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Archive for the ‘Layoffs’ Category

Gov. Bobby Jindal has outlined an ambitious program for his second term of office, including the privatization of the Louisiana Legislature, state colleges and universities, the sale of all state roads and highways and bridges to private concerns, and rapid expansion of the state’s charter school system, all to be controlled by private entities.

His plans for the state, which he calls the “Piyush Push,” were revealed by WikiLeaks which published a series of emails between Jindal and corporate campaign supporters who have contributed millions of dollars to Jindal’s wife’s charity, the Supriya Jindal Foundation for Louisiana’s Children. Upon learning of the WikiLeaks report, the governor called a press conference to explain his programs.

The privatization plan calls for the takeover of the Louisiana Legislature by a corporate board made up of the CEOs of Louisiana’s larger corporations and Wall Street bankers, including AT&T and Goldman Sachs.

The operating boards of state colleges and universities would be merged into a single governing board with board members serving at Jindal’s pleasure. An obscure clause in his plan would allow him to retain control of appointments even after he leaves office. The so-called super board would be comprised of major contributors who would purchase stock shares in the universities. Board members would be allowed to send their elementary- and high school-age children and grandchildren to state charter schools.

“We are not going to raise taxes on the people of Louisiana,” Jindal said at the hastily called press conference attended only by reporters from the Baton Rouge Business Report. “We are going to run these universities like a business. Tuition will be adjusted to a level comparable to that of our nation’s finest institutions, the Ivy League schools, of which I am an alumnus. The board members will not draw per diem or salaries for their services but we anticipate they will profit from their sacrifice and hard work through stock ownership and lucrative stock options in the universities,” the governor said.

“Again, I want to reiterate that we are not going to increase taxes but the new owners of state roads, highways, and bridges will certainly be free to charge a modest usage fee for travel on their byways and bridges,” Jindal said. “People who drive cars should understand that use of roads and bridges is a privilege, not a right and that a usage fee is not the same as a tax; it’s a fee. We believe that these usage fees will offset the need for any increase in gasoline taxes.”

As for the future of the legislature, Jindal said it will be downsized from the current membership of 144 to 12 white males who will inherit all current campaign contributions remaining and accruing to the 144 outgoing legislators. The only way an African-American would be appointed would be in the event of a class action lawsuit by representatives of minority groups. “It almost worked with the Board of Regents,” the governor said in defending his legislative plan.

A few legislators voiced reservations with the manner in which Jindal is moving to privatize their institution, but after having gone along with the governor in other privatization endeavors, most indicated they would not resist the new austerity moves by the governor. Nor was there any immediate indication that legislators would attempt to invoke the separation of powers doctrine under which the legislature has heretofore been largely independent of the governor’s office.

Sen. Carl Spackler of Bushwood, however, was one who vowed he will not vote in favor of privatization of the legislature. “I believe the legislative branch of government is protected in the Constitution somewhere and I’m going to read up on that,” Spackler said. “If I’m correct, I’m not going to sit still for him putting me out of a job. Who does Jindal think we are, state employees? I worked hard for my GED.”

But Jindal was emphatic about pushing for complete passage of his austerity package, saying there would be no compromise. “I want to emphasize that these moves are in keeping with my ‘more is less’ philosophy for all government,” he said. “For those who may question these actions, I would say to them, ‘Quit whining and work smarter.”

Neither is Jindal considering an increase in tobacco taxes. “Smoking is a private decision, an individual right, and smokers should not be penalized for exercising that right,” he said. “We are, however, imposing a significant surcharge for abortions to encourage the notion that life is sacred and women should not make such decisions too lightly. Again, I want to emphasize this is not a tax.”

He said he is also planning to sharply reduce the number of state employees. One example of his layoff plan would require every Louisiana citizen who is unwilling or unable to complete the process on-line to appear at a central location in Baton Rouge, Shreveport, Monroe, New Orleans, Alexandria, Lafayette, or Lake Charles for driver’s license applications and license renewals. “I don’t see why we can’t get by in each office with one or two persons,” he said. “How difficult can it be to issue a driver’s license?”

