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Piyush Push continues with Senate Retirement Committee hearings today; will legislators man up to this governor?

Posted in ALEC, American Legislative Exchange Council, Governor's Office, House, Senate, Legislature, Legislators, Retirement on April 16, 2012| 11 Comments »

Now that Piyush Jindal has shoved the education reform bills down our throats with minimal time for debate and even less attempt at actually reading the bills, he is ready to turn his attention to his state retirement reform package.

First up are three bills by Sen. Elbert Guillory (D-Opelousas). Senate bills 51, 52 and 740 are scheduled to be heard by the Senate Retirement Committee, which Guillory chairs, beginning at 9 a.m. on Monday.

The bills may have Guillory’s name on them but make no mistake: they were written by corporate members of the American Legislative Exchange Council (ALEC) and spoon-fed to Guillory to introduce at Jindal’s behest.

SB 51 would require rank and file state employees who are members of the Louisiana State Employees’ Retirement System (LASERS) to work until age 67 before being able to realize full retirement benefits. Those retiring before that age would receive sharply reduced benefits under terms of the bill.

SB 52 would require members of LASERS, who have not had a pay raise for three years, to contribute an additional 3 percent of their salaries. Originally, that increase was to have been offset by a corresponding reduction in the amount the state contributes. The money saved by the state would have gone into the state General Fund to help Jindal fill in a big hole anticipated in the state budget.

That would have meant that employees would not have realized any advantage either toward reducing the LASERS unfunded accrued liability (UAL) or in providing increased retirement benefits, thereby defining the increase as a tax—illegal during an even-number year’s legislative session.

Now, though Jindal, in his usual method of smoke and mirrors economics, says the 3 percent additional will go to pay down the UAL.

The really curious thing about Jindal’s incessant barking about the UAL is that LASERS presently has a UAL of $6.3 billion, only about a third of the total UAL of the four retirement systems–teachers ($10.8 billion), school employees ($863 million) and state police ($313 million), yet he continuously blathers as if the entire amount is the liability of LASERS alone.

Smoke and mirrors.

The governor soldiers on with his ALEC-inspired bills despite a report by the Dallas law firm Strasburger & Price which says that virtually all components of the retirement bills would be ruled unconstitutional if subjected to legal challenges—as they will most surely will be.

The report was commissioned by Legislative Auditor Daryl Purpera.

Jindal dismissed the Strasburger report through his press lackeys, saying the analysis was conducted without a thorough read of the bills and that the 38-page analysis was done with no examination of case law.

It appears that the Strasburger report was the document that did not receive a thorough read—from the governor and his “brown shirts,” to borrow a term from Rep. Sam Jones (D-Franklin)—because the report specifically cited case law from 18 other states and a handful from right here in Louisiana as legal precedents.

Smoke and mirrors.

If Jindal’s bills are passed and somehow survive legal challenges (highly unlikely), we might brace ourselves for an attempt in his three-plus years left as governor (He is not going to be Romney’s veep, though there is a chance he may run for the U.S. Senate against Mary Landrieu) to reduce benefits for already retired state employees. We certainly would not put it past him.

Regardless of the legal outcome of the retirement bills, he will probably make another run at abolishing Civil Service as he did through Rep. John Schroeder (R-Covington) two years ago.

In contrast to Jindal’s slash and burn tactic of benevolent governance, the words of former Gov. Edwin Edwards come to mind. Quoted in the book Bad Bet on the Bayou by Tyler Bridges, Edwards, who grew up the son of a sharecropper, said, “I remember when government made it possible for electricity to be brought to my house.”

He was referring to President Franklin Roosevelt’s Rural Electrification Act of 1936, when Edwards was just nine.

“I remember when the government made it possible for a (school) bus to pick me up and drive me eight miles into town,” he continued. “I remember when government made it possible for me to eat a free hot lunch at school. I remember when government made books available to me that I otherwise would not have been able to have.”

If the governor pushes his retirement bills through, then the sins of Edwin Edwards will pale by comparison to the cumulative harmful effects of Jindal’s privatization of the Office of Risk Management, the Office of Group Benefits, Medicaid, his “reforms” to education and state employee retirement, his cutting of higher education, thereby forcing tuition increases, his granting of tax cuts to favored corporations, his allowing friendly former legislators to settle into do-nothing jobs at six-figure salaries (jobs for which they are woefully unqualified), and the sale of state prisons.

No matter what the shortcomings of Edwin W. Edwards, he never shafted teachers or state workers. For that matter, he never turned his back on Louisiana’s working citizens. Nor did he ever dodge a reporter’s questions or refuse an interview—claims Jindal could never make. When a reporter left a message for Gov. Edwards to return his or her call, it was Edwards, not some flunky, who personally returned the call.

