Feeds:
Posts
Comments

Archive for the ‘Privatization’ Category

Cerise, Townsend firing came soon after fateful 2012 Levine meeting with LSU officials to discuss LSUMC privatization

Posted in Contract, Contracts, Governor's Office, Health Care, LSU, Privatization, Public Records, Transparency on August 21, 2013| 31 Comments »

LouisianaVoice has obtained a copy of the minutes of a meeting in Baton Rouge a little over a year ago which led to the firing of the head of the LSU Hospital System and the CEO of Interim Louisiana Public Hospital in New Orleans by the Jindal administration.

LSU Health Care System head Dr. Fred Cerise and Interim Louisiana Public Hospital CEO Dr. Roxanne Townsend were fired just days apart last year—Cerise in late August and Townsend in early September—following a July 17 meeting at which former Secretary of Health and Hospitals (DHH) Alan Levine pitched a plan to privatize the state’s system of LSU medical centers.

Levine was at the meeting on behalf of is firm, Health Management Associates (HMA) but was recently hired as president and CEO of Mountain States Health Alliance.

Present at that meeting, besides Cerise, Townsend and Levine were then-LSU President William Jenkins, DHH then-Secretary Bruce Greenstein, LSU Medical Center Shreveport Director Dr. Robert Barish, HMA CFO Kerry Curry, LSU Health Science Center Shreveport Vice Chancellor Hugh Mighty and LSU Board of Supervisors members Rolfe McCollister, Bobby Yarborough, John George and Scott Ballard. LSU Health Science Center New Orleans Chancellor Larry Hollier and Vice Chancellor for Clinical Affairs at LSU Health Sciences Center New Orleans Frank Opelka also participated by teleconference.

Opelka was promoted to Cerise’s position when Cerise was replaced.

The meeting was held in the LSU president’s conference room.

Both Cerise and Townsend expressed reservations about Levine’s proposal but several members of the LSU Board of Supervisors who were present at the meeting “indicated they want LSU’s management to pursue this strategy,” according to a summary of the meeting prepared for Jenkins by Cerise prior to his being replaced by Opelka.

Along with his two-page summation of the meeting, Cerise also submitted a third page containing a list of five concerns he had with the privatization plan pitched by Levine. It was that list that list of concerns which most likely got Cerise removed as head of the LSU Health System via an email from Jenkins.

HMA, headquartered in Naples, Florida, was the subject of a scathing report by CBS news magazine 60 Minutes less than six months after Levine and Curry met with LSU officials in Baton Rouge and Levine has since moved on to become the CEO of Mountain States Health Alliance.

The thrust of the 60 Minutes story which aired last Dec. 2, was that profits, not patient care, was the driving force behind HMA’s emergency room decisions and that emergency room doctors were pressured to admit emergency room patients “regardless of medical need” to boost the company’s bottom line.

Some speculation had HMA squarely in the mix insofar as the proposed privatization of LSU’s 10-hospital system but the 60 Minutes story apparently thwarted those plans.

Levine denied that in an interview with the Baton Rouge Advocate last October. “I have had no conversations with LSU about taking over any of the existing LSU hospitals,” he told the paper. “I was there (in Baton Rouge) as a former (DHH) secretary. I was not there to pitch my company.”

Little more than a month later, following the 60 Minutes story by CBS correspondent Steve Kroft, Levine found himself trying to salvage the HMA image.

HMA, which owns 70 hospitals in 15 states, was accused on camera by several former employees of setting admission targets and that doctors were coerced into admitting more patients. The former employees said doctors who did not meet quotas were threatened with their jobs.

Despite Levine’s denials that HMA was interested in managing the LSU hospitals, Jenkins seemed to think otherwise. “I would say he would be interested in business,” Jenkins said in the same story containing Levine’s denial. “You would be surprised how many companies across the country are interested in these hospitals.

Levine, according to Cerise’s notes, recommended as an initial step that LSU sell its hospital in Shreveport (LSU Medical Center) and use the proceeds to “offset budget cuts for the rest of the LSU system.”

He suggested that the buyers would form a joint venture with LSU, invest capital into the facility and develop a strategy for LSU “to more aggressively compete in the hospital market.”

“The LSU board members present indicated they want LSU’s management to pursue this strategy,” Cerise’s notes said. “Greenstein stated that LSU should look to generate two years of funding to address the state funds shortfall in the system through the sale of Shreveport’s hospital.”

