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Archive for the ‘Revenue’ Category

The Joint Legislative Committee on the Budget (JLCB) Tuesday voted 37-3 (16-0 by Senate members and 21-3 by the House members) to name former legislative staffer John Carpenter to the position of interim Legislative Fiscal Officer pending the naming of a permanent replacement for retired Gordon Monk by next January.

Carpenter recently resigned as Chief Administrative Officer to Baton Rouge Mayor Kip Holden. Before joining Holden’s administration, he spent 25 years working for the state House of Representatives.

Early reports speculated that Jindal Deputy Chief of Staff Kristy Nichols would be named to the post and even though her name was not mentioned, a former employee of Gov. Piyush Jindal’s administration was named to the post. Carpenter spent a year with Jindal’s Division of Administration.

Carpenter is widely regarded as an able replacement for Monk because of his past experience in working with legislators and administration officials alike. He is considered as both knowledgeable and professional by both camps.

Jindal’s rumored effort to place Nichols in the position would have stirred even more resentment among legislators who have seen all semblance of independence steadily erode during Jindal’s tenure. Unlike any other governor, Jindal was able to name both the Speaker of the House and the Senate President and a compliant Legislature has acquiesced in every instance.

Monk, after 33 years in state government, finally became fed up earlier this month and announced his retirement citing increased workload, pressure, stress and infighting among legislators. He said the session, which began on March 12 with 18-hour days and ended on June 4 with budget battles, convinced him to walk away.

He announced on Aug. 3 that his last day would be Aug. 8 and the JLCB was originally scheduled to name his interim replacement on Aug. 6 but that announcement was delayed twice.
Though the position of Legislative Fiscal Officer is one of the more low-profile positions in state government, the Legislative Fiscal Office (LFO) is one of the more important agencies in state government.

The LFO, a counterpart to the State Budget Office, is responsible for analyzing the governor’s revenue and spending proposals for the Legislature and is charged with generating fiscal notes on every bill filed in order to provide legislators with its analysis of the potential financial impact of proposed laws. In theory, the LFO is independent but in reality, it answers to the House Speaker and Senate Presidents.
Fiscal notes that reflect potential financial impact considered too high have been known to kill bills in the past.

It is those fiscal notes that have generated considerable consternation in the governor’s office as more than once its projected financial impact has clashed with Jindal’s and word around the Capitol is that the governor wants to control the LFO so that he can also control the all-important fiscal notes.

Employees are required to be present during the session, often working to midnight, to address questions about bills from legislators. The pace was stepped up this year when Jindal pushed through the majority of his education package before Easter.

Senate President John Alario (R-Westwego) indicated last week that the interim appointee will not be one of the existing employees—including Staff Director Evan Brasseaux and Chief Economist Greg Albrecht. Albrecht, however, recently crossed Jindal by contradicting the governor’s rose economic outlook by depicting the state as still struggling to recover from the recession. That flash of independence probably doomed his chances—even if Jindal had not already decided on Nichols.

Alario also said it was his intention that the interim appointee not be a candidate for the permanent position and Carpenter, who will earn $153,000 per year—the same as Monk—in his temporary position, confirmed he would not apply when asked by committee members.

Alario resisted efforts by several committee members, mostly from among House members, to set a firm date by which a permanent fiscal officer would be named though he did intimate that he hoped it would be by Jan. 15.

Reps. Jim Fannin (D-Jonesboro), chairman of the House Appropriations Committee, Patricia Smith (D-Baton Rouge) and Edward James (D-Baton Rouge) pushed for a deadline of Oct. 1 for the issuance of a request for proposals (RFP) in order to begin receiving applications but Oct. 15 was the deadline chosen for the RFP.

Alario said that it would require a majority vote of both the Senate and House for the naming of a permanent Legislative Fiscal Officer but only after candidates are interviewed by both the JLCB and the House Appropriations Committee.

The three committee members who voted against Carpenter’s interim appointment included Reps. John Schroder (R-Covington), James Morris (R-Oil City), and Brett Geymann (R-Lake Charles).

Voting yes were Sens. Jack Donahue (R-Mandeville), chairman, Bret Allain (R-Franklin), Sherri Smith Buffington (R-Keithville), Norby Chabert (R-Houma), Dan Claitor (R-Baton Rouge), Ronnie Johns (R-Lake Charles), Gerald Long (R-Natchitoches), Fred Mills, Jr., (R-New Iberia), Dan “Blade” Morrish (R-Jennings), Ed Murray (D-New Orleans), Neil Riser (R-Columbia), Greg Tarver (D-Shreveport), Francis Thompson (D-Delhi), Michael Walsworth (R-West Monroe), Mack “Bodi” White (R-Central), and Sharon Weston Broome (D-Baton Rouge).