But enough with the reminiscing; let’s turn our attention to the makeup of the respective House and Senate retirement committees and the key campaign contributions of the members of those two committees.

The heavy hand of ALEC is ever-present, as is that of Jindal himself.

Following are members of the Senate Retirement Committee and the contributions received from corporate members of ALEC and from Jindal’s own campaign fund:

• Guillory—$45,200 from Alec, $7500 from Jindal;

• Page Cortez (R-Lafayette), vice chairman—$2500 from Jindal;

• Conrad Appel (R-Metairie)—$2500 from Jindal;

• A.G. Crowe (R-Pearl River)—$4500 from ALEC, $2500 from Jindal;

• Gerald Long (R-Natchitoches)—$35,000 from ALEC, $2500 from Jindal;

• Barrow Peacock (R-Bossier City)—No contributions;

• Jonathan Perry (R-Kaplan)—No contributions.

Both Crowe and Long are members of ALEC.

Following are members of the House Retirement Committee and the contributions received from corporate members of ALEC and from Jindal’s campaign:

• Kevin Pearson (R-Slidell), chairman—$2500 from Jindal;

• Nick Lorusso (R-New Orleans), vice chairman—$6500 from ALEC;

• Anthony Ligi (R-Metairie)—$20,500 from ALEC, $5000 from Jindal;

• Jack Montoucet (D-Crowley)—$6000 from ALEC;

• Alan Seabaugh (R-Shreveport)—$11,750 from ALEC, $2500 from Jindal;

• Kirk Talbot (R-River Ridge)—$5000 from Jindal;

• Jeff Thompson (R-Bossier City)—No contributions;

• Paul Hollis (R-Covington)—No contributions;

• Sam Jones (D-Franklin)—No contributions;

• Edward Price (D-Gonzales)—No contributions;

• Eugene Reynolds (D-Minden)—No contributions.

Lorusso, Ligi, Montoucet, Seabaugh and Talbot are ALEC members.

One state employee said in a recent email to LouisianaVoice that Jindal’s proposed comprises on his retirement bills “are in no way acceptable.” The compromises, he said, “are still breaking a contract with state employees.”

Here is the rest of that email:

“Sometimes people forget that pensions are the sole source of retirement planning for many state employees. We receive no match on any IRAs we may be able to afford on our relative low salaries and we are not allowed to contribute to Social Security.

“I think some legislators need to be reminded that they do not answer to a political party, to a governor, or to their largest campaign contributors. They answer to the people, the taxpayers and the voters of this state. And contrary to what many legislators believe, state employees are, in fact, people, taxpayers and voters. We have the same financial obligations that private sector employees have, yet we are ‘solely’ asked to bear the burden of a historically irresponsible legislature.

The true measure of a society is how it treats the weakest among it. State employees are the weakest among all civil servants; therefore, we have been intentionally targeted. Our hands are tied by ridiculous civil service regulations that do not afford us the same opportunity as teachers or law enforcement officers to speak on issues that directly impact us. In addition, many state employees have been intimidated into thinking that they cannot speak out against these reforms for fear of retribution.

“This targeted approach is both abusive and discriminatory towards state workers. In my opinion, (legislators’) true character will be especially clear after this vote. While many of us are afraid to speak out, we can vote. We can sign a recall petition. So, please do not play unnecessary politics with the livelihoods of your constituents.”

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Did legislators collect from ALEC and from House and Senate for attending legislative planning conferences?

Posted in ALEC, American Legislative Exchange Council, Ethics, House, Senate, Legislature, Legislators on April 11, 2012| 8 Comments »

The email memorandum came from Arizona State Rep. Debbie Lesko, the Arizona public sector chairman of the American Legislative Exchange Council (ALEC). Dated May 12, 2011, at 4:33 p.m., it extended an invitation to ALEC members “to join me in New Orleans at ALEC’s annual meeting from Aug. 3-6. READ ALL DETAILS BELOW:”

What followed could serve as a damning indictment of several members of ALEC who did and/or continue to serve in the Louisiana Legislature.

“ALEC is a nonpartisan membership association for conservative state lawmakers who share a common belief in limited government, free markets, federalism and individual liberty,” the email said.

Then came the zinger—in boldface type, no less:

“If you are an ALEC member, your airfare, hotel, ALEC registration, baggage, travel to/from the airport to the hotel, and airport parking will be reimbursed through an ALEC scholarship up to $1900 per legislator.”

Another paragraph, again in boldface, instructed legislators thusly: “You need to SAVE and SUBMIT copies of all receipts and turn them in to my assistant, Patty Wisner, AFTER the trip. Reimbursement usually takes 2-3 weeks to process AFTER the trip and AFTER you turn in the reimbursement form and receipts. I have attached the reimbursement form.”

