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Archive for the ‘Retirement’ Category

Would Jindal outsource his mom’s job? Not a chance!

Posted in Campaign Contributions, Civil Service, Education, Governor's Office, Higher Education, Layoffs, ORM, Office of Risk Management, Privatization, Retirement, Transparency on March 29, 2011| 3 Comments »

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

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

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

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

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

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

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

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

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

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

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

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

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

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

At least that move was pretty transparent.

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

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

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

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

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Gov. Jindal’s Land of Smoke & Mirror Budgeting

Posted in Budget, Civil Service, Education, Governor's Office, Higher Education, Layoffs, Retirement, Revenue, Taxes, Transparency on March 18, 2011| 2 Comments »

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

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

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

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

Demonstrations were staged on the Capitol steps.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Bored but can’t sleep? Try counting Louisiana boards

Posted in BESE, Boards, Business, Campaign Contributions, Commissions, Education, Governor's Office, Retirement, Revenue, Transparency on January 24, 2011| 2 Comments »

When attempting to ferret out the hidden costs of state government, one can quickly become board, as in more than 500 boards and commissions—complete with more than 6,000 members.

Alabama, which has 250,000 more people than Louisiana, according to the 2010 Census, has only 25 boards and commissions. Texas, with five times Louisiana’s population, makes do with 110 though it, too, has a glut of education boards with 11.

But back to Louisiana where individual board and commission membership ranges from as few as two to as many as 164.

Sheer logistics makes compiling even a rough cost estimate for office space, utilities, member per diem and mileage payments, or staff salaries virtually impossible. There is, however, sufficient evidence of overlap and duplication to warrant scrutiny, especially in the face of budgetary shortfalls predicted to be as much as $1.6 billion for the coming fiscal year.

There are the usual suspects: the education and retirement boards.

Louisiana somehow has always seen fit to have several education boards:

The Board of Elementary and Secondary Education (BESE), the LSU Board of Supervisors; the Board of Regents for Higher Education; the University of Louisiana Board of Supervisors; the Southern University Board of Supervisors, and more recently, the Community and Technical Colleges Board of Supervisors.

So, why do LSU and Southern warrant their own separate boards? Why is there a need for both a University of Louisiana board (formerly the Board of Trustees for State Colleges and Universities) and a Board of Regents? No one has ever answered that question but each has its very own office space, board members, and staff.

But wait. While much has said about those boards, Louisiana also has the Academic Advisory Council; the Adult Learning Task Force; the Education Estimating Conference (how does one estimate education?); the Louisiana High School Redesign Commission; the Local Education Governance and Administration Task Force, and the Home Instruction Program for Preschool Youngsters (HIPPY) Advisory Board.

Or, how about the Municipal Employees’ Retirement System Board of Trustees; the Municipal Police Employees’ Retirement System Board of Trustees; the School Employees’ Retirement System Board of Trustees; the Louisiana State Employees’ Retirement System Board of Trustees; the State Police Retirement Fund, and the Public Retirement Systems’ Actuarial Committee? And just what is the difference between the Louisiana Retirement Development Commission and the Commission on Public Retirement?

The legalization of gambling in Louisiana produced another whole line of boards. We have the Louisiana Gaming Control Board; the Louisiana State Lottery Corporation Board of Directors; the Louisiana State Racing Commission; the Bossier Parish Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Board; the Calcasieu Parish Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Board, and the St. Landry Parish Pari-Mutuel Live Racing Facility Economic Redevelopment and Gaming Control Board.

Then we have the Louisiana Children’s Cabinet; the Children’s Cabinet Advisory Board; the Children’s Cabinet Research Council; The Louisiana Children’s Trust Fund; the Child Care and Development Block Grant Advisory Council; the Louisiana Advisory Committee on Licensing of Child Care Facilities and Child Placing Agencies; the Child Death Review Panel; the Commission on Peri-natal Care and Prevention of Infant Mortality; the Governor’s Advisory Council on Safe and Drug-Free Schools and Communities, and the Select Committee on Women and Children.