He also announced plans to double the size and the salaries of the state’s Homeland Security Office while at the same time saying he would cut staff at state hospitals to a single physician and nurse per specialty at each facility. “I believe with fewer doctors, people will find a way to stay healthier,” Jindal said.

“Again, I want to say we are not going to raise taxes,” he said. “That is not an option. We are, however, going to raise the annual deductible on medical care to $12,500 per year, increase co-payments to $50, and at the same time, we’re asking state workers to kick in another 75 percent on employee premiums on health care coverage and retirement benefits.”

Jindal used the press conference to take yet another swipe at big government in general and President Obama in particular. “The bloated federal government should take a look at Louisiana and say, “That’s how things should be done,” he said. “We’re proving in our open and transparent administration that our ethics are above reproach and we’re wiping out our deficit with good, open and honest government,” he said as the CEOs of AT&T, Northrop Grumman, Worley Catastrophe Response, and Blue Cross/Blue Shield stood behind him.

“I would once again call upon the Obama administration to repeal its drilling moratorium in the Gulf of Mexico so that our oil companies can make a decent living,” Jindal said.

Jindal said he would sell all public schools to private entities so that they could be converted to charter schools. He said the move would be a model of efficiency for the rest of the nation. “I believe the 25 percent loss in Detroit’s population over the past decade, for example, could be reversed simply by converting to my proposed system for Louisiana schools,” he said.

“I fully anticipate there will be a bidding war for acquisition of schools as public finance will guarantee a solid return for investors,” Jindal said. “Of course my administration will invest the funds derived from the sale so that cash flow will support scholarships to the schools or such other General Fund needs as might arise in the budget balancing process.”

He said those children unable to take advantage of the improved educational opportunities will be housed in dormitories near the Nucor Steel Mill in St. James Parish, the Tournament Players Club golf course in Jefferson Parish, and the Foster Farms chicken processing plant in Union Parish. “There, they will be given hands-on training to meet the plants’ needs,” he said. “If all else fails, they would certainly be qualified to become slag haulers, caddies at state-run golf clubs, or chicken pluckers.”

To insure that the schools will succeed and will demonstrate high test scores, students will be carefully pre-screened before being accepted for enrollment, Jindal said. The schools will be run by boards comprised of members selected by the owners. Owners and board members, along with the college and university Super Board members, will be given first choice of the available seats in the school for their children, as will those of select employees.

“I am fully aware that all this will require Constitutional amendments but I fully expect the voters of Louisiana to continue to support our programs. But just in case, beginning here and now, I am stepping up my schedule of visiting churches to garner popular support for my proposals. Beginning Sunday and continuing through Election Day, I will be visiting churches all over north Louisiana. My agenda will consist of three things: Sunday morning and Sunday evening services as well as Wednesday night prayer meetings.”

And that’s the way it is on Friday, April 1, 2011.

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If Gov. Bobby Jindal is serious about his suggestion that state employees “do more with less,” he has an excellent opportunity to lead by example: he could ask his mom to step down from her state job.

The governor has been up front with his plans to outsource state agencies, thereby forcing employees of those agencies to retire (if eligible), seek other employment, or hope to catch on with the private sector company taking over the state agency.

The lucky ones get to retire. But many—some of whom have 20 years or more with the state—are still too young to retire and thus must scramble for a new job in a depressed market where jobs are scarce and when filled at all, go to much younger applicants. Don’t believe for a nano-second that there is no age discrimination.

Those are the ones who are truly caught up in the classic Catch-22 scenario.

When F.A. Richard and Associates (FARA) took over the Office of Risk Management (ORM) last July, its contract stipulated that it take all ORM employees for at least one year. There is nothing in place to protect the state employees after that 12-month period. The privatization of ORM, by the way, was supposed to save the state $50 million over five years but FARA already is asking that its $68 million contract be amended by $7 million, to $75 million.

Jindal also is seeking to privatize state prisons and the Office of Group Benefits (OGB) but as yet has said nothing about outsourcing the Louisiana Workforce Commission (formerly the Louisiana Department of Labor).

Perhaps that is because that is where his mother is employed.