The problem with that is that at least 16 Louisiana legislators filed expense reports with the House and Senate for reimbursement of more than $20,750 in expenses related to their attendance at last August’s annual meeting in New Orleans, hosted by ALEC’s then national president, former Rep. Noble Ellington (R-Winnsboro), according to records provided by the House and Senate.

And those figures don’t even include out-of-state ALEC conferences places like San Antonio, Chicago, San Diego and Washington, D.C., and attended by some of the same legislators who attended the New Orleans annual meeting, as well as 19 other members and former members of the House and Senate and which cost taxpayers an additional $56,200.

Assuming the same offer was extended to members who attended the other meetings, it would appear that state lawmakers may have double-dipped in an amount that approaches $70,000 for the ALEC-sponsored events.

Some of their state-paid expenses were for per diem at $152 per day, a cost not paid by ALEC and to which legislators are technically, if not questionably, entitled.

Rep. Jeffrey Arnold (D-New Orleans), for example received $456 in per diem for three days of meetings in his home town, plus the registration fee of $575 for last August’s annual meeting.

Rep. Austin Badon, also of New Orleans, by contrast, submitted expense vouchers totaling $1333 for the same meeting, including $608 for hotel accommodations even though he resides in New Orleans. He submitted a voucher for a registration fee of $610 as opposed to Arnold’s $575 registration fee.

Others, such as Rep. Alan Seabaugh (R-Shreveport), however, claimed more than $2,000 in expenses that included a $475 registration fee for the same meeting.

Besides the $475 registration fee, Seabaugh also submitted vouchers for payment of $346 in mileage from Shreveport and $456 in per diem payments—a total of $1,277, leaving almost $800 in unaccounted for expenses, presumably for hotel accommodations at the New Orleans Marriott which were not itemized on his voucher that was stamp-dated Aug. 15, 2011.

Lesko’s email specifically said that members’ registration fees and hotel accommodations would be paid by ALEC. Seabaugh submitted a $100 payment on June 13, 2011 for two years’ membership, according to his campaign finance records.

ALEC, headquartered in Washington, D.C., professes to be non-partisan and says it is not a lobbyist organization. It is supported by generous donations from hundreds of corporate members such as BP America, Chevron, private prison companies Corrections Corp. of America and G4S (formerly Wackenhut), US Airways, Amazon.com, American Express, Amway, Amoco, Anheuser-Busch, Archer Daniels Midland, AT&T, Bayer Corp., Blue Cross and Blue Shield, Hunt Guillot of Ruston, Bristol-Myers, Chrysler Corp., ConocoPhillips, Dell Computers, Dow Chemical, Eli Lilly, ExxonMobil, FedEx, General Motors, GlaxoSmithKline, Georgia-Pacific, K12, Inc., Johnson & Johnson, Koch Industries, McKinsey & Co., Merck, Pfizer, Reynolds American, Shell Oil, State Farm, Time Warner, Gulf States Toyota, UnitedHealthcare, Union Pacific, UPS, Verizon, Visa, Walgreens, Wal-Mart, Liberty Mutual and Zurich Insurance.

ALEC even has its logo prominently displayed, along with other national legislative organizations, on the Louisiana Legislature’s web page: http://www.legis.louisiana.gov/

Until recently, Pepsico, Coca-Cola, Kraft Foods, Intuit, the Gates Foundation and McDonald’s were members but have since pulled their support in the wake of public backlash over the shooting death in Florida of black teenager Trayvon Martin by community watch volunteer George Zimmerman.

For more than a month, it appeared Zimmerman would escape prosecution under Florida’s “Stand Your Ground” law, legislation enacted with the strong backing of ALEC. It was announced on Wednesday, however, that Zimmerman would be prosecuted for second-degree murder.

The Louisiana Senate, by a 31-6 vote on Monday, approved SB 303 by State Sen. Neil Riser that would strengthen gun rights by allowing firearms at schools, churches and on college campuses.

If approved by both chambers, the proposed constitutional amendment would be decided by Louisiana voters in next November’s elections.

Riser, a member of ALEC and who has filed expense vouchers for attending ALEC conferences, said the bill would give Louisiana “the strongest Second Amendment law in the nation.”

