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Archive for the ‘State Agencies’ Category

Chester Lee Mallett of Iowa likes to spread his money around but his political involvement is mostly restricted to conservative Republican candidates at both the state and federal levels.

Described as a “well-established businessman” and “a true conservative,” Mallett has served on the board of Louisiana’s Citizen Insurance Company and the State Licensing Board for Contractors—appointed to both boards by Gov. Bobby Jindal. More recently, Jindal appointed him to serve on the LSU Board of Supervisors.

The reasons for Jindal’s continuing to call on Mallett to serve in various capacities are not difficult to understand. Like many of the governor’s appointees, he has proven himself to be a generous donor to Jindal’s campaigns through personal contributions ($10,000) and seven of his companies ($148,500) since Jindal’s first gubernatorial campaign of 2003.

Mallett does not limit his largesse to state political candidates (although he has chipped in another $61,000 to other Louisiana candidates). Since 2004 alone, he contributed an additional $166,400 to national Republican candidates, all but one of whom are from Louisiana, and three separate contributions of $30,800 each to the Republican National Committee and another for $5,000. Additionally, Brad Mallett of one of Lee Mallett’s companies contributed another $30,800 to the RNC.

Republican congressional beneficiaries include U.S. Sen. David Vitter ($6.400), congressmen Jeff Landry ($5,000), Charles Boustany Jr. ($5,000) and Bill Cassidy ($5,000). Other prominent Republicans receiving contributions from Mallett include Congressman Sean Duffy of Wisconsin ($2,500), Newt Gingrich ($1,000), Texas Gov. Rick Perry ($2,500) and Republican presidential nominee Mitt Romney ($2,500).

Though a Republican loyalist, he did contribute $2,300 to Democratic U.S. Sen. Mary Landrieu in 2007 and $3,700 to the State Senate campaign of Democrat Willie Mount of Lake Charles in 2004.

Described as “an avid social reformer,” Mallett counts as his greatest achievement the creation and operation of The Academy of Training Skills (ATS) in Lacassine. ATS, whose corporate offices are located at the same Iowa address of all of Mallett’s other companies, opened in 2008, and serves as an alternative facility for individuals who are at risk of going to prison. Those with non-violent or non-sexual offenses are given an opportunity to reside at ATS and to enroll in any of several training programs.

ATS, approved by the Louisiana Department of Corrections, takes residents by referral from local court jurisdictions. The facility’s web page says it is seeking accreditation from the American Correction (sic) Association (ACA) and that a trade school was planned for the site. The website also said plans were in place to expand to a 1,000-resident capacity.

The American Correctional Association, located in Alexandria, Virginia, confirmed that ATS received accreditation in 2010, an indication that the ATS website has not been updated for at least two years.

Claims by ATS that residents are trained for jobs and that they receive counseling and medical treatment for addictions, however, are in dispute.

While the ATS web page touts training in pipefitting, welding, electrical, millwright, heavy equipment operator and instrumentation fitter, at least one district attorney who refers offenders to facilities such as ATS said he has experienced numerous complaints about the program and no longer refers offenders to ATS.

A spokesman for the district attorney, who requested that he not be identified because of political implications, said all his referrals now go to Cenikor Foundation, a Houston-based center with facilities in Baton Rouge.

“We just stopped sending people to ATS,” he said. “The jobs they were getting our people were jobs hamburger flipping at fast food restaurants, not technical skills. The claims that they are providing medical treatment don’t seem to be valid, either, because our referrals told us they received no medical treatment.

“Moreover, ATS works these people and pays money into personal accounts for each resident, which is certainly an accepted practice,” he said. “However, without exception, when our referrals completed their programs there, instead of receiving the money in their accounts, they wound up owing ATS money.”

He also said ATS appears to have difficulty in retaining facility directors. “There’s a lot of turnover there,” he said. “No one seems to stay more than a few months. Some of the directors seemed to try to do what the program advertises but they don’t last long before they’re gone.”

Now, it appears that Mallett may be expanding his operations to include online classes as part of the Louisiana Department of Education’s (DOE) Course Choice Program.

The Course Choice Program ostensibly provides students at failing schools the opportunity to take the online courses instead of continuing in their old schools. All the classes are online and providers are allowed to set their own course fees.