Perhaps not, but a $45,000 per year state employee being outsourced (read: laid off) has to smart just a tad when doing a cursory web page search (link), clicks on “Louisiana State Payroll” on the top menu bar, and then types in “Jindal” in the box “Search by Name,” only to find that Gov. Jindal is paid $130,000 per year to campaign for out-of-state candidates, attend fundraisers for himself, and to promote his book—all while ostensibly serving as the governor of Louisiana.

The resentment must really smolder when the name Raj G. Jindal appears beneath that of the governor. Raj G. Jindal is the governor’s mother and she pulls down a cool $117,915 per year as an Information Technology (IT) Director 3 in charge of workforce support and training. We assume she is a valuable, capable employee. But that’s not the point here. It’s the perception, stupid (with apologies to Bill Clinton).

One might think the governor, as a show of good faith, would ask his mom, an employee of 30-plus years and certainly eligible for retirement, to lead by example, and step down to benefit someone who really needed a job. Even if she were not eligible for retirement benefits, what a PR move it could be for the governor.

One might think so. After all, should she opt for retirement, her retirement income in excess of $90,000 would be more than double that of the average salary of state employees still working full time ($44,338).

But then Gov. Jindal has never been one to display an excessive amount of compassion for state employees. Quite the opposite would, in fact, seem to be the case. He just doesn’t care. He has shown that in his actions time and again, from privatization, to behind-the-scenes efforts a year ago to dismantle the state Department of Civil Service and the Civil Service Board.

He showed it when he gutted the state’s ethics laws, all the while spouting his oft-repeated mantra in campaign appearances in other states that his is the most transparent, most ethical administration in Louisiana history.

He showed his disdain for minorities in the manner in which he replaced a white member of the Board of Regents for Higher Education with an African-American, all the while claiming the move had nothing to do with a lawsuit brought by Southern University students challenging the makeup of the previously all-white board. Yeah, right.

At least that move was pretty transparent.

He has shown nothing but contempt for public school teachers in the way his administration is hell-bent on destroying public education in favor of charter (read for-profit) schools. He must be very proud of the Recovery School District.

No, it’s not very likely that Raj G. Jindal will be asked to lead by example by doing “more with less.”

It’s just not in our governor’s makeup.

Instead, the governor will in all likelihood fall back on another line he uttered just before departing for yet another out-of-state campaign appearance last fall: “Quit whining.”

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Editor’s note: Periodically, LouisianaVoice invites guest columnists to contribute to our blog. The following essay was written by Don Whittinghill, consultant to the Louisiana School Board Association.

It is also posted on the association’s website at http://www.lsba.com/.

Last week, Gov. Bobby Jindal released a budget proposal for the 2011-2012 fiscal year.

Legislators reacted swiftly. Some of them accused Gov. Jindal of balancing the state’s operating budget on the backs of college students, state workers, and the poor.

Demonstrations were staged on the Capitol steps.

The proposal was designed in the face of a financial chaos that might well be a politically orchestrated stage on which to carry out an ultra conservative agenda.

First, state universities were told by the governor that they would have to endure another 35% in cuts. Then, Superintendent Paul Pastorek told newly elected K-12 school board members that it would be likely only a 10% cut. Two days later the governor proclaimed it would be less than 10%.

Secondly, the official revenue estimates (made March 7) were for revenues to amount to $7.8 billion. The actual revenue collections for 2010 amounted to $7.1 billion.

It should be recognized that revenue estimates are made several times each year for the past 17 years. Over the 19 years for which estimates are recorded the Legislative Fiscal Office calculates that it has underestimated revenues in 16 of those years. The March estimate is that used for casting the state budget. Over those 19 years the fiscal authorities calculated an error rate, on the low side, averaged 7.7%. For each percent of underestimating revenue the fiscal office reports $96 million for each percent underestimated. That suggests the current pre-legislative estimate of revenue could be $739 million below actual when all is said and done.

When one looks into the presented budget one finds that vouchers for fewer than 2,000 New Orleans school children will increase to $10 million. These vouchers went, last year, to slightly more than 1,600 and the size of the average voucher was around $4,400. Current MFP budget letter shows the average per pupil contribution of state funds is less than $3,500.