It was at that point that Cerise indicated his concern that such a strategy would take time to develop and that LSU would likely need to go through a competitive public procurement process and “likely legislative approvals.”

It was subsequently determined that legislative approval was not legally required; all that was required was for the legislature to be informed of the administration’s actions.

“There appeared to be agreement that LSU develop a plan that would not result in closure of hospitals,” Cerise’s notes said. “When the question was posed to the group, ‘Will LSU close hospitals,” George responded, ‘We hope not.’ The clear message was that the board members did not want LSU to proceed with any hospital closures at this point.”

Since that meeting, Earl K. Long Medical Center in Baton Rouge and W.O. Moss Medical Center in Lake Charles have each closed.

“Cerise asked Greenstein if he would allow LSU to draw federal funds to try to fix part of our problem and he replied, ‘Yes.’”

Among the concerns expressed by Cerise in an addendum to the meeting meetings which he addressed to Jenkins:

  • There is no commitment by DHH to mitigate the budget reduction while we work on the very complex Shreveport deal. Therefore, if later in the year, we realize that w cannot close a Shreveport sale by year end, we will run a deficit which is against the law and grounds for removal of those causing the deficit;
  • There will be a significant community/political reaction to LSU assuming a competitive posture with a profit partner while receiving favorable Medicaid and uninsured financing from the state;
  • We could see a significant negative community reaction to a plan that sells the Shreveport hospital and spends a large amount of the proceeds on hospitals in south Louisiana. There are also local contractual relationships which might be adversely affected and objected to;
  • We need to be transparent with the legislature. If our plan is to spend as if we will complete a “joint venture” and secure funding later in the year, the board and the legislature need to realize that wer have no alternative solution if the plan fails later in this fiscal year. This will put Shreveport and New Orleans at risk as well as put LSU at risk of running a deficit;
  • The only certain way for LSU is to live within its newly assigned budget is to close multiple facilities now. If we do not do this, we are running the risk of delaying and creating an unmanageable budget crisis later in the year that will put Shreveport and New Orleans at risk. That risk includes others blaming LSU for not taking actions earlier.

“I am asking that you share this memo or at least the substance of it with the full board to ensure they are informed and that their direction to us that we delay definitive budgetary action until the end of August to better assess the likelihood of a Shreveport sale with a statewide distribution of the proceeds is clear and unambiguous,” Cerise said in his memorandum to Jenkins.

At the conclusion of the meeting, Jenkins called for the creation of a task force to include then-Commissioner of Administration Paul Rainwater, Greenstein, George, Yarborough, McCollister, Ballard, Mighty, Barish, Hollier, Cerise and Townsend.

But in a matter of weeks, Cerise and Townsend were gone.

And a year later, a blank contract was agreed to which allows Biomedical Research Foundation of Northwest Louisiana (BRF), an organization with no appreciable cash flow and no experience in running a hospital, to assume control of LSU Medical Center in Shreveport and E.A. Conway Medical in Monroe—facilities with combined revenues of about $400,000.

Moreover, BRF will receive all the facilities’ assets with the state getting the liabilities.

Read Full Post »

LSU releases LSUMC-BRF CEA: terms leave State on financial hook, claims immunity from legal challenges

Posted in Boards, Contract, Contracts, Governor's Office, Health Care, Higher Education, LSU, Privatization, Public Records, Transparency on August 16, 2013| 18 Comments »

Those blank pages in the LSU Medical Center/E.A. Conway Medical Center contract for the takeover of the two facilities by a Shreveport research foundation have finally been filled in but questions nevertheless remain as to the validity of the document.

The one thing it does do with near certainty is to guarantee lots of legal work for attorneys down the road when the disagreements begin—as they almost assuredly will because of both the wording and issues over whether there even is a contract.

It also would appear to transfer both hospitals’ accounts receivable—potentially tens of millions of dollars—to BRF, as the agreement stipulates that LSU shall transfer “all assets” to lessee.

The contract, officially entitled Cooperative Endeavor Agreement (CEA) by and among Biomedical Research Foundation of Northwest Louisiana (BRF), BRF Hospital Holdings (BRFHH), Board of Supervisors of Louisiana State university, the State of Louisiana through the Division of Administration (DOA) and the Louisiana Department of Health and Hospitals (DHH), was provided to LouisianaVoice by LSU on Friday (Aug. 16) pursuant to LouisianaVoice’s public records request earlier in the week.

