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Archive for the ‘Privatization’ Category

It’s been awhile since we’ve written about the American Legislative Exchange Council (ALEC), but State Rep. Joseph Harrison (R-Gray) has proven himself a more than capable successor to former Rep. Noble Ellington (R-Winnsboro).

ALEC is a national organization comprised of hundreds of state legislators from around the country as well as corporations which fund the bulk of the organization’s expenses. Heading the list of those corporations is Koch Industries.

ALEC’s corporate members write “model legislation” for lawmakers to take back to their states for passage into law. Foremost among those are education reform, prison privatization, Medicaid reform, state employee pension reform and reductions of public services.

Ellington is the former state representative who served as national president of ALEC in 2011 and hosted ALEC’s national meeting in New Orleans last August. Ellington, after 24 years in the legislature, did not seek re-election last fall and upon leaving office in January, was hired as Chief Deputy Commissioner for the Louisiana Department of Insurance at $150,000 per year.

Now, not to be outdone, Harrison, the state ALEC chairman, has sent out a form letter on state letterhead soliciting contributions of $1,000 each to finance the travel of Louisiana legislative ALEC members to an ALEC conference in Salt Lake City July 25-28. The identities of the recipients of his requests for money were unknown.

The letter opens by saying, “As State Chair and National Board Member of the American Legislative Exchange Council (ALEC), I would like to solicit your financial support to our ALEC Louisiana Scholarship Fund.”

But this letter wasn’t for college scholarships.

“Why does the scholarship fund need your support?” Harrison asked, perhaps rhetorically, in his letter of Monray, July 2. “With over thirty Louisiana Legislators serving on ALEC Task Forces, your support will allow the opportunity (for legislators) to attend conferences funded by the ALEC Scholarship Fund.

“These conferences are packed with educational speakers and presenters, and gives (sic) the legislators a chance to interact with legislators from other states, including forums on Medicaid reform, sub-prime lending, only privacy, environmental education, pharmaceutical litigation, the crisis in state spending, global warming, and financial services and information exchange. All of these issues are import (sic) to the entire lobbying community (note the reference to “lobbying community”).

“I, along with other members of the Louisiana Legislature, greatly appreciate your contribution to the scholarship fund. Your $1,000 check made payable to the ALEC Louisiana Scholarship Fund and can be sent directly to me at 5058 West Main Street, Houma, Louisiana 70360. ALEC is a 501(c)(3) nonprofit educational organization as designated by the IRS.”

It is no surprise that ALEC would be concerned about pharmaceutical litigation, environmental education, Medicaid reform and sub-prime lending since many of its corporate members comprise pharmaceutical companies, oil and chemical companies, medical providers and mortgage lenders.

Even though ALEC picks up the tab for legislators to attend conferences all over the nation, 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. Additionally, ALEC reimbursed many of those same legislators, plus 19 other members and former House and Senate members an additional $56,200 for other ALEC conferences in such locales as San Antonio, Chicago, San Diego and Washington, D.C.

It is not known if Harrison received any “scholarship” money to attend ALEC conferences, but records obtained from the Louisiana House of Representatives by LouisianaVoice show that he received $9,295.78 in expense reimbursements from the state to attend six conferences in New Orleans, San Diego and Washington, D.C. over a four-year period, from December 2008 to August 2011.

Those included:

• December 2008: Washington, D.C. ($1,896.43);
• September 2009: New Orleans “Out of the Storm Conference ($496);
• December 2009: Washington, D.C. ($1,981.24);
• August 2010: San Diego, California ($970.50);
• November 2010: Washington, D.C. ($2,031.14);
• August 2011: New Orleans ($1,920.97).

LouisianaVoice has submitted two public records requests to Harrison. The first asks for the names of the “over thirty” legislators who are members of ALEC and the second requests, since the contribution solicitation was made on state letterhead, that Harrison provide the identities of every person to whom the solicitation was sent.

It would also be of more than passing interest to know how much in state postage was spent on soliciting funds for a lobbying organization that denies it’s a lobbying organization.

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“The course provider shall receive a course amount for each eligible funded student.”

“…The per course amount means an amount equal to the market rate as determined by the course provider and reported to the State Department of Education.”