Other current and former members of the Louisiana House and Senate who submitted expense vouchers for ALEC’s August annual meeting in New Orleans include:

• Former State Rep. Elton Aubert (D-Vacherie)—$1354.01;

• Rep. Austin Badon (D-New Orleans)—$1333.36;

• Former Rep. Damon Baldone (D-Houma)—$575 (registration fee);

• Sen. A.G. Crowe (R-Pearl River)—$1351.72 (including registration fee);

• Rep. Jim Fannin (D-Jonesboro)—$649.36 (includes two days’ per diem);

• Rep. Brett Geymann (R-Lake Charles)—$816.64 (includes hotel room);

• Rep. Joseph Harrison (R-Gray)—$1920.97 (includes $947.64 for hotel and $475 for registration fee);

• Rep. Frank Hoffman (R-West Monroe)—$1696.35 ($608 in per diem for four days; $475 registration);

• Former Rep. Nita Hutter (R-Chalmette)—$677.75 (includes $475 registration);

• Rep. H. Bernard LeBas (D-Ville Platte)—$1781.77 ($760 per diem ($841.95 hotel);

• Sen. Gerald Long (R-Natchitoches)—$2178.97 ($894 for six days per diem;

• Sen. Ed Murray (D-New Orleans)—$608 (four days per diem);

• Rep. Scott Simon (R-Abita Springs)—$1319.82 ($456 per diem; $804.99 hotel);

• Sen. Francis Thompson (D-Delhi)—$1745.21;

• Sen. Mike Walsworth (R-West Monroe)—$1486.44 (includes $476.08 hotel, $295 registration and $73.92 parking).

Current and former legislators who submitted vouchers for other ALEC conferences in other cities include:

• Lebas—Phoenix, Nov. 29-Dec 2, 2011 ($596); Washington, D.C., Dec. 1-4, 2009 (1656.83); San Diego, Aug. 4-7, 2010 ($1321.36);

• Long—Atlanta, Dec. 7-12, 2011 ($894);

• Hoffman—Atlanta, July 14-18, 2009 ($1614.40);

• Harrison—Washington, D.C., Dec. 3-5, 2008 ($1896.43); New Orleans, Sept. 30-Oct 2, 2009 ($496), Washington, D.C., Dec. 1-5, 2009 ($1981.24); San Diego, Aug. 4-8, 2010 ($1580.50); Washington, D.C., Nov. 30-Dec 4, 2010 ($2031.14);

• Baldone—Chicago, July 30-Aug. 2, 2008 ($1222.22); San Diego, Aug. 4-8, 2010 ($1645.84);

• Rep. Tim Burns (R-Mandeville)—San Diego, Aug. 4-8, 2010 ($1485.36);

• Rep. Thomas Carmody (R-Shreveport)—San Diego, Aug. 4-8, 2010 ($1403.36);

• Rep. Greg Cromer (R-Slidell)—Washington, D.C., Dec. 3-7, 2008 ($2281.73); Atlanta, July 15-18, 2009 (1486); Washington, D.C., Dec. 2-4, 2009 ($956.50);

• Sen. Yvonne Dorsey (D-Baton Rouge)—San Diego, July 31-Aug. 8, 2010 ($2454.11);

• Former Rep. Noble Ellington (R-Winnsboro)—Chicago, July 28-Aug 2, 2008 ($858); Washington, D.C., Dec. 2-7, 2008 ($870); Atlanta, July 3-9, 2009 ($2068.05); New Orleans, Sept. 30-Oct 1, 2009 ($304); Durham, N.C., Oct. 14-18, 2009 ($795); Washington, D.C., Dec. 1-4, 2009 ($932.56); Dallas, March 2-3, 2010 ($318); Phoenix, Nov. 28-Dec. 3, 2011 ($894);

• Sen. Dale Erdy (R-Livingston)—Atlanta, July 14-18, 2009 ($2058.25); Chicago, July 30-Aug 2, 2008 ($2302.19);

• Former Rep. William Walker Hines (R-New Orleans)—Atlanta, July 15-18, 2009 ($1707.85);

• Rep. Robert Johnson (D-Marksville)—San Diego, Aug. 4-8, 2010 ($1403.36);

• Former Rep. Kay Katz (R-Monroe)—Austin, Sept. 29-Oct. 1, 2011 ($1177.05);

• Sen. Bob Kostelka (R-Monroe)—Chicago, July 29-Aug 2, 2008 ($2159.39);

• Former Rep. John LaBruzzo (R-Metairie)—San Diego, Aug. 4-8, 2010 ($1460.36);

• Former Rep. Nickie Monica (R-LaPlace)—Washington, D.C., Dec. 1-5, 2009 ($2095.24);

• Rep. Jerome Richard (I-Thibodaux)—Atlanta, July 15-16, 2009 ($747.70);

• Sen. Neil Riser (R-Columbia)—Washington, D.C., Nov. 30-Dec. 4, 2010 ($2139.52);

• Former Rep. Mert Smiley (R-St. Amant)—Chicago, July 29-Aug. 3, 2008 ($2200.60);

• Former Rep. Gary Smith (D-Norco)—Washington, D.C., Dec. 4-6, 2008 ($1060.26);

• Rep. Kirk Talbot (R-River Ridge)—San Diego, Aug. 4-8, 2010 ($2438.56);

• Rep. Thomas Willmott (R-Kenner)—San Diego, Aug. 4-8, 2010 ($1525.76).