A companion document, the Master Hospital Lease Agreement, provided along with the CEA, calls for the lessee, BRFHH, to pay the state $38,763,891.38 per year in 12 monthly payments of just more than $3.23 million.

One caveat of the contract which would appear to leave the state on the hook financially is the provision that in the event the state’s required Medicaid per diem payments should appear to be inadequately funded, DHH “shall immediately notify BRFHH” and both the Commissioner of Administration and DHH would be required to seek additional appropriations from the Legislature.

There is no such provision for increased state Medicaid payments to any other medical facility in Louisiana and in fact, many hospitals across the state are in the midst of wholesale layoffs of medical personnel because of Medicaid cutbacks by the Jindal administration. Such cutbacks are placing a heavy strain on already overworked nurses, technicians and other medical employees and many doctors are refusing to accept new Medicaid patients as a result of the state cutbacks.

But even more questionable is the legality of the CEA itself.

The LSU Board of Supervisors on May 28 approved the private takeover of four LSU hospitals—LSU Medical Center (LSUMC) in Shreveport, E.A. Conway Medical Center in Monroe, W.O. Moss Medical Center in Lake Charles and Leonard J. Chabert Medical Center in Houma.

The only problem with that approval was the board approved contracts for each of the four hospitals which contained nearly 50 blank pages, omitting financial terms, the length of the leases involved and a termination clause.

All contracts, to have any legal standing whatsoever, must plainly state an offer and an acceptance (financial terms), dates (length of leases in this case) and a termination clause. None of those were contained in the approved documents.

Even more questionable, it would seem, is a stipulation under “Representations and Warranties of the State,” which says in part:

  • This agreement and any and all agreements, documents or instruments to which the State, through DOA and DHH, is a party and which are executed and delivered by the State pursuant to this agreement constitute the legal, valid and binding obligations of the State, through DOA and DHH, enforceable against the state in accordance with its terms.
  • DOA and DHH have the absolute and unrestricted right, power and authority to execute and deliver this agreement and such other agreement, documents or instruments to which it is a party on behalf of the State and to perform obligations on behalf of the state under this agreement and such other agreements (and) documents.
  • Neither the execution and delivery of this agreement nor the consummation or performance of any of the contemplated transactions hereby will, directly or indirectly, with or without notice or lapse of time…give any governmental body or other person the right to validly challenge any of the contemplated transactions, or to exercise any remedy or obtain any relief under any legal requirement to which the State, DHH or DOA may be subject.

In other words, the contract claims that no governmental entity or individual has any legal rights insofar as mounting any challenge to the agreement by lawsuit or otherwise.

That would appear to be a particularly difficult stipulation to enforce given the fact that the contract may well not be a legal document in light of those nearly 50 blank pages.

Another curious section of the contract which addresses Medicare and Medicaid Certification, the CEA says, “With respect to the hospitals, LSU has met and does meet, without material exception, the conditions for the participation in the Medicare and Medicaid programs, and LSU does not have knowledge of any pending or threatened proceeding or investigation under such programs involving the hospitals or any basis for the revocation or limitation on such participation.”

A June 26 letter from the Center for Medicare & Medicaid Services, however, said the state has not submitted the required state plan amendments (SPA) proposing to fund Medicaid payments through the agreements “and CMS cannot offer former determination as to whether the arrangements would conflict with the requirements described in the Social Security Act. Once the state submits the SPAs, CMS will request necessary supporting documentation and explanations from the state to demonstrate compliance with these provisions of the statute and regulations,” the letter said.

As recently as Tuesday of this week (Aug. 13) a CMS spokesman told LouisianaVoice by email there were “no updates at this time.”

The CEA said that LSU and BRFHH would, after the Oct. 1 execution date of the agreement, jointly submit the proper forms to CMS.

But Bill Brooks, associate regional administrator for the CMS Division of Medicaid and Children’s Health Operations in Dallas, said last January that whenever documents are submitted to CMS, the process starts a “90-day clock,” during which time his office may pose additional questions. A new 90-day clock would begin when his office receives satisfactory responses to his requests.

Thusly, so long as the state fails to satisfactorily answer all questions and provide adequate documentation, the 90-day clock could conceivably run indefinitely. And that would be bad because if CMS disapproved an amendment submitted by the state, “there would be no federal dollars provided for the changes proposed” in the agreement.

Another provision in the agreement says that the Department of Corrections (DOC) is responsible for paying BRFHH for medical care provided state prisoners should DOC suspend payments for any reason, the state would have to find “alternative sources of medically necessary health care” for prisoners.