The administration declares that it is protecting Pre-K-12 education. But, there is no adjustment of inflation, retirement system contributions rise more than 5%, health insurance coverage increases, school bus fuel costs have grown more than 20% in the last month and are projected higher. The legislature decreed that local school districts must pay for private school bus transportation that had formerly been paid by the state. The $5,000 per year stipend granted by the state for Nationally Certified Teachers has now gravitated to the local school boards to pay. Now, the administration proposes to fund TOPS scholarships by raiding a state trust fund that generates money for K-12 education.

As more and more public schools are taken over by the state and converted to charter schools that divert money from local public schools, Gov. Jindal presents as part of his budget cutting the selling of prisons to private firms. In the case of prison or privatized management of charter schools state money is diverted to the profit line. It is unclear how such diversion of funds can make for better service or lower costs.

Most folks would consider such a series of budgetary moves to be CUTS to Pre-K-12 education!

The administration declares it will not grant state employees, including teachers, a pay increase. But its budget calls for raising retirement contributions by 37%. This governor seems to think that raising college tuition is not the same as a tax paid by students and their parents.

The shock and awe doctrine that the administration has established in the media is, it seems, calculated to bring popular acceptance of policy that would not be accepted under more normal circumstance. In the game of craps such a move is known as a “come bet.”

The proposition that half of the dollars needed to fund the TOPS program would come when voters approve another Constitutional Amendment that has not even been introduced to the legislature would certainly raise an eyebrow or two if the average business did so.

The administration says it will cut over 4,000 state jobs to save money. The fact that over half of them were jobs not filled during the 2010-2011 fiscal year suggests a misunderstanding of the term cash flow.

An important ingredient in the state’s revenue stream is derived from the oil and gas industry. Many headlines, over the past year, have signaled huge shortfalls in mineral income to the state. However, a look at current official reports reveals some interesting facts:

The Revenue Estimate underlying the budget calls for an average price for crude oil pegged at $84.65 per barrel. Oil and gas industry estimates for the coming year average $101.77 per barrel. Each dollar per barrel difference amounts to $12 million in state revenue. That means if business forecasts are correct, the Revenue Estimating Committee is underestimating by over $200 million.

In 2010, Louisiana’s production of oil on state lands and waters increased over that of 2009 by 626,243 barrels. State natural gas production also significantly increased by 2.2 billion cubic feet. Much has been made of oil producers’ tax relief creating a shortfall in severance tax revenue. According to the state revenue department 2010’s severance tax increased $73 million or 10.7% over the prior year. It should also be recalled that severance taxes are dwarfed by other state revenues that flow from oil and gas production. Well over $1.1 billion was paid out to land owners (including the state) in royalties on production from their lands and in other expenses subject to sales taxes. The income collected by Louisiana’s folks is subject to income tax (lessened by depletion allowance deductions) which is substantially more productive for the state treasury. In the Haynesville Shale gas field, more than 4,000 acres of state-owned land is leased for production.

One might also consider the administration/legislative attitude toward the “Rainy Day Fund.” The Center on Budget and Policy Priorities, a Washington, D.C-based think tank says they are designed to be used when times are bad. In Louisiana, the debate over just what constitutes a fiscal “rainy day” has fixated budget planners for more than a year. About $644 million remains in the Budget Stabilization Fund. One might question whether or not these times are sufficiently bad to justify tapping those funds. While there are restriction that revolve on repayment into the fund, that law can be changed about as easily as the administration-proposed raid on trust funds to fund TOPS.

It appears as if there is a real need to evaluate administration shock-doctrine financial claims. If the administration is right, that leaves another option to be considered other than that proposed.

Moody’s Investors Service, in January, reported that Louisiana’s debt per capita was $4,799 with by far the majority being unfunded pension liability.

Still another D.C.-based think tank, The Tax Foundation, ranks states on a per capita tax basis. Louisiana, in the most current ranking, is 42nd lowest taxed in the nation. One might ask: does Louisiana face a spending problem or is it short of revenue to meet real needs?