House members voting in favor of Carpenter’s appointment were Speaker Chuck Kleckley (R-Lake Charles), James Armes, III (D-Leesville), John Berthelot (R-Gonzales), Robert Billiot (D-Westwego), Rep. Patrick Williams (D-Shreveport), Henry Burns (R-Haughton), Roy Burrell (D-Shreveport), Simone Champagne (R-Erath), Charles Chaney (R-Rayville), Patrick Connick (R-Marrero), Fannin, Franklin Foil (R-Baton Rouge), Lance Harris (R-Alexandria), Cameron Henry (R-Metairie), Walt Leger, III (D-New Orleans), Anthony Ligi (R-Metairie), Jr., Jack Montoucet (D-Crowley), J. Rogers Pope (R-Denham Springs), Smith, and Ledricka Johnson Thierry (D-Opelousas).

Members absent from the meeting were Reps. Jared Brosset (D-New Orleans), Joseph Harrison (R-Gray), Bob Hensgens (R-Abbeville), Katrina Jackson (D-Monroe), Helena Moreno (D-New Orleans) and Joel Robideaux (R-Lafayette).

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The clock has run out on Gov. Bobby Jindal and like the Honey Badger, he’s now yesterday’s news insofar as any aspirations either one may have had for bigger and better things.

Realistically, time had run out on Louisiana’s wunderkind some time ago even though like a loyal trooper, he keeps soldiering on—perhaps hoping for a prestigious cabinet position like Secretary of Health and Human Services, something he denies aspiring to.

“I would not consider a cabinet post,” he sniffed like the spoiled little boy that he is after being passed over for the vice presidential nomination by Mitt Romney. “I consider being the governor of Louisiana to be more important and the best job there is.” Well, it is the only job he has for the moment and if he doesn’t challenge Mary Landrieu in 2014, we’re stuck with him through 2015.

Break out the champagne.

We can only surmise that Secretary of Education is out of the question since both Romney and Paul Ryan advocate that department’s abolishment in favor of state and local control (read: vouchers), although Romney has tempered his position somewhat.

But Jindal’s real quandary is not that he was passed over for vice president, but that he needs desperately to advance his career quickly—before all his “reforms” as governor come crashing down around him, doing even more damage to his reputation than that disastrous response to President Obama’s State of the Union Address in 2009.

That image as the crusading reformer who gets things done against all odds is already beginning to wear thin in Louisiana and it’s only a matter of time before the national media begin to take a critical look at his administration. The Washington Post and New York Times already have.

Beginning with his repeal of the Stelly Plan only a few months into his first term—the move is costing the state about $300 million a year while benefiting only couples earning more than $150,000 per year or individuals making $90,000 per year—through this year’s veto of a car rental tax renewal for New Orleans, Jindal his consistently found ways to cut taxes while doling out tax breaks to corporate entities.

In 2011, the legislature could not muster the votes to override a Jindal veto of a cigarette tax renewal and the renewal had to go before voters in the form of a constitutional amendment—which easily passed.

While he defiantly categorizes tax renewals as “new taxes,” to which he is adamantly opposed, he has no compunctions about cutbacks to higher education that force colleges and universities to increase tuition. He considers the tuition hikes as “fees,” not taxes.

While turning up his nose at federal grants for early childhood development ($60 million), broadband internet installation in rural parishes ($80.6 million) and for a high-speed rail system between Baton Rouge and New Orleans ($300 million), Jindal, upon slashing funding for parish libraries throughout the state, apparently saw no inconsistency in suggesting that the libraries apply for federal monies in lieu of state funding.

The grumblings began ever-so-slowly but they have been growing steadily. The legislature, albeit the right-wing Tea Party splinter clique of the Republican Party, finally stood up to Jindal toward the end of this year’s legislative session and refused to give in on the governor’s efforts to use one-time revenue to close a gaping hole in the state budget.