One of those approved by DOE is ATS Project Success of Michigan, which claims on its web page to offer courses in 41 states, including Louisiana. Academy of Training Schools (ATS) of 21089 South Frontage Road in Iowa, which is the same corporate address as Mallett’s seven other enterprises (including Academy of Training Skills), appears to be the Louisiana ATS entity through which courses are to be offered.

The Academy of Training Schools also contributed $6,000 to Believe in Louisiana, a 527 tax-exempt political organization founded by Baton Rouge Business Report Publisher Rolf McCollister.

McCollister was Jindal’s campaign chairman in his successful 2007 run for governor and served as chairperson of Jindal’s transition team.
Julio Melara, president of the Baton Rouge Business Report, was appointed by Jindal to the Louisiana Stadium Exposition District (Louisiana Superdome) Board in February 2008, a month after Jindal first took office.

Jindal appointed Mallett, a Republican insider, to the LSU Board in July and all the pieces now appear to be in place for Jindal to do whatever he wants with LSU in general and the LSU Medical System in particular. The recent firing of Dr. Fred Cerise and the reassignment of Dr. Roxanne Townsend would seem to support that theory.

Jindal said as much on July 2 in an interview with Greta Van Susteren of Fox News:

“We’re the only state in the country that runs our own government-owned, government-operated hospitals. I’ll be the first to tell you that’s not the best way to provide health care. And we’re replacing that. We’re transitioning folks on our Medicaid program to privately-run insurance coverage.”

Jindal, of course, neglected to mention that those state hospitals, particularly Charity Hospital in New Orleans served, not only as a medical safety net for indigent citizens of the state and as teaching hospitals for both the LSU and Tulane University schools of medicine.

Charity was never reopened after Hurricane Katrina in 2005 even though only the basement of the 21-story facility was flooded and more than 200 military and medical volunteers restored the hospital to conditions that many said were superior to the hospital’s pre-storm state. For whatever reasons, however, electricity, which was working in the hospital, was ordered turned off and the doors were locked.

With all but one of the LSU Board members appointed by Jindal, the governor now has carte blanche to bulldoze ahead with dismantling the state’s Medicaid program—just as he promised he would in his interview with Van Susteren—in favor of privately-run insurance coverage, most likely administered by large campaign contributors.

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No sooner had we posted our account of the planned firing of LSU System Office General Counsel Raymond Lamonica than we learned that the Piyush Jindal administration has also relieved Dr. Roxanne Townsend of her position as CEO of the Interim LSU Public Hospital in New Orleans, a position she has held since 2009.

LouisianaVoice learned from independent sources that she was called into the office of Dr. Frank Opelka last Friday and informed that he planned to go “in another direction” with the LSU health care system. Opelka was named head of the health care system on Aug. 26 following the firing of his predecessor, Dr. Fred Cerise.

The “direction” alluded to by Dr. Opelka is apparently to remove from positions of responsibility anyone who does not bow and scrape at the Piyush pewter image. (For those who don’t know, pewter is defined as a dull, malleable alloy comprised mostly of tin; ergo, the Tin Man—with no heart.)

Dr. Townsend, a native of Pennsylvania, graduated from the LSU School of Medicine-New Orleans in 1992 and did her post-graduate training in Internal Medicine in Baton Rouge and also served as Chief Resident in Internal Medicine at Earl K. Long Hospital in Baton Rouge.

She has served as CEO of the Interim LSU Public Hospital in New Orleans since 2009. She previously worked for Dr. Cerise as the Chief Operating Officer at Earl K. Long and upon Dr. Cerise’s departure for the Department of Health and Hospitals (DHH), she was named Interim CEO. In July of 2004, she moved to DHH as Medicaid Medical Director where her responsibilities included oversight of all aspects of DHH’s Disease Management and Clinical Quality activities.

Following the closure of Charity Hospital in New Orleans after Hurricane Katrina in 2005, Lamonica, representing LSU, obtained a $474 million settlement with the Federal Emergency Management Administration (FEMA), part of which was used to convert the former Hotel Dieu into the Interim Louisiana Hospital which, besides serving as a medical safety net for indigent patients, also trains 300 resident physicians—200 from LSU and 100 from the Tulane Medical School—and to get the University Hospital campus up and operative.

