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Archive for the ‘Teague’ Category

One of Gov. Bobby Jindal’s former teachers at Baton Rouge’s McKinley Middle Magnet School recently provided revealing insight into his mental makeup when she confided that he was a difficult student who simply could not accept the fact that he might be wrong. About anything.

That certainly explains a lot.

Take, for example, that state Civil Service Commission meeting of Feb. 1.

The commission each month is provided a list of proposed contracts along with justifications of why it is more economical—or necessary—to contract services out than for state employees to perform a job.

(These are the same documents, by the way, that the Division of Administration said did not exist when LouisianaVoice made a public records request for them back on Dec. 19.)

Yes, this more about Jindal’s apparent obsession with privatization.

The contract called for the Department of Health and Hospitals (DHH) to contract out its information technology (IT) services to the University of New Orleans. The proposed contract would have provided IT services currently provided by 69 classified employees.

Approval of the contract would have resulted in the 69 employees being Teagued.

To the less erudite, to be “Teagued” is to be removed from one’s employment with state government by a governor critically short on forgiveness.

The term derives its name from Jindal’s propensity to fire employees, especially those who may have the temerity to question or challenge his decisions. It began early in his first administration when Tammie McDaniel, a member of the Board of Elementary and Secondary Education, questioned certain budget decisions. Jindal immediately asked for her resignation. She refused at first but eventually resigned.

Then there was William Ankner who was forced out at the Department of Transportation and Development when it was revealed that a $60 million highway contract was awarded not to the low, but the high bidder.

Jim Champagne, executive director of the Louisiana Highway Safety Commission, in a moment of ill-advised level-headedness, disagreed publicly with Jindal’s plan to repeal the state’s motorcycle helmet law. Gone.

Ethics Administrator Richard Sherburne hit the bricks when Jindal gutted the Ethics Board’s adjudicatory authority and gave it to administrative law judges.

But the most high-profile firings, and the namesake of our new terminology, were the dismissals of Department of Social Services grant reviewer Melody Teague in October of 2009 and her husband, Office of Group Benefits (OGB) Director Tommy Teague, 18 months later.

Mrs. Teague testified against Jindal’s government streamlining plan that included calls for massive privatization. It took her six months but she got her job back.

Her husband was not so lucky. He was shown the door when he did not jump on board quickly enough to please the administration when it floated its idea of privatizing OGB.

Thus, the all-too-appropriate term Teagued.

But now, back to those 69 IT employees.

The Civil Service Commission took one look at the contract proposal—and balked.

For one thing, documents submitted by DHH never nailed down the precise cost of the proposed three-year contract, saying it would be for either $35 million of $37 million.

Carol Steckel, chief of DHH’s Center for Health Care Innovation and Technology, said the proposal would save an estimated $2.1 million over the next three years (later revised to $7 million) but commissioners weren’t buying it.

“I have zero confidence in your numbers,” commission member Scott Hughes, of Shreveport said.

“I don’t think you have come close to showing there’s either a cost saving or efficiency,” added member John McLure, of Alexandria.

Member Lee Griffin, of Baton Rouge, said he could not understand the proposal despite his “50 years in the banking industry.”

Commissioner Kenneth Polite, of New Orleans, said he found it difficult to support the proposal because the Jindal administration “has railed against increased spending” and yet DHH is relying on additional federal funds, which the administration also has opposed.

Information submitted by DHH was “woefully inadequate,” said commission Chairman David Duplantier, of Covington.

The commission voted unanimously to disapprove the contract after Hughes observed that the documents submitted by DHH made it clear that instead of saving money, the agency would actually increase spending by up to $8 million with the contract.

That, as we said, was on Feb. 1.

But let’s back up to December. DHH employees were called in for a telephone conference call several weeks before the contract proposal was presented to the Civil Service Commission.

During that conference call, the IT employees were informed that in January, their positions would be abolished.

Following that collective downer, the IT personal returned to their work stations only to discover that during the conference call, they had been locked out of their computers.

Subsequent to the Civil Service Commission’s action, the employees have regained access to their computers. But the issue is scheduled to come before the commission again in March and if the past is prologue, there will have been considerable pressure applied by the fourth floor of the State Capitol by then.

So, what we have here is an administration so cocksure of itself that it notified 69 IT employees that they would be unemployed in a few weeks before it ever got around to making its pitch to the Civil Service Commission, even going so far as to unplug the employees’ computers while their backs were turned.

