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Archive for the ‘Revenue’ Category

Rep. Richard has money-saving bill: cut state spending on professional, personal, consulting contracts by 10 percent

Posted in Budget, Contract, Contracts, Governor's Office, House, Senate, Legislature, Legislators, Revenue, State Agencies, Transparency, Waste on May 23, 2013| 23 Comments »

State Rep. Jerome “Dee” Richard believes he may have found a way in which to cut into the state budget deficit to the tune of about half-a-billion dollars.

HB-73 by Richard would require a 10 percent reduction in the total dollar amount for professional, personal and consulting service contracts under the jurisdiction of the Office of Contractual Review (OCR) for Fiscal Year 2013-14.

The proposed law also would require the OCR to submit reports on the status of the implementation of the law to the Joint Legislative Committee on the Budget on Oct. 1, 2013, Jan., April 1 and July 1 of 2014.
It also would require that the OCR director to submit a monthly report to the House Appropriations Committee summarizing all contracts and dollar values awarded the previous month.

The Legislative Fiscal Office (LFO) said the annual report of the OCR released in January of this year showed there were 2,284 professional, personal and consulting contracts with the state with a combined contract value of approximately $5.28 billion.

The LFO said the bill would result in an “indeterminable decrease” in overall state expenditures in FY-14. “To the extent this bill would have been enacted during the 2012 regular legislative session, the projected 10 percent reduction in the value of OCR approved professional, personal and consulting services contracts for FY-13 would have equated to approximately $528 million less,” the LFO’s fiscal notes said.

Richard’s bill would allow exceptions but only if certain conditions were met, namely:

• There were no state employees available or capable of performing the needed work;

• Required services are not available as a product of a prior or existing contract;

• There be a written plan to monitor and evaluate performance of the contract;

• The proposed contract would be determined to be a priority expenditure by the Commissioner of Administration.

Such a reduction, should it be approved and implemented, would help close a gaping budget hole of hundreds of millions of dollars for the state.

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Jindal needs to understand that Revelation is not always a Biblical term: Let my people know OGB financial status

Posted in Governor's Office, Health Care, Layoffs, OGB, Office of Group Benefits, Privatization, Revenue, Transparency on April 15, 2013| 10 Comments »

It was supposed to save the state some $40 million.

It cost more than 100 dedicated, efficient state employees their jobs.

It was supposed to be the best thing for the state even though studies commissioned by the Jindal administration said it was not a good deal.

It was such a great idea that the Office of Group Benefits (OGB) reduced its premium rates by 7 percent last July, six months before Blue Cross-Blue Shield of Louisiana (BCBS) was scheduled to take over as third party administrator for OGB’s Preferred Provider Organization (PPO). And if it was going to save $40 million, why not reduce rates?

Well, for one reason, since BCBS took over in January, that alluring $500 million reserve fund that former OGB Director Tommy Teague had helped the agency build up is now said to be less than half that amount because expenditures (claims payments) have been outpacing revenues (premiums).

Except no one really knows because the administration has not provided the monthly reports.

Our open, accountable and transparent administration has not been forthcoming with financial information on the agency.

We can’t seem to see any early evidence of that $40 million savings.

When revenues don’t keep up, BCBS has been forced to dip into the reserve fund to pay claims. Obviously, when the fund is depleted, there is just one way out for BCBS: increase premiums.

That’s not exactly an unexpected development. In fact, a retired OGB employee said last October the rate reduction was a formula for fiscal irresponsibility. “The program operated at a small deficit for the fiscal year ending June 30, 2010 (before the premium rate reduction), and is almost guaranteed a significant loss for Fiscal Year 2013 with the 7 percent reduction,” he said.

“The only reason that premiums could be reduced was the fact that the program had a significant surplus. For the current fiscal year, the program will be operating on its surplus for significant portion of the current year’s operating expenses…but this cannot go on forever,” he said.

“It is another example of using one-time funds to pay for continuing operations of the state. Once the reserve fund is exhausted, rates will need to be increased significantly to cover continuing operations.”

A member of the OGB board of directors requested copies of February’s monthly financial statement several weeks ago but has met only with frustration.

It can’t be that the report is not ready; word coming out of the agency is that not only is the February report complete, but the monthly report for March as well is complete.

Funny thing about this is that financials has always been provided to board members in the past. Suddenly things have changed.

With that in mind, we decided to submit our own request pursuant to the Louisiana public records laws.

In past requests for records from the Division of Administration, we have encountered delays and stonewalling that would test the patience of the Dalai Lama. DOA consistently offers the lame excuse that DOA personnel are “searching for records and reviewing them for exemptions and privileges.”