News of Dr. Townsend’s demotion comes on the heels of reports that the administration plans to fire Lamonica, the man who negotiated that FEMA settlement. Last April, the LSU Board voted to fire John Lombardi as president of the LSU system and followed that last month with the firing of Dr. Cerise.

Jindal presently controls all but one of the appointments of the LSU Board, so it is impossible for him to separate himself from board action, no matter how much his media mouthpiece Kyle Plotkin may try to deny it. Any board action must be considered to have been taken at Jindal’s behest.

Given Piyush’s ongoing putsch, the question must be asked: when are legislators going to gather sufficient stones between them to stand as a body and say to this tyrant: “ENOUGH! There is only so much we as a legislative body will take from you in exchange for appropriations for our districts. There comes a time when your personal ambition may no longer run roughshod over the state’s principles, dignity and respect and you long ago crossed that line.”

Where is that so-called independent legislature? You are needed more today than at any time in this state’s history. But your timid silence is deafening.

And where are the voters in these legislators’ districts? You are equally mute when you should be at your very angriest–and loudest.

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The procedure for laying off up to 121 employees of the Office of Group Benefits (OGB) has been initiated by the Jindal administration in the aftermath of the privatization of the OGB Preferred Provider Organization (PPO).

A memorandum dated Aug. 23 has been circulated to OGB employees by Steven Procopio of the Office of Human Resources in the Division of Administration setting the effective date of the staff reductions as Jan. 2, 2013.

The layoffs must be approved by the State Civil Service Board but the board on Aug. 1 approved the awarding of the contract for the PPO to Blue Cross/Blue Shield (BCBS) of Louisiana, so the consideration of the layoff proposal should be little more than a formality by the board which has demonstrated a propensity to roll over and play dead for the administration.

BCBS already is the TPA for the state’s HMO.

Positions affected by the termination notice are in Internal Audit, Administration, Quality Assurance, Fiscal, Flexible Benefits/Imaging Services, Legal and HIPAA (Health Insurance Portability and Accountability Act) Compliance, Customer Service, Information Technology, Claims and Provider Services.

Employees of these offices are domiciled in the parishes of East Baton Rouge, Jefferson, Lafayette, Ouachita, Caddo, Calcasieu and Rapides.

The BCBS assumption of the third party administrator (TPA) duties for the PPO is scheduled to take effect with the beginning of the new calendar year in January.

Gov. Piyush Jindal and Commissioner of Administration Paul Rainwater have consistently insisted that the state should not be in the insurance business and that a private entity can administer insurance claims on behalf of state employees more cheaply and more efficiently than the state—despite OGB’s having built reserves of $500 million over the past half-dozen years.

Several independent studies have intimated that premiums are likely to increase after the first year because a private TPA will face the double whammy of the need to show a profit and the requirement to pay taxes on profits—factors the state never had to consider when it administered the claims.

Jindal, who made a point of voicing his concern and respect for state employees when he ran for governor has shown little, if any, of either sentiment since becoming governor. In fact, he has consistently attacked state employees at every turn including the orchestration of failed attempts to dismantle Civil Service and to gut the state employee retirement system—both to the detriment of state workers.

Jindal, after failing to sell state prison facilities, simply closed two of them and then announced the closure of Southeast Louisiana Hospital in Mandeville without notifying the legislative delegation in that part of the state—a delegation which until then had been fiercely loyal to him.

The closure of the Mandeville facility will adversely affect more than 500 employees and up to 170 inpatient recipients of mental health care. Moreover, with its closure, there will be no state facility offering mental health care for an entire section of the state that includes the parishes of Tangipahoa, St. Tammany, Washington, Orleans, St. Bernard, Plaquemines and Jefferson.

Other state medical facilities and LSU teaching hospitals also are threatened by the lost of some $800 million in Medicaid funding and higher education also has taken a major hit with near catastrophic budgetary cutbacks.

Yet, as all this economic train wreck careens out of control down the tracks, Jindal continues to travel the country—initially auditioning for the vice presidential nomination on Mitt Romney’s ticket and when that failed, soldiering on as the dutiful lap dog in support of the Republic Party that has relegated him to a minor speaking role at next week’s GOP convention.

Hardly an appropriate token of appreciation, considering all he has done on behalf of his second choice for the nomination while ignoring a state falling apart back home.