When the smoke enveloping the newly proposed budget clears, and the mirrors start to reflect reality, perhaps the chaos being manufactured will be clearer. The priority of state spending then might be seen less on enhancing the Governor’s national image and more on meeting public needs.

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Public school teachers at the bottom of the seniority ladder are being called in by their principals in parish school systems across the state to hear the bad news: because of budgetary cutbacks, their contracts will not be renewed next school year.

It’s bad enough when State Superintendent of Education Paul Pastorek insists that poor grades are the fault of the teachers and schools, not poverty or the lack of public support of education. The mindset in Pastorek’s office is not more funding, but more charter schools.

Teacher layoffs are something that should never happen in any society that pretends to make education a priority. But it is happening right now so perhaps we should take a quick refresher course in Louisiana history or civics or what some might prefer to call the Big Lie.

Think back for a moment to a campaign that took place 21 years ago. It was 1990 and Louisianans were being told that legalized gaming (that’s gaming, not gambling; gaming was the nice way to say gambling which, of course, was illegal and carried bad connotations) was the panacea for all the state’s fiscal problems.

We once thought the same thing about oil and gas but that myth was exploded in the eighties when the oil patches dried up with six-dollar-a-barrel oil (remember those days?). So legislators began looking around for other sources of revenue. Never mind computer technology, Fortune 500 businesses, or some other livelihoods with an emphasis on education and some modicum of intelligence. No, it had to be something that could be fed to the masses, something that would be in keeping with Louisiana’s third-world, banana republic image.

Presto! The idea of legalized gambling, er, gaming was born and the politicians nurtured the concept and they were oh, so slick in the way they did it. Casino gambling was too much to throw at their constituents from the get-go, so first came the Louisiana Lottery, approved in 1990 with the first scratch-off games going on sale in 1991. Skeptics immediately dubbed the Lottery as a tax for those who were not good at math.

The legislature passed riverboat gambling in 1991 once the Lottery was up and running and the following year approved a bill to allow New Orleans to build a land-based casino.

And just how did lawmakers sell the hard-nosed Baptists of north Louisiana on gambling? Why, education, of course. In December of 1986, The Louisiana Association of Educators agreed to support and work for the lottery, provided at least 75 percent of the proceeds are dedicated to education, a stipulation to which Gov. Edwin Edwards quickly agreed. That number now hovers somewhere around 35 percent, less than half of what was originally sought.

Politicians from the governor all the way down to local school board members were busy touting the financial windfall for education that was sure to come from gaming revenue. After all, hadn’t the Support Education in Louisiana First Fund been a good thing for state education?

The Support Education in Louisiana First Fund had its origins in September 1986 with a proposed amendment that would dedicate about $540 million from oil and gas leasing production in the outer continental shelf lands in the Gulf of Mexico. Known as the 8(g) fund, it has pumped more than $500 million into the state’s general fund for education since 1986. Or has it? In 2010, the Louisiana Legislature allocated $109.1 million in 8(g) funds to the Minimum Foundation Program (MFP) to fund public education in Louisiana. Or did it?

Since its inception, the Louisiana Lottery has transferred almost $2.3 billion to the state treasury but it wasn’t until 2003 that the legislature got around to passing a bill calling for a constitutional amendment dedicating lottery proceeds to the MFP. That law became effective on July 1, 2004. Last year, the legislature allocated $137.4 million in State Lottery proceeds to the MFP. Or did it?

And then there’s the $10 billion Education Jobs Fund passed by Congress last year. Also known as EduJobs, Louisiana’s share was $147 million and was supposed to be added to the MFP. But was it? Remember, this is Louisiana.

Even as many of the state’s local school boards had already factored their share of that $147 million into their budgets, Gov. Bobby Jindal on Nov. 11 announced plans to redirect the money. Just that quickly, at the whim of a “reform” politician, it was gone.

It turns out that the Support Education in Louisiana First Fund, the State Lottery proceeds allocated to education in Louisiana, and the EduJobs fund are nothing but part of an elaborate shell game and skullduggery, the political equivalent of a stage magician’s misdirection tactic. Smoke and mirrors.