Other developments that did not bode well for the governor include:

• A state budget that lay in shambles, resulting in mid-year budget cuts of $500 million because of reductions in revenue—due largely to the roughly $5 billion per year in corporate tax breaks;

• Unexpected cuts to the state’s Medicaid program by the federal government which cost the state $859 million, including $329 million the first year to hospitals and clinics run by Louisiana State University—about a quarter of the health system’s annual budget. Those cuts will mean the loss of medical benefits for about 300,000 indigent citizens in Louisiana;

• Failed efforts to privatize state prisons, even though he did manage to close two prison facilities and a state hospital without bothering to notify legislators in the areas affected—a huge bone of contention for lawmakers who, besides having their own feathers ruffled, had to try and explain the sudden turn of events to constituents;

• Revelation that he had refused to return some $55,000 in laundered campaign funds from a St. Tammany bank president;

• Failed efforts to revamp the state employee retirement system for civil service employees. State police were exempted—perhaps because they form his security detail. And despite questions about the tax or Social Security implications, Jindal plans to plunge ahead with implementation of the part of the plan that did pass without the benefit of a ruling by the IRS—a ruling that could ultimately come back to bite him;

• A failed effort by the Sabine River Authority to sell water to a corporation headed up by two major Jindal campaign contributors—Donald “Boysie” Bollinger of Lockport and Aubrey Temple of DeRidder;

• A school voucher system that is nothing less than a train wreck, a political nightmare. State Education Superintendent John White, after Jindal rushed the voucher program through the legislature, rushed the vetting process for the awarding of vouchers through the Board of Elementary and Secondary Education, abetted by members Penny Dastugue, Jay Guillot and Chas Roemer—quickly turning the entire process into a pathetic farce;

• A school in New Orleans run by a man calling himself an “Apostle,” a school in Ruston with no facilities—classrooms, desks, books or teachers—for the 165 vouchers for which the school was approved, tentative approval of vouchers for a school in DeRidder that could not even spell “scholarship” on its sign and for a school in Westlake that teaches that the “Trail of Tears” led many Native Americans to Christianity, that dragons were real, that dinosaurs and humans co-existed at the beginning of time (6,000 years ago, the approximate age of earth, according to its textbooks), that slave owners in America were kind, benevolent masters who treated slaves well, and that the Ku Klux Klan was a helpful reform-minded organization with malice toward none (Don’t laugh, folks; this is what many of these fundamentalist schools who qualified for vouchers are teaching.);

• Then there’s that charter school in Delhi that held girls to a slightly higher standard than boys. Any girl who became pregnant was expelled and any girl even suspected of being pregnant may be ordered to undergo an examination by a doctor of the school’s choice. The boy who gets her pregnant? Nothing. No punishment, no responsibility. Only after being subjected to public exposure, ridicule and criticism did the school alter its policy;

• A state legislator who said she approved of vouchers for Christian schools but not for an Islamic school in New Orleans because this country was founded on the Christian principles of the founding fathers, neglecting for the moment that the founding fathers were for the most part, Deists;

• And to top it all off, White smiles condescendingly and tells us that the criteria applied for approval of vouchers for these schools is part of the “deliberative process,” a catch-all exemption employed by the administration when it doesn’t wish to provide what are clearly public records—an administration, by the way, that touts its so-called “transparency.” Fortunately for the public, the Monroe News-Star is taking White’s pompous behind to court over that decision. (Confidentially, it is the humble opinion of LouisianaVoice that White never had any criteria and that he is creating policy and criteria on the fly because he simply is in way over his inexperienced, unqualified head as the leader of the agency charged with the education of our children. And that perhaps is the most shameful aspect of the entire voucher system and the single biggest act of betrayal on the part of a governor equally overwhelmed by the responsibilities of public office—especially an absentee governor.)

So as the Jindal Express rumbles down the track like a bad motorcycle going 90 miles per hour down a dead-end street (with apologies to Hank Snow) and things begin to unravel on the home front, just where is this absentee governor?

Well, it seems that rather than remain in the state and address the problems that are piling up and growing more complex with each passing day, he seems to prefer to spend his time stumping for Romney—or auditioning for a cabinet position he says he won’t accept—after seeing his chances for the vice presidency fall by the wayside.

A mature governor, a caring governor, a capable governor—one who is truly concerned about the welfare of his state—would defer from flitting all over the country spouting rhetoric on behalf of his presidential candidate in favor of remaining at home and addressing problems that are very real and very important to the people who elected him. Romney, after all, never once voted for Jindal.

There could be only one motive for turning his back on nearly 600,000 voters who first elected him in 2007 and the 673,000 who re-elected him last fall: he doesn’t really care about Louisiana and its people; he cares only about Bobby Jindal and those who can help him in the advancement of his political career.

If Gov. Jindal was truly concerned about the welfare of Louisiana, he certainly would have provided us with an encore of his hurricane and BP spill disaster performances: he would have headed straight to Assumption Parish to grab some TV face time at the Bayou Corne sinkhole and then flown away in a helicopter even as a ghost writer busied himself penning a book sequel: Failed Leadership and Fiscal Crisis: the Crash Landing.