Though the agreement requires that all LSU Hospital employees shall be offered employment by BRFHH, the agreement says they “shall be employed subject to terms and conditions established by BRFHH”—meaning potentially lower wages and fewer benefits. At the same time the agreement also holds LSU liable for state employee expenses such as unemployment benefits, wages and benefits for “past, present and future employees of LSU.”

One other clause, this one contained in the lease agreement, warrants particular attention because of the failure to enforce an identical clause in another state agency privatization contract in 2010:

“Lessee (BRFHH) shall not assign this lease or any interest therein without the prior written consent of lessor” and “may not sublease all or any portion of the leased premises without the prior written consent of lessor.”

In 2010, the state contracted with F.A. Richard and Associates (FARA) to take over operations of the Louisiana Office of Risk Management (ORM) at a cost to the state of just over $68 million. Less than eight months later, ORM and DOA agreed to a 10 percent amendment to that contract, bumping the state’s cost to $75 million. Within weeks, FARA sold its interests to an Ohio company which in turn sold out to a New York firm—all within the first year of the contract.

A similar “prior written approval” clause was contained in the contract with FARA but when LouisianaVoice made a public records request for the written approval, DOA responded that no such document existed.

That, naturally, would raise the question of whether or not DOA would enforce that stipulation in this contract or not.

The lease agreement does give BRF the authority to lease to a “non-profit corporation, a limited liability company, limited liability partnership or other non-profit legal entity wholly owned or controlled by lessee or Biomedical Research Foundation of Northwest Louisiana.” That, of course, would be BRFHH, a non-profit entity “wholly owned” by BRF.

Finally, a clause in the CEA which might otherwise be overlooked, takes on significant importance in that “financial and other records created by, for or otherwise belonging to BRF or BRFHH shall remain in the possession, custody and control of BRF and BRFHH, respectively,” and such records would be considered “proprietary to BRF and BRFHH” and “such records shall be clearly marked as confidential and/or proprietary,” and thus protected from the Louisiana public records laws.

This could be crucial inasmuch as questions have arisen as to the financial viability of BRF, a non-profit organization that depends heavily on grant money, much of it from the state, for its operations. BRF has no experience in operating a facility like the two medical centers it is being contracted to run and skeptics feel it also does not have the financial resources to be successful in that endeavor.

Adding to the aura of mystique is the reported sighting of former DHH Secretary Bruce Greenstein having lunch in a Shreveport restaurant with BRF Board Chairman Stephen Skrivanos recently. BRF CEO/President Dr. John George was also reported to have been in that meeting but he has publicly denied he was present and has threatened Shreveport political consultant Elliott Stonecipher with a libel lawsuit over the reports of his attendance.

George, in addition to being the CEO and President of BRF, is also a member of the LSU Board of Supervisors which approved the agreement with BRF but Jindal has claimed there was no conflict of interests in George’s serving in the two capacities.

What makes all this so intriguing is that Greenstein resigned in the wake of an ongoing federal investigation into a $187 million DHH contract with CNSI, his former employer. Greenstein assured legislators at his confirmation hearings in 2012 that he had erected a “firewall” between him and CNSI to ensure there would be no contact with his old company during the contractor selection process. Emails and phone records subpoenaed by the committee, however, revealed Greenstein was in constant contact with CNSI officials throughout the selection process.

Even though he quickly announced his “resignation” following news of the FBI probe, he was allowed to remain on the job a month before vacating his office. He subsequently moved back to Seattle but recently showed up in Shreveport with Skrivanos.

Adding fuel to the fires of speculation was the appearance at the State Capitol a few months ago by Alan Levine, Greenstein’s predecessor at DHH.

With the blank contract, questionable financial abilities of BRF (in some minds), the mysterious appearances of Greenstein and Levine, the defensive reaction of George to the report of meeting with Greenstein even to the point of a threatened lawsuit, and potential conflict of interest of George serving as head of BRF which was approved to take over two major hospitals by an LSU board on which he sits, there is plenty of room for speculation and conspiracy theories.

Had the federal investigation into the CNSI contract not surfaced, who knows what direction this plot may have taken?

That’s especially true given the lack of transparency and openess in this administration.

