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Archive for the ‘Governor’s Office’ Category

Louisiana is 11th worst run state, says 24/7 Wall Street despite billions in tax incentives for business, industry

Posted in Economy, Finances, Governor's Office, Jobs, Media, Politicians, Transparency on December 4, 2014| 13 Comments »

If, as most observers believe, Gov. Bobby Jindal has designs on seeking the Republican presidential nomination for 2016 he first must demonstrate that he is an administrator capable of running his own state and for him to do that, there are several clichés frequently employed by our parents and grandparents that might apply:

Get on the stick, shake a leg, get the lead out, make haste, get it in gear, quit burning daylight, get your act together, s**t or get off the pot…well, you get the idea.

Jindal has had the better part of seven years to turn this state around economically, culturally and educationally or to at least make strides to that end in order to demonstrate his leadership abilities.

To say he has failed would be kind. The truth is, his administration, with only 14 months left, is an abject failure, those glowing surveys about the state’s business climate touted by his head cheerleader and Baton Rouge Business Report publisher Rolfe McCollister, Jr., notwithstanding. (McCollister, Jindal’s former campaign treasurer whom Jindal appointed to the LSU Board of Supervisors, would not appear to be the most objective member of the fourth estate to report on the administration’s accomplishments.)

The current outstanding weeklong analytical series by the Baton Rouge Advocate entitled Giving Away Louisiana, on the other hand, provides ample evidence of massive—and ill-advised—tax breaks given business and industry that have done little to light a fire under the state’s moribund economy.

http://blogs.theadvocate.com/specialreports/2014/11/26/giving-away-louisiana/

Congratulations on superb coverage of such a complex topic by Advocate staffers Jeff Adelson, Rebekah Allen, Mark Ballard, Gordon Russell, Richard Thompson, Edie White, John Ballance, Patrick Dennis, Bill Feig, Walt Handelsman, Jay Martin, Heather McClelland, John McCusker, Paul Sandau, and Travis Spradling.

Two glaring examples of poor fiscal policies cited by the Advocate include:

  • The foolishly generous film and TV tax breaks have succeeded in luring production companies to Louisiana, but at what costs? True, Twelve Years a Slave was a huge success, winning three Oscars and a Golden Globe Award, among others. On the other hand, there is that $200 million bomb Green Lantern. For that cinematic disaster, the state gave away $35 million in subsidies but recovered only $8 million of that amount. The Advocate pointed out that the state poured more money into that forgettable film than it appropriated for the University of New Orleans. How’s that for setting your priorities? And every time a Duck Dynasty episode airs, the state has to pony up about $300,000 in similar taxpayer-financed breaks. http://blogs.theadvocate.com/specialreports/2014/12/02/giving-away-louisiana-film-tax-incentives/
  • And then there is that vaguely-defined policy called Enterprise Zone, a tax incentive program ostensibly created to attract business and industry to depressed areas as a means of spurring employment, stimulating the economy and improving living conditions of low-income residents. The only thing wrong with this $69 million per year boondoggle is that it’s not working. Instead, the Enterprise Zone tax credits are being used to underwrite construction of projects like a couple of Walmart stores in St. Tammany Parish, one of the more affluent areas of the state, and for expensive shops in an upscale Baton Rouge retail complex—even as low-income areas of the state continue to deteriorate. http://blogs.theadvocate.com/specialreports/2014/12/01/giving-away-louisiana-2/

The dismal performance of those two programs are precisely why 24/7 Wall Street, a financial news and opinion company which publishes more than 30 articles per day, released a report on Thursday (Dec. 4) which pegs Louisiana as being the 11th worst-run state in America. http://247wallst.com/special-report/2014/12/03/the-best-and-worst-run-states-in-america-a-survey-of-all-50-3/

“Selecting appropriate criteria to compare the 50 states is difficult,” the story says, “because there is so much variation among the states. Some depend disproportionately on one industry while others’ economies are more balanced.

Some of the best-run states benefit from a wealth of natural resources. North Dakota, Wyoming, Alaska, and Texas, according to the survey, are among the top 10 best-run states, and in all four, the mining industry—which includes fossil fuel extraction—is a major contributor to state GDP, the report says.

