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100 pay increases approved for state’s top earners following Gov. π-yush 2010 pay freeze order; hiring freeze also ignored

Posted in Attorney General, Budget, Civil Service, Commissions, Economy, Education, Exemptions, Incentives, Governor's Office, Higher Education, Jobs, LSU, ORM, Office of Risk Management, Public Records, RSD, State Agencies, Transparency on October 22, 2012| 10 Comments »

Editor’s note: The information contained in this story was received via printouts from the Louisiana Department of Civil Service of those earning $100,000 or more for the years 2009 through 2012. Each year was listed separately. Accordingly, when the name of Patti Gonzalez of the Office of Risk Management did not appear until the 2012 printout, the indication was she had received a pay increase. This was not the case and there was no explanation as to why she did not appear in prior years but Ms. Gonzalez says she has not received an increase since March of 2010.

Likewise, no state elected officials received pay increases as their salaries are set in statute. Civil Service printouts did indicate pay increases for all but two statewide elected officials but this apparently was in error.

Rank and file state civil service employees have gone without pay increases, merit or otherwise, since 2009 but at least 104 managers, directors, supervisors and five statewide elected officials already making in excess of $100,000 a year have received increases over the past three years.

Not included in the tabulation were doctors, nurses, pharmacists, higher education professors or, with one exception, those who were promoted from one job to another and got raises.

Altogether, more than 3,200 state employees earning more than $100,000 per year accounted for an annual payroll of approximately $432 million—an average of about $135,000 each.

The average pay of a state civil service employee is approximately $39,600.

In most cases—but not all—the pay increases were 4 percent increases. A 4 percent increase for one making $100,000 would be $4,000. That would fund four such increases for workers earning only $25,000 a year.

There were those, however, who did better. Much better.

Michael Diresto went from $103,792 in 2011 to $118,792 this year, a $15,000 (14.5 percent) bump. He was listed by the Department of Civil Service as a “director” in the Division of Administration (DOA) for both years. On the DOA web page, he is identified as an assistant commissioner for policy and communications.

Bruce Unangst, executive director of the Real Estate Commission, also saw his annual salary balloon from $109,000 in 2011 to $125,000 this year, a 14.7 percent increase.

In the governor’s office itself, Executive Counsel Elizabeth Murrill did extremely well for herself. Her 2011 salary of $110,000 grew to $165,000 this year—before her transfer to DOA where presumably, it will remain the same. Her one-year pay hike was a whopping 50 percent, according to Civil Service records.

In the Department of Insurance, 14 employees earning $100,000 or more received 4 percent increases from 2011 to 2012 while four others, including an attorney supervisor, did not. Insurance Commissioner James Donelon this year also hired former state legislator Noble Ellington, who had no experience in insurance, as deputy commissioner at a salary of $149,900.

Five of 14 employees of the Port of New Orleans Port Commission who earn $100,000 or more were awarded pay raises ranging from 5.5 percent to 7.5 percent.

At the Department of Health and Hospitals (DHH), several employees received pay increases from 2011 to 2012 despite the pay freeze. They included Executive Director Robert Marier, who went from $196,102 to $205,899 (5 percent); Associate Director Cecilia Mouton, from $185,640 to $194m916 (5.1 percent); Executive Director John Liggio, from $119,044 to $125,068 (5 percent), and Executive Director Lisa Schilling, from $107,702 to $134,638 (25 percent).

None of the four changed job classifications, according to the Civil Service report. One who did change classifications got a 14.8 percent increase, a lower percentage than Schilling. Courtney Phillips was promoted from a Medicaid Program Manager 4 at $102,814 per year to Chief of Staff at $118,019.

One other executive director, six DHH attorneys, a deputy director, a deputy secretary, a budget administrator, an economist and a program director received no salary increases from 2011 to 2012.

Debra Schum, listed as an executive officer in the Department of Education (DOE), got a 20 percent pay raise, from $110,000 in 2011 to $132,000 this year while Kerry Lester, also an executive officer with DOE, got a $5,000 increase, from $150,000 to $155,000 during the same time frame.

But what is particularly interesting about the DOE payroll is the seemingly inordinate number of new hires of people at six-figure salaries, especially in the Recovery School District.