Read Full Post »

Walton Foundation trumpets TFA donations; ignores $96.5 million in LA. tax breaks to sustain Bangladesh sweat shops

Posted in ALEC, American Legislative Exchange Council, BESE, Charters, Contract, Contracts, Education, Exemptions, Incentives, Governor's Office, Grant, Grants, Jobs, Privatization, Taxes, Transparency on August 12, 2013| 17 Comments »

BATON ROUGE (CNS)—The Walton Family Foundation, already the largest single donor to Teach for America (TFA), recently committed an additional $20 million to recruit, train and place an another 4,000 unqualified teachers in America’s classrooms.

That includes $3 million to the New Orleans region, administered by one Kira Orange Jones who sits on the Louisiana Board of Elementary and Secondary Education (BESE) which just happens to be the agency that contracts with TFA for those novice teachers.

In case you live in a cave, the Walton Family Foundation is the benevolent offshoot of Wal-Mart, one of the most successful retail businesses in American history but which is alone responsible for the demise of more neighborhood mom and pop stores than any one factor since the Great Depression—all while enjoying the benefit of almost $100 million in various tax breaks in 19 Louisiana cities, according to incomplete figures that do not include newer state stores.

More on that later.

The Louisiana Board of Ethics, apparently kept in the dark as to Jones’ title of Executive Director of the New Orleans TFA regional office, ruled that her serving on BESE was not a conflict because her salary was not affected by the contracts with the state.

The ethics board member—its vice chairman—who lulled the board into believing she was a mere rank and file employee of TFA, has since resigned after it was revealed that he had his own conflict as a legal counsel for Tulane University which also had a contract with TFA.

LouisianaVoice recently obtained through a public records request of the Department of Education (DOE) copies of three separate contracts between DOE’s Recovery School District (RSD) and TFA. Two of those contracts, dated in September of 2009 and 2011, were signed by Kira Orange Jones, complete with the notation beneath her signature identifying her as “Executive Director.”

Exercising a bit more caution in 2012, the contract was signed by Michael Tipton, Jones’ boss.

Those contracts, by the way, called for the state to pay TFA up to $5,000 per teacher provided for RSD—up to 40 teachers—and RSD would then be required to pay their salaries.

TFA alumnus Jack Carey, vice president of the greater New Orleans program said the money would fund more than 500 positions in the 2013 to 2015 school years, though with the state paying that generous “finder’s fee,” and local school boards paying the salaries, it’s rather difficult to imagine why an additional $3 million is needed other than to surmise the whole TFA thing is one gigantic scam designed to line someone’s pockets. That “someone” would be someone other than Louisiana teachers who have invested thousands of dollars on bachelor’s, master’s, and plus-30s and even Ph.Ds., but suddenly find themselves taking a back seat to those who train for five weeks over the summer to become teachers.

But it’s not only established teachers who take a dim view of TFA. Many of TFA’s own alumni are critical of the organization to which they once pledged their loyalty.

http://truth-out.org/articles/item/17750-teach-for-america-apostates-a-primer-of-alumni-resistance

One former TFA teacher now says that the organization glosses over issues of race and inequality but “fits very nicely into an overall strategy of privatizing education and diminishing critical thinking.”

Whenever a TFA teacher begins to questions the motives and intent of the program, “The staff would get together and talk about how to handle these people,” another former TFA member says. “They’d plunk him down with groups of ‘stronger corps members’ to improve his attitude” by “trying to further indoctrinate others and myself.”

Yet another dissident said he no longer recognized TFA. “All I see is a bunch of liars who are getting themselves rich and powerful. They just can’t stop lying.” He added that TFA refuses to recognize established evidence that a child’s socioeconomic level at birth better predicts his future tax bracket and educational attainment than how well her teachers prepare him for standardized tests.

“We really get to know what schools across our community need in the way of high-quality teachers,” Carey said, “and we work with them over the course of a year to understand their needs and help make great matches.”

Wow. How noble.

But perhaps Mr. Carey has not taken a trip down to the Ninth Ward to George Washington Carver High School.

I have.

Has Kira Orange Jones toured Carver High?

I have.

Washington Carver High School is the alma mater of Marshall Faulk, Heisman Trophy runner-up at San Diego State and all-pro running back for the Indianapolis Colts and St. Louis Rams (where he won a Super Bowl).

But you’d never know it.

Eight years after Hurricane Katrina devastated the entire Ninth Ward, the school still has not been rebuilt. Today, it consists entirely of T-buildings. Superintendent of Education John White’s annual report, released last February, lists Carver as among the schools scheduled for new construction. Even though the proposed construction is to be funded by the Federal Emergency Management Administration (FEMA), no steps have actually been taken to start construction other than the naming of two architectural firms. No contractor, though, eight years post-Katrina.