“While each state is different, states at both ends of the list share certain characteristics,” the report says. For example, people living in the worst-run states were likely to have lower standards of living. Violent crime rates and the percentage of those living in poverty were typically higher in these states, while the percentage of those with at least a high school diploma was lower than the national rate.

The worst-run states also tended to have weaker fiscal management and poor credit ratings from Moody’s Investors Service and Standard & Poor’s (S&P). Illinois, the worst-run state in America, received lower ratings than any other state from both agencies while most of the 10 best-run states had perfect ratings from both agencies, it said.

Louisiana, in ranking 40th in the nation, managed to fare better than New Jersey, which ranked 43rd, or eighth worst, something Jindal might use against Gov. Christ Christie if it comes down to a race between those two for the GOP nomination.

Following Illinois in 24/7 Wall Street’s list of worst-run state in the U.S. were New Mexico, Mississippi, Rhode Island, Kentucky, Arizona, Georgia, New Jersey, Missouri, Alabama and Louisiana.

In breaking down its statistical information, the survey showed that Louisiana’s $3,333 debt per capita was right at the mid-point at 24th lowest and the unemployment rate was 15th lowest in the nation at 6.2 percent, those favorable factors were offset by the state’s median household income of $44,164, eighth lowest, and a poverty rate of 19.8 percent that was third highest.

Louisiana had “one of the lowest median household incomes in the nation,” at just $44,164, the report said “and 10.7 percent of all households reported an income of less than $10,000, a higher rate than in any state except for Mississippi. Largely due to these low incomes, the poverty rate in Louisiana was nearly 20 percent (19.8 percent) and 17.2 percent of households used food stamps last year, both among the highest rates in the nation. The state’s GDP grew by 1.3 percent last year, less than the U.S. overall. This was largely due to a decline in output from the mining industry, which accounted for 8 percent of Louisiana’s output, versus 2.3 percent across the country. Louisiana’s ranking was bolstered by its high exports, which equaled $13,693 per capita in 2013, the most in the nation. Last year, products made from petroleum and coal accounted for more than 40 percent of the state’s exports.”

And all this time, Jindal has been telling us that Louisiana’s economic growth during his administration has surpassed other southern states and that of the nation as a whole. See this August release by Jindal. Scroll down to the paragraph beginning “Louisiana’s Economic Growth” at this link: http://www.bobbyjindal.com/blog.html/

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PSC Chairman Skrmetta takes nearly $20K from inmate phone companies, fights church efforts to reduce rates

Posted in Campaign Contributions, Commissions, Contract, Contracts, Corruption, Elections, Ethics, Governor's Office, Louisiana Purchase, Politicians, Prison on December 3, 2014| 15 Comments »

At long last we have only three more days of those annoying—as in wanting to throw a brick through that expensive flat screen—TV campaign ads in which a leering U.S. Rep. Bill Cassidy and a weary appearing incumbent U.S. Sen. Mary Landrieu trade insults, barbs and outright lies about each other.

But there is another race to be decided Saturday that has flown under the radar of all but the residents in Public Service Commission (PSC) District 1, which encompasses all or parts of Orleans, Jefferson, Ascension, St. Bernard, Plaquemine, St. Charles, and the Florida parishes of Livingston, Tangipahoa, Washington, St. Helena and St. Tammany.

Even in those parishes, the tawdry Landrieu-Cassidy contest to determine the least undesirable candidate has overshadowed the runoff between PSC Chairman Eric Skrmetta and challenger Forest Bradley Wright, both Republicans.

But it is an election of which voters in District 1 should certainly be aware.

In the November 4 primary, Wright polled 99,515 votes (38.44 percent) to Skrmetta’s 95,742 (36.98 percent), with Republican Allen Leone playing the spoiler role with 63,622 votes (24.58 percent) to force Saturday’s showdown.

For this race, LouisianaVoice has chosen to take a closer look at Skrmetta, by resurrecting a video of his bizarre, and certainly unwarranted behavior two years ago during the testimony before the PSC of a spokesman for the Louisiana Conference of Catholic Bishops.

A smug Skrmetta displayed unprecedented contempt for Robert Tasman who, through frequent interruptions and challenges from the chairman, attempted to read a statement on behalf of the conference which called upon the PSC to reduce exorbitant telephone rates for prison inmates.