State Superintendent of Education John White has brought in no fewer than 10 new employees at salaries in excess of $100,000 this year alone—and that’s not even counting Deirdre Finn, a part time contract employee who will be paid $144,000 a year to work as communications manager for the department—from her home in Florida.

The idea of hiring a commuting employee, apparently borrowed from DHH and Carol Steckel, who is being paid $148,500 a year as a “confidential assistant” to DHH Secretary Bruce Greenstein to commute back and forth from her home in Alabama, seems to be catching on.

David “Lefty” Lefkowith is being paid $146,000 to commute back and forth from Los Angeles to work at DOE as a “director,” according to Civil Service records. He describes himself in a DOE video, however, as a “deputy superintendent.”

Other new, six-figure employees added by DOE this year include:

• Gary Jones, Executive Officer, $145,000;

• Melissa Stilley, Liaison Officer, $135,000;

• Michael Rounds, Deputy Superintendent, $170,000;

• Hannah Dietsch, Assistant Superintendent, $130,000;

• Francis Touchet, Liaison Officer, $130,000;

• Stephen Osborn, Assistant Superintendent, $125,000;

• Sandy Michelet, Executive Director, $120,000;

• Kenneth Bradford, Director, $110,000;

• Heather Cope, Executive Director of the Board of Elementary and Secondary Education, $125,000.

For the Recovery School District (RSD), both the high turnover and six-figure salaries are significant. That’s because there is substantial turnover despite the high salaries and that turnover has stymied any progress the already troubled RSD might have realized.

No fewer than 20 employees earning six figures have left the RSD since 2009, records show.

For the three years from 2010 to 2012, there was a turnover rate among those earning $100,000 or more ranging from 29 to 44 percent from the previous year Civil Service records indicate.

Of 24 RSD employees earning six figures for the current year, 15, or 62.5 percent, are new hires, records show. These include:

• Stacy Green, School Nurse, $145,000;

• James D. Ford, Administrative Superintendent, $145,000;

• Dana Peterson, Administrative Superintendent, $125,000;

• Adam Hawf, Administrator, $120,000;

• Mark Comanducci, Executive Director, $115,000;

• Helen Molpus, Administrative Chief, Officers, $115,000;

• Kizzy Payton, Administrative, Business Office, $110,000;

• Hua Liang, Administrative Chief, Officers, $110,000;

• Nicole Diamantes, Administrative, Other Special Programs, $105,000;

• Isaac Pollack, Administrative, Principal, $105,000;

• Desmond Moore, Administrative, Principal, $105,000;

• Betty Robertson, Other Business Services, $105,000;

• Robert Webb, Administrator, Other Special Programs, $105,000;

• Sametta Brown, Administrator, Regular Programs, $100,800;

• Ericka Jones, Administrative, Principal, $100,000;

• Eric Richard, Administrative, Principal, $100,000.

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Who knew? Tomorrow’s vote on OGB privatization appears close; opponents, proponents conducting intensive lobbying

Posted in Attorney General, Budget, Civil Service, Governor's Office, Health Care, House, Senate, Jobs, Layoffs, Legislature, Legislators, OGB, Office of Group Benefits, Privatization on October 17, 2012| 10 Comments »

Members of the House Appropriations Committee and the Senate Finance Committee were being lobbied heavily by both sides on Wednesday in the final hours leading up to Thursday’s joint committee meeting to consider the privatization of the Louisiana Office of Group Benefits (OGB).

State Rep. Katrina Jackson (D-Monroe) said on Wednesday that she was concentrating on members of the House Appropriations Committee “because the concurrence of both committees is required.”

She said by mid-morning there appeared to be four undecided votes on the House committee.

“We need two votes,” she said, to block the move by Gov. Piyush Jindal. “Neither side can say it has the votes,” she added.

For those who might be interested in getting in their two-cents worth, here are the links to the names, phone numbers and email addresses for the members of each of the committees:

http://house.louisiana.gov/H_Cmtes/H_Cmte_AP.asp

http://senate.legis.louisiana.gov/Finance/Assignments.asp

The privatization, which would have Blue Cross/Blue Shield of Louisiana (BCBS) take over the operations of the agency’s Preferred Provider Organization (PPO), was approved by the State Civil Service Commission in August but State Rep. Katrina Jackson (D-Monroe) requested and got an attorney general’s opinion that said the administration must obtain the concurrence of the legislature to finalize the transfer.