The football weight room is pathetic, consisting of three or four weight benches any other school would have thrown out years ago. There is no cover for the foam padding on the benches—padding that is crumbling. And the players’ lockers consist of plastic bins scattered across the floor—easy pickings for anyone who wanted to steal a watch or an i-Pod.

No one visiting the T-building weight room would ever believe that an NFL Super Bowl player once escaped the Desire Housing Project by playing his high school ball here.

Despite these conditions, George Washington Carver made it to the quarter-final round of the state high school football playoffs last year.

But far worse than the deplorable athletic facilities eight years post-Katrina is the fact that incredulous as it may sound, the school has no library.

Let that sink in. There is a public high school in Louisiana today that does not have a library.

Yet John White and Bobby Jindal and BESE President Chas Roemer would have us believe they’re all about education.

Gov. Jindal, Superintendent White, Chas Roemer, BESE member/TFA Director Kira Jones: what say you to the revelation that a public high school has allowed to exist under your watch that has no library? A school comprised exclusively of T-buildings? We’d love to hear your take on this. But please don’t hide behind Kyle Plotkin or your respective public relations sycophants in your response. (Surely is quiet; are those crickets we hear chirping?)

And so the Walton Family Foundation goes about with its press releases that glorify its generosity on behalf of education.

In truth, the Walton Family Foundation is all about the Waltons. TFA is simply the vehicle by which the Waltons try to put on their civic face. They are probably among the least civic minded of all.

Remember those patriotic television ads of a few years back when Wal-Mart was all about “American made” products? How long has it been since you’ve seen one of those ads? But we do hear about Bangladesh sweat shops collapsing on workers even as they turn out products for Wal-Mart.

And we hear plenty about how Wal-Mart exploits its U.S. workers with low wages and no benefits—all so it can keep corporate earnings up and competition out.

Wal-Mart is all about tax credits and making money. Here are 20 examples of economic development subsidies in 19 Louisiana cities, subsidies that total $96.5 million (the figures are probably higher because it’s virtually impossible to get updated figures from the Louisiana Department of Economic Development):

  • Abbeville: $1.665 million;
  • Alexandria: $2.5 million;
  • Bossier City: $1.7 million;
  • East Baton Rouge: $1.385 million;
  • Hammond: $1.365 million;
  • Monroe (Supercenter): $840,000;
  • Monroe (former discount store) $3.09 million;
  • Natchitoches: $1.5 million;
  • New Orleans: $7 million (estimate);
  • Opelousas (distribution center): $33 million;
  • Port Allen: $1 million;
  • Robert (distribution center): more than $21 million;
  • Ruston: more than $947,000;
  • Shreveport: $6.3 million;
  • St. Martinville: $3.725 million;
  • Sulphur: $1.8 million;
  • Vidalia: up to $1.65 million.

Wal-Mart’s expansion has been made possible to a large extent by the generous use of public money. This includes more than $1.2 billion in tax breaks, free land, infrastructure assistance, low-cost financing and outright grants from state and local governments, though the precise figures aren’t always available.

That’s because in Ruston, for example, the total subsidy was more than $947,000. That included a $647,000 enterprise zone tax break, plus $300,000 from the city in infrastructure improvements around the site through a state grant. But the city also made $12 million in road improvements throughout the area through a sales tax increment financing district. But since the district includes neighboring developments and because other area businesses benefitted from the road improvements, the benefits to Wal-Mart were impossible to quantify.

In addition, Louisiana Wal-Mart stores also receive about $5.4 million a year from a state policy that allows stories to keep a portion of the sales tax they collect from customers.

So, while the Walton Family Foundation gives itself a metaphoric pat on the back with its news release trumpeting its $20 million gift to TFA ($3 million allocated to Louisiana), it conveniently ignores how it has managed more than a billion dollars in tax dodges (nearly $100 million in Louisiana)—money that could have been used to support education.

Like perhaps permanent buildings, including a library, at George Washington Carver High School.