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Here’s how the Appropriations Committee voted on prison privatization (Hint: Chairman Jim Fannin won’t be Teagued)

Posted in ALEC, American Legislative Exchange Council, Governor's Office, House, Senate, Legislature, Legislators, Prison, Privatization on April 10, 2012| 7 Comments »

As predicted by LouisianaVoice (a prediction any observer with half a brain could have made), HB 850 by Rep. Henry Burns (R-Haughton), otherwise known as the prison sellout bill, passed in the House Appropriations Committee. The close vote (13-11), however, was something of a surprise.

Still, the fix was in all along and few on the committee listened to pleas and protestations against the privatization of Avoyelles Correctional Center in Cottonport.

Even more surprising was four of the committee members who between them, received $64,000 from the American Legislative Exchange Council (ALEC), went contrary to ALEC’s—and Jindal’s—wishes and voted against privatizing Avoyelles, closing the J. Levy Dabadie Correctional Center in Pineville and transferring its 330 low-risk offenders to Avoyelles and for closing the Forcht Wade residential substance abuse facility in Caddo Parish and moving its inmates to the David Wade Correctional Center in Homer.

Four of the 11 who voted against the bill, including two Republicans and two Democrats, received $2,500 each from Jindal in campaign contributions but apparently felt that keeping the prisons and their guards employed outweighed the Jindal campaign contributions. They included Democrats Walt Leger and Jared Brossett, both of New Orleans, and Republicans James Morris of Oil City and Brett Geymann of Lake Charles. Morris and Geymann were the only Republicans to vote no.

One has to wonder if Jindal will demand a rebate on his investments since there were no committee chairmanships among the four to take away.

Four of five Democrats on the committee who receive contributions from neither ALEC nor Jindal voted no. They were Patricia Haynes Smith and Edward James of Baton Rouge, Helena Moreno of New Orleans and Roy Burrell of Shreveport. Robert Billiot of Westwego broke ranks with his fellow Democrats and voted in favor of the bill.

Also predictably, Rep. Jim Fannin (D-Jonesboro) held onto his committee chairmanship by metaphorically kissing Jindal’s ring (some may have a lower opinion, anatomically speaking) by voting in favor of the bill. The memory of the removal of Rep. Harold Richie (D-Bogalusa) as vice-chairman of the House Committee on Insurance had to be fresh on Fannin’s mind. Richie, sitting on the House Ways and Means Committee, voted against a proposed tax rebate for those who donate money for scholarships to private and parochial schools and was promptly stripped of his vice chairmanship of the Committee on Insurance.

The only other Democrat besides Fannin to vote for the measure was Robert Billiot of Westwego.

Jindal’s contributions to committee members and each members’ final vote included:

• Rep. Jim Fannin (D-Jonesboro)—$2500 (Y);

• Rep. Cameron Henry (R-Metairie)—$2500 (Y);

• Rep. Simone Champagne (R-Erath)—$2500 (Y);

• Rep. Charles Chaney (R-Rayville)—$2500 (Y);

• Rep. Patrick Connick (R-Marrero)—$2500 (Y);

• Rep. Franklin Foil (R-Baton Rouge)—$2500 (Y);

• Rep. Brett Geymann (R-Lake Charles)—$2500 (N);

• Rep. Joe Harrison (R-Gray)—$2500 (DID NOT VOTE);

• Rep. Bob Hensgens (R-Abbeville)—$2500 (Y);

• Rep. James Morris (R-Oil City)—$2500 (N);

• Rogers Pope (R-Denham Springs)—$2500 (Y);

• Rep. John Schroder (R-Covington)—$2500 (Y);

• Rep. John Berthelot (R-Gonzales)—$5000 (Y);

• Rep. Anthony Ligi (R-Metairie)—$5000 (Y);

• Rep. Henry Burns—$5000 (Y);

• Rep. Jared Brossett (D-New Orleans)—$2500 (N);

• Rep. Walt Leger (D-New Orleans)—$2500 (N).

Those who received contributions from ALEC’s corporate members include:

• Fannin—$6500;

• Rep. James Armes (D-Leesville)—$4500 (N);

• Champagne—$16,000;

• Geymann—$38,000;

• Harrison—$2000;

• Ligi—$20,700;

• Rep. Jack Montoucet (D-Crowley)—$6000 (N);

• Schroder—$2000;

• Rep. Ledricka Thierry (D-Opelousas)—$15,500 (N).