That’s the very least he could do.

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LouisianaVoice will soon have a sister publication in the form of an online state newspaper, according to publisher Tom Aswell.

The new feature, which will be published online in newspaper format, will be a weekly publication geared exclusively to Louisiana political news.

“This will be a free-subscription publication because we want everyone in Louisiana—and elsewhere—to have access to what elected and appointed officials are doing that affect the daily lives of Louisiana’s citizens,” Aswell said.

The name of the new publication will be Louisiana Free Press and will be accessible via the link http://www.louisianafreepress.com, Aswell said.

Louisiana Free Press will be supported 100 percent by advertising revenue and our coverage will be broadened from publishing a single story at a time. There will be multiple stories posted each Friday and the coverage will vary greatly.

Several writers will be contributing coverage of many more agencies than have historically been covered by LouisianaVoice.

These writers will be covering the Louisiana Supreme Court proceedings, Louisiana Attorney General opinions, audit reports of all state and local agencies as they are provided by the Legislative Auditor’s office. Moreover, coverage of agencies will be increased—agencies like the Department of Health and Hospitals, Department of Environmental Quality, Department of Natural Resources, Department of Wildlife and Fisheries, and the Department of Education, the Board of Elementary and Secondary Education, Board of Regents, University of Louisiana System Board of Supervisors and the Public Service Commission, the governor’s office, the lieutenant governor, state treasurer and the legislature, as well as other more obscure state boards and commissions.

“We feel it is important that Louisiana’s citizenry remain informed about what their public officials are doing in Baton Rouge, New Orleans and elsewhere,” Aswell said.

“This is an ambitious endeavor but for too long, too many agencies, board and commissions have operated under the radar of the media,” Aswell said. “We anticipate that is about to change.

“That is not to say that everything we write will be of an investigative nature or that each story will be some major exposé. Most will be of a routine nature but will provide news otherwise not available to the public.”

LouisianaVoice will issue further updates as the schedule for launching Louisiana Free Press develops.

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Another day in the administration of Gov. Piyush Jindal and another prevarication.

And another.

It seems these days anything that comes out of the present administration in Baton Rouge is subject to instant skepticism and ridicule.

There’s Emailgate, the now infamous emails that State Superintendent of Education sent to members of the governor’s staff in which he outlined a deliberate plan to obfuscate the growing discontent over the approval of 315 vouchers to a school in Ruston that had no facilities, books or teachers to accommodate the additional students.

Now Emailgate has been expanded to the Department of Natural Resources (DNR) which somehow has become embroiled in the controversy over that alternative fuel tax rebate that shortened former Revenue Secretary Cynthia Bridges’s career with the state.

A ruling by Bridges on House Bill 110 of 2009 was signed into law by Jindal as Act 469 to give tax credits to purchasers of vehicles which used alternative fuels such as propane, butane and electricity.

At the time, the tax credit was projected to cost the state about $900,000 over five years but when flex fuel vehicles began hitting the market and Bridges issued her ruling as required by the act, that five-year cost suddenly mushroomed to $100 million.

Administration officials said the governor did not know about the ramifications of the credit until mid-June when he rescinded the rule that he had signed into law three years earlier.

Emails obtained by the Associated Press through a public records request, however, indicate that DNR Secretary Scott Angelle and chief legislative lobbyist for the Jindal administration was told about Bridges’s ruling on May 1, the day after she issued it.

Bridges resigned almost immediately after Jindal rescinded the ruling and was replaced by Jane Smith, leading to speculation that she was pressured to resign to make room for Smith. Smith, it might be remembered, originally authored HB 110 and when she lost her bid to move up to the Senate last October, she was recruited by the administration to take the second-in-command post at Revenue even though, in her own words, she “didn’t know nothing about revenue.”

Adding to the growing lack of credibility in utterances by this administration was an indication that the actual cost of the alternative fuel credits had not been determined, according to the internal emails.

Or instead of a lack of credibility on the part of Piyush and his minions, perhaps it was simply a lack of competence.

Apparently the administration did not bother to ask the right people the right questions.

We did.

A routine public records request to the Department of Revenue by LouisianaVoice revealed that 5,456 returns had been received by the department claiming total tax credits of $18,046,454.

That’s 5,456 returns filed and total tax credits of $18 million, Governor, just in case you still haven’t been told.

Those credits were retroactive to the date that Jindal signed the bill into law in 2009—just in case he forgot.

Or in case he wants Communications Director Kyle Plotkin to put his spin on what he says he didn’t know.