BCBS already serves as the third party administrator (TPA) for OGB’s HMO program.

OGB has accrued a fund balance in excess of $500 million over the past six years since Tommy Teague took over as director of OGB. But he was fired on April 15, 2011 when he did not get on board the Jindal privatization plan quickly enough. His successor lasted only six weeks before he, too, was gone.

Jindal has claimed that a private TPA would be able to run the various health and life insurance plans of about 225,000 state employees, retirees and their dependents.

A Legislative Auditor’s report, however, said that privatization could lead to increased health insurance premiums because of a private insurer’s higher administrative and marketing costs, its requirement to pay taxes on income and its need to realize an operating profit. The state does not pay taxes nor is it required to turn a profit.

The Jindal administration has employed tactics bordering on the clandestine in efforts to shore up its position. At one point it even refused to release a report by New Orleans-based Chaffe & Associates with which it contracted to determine the “fair market value” of OGB’s business.

When a copy of the report was released, however, questions arose immediately because of conflicting dates given by the Division of Administration (DOA) as to its receipt date and by the fact that none of the pages of the report was date-stamped.

DOA routinely date stamps every page of documents it receives to indicate the date and time the documents were received.

This led to speculation that there may have been two Chaffe reports. Even so, the one that was leaked to the Baton Rouge Advocate said that a private insurer would be required to build in the extra costs of taxes and profits when setting premiums.

Once considered a slam-dunk for approval, the vote now appears much closer on the eve of the meeting of the two committees.

Much of the reason for the change may have to do with growing resentment on the part of legislators who have seen hospitals and/or prisons closed in their districts, actions they say were taken by the administration without the benefit of giving lawmakers a heads-up.

Jindal, in closing prisons and hospitals, has done so while leaving it up to area legislators to try and explain to constituents why they will be out of work or why health care will be either cut back or unavailable.

Only this week, notices went out to 41 employees at E.A. Conway Hospital in Monroe that they would no longer be employed after Nov. 30—just in time for the Christmas holidays. Twenty-five of those were nurses.

Similar cutbacks have taken place at health care facilities all over the state and in August, Jindal abruptly announced the closure of Southeast Louisiana Hospital in Mandeville, effective this month, throwing some 300 employees out of work.

Moreover, with the earlier closure of a mental health facility in New Orleans, the entire area of Orleans, Jefferson, Plaquemines, St.

Bernard, Tangipahoa, Washington and St. Tammany will be without access to mental health treatment at a state facility.

The proposed privatization of OGB will put about 120 workers out of work.

“It’s going down to the wire,” Jackson said of the vote to turn the PPO over to BCBS. “It’s going to be close.”

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Merry Christmas! E.A. Conway Hospital in Monroe receives word that 41 employees to be laid off effective November 30

Posted in Budget, Economy, Governor's Office, Health Care, Jobs, Layoffs, LSU, Revenue, State Agencies on October 16, 2012| 4 Comments »

A new survey by 24/7 Wall Street has revealed that the Monroe Metropolitan Area, which includes 11 northeast Louisiana Parishes, is the sixth-poorest metropolitan area in the U.S. and at 27.9 percent, has the eighth-highest percentage of households living below the poverty line.

Accordingly, The LSU Health Sciences Center in Shreveport sent out notices to 41 employees of E.A. Conway Medical Center in Monroe Tuesday that they will no longer have jobs after Nov. 30.

Merry Christmas to E.A. Conway employees who will soon be unemployed. Great timing.

University Medical Center (UMC) Chancellor Dr. Robert Barish simultaneously notified E.A. Conway employees and State Civil Service Director Shannon Templet that 25 of the 41 employees targeted for layoffs are nurses.

Others include four police officers, two nursing assistants, two administrative coordinators, and (one each) respiratory care therapist, speech/audiologist specialist, EKG technician, radiologic technician, social worker, electriction, mobile equipment operator and printing operator.

The layoffs, Barish said, are the result of a reduction in federal Medicaid dollars to the state and are necessary “after other budgetary measures were taken, as a layoff avoidance measure, that did not meet the total dollars needed to match the reduction.”

The overall impact of the layoffs and cutbacks to E.A. Conway will be $8.5 million, he said.