Two corporate members of ALEC are Corrections Corp. of America (CCA) of Nashville, Tenn. and G4S (formerly Wackenhut) of Jupiter, Fla. CCA is presently contracted to run Winn Correctional Center in Winnfield for the state while Global Expertise in Outsourcing, Inc. (GEO Group) of Boca Raton, Fla.

In addition, LaSalle Management Co. of Ruston operates eight facilities in Louisiana.

LaSalle Management, the GEO Group, and Wackenhut each contributed $10,000 to Jindal’s campaigns in 2003, 2006, 2007 and 2008 and CCA gave the governor’s campaign $5000 in 2008 and 2009.

Additionally, GEO Group contributed $1000 to Fannin in 2010 and 2011.

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What is the going rate for a legislator’s soul? Follow the Appropriations Committee’s vote on prison sale to learn

Posted in ALEC, American Legislative Exchange Council, Governor's Office, House, Senate, Legislature, Legislators, Prison, Privatization on April 10, 2012| 6 Comments »

If you live under a rock and might be wondering how Gov. Bobby Jindal’s proposed sale of Avoyelles Correction Center might fare in the House Appropriations Committee, consider this: of the 25 members of the committee, 20 received campaign contributions from corporate members of the American Legislative Exchange Council (ALEC) or Jindal—or both.

The committee will consider HB 850 by Rep. Henry Burns (R-Haughton) at 9 a.m. on Tuesday.

The bill calls for the sale of Avoyelles Correctional Center in Cottonport, closure of the J. Levy Dabadie Correctional Center in Pineville and transferring its 330 low-risk offenders to Avoyelles and for closing the Forcht Wade residential substance abuse facility in Caddo Parish and moving its inmates to the David Wade Correctional Center in Homer.

Those opposed to the sale might find comfort in knowing that the Florida State Senate in February voted 21-19 against the single largest prison privatization attempt in U.S. history. Nine Republicans united with a dozen Democrats to defeat the massive sell off of the state’s prison that would have cost 3,500 correctional officers their jobs.

In this case, rebellious Republicans apparently grew collective spines and rose up to say no to Gov. Rick Scott.

But don’t expect that to happen here.

Nine of the 10 committee members who are members of ALEC received contributions totaling more than $111,000 from corporate members of the “non-partisan” organization which meets regularly with legislators from all over the country to draft legislation for lawmakers to take back home for introduction and, hopefully, passage.

Some of those proposed laws include legislation like “Stand Your Ground,” which eventually became law in Florida and has come under considerable national criticism following the killing of Trayvon Martin, an unarmed black teenager, by neighborhood watch volunteer George Zimmerman in Sanford, Fla.

The furor over the shooting and Zimmerman’s immunity from prosecution, thanks to the “Stand Your Ground” law, has led Pepsico, Coca-Cola and Kraft Foods to withdraw from ALEC membership.

Other legislation pushed by ALEC includes school vouchers, charter and virtual schools, public retirement reform, Medicaid reform, public employee health benefits reform and sweeping privatization—all part and parcel of Jindal’s legislative agenda.

Jindal contributed nearly $50,000 to 16 of the Appropriations Committee members, including 14 of 15 Republican members.

Jindal’s contributions to committee members included:

• Rep. Jim Fannin (D-Jonesboro)—$2500;

• Rep. Cameron Henry (R-Metairie)—$2500;

• Rep. Simone Champagne (R-Erath)—$2500;

• Rep. Charles Chaney (R-Rayville)—$2500;

• Rep. Patrick Connick (R-Marrero)—$2500;

• Rep. Franklin Foil (R-Baton Rouge)—$2500;

• Rep. Brett Geymann (R-Lake Charles)—$2500;

• Rep. Joe Harrison (R-Gray)—$2500;

• Rep. Bob Hensgens (R-Abbeville)—$2500;

• Rep. James Morris (R-Oil City)—$2500;

• Rep. John Schroder (R-Covington)—$2500;

• Rep. John Berthelot (R-Gonzales)—$5000;

• Rep. Anthony Ligi (R-Metairie)—$5000;

• Rep. Henry Burns—$5000;

• Rep. Jared Brossett (D-New Orleans)—$2500;

• Rep. Walt Leger (D-New Orleans)—$2500.

Those who received contributions from ALEC’s corporate members include:

• Fannin—$6500;

• Rep. James Armes (D-Leesville)—$4500;

• Champagne—$16,000;

• Geymann—$38,000;

• Harrison—$2000;

• Ligi—$20,700;

• Rep. Jack Montoucet (D-Crowley)—$6000;

• Schroder—$2000;

• Rep. Ledricka Thierry (D-Opelousas)—$15,500.