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In previous stories we have alternately referred to Gov. Piyush Jindal as “Nixon Redux” and “Nixon Reincarnate.” Little did we know the frightening accuracy of what we then thought were tongue-in-cheek comparisons.

It was on July 24, 1971, when little Piyush was only six weeks old and long before he adopted the name Bobby after a character on The Brady Bunch, that Egil “Bud” Krogh was instructed by Nixon’s assistant for domestic affairs John Ehrlichman to establish a covert team to stop the leaking of classified information to the news media.

The specific incident that prompted the formation of the team, which became known as the White House Plumbers, was the leaking of the Pentagon Papers to the New York Times but the unit soon expanded into other areas, including the burglary of the office of Daniel Ellsberg’s psychiatrist, illegal campaign activities and the attempted cover up of the Watergate break-in.

Now, almost exactly 41 years later, Jindal appears to have established his own Plumbers Unit to investigate leaks and “negative” emails.

Actually, the governor’s little investigation may have begun closer to the 40th anniversary of the birth of the Plumbers.

Last October, Bryan Jeansonne, law partner of State Republican Executive Director Jason Doré, sent public record requests to parish school superintendents throughout the state seeking all emails between the superintendents and school employees.

That, of course, was the big dust-up to the introduction and subsequent passage of the governor’s far-reaching education reform package. Apparently, the administration—or someone representing the administration—wanted to know if local superintendents were saying anything negative to teachers in advance of the impending legislative fight over public education.

Then, in March, State Rep. John Bel Edwards (D-Amite), head of the House Democratic Caucus, said he had received a similar request from Jeansonne in which Jeansonne demanded copies of emails Edwards had exchanged with persons affiliated with the Louisiana Federation of Teachers (LFT). The LFT opposed Jindal’s efforts to create a statewide voucher program which would use tax dollars to send children to private schools.

Then, only last month, Doré made a public records request for copies of signed petitions of the four active efforts to recall Jindal, House Speaker Chuck Kleckley (R-Lake Charles) and Reps. Greg Cromer and Kevin Pearson, both Slidell Republicans.

“We wanted to make sure we got on this early,” Doré said.

The only problem with his request was he was too early; the petitions are not public record and will not become public until they are officially filed with the Secretary of State’s office.

One source said that there were rumors that the administration has spies who are attempting to review the names of everyone who has signed a recall petition in an effort to determine if any are state employees.

Given Piyush’s managerial style, any unfortunate state employee found to have signed a recall would be subjected to severe reprisals, including not-so-subtle intimidation and termination.

The latest volley to be fired by the Jindalistas came on Friday when word was leaked to LouisianaVoice that the administration has ordered a search of all Louisiana Department of Revenue computers for emails that might contain any information about “alternative fuels,” “flex fuels” or anything negative about the resignation/firing of Revenue Secretary Cynthia Bridges on June 15.

Bridges was shown the door (She actually resigned, but many believe she was pressured into resigning–speculation that the governor’s office did not even bother to deny) after issuing an emergency order to grant alternative fuel tax rebates on more than 100 qualifying types of vehicles—as she was instructed to do by Act 469, signed by Gov. Jindal. The ruling escalated the state’s potential liability from an estimated $907,000 over five years to about $100 million. That was because of the introduction of flex fuel vehicles subsequent to the passage of HB 110, authored by former State Rep. Jane Smith (R-Bossier City) in 2009 and which, upon Jindal’s signature, became Act 469.

Smith last fall lost her race for the State Senate and was appointed deputy secretary of the Department of Revenue.

Ironically, when Bridges resigned, Smith, who earlier this year said, “…They offered me the job (as deputy secretary) even though I don’t know a thing about revenue,” was elevated to the job overseeing the single agency responsible for the collection of revenue so the state can pay its bills.

It was apparently Smith’s admission of her lack of qualifications for the deputy secretary’s job that prompted the latest witch hunt by the administration. Apparently the Jindalistas want to know who leaked the quotes attributed to Smith.

Supposedly, the administration asked that those involved with the bill volunteer any email information but the results were not satisfactory and now a search of all employees’ emails has been ordered. The claim is the administration needs the information for undisclosed litigation–a weak and dubious excuse at best. We can’t wait to see how rank and file employee emails might figure in a legal strategy.

But then, with the legal advice this administraton has received on such matters as employee retirement and the comandeering of local taxes to pay for students to attend charter schools in other parishes, who knows?

Sorry to disappoint you, Piyush, but when state employees send us information, they are smart enough to do so from their private computers and personal email accounts. Not only will you not find that information in any email, we didn’t even get it from a state employee.

The information came from the private sector.

And you’ll play hell prying the source of that information out of us.

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