Read Full Post »

RFP for IT consolidation goes out; DOA, perhaps fearing CNSI repeat, cautions employees against vendor contact

Posted in Ethics, IT, Privatization, RFP, Request for Proposals on August 5, 2013| 10 Comments »

BATON ROUGE (CNS)—The deadline for proposals (RFP) officially passed as of close of business last Wednesday (July 31) and oral interviews of potential bidders is set for Aug. 14 for the consolidation of the information technology (IT) departments of some 20 departments within the state’s Executive Branch. http://wwwprd1.doa.louisiana.gov/OSP/LaPAC/agency/pdf/5479100.pdf

The Division of Administration (DOA), which issued the RFP, is tentatively scheduled to announce the awarding of the multi-million dollar contract on Aug. 16 with work on the contract set to begin on Aug. 30 even as more and more horror stories surface about experiences of potential bidders/contractors with similar projects in other states.

Meanwhile, in an apparent effort to at least project an appearance of propriety with efforts to avoid any conflict of interest and to head off another possible CNSI public relations disaster sent out a pretty interesting email to all DOA section heads and the Council of Information Services Directors.

The “conflict of interest advisory,” a one-page memorandum from Richard “Dickie” Howze, interim state chief information officer, cautioned state employees against any contact with vendors, potential proposers or subcontractors regarding the RFP.

The IT consolidation contract could rival that of the $200 million CNSI contract which the state cancelled after a federal investigation was launched into the manner in which the contract was awarded. Former Department of Health and Hospitals Director Bruce Greenstein had previously worked for CNSI but told legislators he had built a “firewall” between himself and the contract selection process. That turned out to be false as documents subpoenaed by legislators revealed hundreds of emails and telephone conversations between Greenstein and CNSI officials during the selection process.

It was also learned that Greenstein had tweaked the contract requirements so that CNSI might qualify to bid on the Medicaid claims processing contract. He resigned in March shortly after the Jindal administration cancelled the CNSI contract but was allowed to remain on the job for nearly a month.

Greenstein’s name recently resurfaced. Now residing in Seattle, where he was living when first hired by Jindal, he was spotted at a July 8 dinner meeting in a Shreveport restaurant with Steve Skrivanos, board chairman of Biomedical Research Foundation of Northwest Louisiana. One report also placed foundation President and CEO Dr. John George in that meeting though Dr. George has denied that he was present.

Unconfirmed rumors surfaced that Jindal directed the foundation and LSU Medical Center officials to find Greenstein a job while the investigation in Baton Rouge was ongoing.

“The Division of Administration, Office of Information Technology (OIT) staff has been working on the development and release of (an RFP) for Information Technology Planning and Management Support Services,” the DOA memorandum of July 19 said.

“OIT has engaged the participation of the Council of Information Services Directors (CISD) for technical support in this endeavor and may request the support of other sections within the DOA throughout the process. OIT has gone to great lengths to maintain strict contact requirements to ensure all vendors have equal access and standardized information.

“Suring this procurement process it is crucial that you and your staff do not have any contact with vendors who are potential proposers or who may be part of a proposal as a subcontractor regarding this RFP or other related RFPs. If you work with a contractor who is a potential proposer, there shall be no private communications, discussion of the upcoming process, timelines, RFP content, evaluation or award,” the memo said.

“Additionally, it is not appropriate for any current state employee to provide a reference for a vendor responding to this procurement. These restrictions will remain in effect until the contract(s) has been awarded and the protest period has past (sic). Please ensure that your staff are (sic) made fully aware of these requirements. Anyone failing to follow this policy may face disciplinary action, up and including termination.”

Wow. Too bad that memo was not made available to Greenstein during the awarding of the DHH Medicaid claims processing contract.

Now, perhaps someone should send a similar note to the folks up at Biomedical Research Foundation of Northwest Louisiana in Shreveport.

Read Full Post »

Louisiana ranks second to Tennessee as worst state in which to be unemployed but don’t tell Jindal or $320K Moret that

Posted in Civil Service, Economy, Governor's Office, Layoffs, Privatization on July 29, 2013| 10 Comments »

BATON ROUGE (CNS)—Poor Gov. Jindal; he just can’t catch a break.

No sooner does he try to put a positive spin on six straight months of increased unemployment rates in the state than 24/7 Wall St., the financial news and polling firm, publishes a survey showing that Louisiana is second only to Tennessee among the worst states in American in which to be unemployed.

Even Mississippi, at 10th worst, ranks eight notches higher than Louisiana.

Jindal, who loves to cite any survey that puts Louisiana in a favorable light, is likely to overlook the latest 24/7 findings which indicate the following for the state:

  • The 24.6 percent of average weekly wage covered is lowest in the nation (the national average is 33 percent);
  • The average weekly payout of $201 is second lowest;
  • The 30 percent of unemployed who are receiving benefits is tied with Tennessee for fifth lowest (again, the national average was 45 percent);
  • The 1.1 percent one-year job growth is 19th lowest;
  • The state’s unemployment rate of 7 percent puts it in the middle of the pack at 25th lowest—but Louisiana is one of only a handful where the unemployment rate actually rose from the previous year.