The leadership vacuum experienced by Louisiana during this administration is not what one would expect to read of in Jindal’s book Leadership and Crisis, now is it?

The real of the crisis, after all, is his abysmal lack of leadership.

If, as New Orleans’ Gambit so succinctly pointed out, he truly has the job he loves, he should return to Louisiana to address the myriad of problems facing the state and in so doing, put his money (read: efforts) where only his mouth has been.

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(Editor’s note: at least one person failed to detect the parody in a recent posting about the Delhi Charter School, so leaving nothing to chance, we’re letting everyone know up front that the headline is tongue-in-cheek as are a couple of comments in the body of this story.)

Not only was Gov. Piyush Jindal not among the top six finalists in the recent Mitt Romney Vice Presidential Sweepstakes, it now turns out that Louisiana’s absentee governor is not even among the top 15 in what he does best: eliminating state jobs.

That may explain in part why Romney, who once said he likes to fire people, did not include Jindal on his short list of five potential running mates whom he called last week to let them know he had decided on Rep. Paul Ryan of Wisconsin. Jindal was so far down that list that he didn’t even warrant a courtesy call.

Even though the Governor in-Abstentia has eliminated more than 6,000 state jobs during the months between June 2011 and June 2012, that wasn’t good enough to put him in the top 15 for placing workers in the unemployment lines who have mortgages, tuition costs, and other living expenses, according to a report just released by the National Governors’ Association and the National Association of State Budget Officers (NASBO).

Apparently, the 6,400 positions cut in this year’s budget were not factored into the equation. If they had been, that almost certainly would have vaulted Piyush to within a heartbeat of the presidency. State job losses, after all, appear to translate to economic gains in the eyes or our globetrotting governor.

“States go to great lengths to avoid layoffs,” NASBO Executive Director Scott Pattinson said, exposing the naked truth that he has not been to Louisiana since 2008.

For that matter, the Disappearing Governor hasn’t been in the state much since then himself.

Pattinson also pointed out that laying off employees is not always the best fiscal strategy. “Firing state government workers often does not result in money saved in the short term. Once required benefits and severance (unemployment payments) are included, states may not see savings for at least a full fiscal year.”

The study attributed the widespread layoffs of state government employees to a stalled recovery from the recession and “shifting political pressure.” That shifting political pressure alluded to may be traced back to the American Legislative Exchange Council (ALEC), which is very up front in its advocacy of massive state employee layoffs and equally impressive tax breaks for corporate friends of all politicians of a Republican stripe.

To that end, Jindal, the Incredible Vanishing Governor, invisible to the naked eye, has been most compliant. While many corporate tax breaks and incentives were already in place well before he assumed office in January of 2008, he has nevertheless encouraged the continuance and expansion of those breaks—to the state treasury’s financial detriment of approximately $5 billion per year.

But have no fear, Ghost-Governor Piyush the Magnificent, upon his return—if he ever does return—is almost certain to pick up where he left off. With the announced closure of prisons and state hospitals, teacher layoffs in virtually every parish because of his ill-conceived voucher scheme, and deep cuts to the LSU medical school’s programs, he is sure to begin cutting into the lead of the states ahead of Louisiana in the layoff game.

If Piyush truly is a disciple of “trickle-down economics” (and Rush Limbaugh did refer to him as the next Ronald Reagan), then we can anticipate additional layoffs at the local level—by parish and municipal governments—as the excrement begins to flow downhill.

In case you may be curious, in no particular order other than alphabetical, here are the top 15 states in layoffs:
• Alabama
• California
• Connecticut
• Florida
• Maryland
• Massachusetts
• Michigan
• Missouri
• Nebraska
• Nevada
• New Mexico
• Ohio
• Oregon
• South Dakota
• Washington

It should be pointed out that there was no significant edge for one political party over another in the layoff Race to the Top (where have we seen that before?): The party representation is as equal as possible, given there is an odd number of ranking states. Eight of the top 15 states have Republican governors and seven of the governors are Democrats.

And lest political observers worry about the state’s rankings, not to worry.

We’re pretty sure that Louisiana easily ranks No. 1 in the number of days in which the Phantom of Governor’s Office has been out of state.

That’s gotta count for something.

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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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