year, $100,000 in Priority 2 funding and $800,000 in Priority 5 funding was appropriated for planning and construction of a new emergency response center for Westlake, which was putting up $900,000 in local matching funds.

The difference in Priorities 1, 2, and 5? Priority 1 means that the fund are virtually a certainty. Priority 2 means next year. Maybe. Priority 5 means lots of luck, you may get the money and you may not.

Over the 14 years in question, the Westlake golf club received nine separate Priority 1 appropriations totaling $37.96 million.

Not to be outdone, the Tournament Players Club in Jefferson Parish got seven separate appropriations totaling $48.2 million. City Park Golf Complex in New Orleans, with seven Priority 1 appropriations, got $33.8 million.

Other golf course expenditures included:

• $16.1 million for the England (Airpark) Golf Course in Rapides Parish;
• $600,000 for the Bayou Segnette Golf Course in Jefferson parish;
• $2.7 million for development of a golf resort at Toledo Bend;
• $2 million to promote the Audubon Trail golf courses in efforts to promote more rounds;
• $16,000 for the Delhi Municipal Golf Course;
• $301,000 for the Black Bear Golf Club at Poverty Point (part of the Audubon Trail);
• $250,000 for the 2002 Compaq Golf Tournament in New Orleans;
• $550,000 for junior golf facilities and the Fore Kids Foundation golf tournament;
• $250,000 for promotion of the Classic Foundation golf tournament in New Orleans;
• $1.7 million for the Louisiana Junior Golf Commission.

The state also spent an additional $5.25 million on the LSU golf course, part of which was relocating four holes on the course, money some might suggest would come from the LSU athletic department.

Of course, golf is not the only interest of the legislature. It also has appropriated funding for such projects as the Hot Air Balloon Championship in Baton Rouge ($50,000), the RedFish Tour ($75,000), the National Baptist Convention in New Orleans ($75,000), and the Bayou Classic football game between Southern and Grambling universities ($100,000), the Zephyrs’ baseball stadium in Jefferson Parish ($4.68 million over four years), a baseball complex for Iberia Parish ($7.34 million over eight years), improvements to a Baton Rouge baseball stadium with no tenant ($3.95 million over three years), construction of baseball fields at Negreet and Killian high schools ($35,000), and construction of a baseball-softball complex in Rapides Parish $2.73 million).

The Black Bear Golf Course at Poverty Point was constructed on private property owned by the Poverty Point Development Corp. under the auspices of the Louisiana Department of Transportation and Development as part of a retirement community developed by State Sen. Francis Thompson and his brother, Mike Thompson. Once completed, the golf course was donated to the Louisiana Office of Culture and Tourism with the proviso that a “professional manager” be appointed to administer the day to day operations of Black Bear. The manager appointed was Mike Thompson.

The Tournament Players Club Louisiana Golf Course (TPC) has proved to be the real money pit for the state. Promoted by Sen. John Alario of Westwego and developer Buckner Barkley, Jr., TPC has been a money loser from the outset. The course was developed in an effort to pull a major PGA tournament into Jefferson Parish.

The state, during the administration of Gov. Mike Foster, entered into an agreement with TPC and Marrero Land and Improvement Association whereby the state guaranteed a minimum number of rounds played. The rounds were required to be booked through New Orleans hotel concierges promoting the course. The hotel industry initially was not informed of the agreement and was unable to meet booking quotas.

The annual Zurich Classic is played at TPC and the fear was that it would lose the tournament and should that have happened, the property, with no professional tournament facilitator, would revert to Marrero Land. To avert that occurrence, the Superdome Commission and commission chairman Doug Thornton negotiated a new deal whereby the state would pay off TPC’s $10 million indebtedness and take ownership of the property in exchange for a six-year commitment from the PGA to keep the Zurich Classic there.

While some legislators maintain the state should not be in the golf business, proponents of the arrangement insist it is the best option for the state, that it is good for the economy.