Two corporate members of ALEC are Corrections Corp. of America (CCA) of Nashville, Tenn. and G4S (formerly Wackenhut) of Jupiter, Fla. CCA is presently contracted to run Winn Correctional Center in Winnfield for the state while Global Expertise in Outsourcing, Inc. (GEO Group) of Boca Raton, Fla.

In addition, LaSalle Management Co. of Ruston operates eight facilities in Louisiana.

If more convincing is necessary that the proposed sale of Avoyelles is all but a done deal, consider that Jindal apparently welshed on his promise to Rep. Robert Johnson (D-Marksville) when he told the lawmaker that the sale was not going to be taken up until public testimony on the budget on April 16-17.

The notice, however, went out last Thursday that the matter would be taken up today.

Johnson said he felt the timing was intentional because Tuesday is a scheduled training day and the two shifts that would normally be off duty will be undergoing training, guards who have been unable to perform the mandatory 40 hours of training are unable to travel to the Capitol to testify against the bill.

Mistie Dubroc, whose husband is employed at the Avoyelles facility, said guards are hesitant to voice their opinions on the governor’s plan for fear of reprisals, including termination. Such has been the case in several instances where employees of other state agencies have disagreed with Jindal’s policies.

State Civil Service rules clearly say that state employees may voice opinions on pending legislation that affect their jobs but that has not deterred the administration from taking swift and harsh action against outspoken employees.

Such intimidation is tantamount to an unofficial gag order and is reminiscent of the order that went out to University Medical Center employees a few weeks back that forbade their attending a rally protesting personnel cutbacks at the facility. Rally attendance and the signing of petitions, including recall petititions, is spelled out by Civil Service as being within employees’ rights.

If additional convincing is necessary, consider this: LaSalle Management, the GEO Group, and Wackenhut each contributed $10,000 to Jindal’s campaigns in 2003, 2006, 2007 and 2008 and CCA gave the governor’s campaign $5000 in 2008 and 2009.

Additionally, GEO Group contributed $1000 to Fannin in 2010 and 2011.

All of which begs the question: at what price are our legislators willing, even eager, to sell their souls.

A thousand bucks, even $2500 seems awfully cheap for a legislator to sell out his or her constituents. Well, at least three took the maximum $5000 from Jindal.

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New spirit of compromise on retirement bills reveals Jindal’s ability to twist words, and attempt to divide and conquer

Posted in Auditor, Governor's Office, House, Senate, Legislature, Legislators, Retirement, tagged on April 8, 2012| 23 Comments »

Don’t let the fact that Gov. Bobby Jindal appears not to have a clue about his state employee retirement reform package fool you. While the governor appears to be backing down on parts of his controversial retirement bills, one strategy clearly has not changed: divide and conquer.

More about that later.

On the heels of a 38-page analysis of the retirement bills which would require state employees to contribute 3 percent more, work longer and accept fewer benefits, Jindal’s office launched a petulant “official response” via his favorite medium, the Baton Rouge Business Report.

The report, by the Dallas law firm Strasburger & Price, said that virtually all components of the retirement bills would be ruled unconstitutional if subjected to legal challenges.

Not so, sniffed Jindal through his press office, and here’s where things get a bit dicey—for the governor.

First, the response to the Strasburger report, ordered by Legislative Auditor Daryl Purpera, said that the firm “relied on a vague conceptual understanding of the proposals, without an actual analysis of the bill text.”

That allegation could just as easily be directed at the governor’s office, based on Jindal’s response and what followed a scant week later.

“We’re open to compromise,” said Jindal’s deputy chief of staff, Kristy Nichols.

Really?

When has Jindal ever compromised on anything?

Perhaps a better question: why would Jindal compromise on anything given his track record?

Even better, after his insistence a week earlier that “The reforms are constitutional,” why would he suddenly change direction?

The answer to all three questions has to be that someone—perhaps someone who actually read the state and U.S. constitutions—whispered in Jindal’s ear that his “reforms,” if passed, would be in for a long, hard—and losing—fight.

But maybe we should examine the nuances of the latest developments—including glaring contradictions between the governor’s “official response” and his latest “compromise” offering.

Remember when that Business Report response trumpeted that there is “nothing in the bill” which directs employee contributions to the general fund? “The employee contributions would go, as always, to the retirement system,” it said.

The official response also said, “The 3 percent employee contribution bill is not a tax and is clearly not revenue-raising. The employee contributions remain the employee’s own money; the employee receives the contributions back either in the form of retirement benefits or as a refund of contributions upon termination of employment.”

Okay, let’s break down the shell game—and make no mistake about it, these bills are nothing more than a not-so-elaborate shell game.