Skrmetta claimed that he was told by an archbishop for the church that the church’s position was simply that rates not be increased. The exchange between Skrmetta and Tasman escalated to Skrmetta’s suggesting that Tasman should attend confession, presumably for attempting to mislead the commission. http://joule-energy.us5.list-manage.com/track/click?u=c2265593d29be2a1d4f35bf12&id=9bacfdbffc&e=25b6a2fa99

Skrmetta’s rude behavior got so bad at one point that it provoked a challenge by fellow PSC member Foster Campbell who admonished the chairman, suggesting that he keep quiet until Tasman completed his testimony.

That only served to spark a heated verbal exchange between Campbell and Skrmetta.

The commission eventually worked out a compromise that even Skrmetta voted for. Regulators agreed to cut the rates by 25 percent for prisoner calls to family, clergy, and government officials. http://theadvocate.com/home/4666375-125/psc-rolls-back-prison-phone

So, what moved Skrmetta to such passion that he would challenge the veracity of an official of the Catholic Church?

Well, for openers, try $29,500.

That’s how much he has received in campaign contributions since 2009 from six companies and executives of two of the companies that provide inmate telephone services. Two of those, Securus Technologies of Dallas, and City TeleCoin Co. of Bossier City, combined to contribute $12,000 to Skrmetta’s campaign in separate contributions in December of 2013, nine months after the companies were cited by the PSC for charging extra fees in violation of the amended rates of December of 2012.

Global Connections of America of Norcross, Georgia, which contributed $5,000, was also in violation but was not cited.

http://www.nola.com/business/index.ssf/2013/03/psc_louisiana_prison_phone_rat.html

Other inmate telephone service companies that contributed to Skrmetta included:

  • Network Communications of Longview, Texas ($5,000);
  • William Pope, President of Network Communications ($2,500);
  • Gerald Juneau and his wife, Rosalyn, owners of City TeleCoin ($5,000 each);
  • ATN, Inc. of St. Mary, Georgia ($2,500);
  • Ally Telecom Group of Metairie ($2,500).

Taking campaign contributions from regulated industries, while posing the obvious risk of conflicts of interest and even influence-buying, is not at all unusual. Utilities and trucking companies which are regulated by the PSC contributed to commission members just as insurance-related companies contributed to campaigns for Louisiana Insurance Commissioner in a practice some equate to little more than not-so-subtle bribery.

Skrmetta, however, has taken the practice to art form status; he has received substantially more campaign money from regulated industries than any other member of the PSC.

In all, he has received a whopping $482,800 in individual contributions of $500 or more from regulated industries, attorneys and PSC contractors just since 2009. That was a year after he was first elected to the PSC. Only two campaign contributions totaling $1,200 are listed on his campaign reports prior to 2009.

Scores of representatives of Entergy contributed at least $30,800 since 2009 and the New Orleans law firm Stone-Pigman and several of its attorneys chipped in another $29,750—$17,000 on the same day that Skrmetta made the motion during a PSC meeting to approve an additional $220,000 in consultant fees and expenses for the firm’s defense of litigation filed against the commission by Occidental Chemical Corp.

Skrmetta, it should be noted, opposed the ban on fundraisers within 72-hours of PSC meetings—understandable in hindsight. A 72-hour ban be damned; he took the money on the same day of the commission’s meeting and its approval of the amendment which bumped the law firm’s contract up to $468,000 in fees and $39,600 in expenses.

Wright, Skrmetta’s opponent in Saturday’s runoff election was critical of Skrmetta’s taking the contributions from Stone-Pigman on the same day as the PSC meeting—and on the same day as the contract amendment.

“The issue is integrity, which is undermined when a public service commissioner takes a cut off the top from the contracts they authorize in the form of campaign contributions,” he said. “We pay the price from these bad dealings, not only in dollars but also in the erosion of trust that happens all too frequently when elected leaders put themselves and their own power before the interest of the public.”

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Edwards poised to launch media blitz during final days of campaign: will tie opponent Garret Graves to Gov. Jindal

Posted in Campaign Contributions, Congress, Contracts, Corruption, Elections, Ethics, Governor's Office, House, Senate, Media, Politicians, State Agencies on November 25, 2014| 15 Comments »

Former Gov. Edwin Edwards said on Tuesday that he intends link his opponent to Gov. Bobby Jindal just as Congressman Bill Cassidy has linked U.S. Sen. Landrieu and President Obama.