Under the Louisiana Department of Agriculture and Forestry, there are a multitude of boards and commissions. These include:

The Agriculture Finance Authority; the Agricultural Commodities Commission; the State Market Commission; the Louisiana Feed Commission; the Louisiana Fertilizer Commission; the Louisiana Forestry Commission; the Livestock Sanitary Board; the Livestock Brand Commission; The Dairy Industry Promotion Board; the Dairy Stabilization Board; the Aquaculture Coordinating Council; the Aquatic Chelonian (turtle) Research and Promotion Board; Oyster Task Force; the Oyster Lease Damage Evaluation Board; the Fur and Alligator Advisory Council; the Identity Task Force of Seafood Standards; the Catfish Promotion Board; the Louisiana Pork Promotion Board; the Sweet Potato Advertising and Development Commission; the Louisiana Egg Commission; the Rice Promotion Board, and, of course, the Rice Research Board.

And how could we ever forget the Boll Weevil Eradication Commission?

In sheer numbers, however, none can top the various levee, port, and sundry water boards and commissions. How could we ever function without them?

Check ’em out:

The Bayou DeSiard Lake Restoration Commission; the Bayou Lafourche Fresh Water District; the Lafourche Basin Levee District Board of Commissioners; the Capital Area Groundwater Conservation District Board of Commissioners; the Cane Waterway Commission; the Ground Water Resources Commission; the Ground Water Management Conservation District Board of Directors; the Groundwater Management Advisory Task Force; the Morehouse Parish Lake Commission; the Poverty Point Reservoir District Board of Commissioners; the West Ouachita Parish Reservoir Commission; the Allen Parish Reservoir District Board of Commissioners; the Washington Parish Reservoir Commission; the White Lake Property Advisory Board; the Bayou D’arbonne Watershed District Commission; the Sparta Groundwater Conservation District; the Amite River Basin Drainage and Water Conservation District Board of Commissioners; the Waterways Infrastructure Bank Board of Directors; the Southern Louisiana Drinking Water Study Commission; the Lake Charles Harbor and Terminal District Board of Commissioners; the Morgan City Harbor and Terminal District Board of Commissioners; the Millennium Port Authority; the South Tangipahoa Parish Port Commission; the Greater Ouachita Port Commission; the Krotz Springs Port Commission; the Port of Greater Baton Rouge; the Port of New Orleans Board of Commissioners; the Red River Port Commission; the Red River Compact Commission; the Red River Development Council; the Red River Waterway Commission; the Red River; Atchafalaya and Bayou Boeuf Levee District Board of Commissioners; the Red River Levee Drainage District Board of Commissioners; the Sabine River Authority Board of Commissioners; the Sabine River Compact Administration; the Southeast Louisiana Flood Protection Authority East; the Southeast Louisiana Flood Protection Authority West; the Morgan City; Berwick Port Pilot Commissioners and Examiners; the River Port Review and Oversight Board; the River Port Pilot Commissioners and Examiners for Port Fouchon Board; the River Port Pilot Commissioners and Examiners Board (Calcasieu); the River Port Pilots for the Calcasieu Bar; Pass; and Main Ship Channel to Lake Charles Orange; Texas Board; the River Port Pilot Commissioners for the Port of New Orleans Board; the River Port Pilots for the Intracoastal Canal; the New Orleans and Baton Rouge Steamship Pilots Association; the New Orleans-Baton Rouge Steamship Pilots Examiners for the Mississippi River Board; the Lafourche Basin Levee District Board of Commissioners; the North Lafourche Conservation Levee and Drainage District; the South Lafourche Levee District Board of Commissioners; the Lafitte Area Independent Levee District; the Lake Borgne Basin Levee District Board of Commissioners; the Bossier Levee District Board of Commissioners; the North Bossier Levee District Board the Caddo Levee District Board of Commissioners; the East Jefferson Levee District Board of Commissioners; the Fifth Louisiana Levee District Board of Commissioners; the Pontchartrain Levee Board; the Board of Levee Commissioners of the Orleans Levee District; the Nineteenth Louisiana Levee District Board of Commissioners; the St. Mary Levee District Board of Commissioners; the Natchitoches Levee and Drainage District Board of Commissioners; and the Terrebonne Levee and Conservation District Board of Commissioners.