“No local public school system shall actively discourage, intimidate, or threaten an eligible funded student or an eligible participating student during the course enrollment process or at any time for that local school system.”

–Examples of language contained in House Bill 976, aka Act 2, aka the Student Scholarships for Educational Excellence Act, passed by the legislature and signed into law by Gov. Piyush Jindal, which is anticipated to cost the state $44.5 million over five years.

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“WHEREAS, ALEC believes that innovation, private investment, and market competitition, not additional regulations, should drive the continued deployment and adoption of broadband information services, and

WHEREAS, the FCC has moved forward with a plan that would impose its authority on the internet and regulate the provision of broadband information services, and

THEREFORE, be it resolved that ALEC voices its support of lawmakers and regulators avoiding the unnecessary, burdensome and economically harmful regulation of broadband internet service companies, including the providers of the infrastructure that supports and enables internet services…”

–Part of the resolution passed by the American Legislative Exchange Council (ALEC) at its 2010 national conference in San Diego, the resolution which may have persuaded Gov. Piyush Jindal’s administration to deliberately fumble away an $80.6 million federal grant to make broadband internet service available to 21 rural Louisiana parishes.

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If you feel you’ve been getting mixed signals about the need for more state revenue vs. the need for more tax cuts, there’s good reason.

If you’re a bit confused about the fiscal health of the State of Louisiana, you’re certainly not alone.

If you think you can call for budget cuts, college tuition fee increases, and spending freezes in-state and then run around the country and crow to Sean Hannity about how good things are in Louisiana, then you’re Gov. Piyush Jindal.

Only Piyush would insist on having it both ways.

If you have your head out of the sand and are not fooled for one nano-second by his Protestant church appearances and pseudo-reform measures, then you’re a Louisiana voter with at least a modicum of intelligence.

For your edification and in no particular order, we offer the following condensed news items about Louisiana’s economy that have appeared over the past several months. The lone exception to that time frame is the first story that appeared four years ago and which set the stage for those to follow:

May 2008: Gov. Jindal repeals the Stelly Plan, estimated to cost the state as much as $300 million per year. Jindal said the repeal could save single tax filers as much as $500 per year and joint filers up to $1,000. What he did not say was that single filers would need to make as much as $90,000 and joint filers $150,000 per year to realize the maximum savings.

July 2011: Louisiana earns a no. 1 ranking for economic development for the third consecutive year from the Southern Business and Development magazine. The Lake Charles American Press said, “Much of that credit belongs to Gov. Bobby Jindal.”

April 2012: The state’s Revenue Estimating Conference projected a drop in $210 million in revenue for the remainder of the current fiscal year and another $304 million for the 2012-2013 fiscal year. “The problem is the economy, lamented Greg Albrecht, chief economist for the Legislative Fiscal Office.

October 2011: President Obama should take a cue from Louisiana on job creation, Jindal tells Faux newsman Sean Hannity. “Every year I have been governor, our employment rate has been below the southern and national averages,” he said. “We’ve added 45,000 jobs in economic developments and $10 billion in private capital investments, three years in a row.”

May 2012: Louisiana’s full-time college students may be forced to pay an extra $300 per semester in new fees to help cover massive budgetary cutbacks by colleges and universities. College tuition costs in Louisiana have increased 30 percent since Jindal took office in 2008.

April 2012: Even with the state’s budget problems piling up and income projections plummeting, Jindal continues to see his administration through rose-colored glasses. “More people are working in Louisiana than ever before,” he said, citing 44,000 imaginary jobs added over the past year. Sen. Ed Murray, keeping it real, asked, perhaps somewhat rhetorically, “When is our state going to see the positive impact (of the alleged jobs)? We keep having to have budget cuts because revenues are down.”

June 2011: a reporter writing in the Detroit Free Press noted that Louisiana jumped to No. 1 in Site Selection magazine’s 2011 overall competitiveness ranking in terms of attracting corporate investment. He said Louisiana and Jindal were doing “a lot of smart things to turn (the economy) around.” Comparing Louisiana to Michigan, the reporter said, “If Louisiana could rebound during the downturn of 2008-09, there’s hope here, too.”

March 2012: Jindal issues Executive Order No. BJ 2012-3 initiating a spending freeze for state agencies pursuant to projected budgetary shortfalls. The spending freeze augments a hiring freeze ordered in July of 2011.