“Representative Cassidy has built his entire campaign on running against Obama instead of Mary Landrieu and though I believe in running on issues instead of personal attacks, I will launch my television ads next week by showing that Garret Graves will be nothing more than an extension of the Bobby Jindal administration,” Edwards told LouisianaVoice.

That shouldn’t be too difficult to do, given that Garret’s former assistant and more recently his successor has publicly endorsed Garret in his campaign against Edwards to succeed Cassidy as Louisiana’s 6th District congressional representative.

Jerome “Z” Zeringue, who once served as Garret’s assistant and then was named to succeed him as Gov. Jindal’s coastal advisor, has endorsed his old boss in the Dec. 6 runoff against Edwards.

That action brought instant criticism from another former coastal advisor to the governor. Len Bahr, Ph.D., wrote on his internet blog:

“As a former holder of Graves’ and now Zeringue’s position in the governor’s office, I’m offended that neither of these gentlemen is concerned that the person who oversees state coastal policy should be involved in a highly partisan political struggle. I realize that the law that restricts state civil servants from political activities does not apply to unclassified positions but the basis for the law is obvious, going back to the days of Huey Long when state employees were pressured to support specific elected officials. http://lacoastpost.com/blog/?p=47063

Bahr’s indignation notwithstanding, Edwards already had a pretty good arsenal to unload on his opponent.

He previewed one of his upcoming TV advertisements for LouisianaVoice. As expected, he zeroed in on the $130 million in contracts that Graves’ father’s company received from the U.S. Army Corps of Engineers during the younger Graves’ tenure as president of the Coastal Protection and Restoration Authority (CPRA) and director of the Governor’s Office of Coastal Activities.

Edwards, at a Monday appearance before the Baton Rouge Press Club, also noted that the Graves’ father also subcontracted $66 million of that $130 million to some 18 other companies who have since contributed $250,000 to Graves’ campaign and $360,000 to Jindal.

Those points were brought by another candidate in the first primary, State Sen. Dan Claitor (R-Baton Rouge) but Edwards added a new twist during the press club appearance when he revealed that Graves’ brother-in-law stood to gain financially from a deal involving CPRA.

He said the Water Campus office complex and research center under construction in Baton Rouge, will house the agency Graves once headed. The leasing agent for office space in the facility, Edwards said, is Randy White, Graves’ brother-in-law. “They’re going to lease one million square feet of office space at probably $25 to $50 per square foot,” he said. “At a commission of 2 or 3 percent, that’s a $1 million a year.”

The former governor also expressed his disappointment at Graves’ tactic of sending out letters leading up to the Nov. 4 first primary in which he hinted that Republican candidate Paul Dietzel, III was gay. “He (Graves) repeated over and over that Dietzel had never married, lives with his grandmother, and had performed work on behalf of gay organizations,” Edwards said. “There is no place in today’s society for that type of attack.”

Edwards said the motive for Graves’ attack was obvious. “Up to the time those letters went out, he and Dietzel were neck and neck for the second spot in the runoff against me. It was the act of a desperate man and a man who was hand-picked by our governor to continue the policies put in place by Jindal.

“Jindal’s approval rating is every bit as deplorable as Obama’s,” Edwards said. “And a vote for Graves is a vote to continue down the same road that Jindal has taken the state during his administration. Personally, I don’t think this state can afford a continuation of those policies.”

Bahr, his blog, included a link to Louisiana Civil Service rules on public employees’ participation in political campaign and though the rules are different for classified and unclassified employees like Zeringue, Bahr said he nonetheless felt it wrong for Zeringue to interject himself into partisan politics. http://www.civilservice.louisiana.gov/files/general_circulars/2011/gc2011-020.pdf

One of Bahr’s readers added this comment to his blog:

“A key part of Graves’ legacy is the degrading of CPRA’s standing as a supposedly objective body. Pushing them to pass a resolution opposing the SE La Flood Protection Authority lawsuit was a key step. Using the meeting for theatrics attacking the feds every month was another. CPRA has continued on this path in his absence by passing a resolution opposing the EPA’s proposed “Waters of the U.S.” designation, with no real discussion of the actual rule/regulation. In the bubble that Louisiana inhabits, no one is supposed to see this for what it is. That bubble will be popped when the state sees how national support for restoration has been eroded.”