With such a high poverty rate, many of the 178,000 residents of the Monroe Metropolitan Area rely on Conway for health care. Now, those health care services will either be cut back drastically or delayed for many who need them most.

Merry Christmas to tens of thousands of northeast Louisiana residents who will soon find medical care more difficult to obtain.

While median income across the nation decreased by $642 per year from 2010 to 2011, it went into a free-fall in the Monroe Metropolitan Area, plummeting by $5,434.

At the same time, the area’s poverty rate rose by an eye-popping seven percentage points. Moreover, the 11.4 percent of households earning less than $10,000 in 2011 was the third-highest percentage of all metropolitan areas.

The cutbacks and layoffs at Conway would appear to have been implemented with no planning and little consideration given to the needs of the areas served just as other policy moves have been made.

The Jindal administration, for example, privatized the John Hainkel Home and Rehabilitation Center in New Orleans in 2011 and in June of this year, Department of Health and Hospitals Secretary Bruce Greenstein quietly notified the facility that it was revoking its license, ostensibly because of deficiencies found during inspections.

A more likely reason for the action is that 73 of the home’s 82 patients pay for their care at the Hainkel Home through state Medicaid funding. Ergo, close the facility and if those 73 patients are unable to enter another facility that accepts Medicaid patients, Jindal gets to cut Medicaid costs in a furtive move that flies under the radar.

And it won’t be a simple task for those patients to find a new care provider. The Hainkel Home is one of the few remaining options in New Orleans for Medicaid patients and Veterans Administration patients. Most nursing homes will not accept Medicaid and V.A. patients and are actively purging current Medicaid and V.A. patients from their populations.

So, while Piyush Jindal continues to push for corporate tax breaks and exemptions for campaign contributors, he embarks on a campaign of slashing budgets and cutting services as a means of making up revenue lost by what can only be described as to poor—or perhaps contrived—administrative decisions.

Such are the methods of the Piyush Jindal administration.

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Notable Quotables (in their own words)

Posted in Boards, Civil Service, Governor's Office, Jobs, Layoffs, Notable Quotables, State Agencies on October 8, 2012| 2 Comments »

“Yesterday afternoon, I submitted a request to Civil Service for the Layoff Avoidance Measure of withholding performance adjustment pay increases (or merit increases) for the upcoming year. I sincerely regret that this is necessary for a third year in a row, but I made this request to minimize the impact of budget pressures on our levels of staffing and on the agency.”

–Louisiana Workforce Commission executive director Curt Eysink, in a September 26 email to his employees informing them they would not be receiving 4 percent merit increases.

“I’m not going to cast a vote to set a precedent for one employee.”

–State Civil Service Commission member Scott Hughes, less than week later, speaking out against a proposed $19,430 annual pay increase (40.8 percent) for a Louisiana Workforce Commission mid-level manager. Despite Hughes’s opposition, the compliant Civil Service Board rubber stamped the pay increase from $47,570 to $67,000 for the employee described by Civil Service assistant director Jean Jones as barely meeting minimum job standards.

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Notable Quotables (in their own words)

Posted in Budget, Governor's Office, Health Care, House, Senate, Jobs, Layoffs, Legislature, Legislators, LSU, Politicians, Transparency on October 5, 2012| 2 Comments »

“I would like to make a motion that the Joint Health and Welfare Committee urge and request the LSU Board of Supervisors and Dr. (Frank) Opelka (head of the LSU Health System) to delay implementation of any cuts to the LSU hospitals until plans have been finalized that will ensure patients of the LSU hospital system that they will continue to receive services and where they (services) will be administered.

“I think we all deserve the plan and they should hold up on the cuts until such time as they present the plan.”

–Sen. Ben Nevers, D-Bogalusa, at the conclusion of the four-hour hearing by the Joint Legislative Committee on Health and Welfare on Thursday, held to consider proposed cuts and closures of parts or all of seven of the 10 hospitals in the LSU system.

“Mr. Chairman, I would like you to consider allowing the senators to vote on the motion even though there’s not a quorum. We have a quorum of Senate members; they’re here and ready to do business.”

–Nevers again, on being told that House rules prohibited the committee’s voting on the motion. (Committee Chairman Rep. Scott Simon, R-Abita Springs, again refused, citing House rules. There was no explanation as to why House members vacated the committee meeting before its conclusion.)

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