April 2012: In an email to supporters, Jindal touts a number of industrial expansions in the state. “The bottom line is that Louisiana is on the move,” he said. “Our state is climbing up in the rankings and securing economic development wins that build momentum for a better and more prosperous Louisiana. There’s still work to be done, but we’re making tremendous progress.” Jindal called for continued tax cuts, revamping workforce training programs and “transformative education reforms.” He said Louisiana is taking steps “that signal to the business community that our state is the best place in the world for companies to invest and create jobs.”

April 2012: Since 2008, the year Jindal took office, Louisiana’s per capita income ranking has soared from 29th in the nation to 28th. The per capita income of $38,578 for the state in 2011 compares to the national average of $41,663. But we are ahead of Mississippi, Alabama and Arkansas. We do rank near the top in violent crime, however. While we’re way down at 33rd in rapes, we’re 18th in robbery, 14th in auto theft, 9th in burglary, 4th in assault and—drum roll, please—first in murder. Overall, Louisiana ranks third in violent crime.

May 2012: Chief Executive magazine announces that CEOs nationwide rank Louisiana as the most improved state for business in the U.S., going from 27th in 2011 to 13th this year. “Since we took office in 2008, we’ve worked tirelessly to create a business environment where companies want to invest and create jobs for our people. We’ve reined in government spending, eliminated job-killing taxes on business, created customized workforce training programs and overhauled our governmental ethics laws.”

November 2011: The U.S. Census Bureau, in noting that poverty has been on the rise since the 2008 recession, release statistics that show the poverty rate for Louisiana to be 18.8 percent, which is 3.5 percent higher than the national average of 15.3 percent.

April 2012: Area Development magazine ranks Louisiana No. 6 among the Top States for Doing Business in 2011. Business Facilities magazine named the Louisiana Office of Economic Development’s (LED) FastStart the nation’s best state workforce training program in both 2010 and 2011, calling the Louisiana program “the gold standard for workforce training solutions.”

May 2012: Legislators are considering whether to use Louisiana’s “rainy day” fund to help offset a $211 million shortfall projected by the Revenue Estimating Conference. “I don’t know that there are a whole lot of options left at this point in time,” said House Speaker Chuck Kleckley (R-Lake Charles). Jindal’s office indicated that the governor would consider using the rainy day money. “We’re prepared to make reductions, but we’re open to different ideas from legislators that part of a balanced budget that doesn’t raise taxes and protects critical services,” said Jindal spokesman Kyle Plotkin.

April 2012: Pollina Corporate Real Estate names Louisiana the most-improved state in the nation in its ranking of business-friendly states. “We have noticed an increase in the number of companies that are considering a move to the state or want to have the state evaluated as a potential location,” the report said.

February 2012: Gov. Jindal proposes a $25.5 billion state operating budget that would close prisons, eliminate more than 6,000 state jobs, cut rates for health-care providers who treat the poor and freeze, for a fourth consecutive year, per-public basic state aid to public schools. Commissioner of Administration Paul Rainwater said a projected $895 million shortfall would mean “holding the line on certain anticipated cost increases.”

April 2012: Southern Business & Development magazine named Louisiana as the 2011 State of the Year for the third consecutive year. Louisiana earned the highest project score per capita in the magazine’s history.

April 2012: Rep. John Schroder (R-Covington), questioned the lack of accountability in allowing LED to offer increased tax breaks for payroll, relocation costs and corporate income and franchise taxes for businesses the state wants to attract. “It looks like we just give sort of a blank check to the Department of Economic Development, and it doesn’t come from their money. It comes from the treasury,” he said. The various state tax exemptions have cost Louisiana more than $18 billion over the past four years.

Incentives already offered by LED include Enterprise Zone, Quality Jobs, Restoration Tax Abatement, Industrial Tax Exemption, Research and Development Tax Credit, Sound Recording Investor Tax Credit, Digital Medial Incentive, Motion Picture Investor Tax Credit, Live Performance Tax Credit, Louisiana FastStart, Technology Commercialization Credit and Jobs Program, Modernization Tax Credit, Small Business Loan Program, Micro Loan Program, Bonding Assistance Program, Veteran Initiative and Mentor-Protégé Tax Credit.

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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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