Thank goodness the state took steps to merge redundant levee boards after Hurricane Katrina.

But just for good measure, we have the:

• Aviation and Military Museum of Louisiana Board of Directors;
• Military Hall of Fame and Museum Governing Board of Directors;
• Military Museum Governing Board;
• Kenner Naval Museum Commission;
• Governor’s Military Advisory Board;
• Military Advisory Commission;
• Military Family Assistance Board;
• Veterans Affairs Commission;
• Louisiana Diabetes Advisory Council;
• Louisiana Diabetes Initiative Council;
• Joint Legislative Juvenile Justice Commission;
• Governor’s Advisory Board of Juvenile Justice and Delinquency Prevention;
• Juvenile Justice Reform Act Implementation Commission;
• Florida Parishes Juvenile Justice Commission;
• Task Force on Legal Representation in Child Protection Cases;
• Integrated Criminal Justice Information System Policy Board;
• Life Safety and Property Protection Advisory Board;
• Louisiana Commission on Law Enforcement and Administration of Criminal Justice;
• Law Enforcement Executive Management Institute Board;
• Louisiana State Police Commission;
• Louisiana Sentencing Commission
• Pardon Board;
• Parole Board;
• Louisiana Commission on Uniform State Laws;
• Forensic Strategic Task Force;
• Domestic Violence Law Enforcement Training Task Force;
• Governor’s Task Force on DWI-Vehicular Homicide;
• Homeland Security Advisory Council;
• State Council for Interstate Adult Offender Supervision;
• Louisiana Law Institute;
• National Consortium for Justice Information and Statistics;
• Council on Peace Officer Standards and Training;
• Interagency Council on Prevention of Sex Offenses;
• Sexual Assault Task Force;
• Eastern New Orleans Interstate Oversight Commission;
• Greater New Orleans Expressway Commission;
• Senate Select Committee for Oversight of Greater New Orleans Expressway Commission;
• Louisiana Byways Commission;
• Manchac Parkway Commission;
• Mississippi River Parkway Commission;
• Mississippi River Road Commission;
• Mississippi River Bridge Authority;
• Crescent City Connection Oversight Commission;
• Highway 1 Task Force;
• I-49 North Extension Feasibility and Funding Task Force;
• I-49 South Project Task Force;
• Ouachita Expressway Authority;
• River Parishes Transit Authority;
• Southern Rapid Rail Transit Commission;
• Incentives for New Ventures and Economic Stimulation (INVEST) Commission;
• Louisiana Investment in Infrastructure for Economic Prosperity Commission;
• Louisiana Economic Development Corporation;
• Economic Estimating Conference;
• North Louisiana Economic Development Board;
• Louisiana Prosper Commission;
• Small Business Entrepreneurship Commission;
• Louisiana Workforce Commission;
• Louisiana Workforce Investment Council;
• Occupational Forecasting Conference;
• Greater New Orleans Biosciences Economic Development District Board of Commissioners;
• Legislative Budget Control Council
• Revenue Estimating Conference;
• Small Business Task Force;
• Small Business Compliance Advisory Panel;
• Solution to Poverty Network Council;
• Southern Growth Policies Board;
• Workforce Competitiveness Task Force;
• Louisiana Commission on Marriage and Family;
• Life Management and Marriage and Relationship Skills Course Study Task Force;
• Marriage/Family Therapy Advisory Committee

All this has given me a migraine so if you will excuse me, I think I’ll go lie down now. There’s probably a board or commission or a study task force for that.

Got a news lead for Louisiana Voice to investigate? Have a suggestion for a story? Your identity will never be revealed. Just send an email to louisianavoice@cox.net

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