So while Edwards has been relatively quiet up to this point (as opposed to the incessant barrage of attack ads from both Landrieu and Cassidy), that will change beginning next Tuesday—just in time for his only scheduled head-to-head debate with Graves in Denham Springs that same day.

If he is successful in linking Graves to his former boss, Jindal’s low poll numbers coupled with the animosity Jindal has single-handedly created between himself and teachers, state employees and higher education officials during almost seven years as governor, it could spell trouble for Graves. And Edwards, the sly old warrior that he is, might yet have a trick or two up his sleeve.

To paraphrase actress Bette Davis in the movie All About Eve, Fasten your seatbelts, it’s going to be a bumpy ride.

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ORM contract sold a third time since privatization amid rumors of attempts to rig bids in favor of FARA renewal

Posted in Contract, Contracts, Corruption, DOA, Ethics, Fraud, Governor's Office, Jobs, Layoffs, ORM, Office of Risk Management, Privatization, Public Records, RFP, Request for Proposals on November 24, 2014| 16 Comments »

Some things never change when it comes to doing business with the State of Louisiana.

Several business owners have, over the past couple of years, told LouisianaVoice they would never bid on a state contract because, they said, the bid process and contracts are rigged, or at least weighted, heavily in favor of pre-selected vendors.

Now, three separate sources have come forward to offer specifics that support that claim as it regards a request for proposals (RFP) for renewal of an existing $75 million contract.

One of our very first stories under the LouisianaVoice banner was the manner in which Gov. Bobby Jindal went about privatizing his very first state agency, the Office of Risk Management (ORM), throwing nearly 100 employees out of work in the process.

Now we learn the story of F.A. Richard & Associates (FARA), the Mandeville company the state initially paid $68 million to take over as third party administrator (TPA) of ORM has taken yet another interesting twist.

Well, make that two interesting twists—including a third violation of the original contract between the Division of Administration (DOA) and FARA and now it seems there may be a strong case made for bid manipulation on the part of the state.

The reason we said the state initially paid $68 million is because eight months after that 2011 takeover, FARA was back asking—and getting—an amendment to its contract which boosted the contract amount by exactly 10 percent, or $6.8 million, bringing the total cost to just a tad under $75 million. An obscure state regulation allowed a one-time amendment to contracts for up to (drum roll, please)…10 percent.

Then, less than a month after the contract was amended by that $6.8 million, FARA sold its state contract to Avizent, an Ohio company, which kept the contract for about four months before it sold out to York Risk Services Group of Parsippany, New Jersey.

Last month, it was announced that Onex Corp., a Toronto-based private equity firm, had finalized a deal to acquire York for $1.325 billion.

In each case, the name FARA was retained “for branding purposes,” according to one former FARA employee, but there was no getting around the fact that the state’s contract was—and is—being shifted from one company to another until the latest deal that placed in the possession of a foreign corporation.

The original contract with FARA stipulates that the contract may not be sold, transferred or re-assigned without “prior written authority” from DOA.

LouisianaVoice, of course, made the appropriate public records request for that “prior written authority” right after it was sold the first time—to Avizent. After the usual delays in responding, DOA finally sent us an email which said no such document existed.

So, now we a contract the very specific terms of which have openly violated not once, not twice, but three times and the state has remained silent on this point.

Jindal, in case you need a reminder, is the same Louisiana governor who only last Friday criticized President Obama of “flaunting the law” in his executive action granting amnesty to illegal immigrants.

But as bad as the contract shuffling might be, ongoing efforts to rig the bidding process for a renewal of the five-year contract in FARA’s favor would appear to be far more serious.

Three separate sources—one employed by DOA and the other two former employees of first ORM and, after ORM was privatized, FARA, said that FARA had been requested to assist in drafting a new RFP in such a way as to guarantee that FARA would retain the contract.

Both former FARA employees, interviewed separately, said a staff meeting of FARA employees was held in Lafayette last April and again in May. On both occasions, they said, FARA management assured them that the company had been asked to assist ORM in drafting the RFP and that FARA was certain to win renewal of the contract, which expires next July 1.

“We were all told to update our resumés so they could be used in beefing up FARA’s proposal,” said one of the former employees.