Anticipating the usual foot dragging, we submitted the following request:

From: Tom Aswell [mailto:azspeak@cox.net]
Sent: Monday, April 15, 2013 3:55 PM
To: doacommissioner@la.gov
Subject: PUBLIC RECORDS REQUEST

• Pursuant to the Public Records Act of Louisiana (R.S. 44:1 et seq.), I respectfully request the following information:

• Please allow me the opportunity to review the monthly financial statements for the Office of Group Benefits for February and March of 2013.

• And please do not insult my intelligence by giving me your B.S. stock response (below) that you are “searching for records and reviewing them for exemptions and privileges.” You and I both know this is not privileged information and it certainly is not exempt. I will call on you Tuesday to review the documents. Any delays on your part will be met with prompt legal action.

Our most recent public records request to DOA was on March 10. Here is DOA’s response:

From: Joshua Melder [mailto:Joshua.Melder@la.gov]
Sent: Thursday, March 28, 2013 4:53 PM
To: ‘azspeak@cox.net’
Cc: David Boggs (DOA)
Subject: RE: PRR BenefitFocus

Mr. Aswell,

We are still searching for records and reviewing them for exemptions and privileges. Once finished, we will contact you regarding delivery of the records. At that time, all non-exempt records will be made available to you. As of now, we will not be ready to produce records on Monday.

Regards,

Joshua Paul Melder
Attorney
Division of Administration
Office of General Counsel

Under Louisiana’s public records laws, public agencies, from town hall to the governor’s office, have three days in which to provide requested records or to respond in writing why the records are not available and when they will be available.

Here is that March 10 request for which we still are waiting for the records:

From: Tom Aswell [mailto:azspeak@cox.net]
Sent: Sunday, March 10, 2013 9:19 PM
To: doacommissioner@la.gov
Subject: PUBLIC RECORDS REQUEST

Pursuant to the Public Records Act of Louisiana (R.S. 44:1 et seq.), I respectfully submit the following request:
Please provide me the opportunity to review the following information dating back to July 1, 2012:

• all written (email and traditional mail) correspondence between the Division of Administration (DOA) or any of its representatives, spokespersons and/or agents and BenefitFocus or any of its representatives, spokespersons and/or agents relative to any contract, Request for Proposal or any other contractual or business relationship between DOA and BenefitFocus or between the Office of Group Benefits (OGB) and BenefitFocus;

• all written (email and traditional mail) correspondence between the Office of Group Benefits (OGB) or any of its representatives, spokespersons and/or agents and BenefitFocus or any of its representatives, spokespersons and/or agents relative to any contract, Request for Proposal or any other contractual or business relationship between OGB and BenefitFocus or between DOA and BenefitFocus;

• all written (email and traditional mail) correspondence between the Division of Administration (DOA) or any of its representatives, spokespersons and/or agents and the Office of Group Benefits (OGB) or any of its representatives, spokespersons and/or agents relative to any contract, Request for Proposal or any other contractual or business relationship between DOA and BenefitFocus or between OGB and BenefitFocus.

We will keep you posted on how this silly, unnecessary drama plays out.

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Notable Quotables (in their own words)

Posted in ATC, Governor's Office, Notable Quotables, Revenue on March 21, 2013| 10 Comments »

“When you kick employee’s (sic) butts and make them work, sometimes you get a little crap on your boots.”

—Louisiana Alcohol Tobacco Control Director Troy Hebert, responding to a LouisianaVoice request for a one-on-one interview. (We assume that was our interview.)

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Lack of ATC background checks results in approval of multiple alcohol licenses to New Orleans-area felon

Posted in ATC, Legislature, Legislators, Revenue on March 20, 2013| 14 Comments »

A failure to properly conduct background checks by the Louisiana Office of Alcohol and Tobacco Control (ATC) resulted in the approval of alcohol licenses to a New Orleans-area man who was arrested on felony charges six times during 2004 and 2005, according to court records and ATC application forms.

Moreover, the number of citations issued by ATC for underage drinking during the Mardi Gras season has plummeted more than 92 percent since 2011, records show.

In an inter-office email obtained by LouisianaVoice on Wednesday, Department of Revenue (LDR) employees were informed that all outgoing emails by LDR employees to any ATC employee must copy Jarrod Coniglio, chief of staff to Secretary of Revenue Tim Barfield, and “before any current or former ATC employee is interviewed, hired or offered a position with LDR, the division director must receive approval from Jarrod Coniglio.”

There was no explanation why ATC employees were being singled out for such scrutiny. Apparently the powers that be at LDR are not quite up to speed on the Emancipation Proclamation.