Instead of allocating the full $3.3 billion to the MFP from the state’s General Fund as it had before the existence of 8(g), the State Lottery, or EduJobs funds and then adding those allocations to produce the education windfall Louisiana voters had expected, they were first subtracted from the General Fund. Only then were the combined $393.5 million in 8(g) funds, State Lottery proceeds, and EduJobs funding added back to the legislative appropriation which by that time, had shrunk to less than $3.1 billion.

The net gain to education from 8(g), EduJobs, and the lottery?

Zero. It was all a big con. Mission accomplished. Politicians 3, Louisiana 0.

So now, after the 2010 legislature gave top priority to pet projects, appropriating more than $500 million on non-governmental organizations (NGOs) such as councils on aging, golf courses, tennis courts, and community centers, and projects that should have been financed by local governments, the state has run out of money and teachers are being laid off.

And instead of budget cuts, Superintendent of Education Paul Pastorek sees the problem as bad teachers and failing schools. The more things change, the more they stay the same.

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Gov. Bobby Jindal’s office has announced that one of his top aides is leaving to pursue work in the private sector. The announcement immediately prompted two observations.

First, how is it, when thousands of Louisianians are out of work and unable to find jobs, Camille Conaway can simply walk away from a $110,000-per-year position—notice I said position, not job—and find work in the private sector? When hundreds of rank-and-file state employees are being laid off as the Christmas season approaches, it seems odd that she can jump to the head of the line—unless she has connections. Of course, we know no one from the governor’s office would intercede in her behalf while turning their backs on long-time dedicated civil service employees. Would they?

Well, why not? If it was good enough for former Commissioner of Administration Angelé Davis, why not, indeed.

Second, her departure gives the governor in absentia the perfect opportunity to lead by example.

If Jindal really wanted to make an impression (other than taking a helicopter to some remote protestant church in north Louisiana to give out federal stimulus money that he is against accepting on principle), then he would simply leave the position open, saving the state treasury that $110,000.

If he were really sincere about “doing more with less,” as he insists state agencies and state colleges and universities do, he would hold a press conference and, in his rapid-fire style of delivery say something like this:

“Three things: One, we are losing one of the administration’s top people. Two, we hate to see her go but after taking a close and critical look at my office, I have decided that I can do more with less. Three, the dozens of overpaid deadheads who remain are just gonna have to suck it up and do more work. They may, of course, be required to spend less time on Facebook but whatever it takes, we can, and will, do.”

That’s what he should have said. But that, unfortunately, is not what he did say.

In fact, he didn’t say anything. He left it to public relations flunky Kyle Plotkin.

Plotkin, in case you didn’t know, is from New Jersey. (Obviously, Jindal, who openly bemoans the exodus of Louisiana’s best and brightest to other states, was unable to find even one person from Louisiana who was qualified to grind out press releases.) Plotkin worked in various capacities for former Massachusetts Gov. Mitt Romney, which or course makes him eminently qualified to do what no one from this state is capable of doing: paying lip service to policy decisions by the Louisiana governor/wunderkind/frequent flyer/wannabe best-seller author who knows what’s best for America but not necessarily for Louisiana. Speaking of which, how can Jindal call himself an author when his book was ghost written (meaning he didn’t write a complete sentence of his own memoir that he dares to call Leadership and Crisis)?

But as usual, I digress.

Conaway, Plotkin said, was primarily responsible for developing Jindal’s legislative package and also worked with legislators. One has to wonder: Might part of the legislative package she developed have been stripping the State Board of Ethics of its power? Okay, that’s a rhetorical question and again, I’m off-point.

Plotkin went on to say that Conaway will be replaced by Michael Dailey, who served as (get this) deputy secretary of programs at the state Department of Children and Family Services. Deputy secretary of programs? What in the name of all that’s holy would that entail? What programs? Deputy secretary of programs sounds awfully Barney Fifeish.

Nevertheless, Dailey will pull down the same $110,000 salary as his predecessor, Plotkin said.

So much for leading by example. So much for doing more with less.

Can’t wait for your next book, Guv: How to Run A Shell Game With Only One Shell.

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