If true, that would constitute bid rigging in almost any law book and should prompt an immediate investigation. This would be an ideal opportunity for someone to awaken East Baton Rouge District Attorney Hillar Moore to see if he is up to performing his duties.

Wasn’t that, after all, the basis for the investigation of Bruce Greenstein and the $189 million contract to his former employer, CNSI? That was the investigation that led to his nine-count indictment for perjury.

Having said that, if there are any other business owners who have had unpleasant experiences in bidding on state contracts, or who feel they have been shut out of the process through favoritism we would love to hear from you. Our email address is: louisianavoice@yahoo.com or louisianavoice@cox.net

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Old pro Former Gov. Edwin Edwards comes out swinging at opponent Garret Graves at Baton Rouge Press Club meeting

Posted in Coastal Erosion, Commissions, Congress, Contract, Contracts, Corruption, Elections, Ethics, Fraud, Governor's Office, Grant, Grants, House, Lawsuits on November 24, 2014| 10 Comments »

Former Gov. Edwin Edwards, who has been uncharacteristically quiet in his campaign to succeed U.S. Rep. Bill Cassidy for Louisiana’s 6th Congressional District seat, came out swinging at his opponent at Monday’s appearance before the Baton Rouge Press Club.

At the same time, the campaign of his opponent, Garret Graves, Gov. Bobby Jindal’s hand-picked candidate, appears to be doing everything it can to go into a self-destruct mode with Graves following smear tactics against a first primary opponent with a vitriolic email-writing campaign to reporters perceived by him to be antagonistic.

One veteran Baton Rouge reporter described Graves’ strange behavior as the campaign enters its stretch drive as “weirdly Nixonian.”

Edwards was also critical of Graves’ role in attempts to stifle the lawsuit against 97 oil and gas companies by the Southeast Louisiana Flood Protection Authority-East (SLFPA-E). “Someone needs to restore our coastal lands and who better than the ones who destroyed it?” he asked.

The event was intended to serve as a face-off between the two candidates, but Graves chose not to attend.

Edwards, meanwhile, took the opportunity of renewing earlier claims of $130 million contracts awarded to Graves’ father under his watch as President of the Coastal Protection and Restoration Authority (CPRA) and director of the Governor’s Office of Coastal Activities.

“Not only was he responsible for $130 million in contracts to his father’s engineering company,” Edwards said, “but 18 sub-contractors got another $66 million in contracts. Those companies gave $250,000 to Graves’ campaign and $360,000 to Gov. Jindal’s campaign. This is a scheme by Jindal and Graves to maintain and to perpetuate the control of the flow of dollars from the Corps of Engineers and the BP spill.

“Gov. Jindal took $160 million in BP grant funds and wasted it on the construction of a sand berm and gave the contract to a Florida firm. That berm, as was predicted, is long gone.

“Jindal then took another $35 million to $40 million to build the million-square-foot Water Campus in Baton Rouge,” Edwards said.

He said the Water Campus office complex and research center under construction in Baton Rouge, will house the agency Graves once headed. The leasing agent for office space in the facility, Edwards said, is Randy White, Graves’ brother-in-law. “They’re going to lease one million square feet of office space at probably $25 to $50 per square foot,” he said. “At a commission of 2 or 3 percent, that’s a $1 million a year. I guess it would be accurate to say Graves is a family man.”

More recently, Graves has ramped up an email-writing campaign to reporters that borders on paranoia, accusing veteran reporters of ganging up on him, not liking him, and being against him. The emails more resemble incoherent rants than logical communications with some making wild accusations, a tactic that has puzzled various recipients.

Edwards reserved most of his disgust, however, for Graves’ smear campaign against Paul Dietzel, III, in the Nov. 4 primary election. Graves intimated during the campaign that Dietzel, grandson of legendary former LSU football coach Paul Dietzel, was gay.

“At the time, the contest for the runoff position was between Graves and Dietzel,” Edwards said. “Dietzel is a fine young man and he never recovered from that scurrilous attack.” Dietzel finished third in the primary with 13.55 percent of the vote. Graves finished second to Edwards with 27.36 percent.

Edwards said that while he has not spent any money on media advertising “because I really didn’t think it was necessary,” he intends to begin a media blitz early next week.

He and Graves are scheduled to meet in their only scheduled head-to-head debate in Denham Springs next Tuesday.

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