Jindal (through Lansing, of course; he never takes tough questions from the media) denies that the increased unemployment rate and the 3,800 state employees who received their pink slips in the last budget year are linked in any way.

Wow. As they say, figures don’t lie but liars figure.

Claiming that many of the state employees found new jobs with the private companies that took over state services, Sean Lansing, who apparently has taken Kyle Plotkin’s place as lead Jindal apologist, said, “Louisiana’s economy is continuing to thrive as we consistently outperform both the national and Southern economies. Suggesting otherwise can only be done by ignoring a slew of statistics and metrics that prove just how well we’re doing.”

Speaking of ignoring “a slew of statistics,” figures released by the Louisiana Workforce Commission indicates there were 146,800 unemployed in June in Louisiana, or 7 percent, up from 6.8 percent in May and the sixth straight month of increased unemployment.

Unemployment rates, it should be noted, count only those unemployed who continue to seek jobs, not those who have given up looking. That said, the fact that only 30 percent of the state’s unemployed (tied with Tennessee for fifth lowest) are receiving unemployment benefits would seem to contradict the administration’s rosy outlook.

Lansing, of course, fell back on certain business surveys which seem to come out every week painting the state as some kind of idyllic garden spot for business climate—all while Louisiana’s college graduates continue to leave the state in droves in search of better opportunities elsewhere.

If Louisiana is such an attractive magnet for business and jobs, someone please explain how this state has managed to go from eight to six congressmen (congressional representation is based on population, remember) and is projected by some experts to drop to five with the next census. (If all those people who have left the state had stayed, we can’t help but wonder what the unemployment rate would be.)

Lansing also pointed to decreases in Medicaid and food stamp enrollment and improved per capita income statistics to bolster the administration’s claim that Jindal is some sort of economic miracle worker.

But wait! Let’s take the food stamp enrollment first. “A state can have a great program, but if they make it really, really hard for people to qualify for benefits, then it’s just a great program sitting there that no one can use,” said Rebecca Dixon, policy analyst at the National Employment Law Project.

And those decreases in Medicaid were brought about in large part by the administration’s policies that have drastically reduced payments to doctors for treating Medicaid patients. As their own push back, many doctors have simply quit accepting new Medicaid patients. One doctor recently told LouisianaVoice that he can see a Medicaid patient “but if I have to order any procedures on that patient, Medicaid won’t pay, so I just don’t take any more Medicaid patients.”

Likewise, Baton Rouge area hospitals have very quietly begun laying off nurses and other personnel—a move directly attributable to the cutback in Medicaid payments approved by the Department of Health and Hospitals under the Jindal administration.

Greg Albrecht, chief economist for the Legislative Fiscal Office, took issue with Jindal’s claim that the climb in unemployment was not related to state layoffs.

“It can’t be the only factor, but to say they’re unrelated seems to be unrealistic and mathematically it can’t be,” he said. “I don’t think you can say the unemployment rate is not influenced by government employment layoffs.”

Economic Development Secretary Stephen Moret, ever the optimist at $320,000 per year (and who wouldn’t optimistic be at that salary?) said he expects the unemployment rate to drop because the state has thousands of jobs “in the pipeline” because of a large number of “just huge” projects in the works across the state. “As I look at the next few years, I see tens of thousands of new jobs,” he said. “I’m quite optimistic about the future.”

Tens of thousands? Wow again. Dude, there are people in this state who can’t hold out for the future, even for a “few years.”

Let’s go back to that 24/7 Wall St. report:

Job growth was relatively slow in the worst states to be employed because new job opportunities were taking longer to materialize. “In most of these states, the number of nonfarm jobs grew slower than the 1.3 percent national rate between June 2012 and June 2013,” it said.

In Louisiana, the nonfarm jobs grew at a whopping 1.1 percent during that time frame. So much for that healthy business climate.

Tens of thousands of new jobs on the horizon?

That’s a lot of guys standing on street corners dancing around like a dog in need of worming while playing air guitar on a cardboard pizza store sign.

That’s a lot of burgers and soft drinks.

You want fries with that?

 

Read Full Post »

« Newer Posts - Older Posts »