Likewise, supporters claim that the golf courses, such as Black Bear, are good for economic development and make the state’s investments a good idea.

Manufacturing plants, Wal-Marts, and job-intensive industry also make good economic sense. So why doesn’t the state just go out and buy a dozen or so Wal-Marts, open a few car dealerships and manufacturing plants and give people jobs instead of taking over golf courses and putting a legislator’s relative in charge?

Don’t be surprised when next Spring, one of those tiny Smart Cars pulls up in front of the State Capitol and 144 clowns, complete with orange wigs, big shoes, red noses, seltzer bottles, pies, and horns, pile out, run up the steps of the Capitol and into the Senate and House chambers to call the 2011 legislative session into disorder.

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At a meeting of the Joint Legislative Committee on the Budget during the legislative session earlier this year, House Speaker Jim Tucker popped in long enough to admonish fellow legislators (primarily state senators, it’s presumed) to “read the (state) Constitution.”

His remarks, however condescending they may or may not have been, were prompted by a running dispute he was having with Senate President Joel Chaisson in particular and the senate in general.

“Read the Constitution.” Terse, dramatic, patronizing. Exit left.

Now it turns out that Speaker Tucker might be advised to do some reading of his own.

Tucker, in a recent address in Monroe, blamed the Senate and Gov. Bobby Jindal for their failure to make deeper cuts in an attempt to mitigate next year’s anticipated $2 billion budgetary shortfall.

Speaking to the Monroe Chamber of Commerce on September 1, Tucker said of next year’s impending fiscal crisis, “We knew this was coming. We’ve been trying to manage this in the House for three years, but we were rebuffed by the Senate and the governor.

Tucker said the House had more significant cuts in the 2011 budget than the version ultimately approved after Jindal supported the Senate version, which, according to the House Speaker, used one-time money to postpone more severe cuts.

“So next year we’re going to deal with it as a crisis,” he said. “It’s not how I would have preferred to deal with it. I was disappointed, but we’ll deal with it as it comes.”

Perhaps Speaker Tucker should take his own advice and go back and read over HB 76 that passed the House by a vote of 88-0 and was signed by the governor as Act 41. HB 76, the ancillary appropriations bill, was the notorious bill that dumped some $33 million into local pork projects after additional funds were “found.”

Of that $33 million, Jindal managed to find 32 projects totaling less than $2.5 million that he could veto. Of the remaining $30 million-plus, $3.4 million was for local arts councils, $1.5 million was for local councils on aging, and another $12.8 million was appropriated for local parishes and municipalities, some of those with no explanation of how the money would be used. The City of Baton Rouge, for example, got two separate appropriations totaling $515,000 with no explanation of how the funds would be spent.

Of the appropriations for the councils on aging, $325,000 was for the Jefferson Council on Aging. Tucker is from Jefferson Parish.

The St. Landry School Board received $750,000 for “enhancements to public elementary and secondary education.”

The expenditures contained in HB 76, however, do not even approach the waste included in HB 1 (General Appropriations) and HB 2 (Capital Outlay).

Those two bills included, among other expenditures:

• $12 million for the Convention Center Complex in Shreveport;

• $6.1 million for the Baton Rouge Riverside Centroplex;

• $6.6 million for City Park Golf Complex in New Orleans;

• $6.12 million for golf course development in Westlake;

• $301,184 for Black Bear Golf Club at Poverty Point;

• $325,000 for promotion of the Audubon Golf Trail;

• $5,000 for the Delhi Municipal Golf Course;

• $200,000 for Junior Golf training facilities in Shreveport;

• $1.17 million for repairs to Zephyrs baseball facilities in Jefferson Parish;

• $17.5 million for professional sports facilities in Jefferson and Orleans parishes;

• $1 million for a recreational complex in Iberia Parish;

• $1.4 million for baseball stadium improvements in Baton Rouge.

Baton Rouge has no baseball team.

Is this House Speaker Jim Tucker’s idea of fiscal responsibility?

Read the bill, Mr. Speaker. Read the bill.

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