The email also instructed that LDR regional offices “will cease requesting or utilizing any ATC agents on a cash seizures or any other field related activity.”

LDR is the umbrella agency under which ATC serves.

ATC Commissioner Troy Hebert defended his actions in an email to LouisianaVoice with the explanation that “disgruntled employees are going to complain” whenever he “kicks employee’s (sic) butts.”

Omar Hamdan was arrested for multiple counts of possession of Schedule II and Schedule IV drugs, for use of a firearm or controlled dangerous substance in the commission of a crime of violence and for bail violation.

Some of the charges against the Harvey resident, including the firearms violation, were dropped after he pled guilty to possession charges in December of 2004.

Despite his legal problems, ATC issued alcohol licenses to four convenience stores owned by Hamdan, records show.

The licenses were actually issued to Hamdan’s wife, Fatmah Hamdan, who checked “No” to the question, “Have you or your spouse ever been convicted of a felony?”

When Scott Wolfe, the individual who sold several of the convenience stores to Fatmah Hamdan, complained to ATC about the licenses issued to Hamdan, ATC at first took no action on allegations that Fatmah Hamdan was the applicant for the licenses.

State law prohibits the practice of a person interposing on behalf of another in an attempt to obtain licenses which is what Wolfe maintains Fatmah Hamdan’s applications represented.

Hebert’s office responded to Wolfe inquiry as to why the Hamdan’s were granted licenses by saying there are no background investigations conducted by his office and that applications are accepted “on the honor system.”

Even after Wolfe’s inquiry, Hebert took no action for eight months. “You could almost hear the crickets in the ATC offices,” Wolfe said.

Only after Wolfe contacted a New Orleans television station and a station reporter made his own inquiries did Hebert initiate a probe by his office and provide the public records requested by Wolfe.

But even then, ATC at first withheld some of the records requested by Wolfe, he said.

ATC, which has been embroiled in personnel issues in recent months and which has lost a couple of lawsuits brought by former agents, has seen its enforcement powers depleted significantly during Hebert’s tenure.

The agency receives grants from various federal agencies which ostensibly are to be used for enforcement purposes.

Citations issued for underage drinking during Mardi Gras, for example, have dropped off significantly since Hebert took over the agency in November of 2010, according to records provided pursuant to a public records request by LouisianaVoice.

ATC agents issued 825 Mardi Gras-related tickets during the 2011 Carnival season. That number dropped by 80.6 percent, to 160 in 2012 and this year only 62 tickets were issued for underage drinking, a drop of 92.5 percent from 2011.

Last July, Hebert appeared with New Orleans Mayor Mitch Landrieu to announce a cooperative venture between ATC and the mayor’s office in which Hebert promised to hire three new full-time agents and auxiliary agents to combat underage drinking in New Orleans. http://www.youtube.com/watch?v=x1tTdVPhNrg

To date, that grandiose promise by Hebert has remained unfulfilled. No new agents have been hired and the auxiliary agents are non-existent.

Hebert, in a March 14 email to LouisianaVoice in response to a request for a one-on-one interview, said:

“When you kick employee’s (sic) butts and make them work, sometimes you get a little crap on your boots.

“Of course these disgruntled employees are going to complain, (sic) I put a GPS on their (sic) state vehicle (sic), I stopped them from taking their state vehicle (sic) home each night, I stopped them from using state cell phones for personal use, I made them punch a time clock and I implemented a performance base (sic again) system that makes them work more productive (sigh, sic).

“As commissioner I am fighting to make sure that the taxpayers are getting their money’s worth. Incompetency and laziness will not be tolerated under my watch.”

The Commissioner has spoken. All rise.

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Notable Quotables (in their own words)

Posted in Education, Higher Education, House, Senate, Legislature, Legislators, LSU, Notable Quotables, Politicians, Revenue on March 19, 2013| 2 Comments »

“Many Legislators would rather get re-elected than make the right decision. They say they’re not going to raise taxes but they’re going to allow us to raise tuition.”

“Federal revenue for higher education is double what the states are doing now. I don’t have faith in legislators but I do have faith in them wanting federal money.”

“The power of Washington to hold states accountable may be the most important answer that we have. The more federal dollars are attached to state behavior, the less likely state legislatures are going to remove themselves from funding responsibility.”

—F. King Alexander, President of University of California Long Beach and more recently LSU President-designate, speaking on “Strategies for Fiscal Housekeeping” at the 14th Annual Travers Conference on Ethics and Accountability in Government Financing California, Feb. 11, 2011.

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