It turns out, thanks to Jindal’s subsequent but inadvertent admission, the 3 percent additional employee contribution indeed would have gone toward employee retirement. But before we grovel at Jindal’s feet in abject contrition, it also turns out that that additional 3 percent would have corresponded to a 3 percent reduction in the state’s contribution and it was that 3 percent that was to go to the general fund.

Tomato, tomahto.

And there’s another awfully charitable compromise offer by the governor, necessitated, no doubt, by pure old-fashioned embarrassment. Jindal has said he will ask lawmakers to include the governor so that he, too, would be subject to the 3 percentage point increase in his retirement cost.

Terribly sporting of you, Guv. But why did you wait until after LouisianaVoice broke the story of your purchasing back 2.2 years of time and the fact that you and other statewide elected officials were exempt from the 3 percent increase? Afraid that doesn’t pass the smell test, much less the open and accountable transparency test.

Well, on second thought, it is pretty transparent.

And then there is that nagging little requirement that employees work until age 67 to qualify for retirement benefits. That, too, has been scrubbed, though not scuttled completely, by the governor in his newborn spirit of compromise.

Under Jindal’s revised plan, employees would be able to retire as early as 55 as they currently are, depending on years of service, with full retirement benefits based on contributions already made into the retirement system. Additional benefits accrued after the bill would take effect, however, could only be collected at a full rate at age 67 or older. If the employee sought to collect the additional befits before age 67, they would be at a reduced rate.

Louisiana State Employees Retirement System (LASERS) deputy director Maris LeBlanc, however said the general feeling is that there would still be the same question of constitutionality because even in its revised form, the retirement plan proposed would break an employment contract. “I would think that would be subject to challenge,” she said.

Of course, the question remains over whether or not the additional 3 percent contribution would constitute an employee tax. If so, it would be in violation of the state constitution because no tax issue can be passed in an even-numbered year.

Now, though, Nichols says that Jindal would support an amendment that would apply the 3 percent to pay down the state’s multibillion-dollar retirement cost-instead of the money going into the general fund. Someone either lied or didn’t know what he/she was talking about in that Business Report official response. It’s that simple.

Is the governor really saying now that after the legislature reneged on its obligations all these years to pay down the retirement funds’ unfunded accrued liability (UAL), that state employees will be asked to chip in an additional 3 percent to make up for what amounts to negligence and fraud on the part of legislators in years past—while not realizing additional retirement benefits?

That’s the way it all shakes out: a shakedown. Think Deduct Box of days of yore.

Not much of a compromise at all for state employees.

But if you think all that is smoke and mirrors, let’s take a look at the divide and conquer strategy.

“We’re drowning in debt, and our pension systems are unsustainable,” Nichols said last week.

Jindal has said repeatedly that the proposed retirement changes would help reduce the costs of pension programs (note the plural use of the word programs as opposed to the singular application in the bills) that have a combined UAL of more than $18 billion.

“The legislature has a constitutional mandate to maintain a sustainable retirement system—an obligation which exists both to protect the retirement system and taxpayers,” the administration said in its response to the Strasburger report.

Good political rhetoric that sounds reassuring on the surface. But let’s peel back a layer or two.

Remember that UAL in excess of $18 billion?

There are four retirement systems: LASERS, the Teachers Retirement System of Louisiana (TRSL), the Louisiana School Employees Retirement System (LSERS), and the Louisiana State Police Retirement System (LSPRS).

The LASERS UAL is $6.3 billion, only about a third of the total, and is 57.7 percent funded, second only to LSERS, which is 61 percent funded and which has a UAL of $863 million. The state police system has a UAL of $313 million and is 55.6 percent funded.

TRSL, by comparison, has a UAL of $10.8 billion and its 54.4 percent funding, the lowest percentage of the four.

Yet, Jindal, who says, “We must act now in order to keep our promise to workers, protect critical services…and protect future generations from more debt and higher taxes,” addresses only LASERS in his proposed pension reform. As in singular.

Could there be a reason for not including the other three systems?

Simple logic would seem to dictate that the burden be shared proportionately between teachers, civil service employees, school employees and state police.

But logic has never held a place of prominence in this administration.

Ulterior motive, however, is quite another matter.

Nichols, speaking in a telephone conference with reporters last Friday, was unable to go into details about the governor’s revised plan because “specifics were not available.”

That certainly has a familiar ring to it. Seems the recently passed education bills also were sorely lacking in specifics—not that it mattered to legislators who fell into line like so many sheep.

But just as you learned here of the governor’s purchase of those 2.2 years of time and of his being exempted from the 3 percent increase in contributions, remember that we were the first to warn you about the divide and conquer tactic.

It’s more important than ever that state employees, teachers and school employees show a united front.

Who knows who would be next on Jindal’s hit list?

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