What could conceivably account for such arrogance, such underhanded Machinations?

For that answer, perhaps someone should ask the governor’s middle school teacher.

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The administrator of a state hospital may have overstepped his authority and placed his office in violation of state civil service rules when he sent a short email to hospital employees two weeks ago.

His email actually pre-dated by eight days the email of LSU Systems President John Lombardi that we wrote about last week. It seems to be the trend these days that the administration of Gov. Bobby Jindal will tolerate no outward signs of resistance from state employees.

This, of course, is the governor who touts his openness, his transparency, his accountability while attempting to suspend the First Amendment to the U.S. Constitution: that pesky little guarantee of free speech and free assembly.

Not that he would ever dirty his hands with issuing a direct order; he’s far smarter than that. That’s what his subordinates are for. People like Lombardi who last week sent out an email admonishing his LSU troops to be thankful they still have jobs and not to be critical of Jindal’s budget cuts.

Now we’ve learned that on Feb. 1, Larry Dorsey, administrator of University Medical Center (UMC) in Lafayette issued an even sterner memorandum to the employees of his facility which is facing the elimination of 130 positions.

Word of the impending layoffs at UMC went out in mid-January in the form of an email from Dr. Roxane Townsend, CEO of the Health Care Services Division of the LSU Health System.

In all, seven facilities will be affected by the layoffs, Dr. Townsend said. Those include, besides UMC, Bogalusa Medical Center, Earl K. Long Medical Center in Baton Rouge, Lallie Kemp Regional Medical Center in Independence, Leonard J. Chabert Medical Center in Houma, Interim LSU Public Hospital in New Orleans, and W.O. Moss Regional Medical Center in Lake Charles.

Dorsey was quick to point out to Capitol News Service that there will not be 130 employees who will lose their jobs because some of the eliminated jobs are vacant positions that will be abolished and that some employees would be allowed to “bump” those with less seniority in order to save their jobs. He did not say how many would actually lose their jobs or how many unfortunate souls would be bumped.

The layoffs at the seven facilities, scheduled to take effect on March 5 once they have been approved by the Director of Civil Service is being proposed due to the inability of the Health Care Services Division to realize $29 million in additional federal funding for care delivered to the uninsured and Medicaid population during the current 2011-12 fiscal year, Dr. Townsend’s memo said.

But back to that Feb. 1 memorandum, issued as an email to all UMC employees. Here it is in its entirety:

“I have had discussions with our attorneys concerning a citizen organizing a rally outside of the hospital. I am directing all employees and physicians not to attend this event either on or off the clock. There are potential serious legal issues with our participating in such an event. Violation of this directive may result in discipline (sic) action against you.” (Boldface emphasis Dorsey’s.)

The rally, organized by private citizens who use the hospital, was held on Feb. 2, the day after Dorsey’s email.

Dorsey told Capitol News Service that he issued the directive on advice of his legal staff.

Perhaps his in-house counsel should have sought legal counsel of her own.

The directive, it turns out, is in direct contravention of the provisions of General Circular 2012-004, issued on Feb. 9 of this year by the Louisiana Department of Civil Service and drawn directly from the state lobbying act: R.S. 24:56. That date, by the way, just happens to coincide with the issuance of the Lombardi email.

The circular, re-issued in anticipation of the 2012 legislative session in order to clarify state classified employees’ rights and restrictions, says that classified employees “are prohibited from engaging in efforts to support or oppose a candidate, party or faction in an election.”

But in the very next sentence, the circular says, “These constitutional restrictions do not prohibit a classified employee from expressing themselves either privately or publicly on issues that may be pending before the legislature or other body.”

The circular cautions employees than when speaking publicly on an issue, “make sure you are addressing matters that are of public concern and not personal to your particular work environment.” The elimination of positions at a state hospital would appear to come under the banner of public concern.

The circular also poses several questions, one of which asked if a classified employees attends a public rally, would it be permissible for the employee to “carry a sign, cheer and boo?”

The circular answered that rhetorical question by saying it is permissible for employees to carry signs, cheer and boo so long as the same standard of public concern is observed.

The circular said a classified employee is allowed to be a member of an organization that lobbies before the legislature but that the employee cannot personally lobby legislators.

Active classified employees are allowed to attend rallies conducted by the Retired State Employees Association, even “on the steps of the Capitol so long as the employee is a member of the association and provided the employee is on approved annual leave if the rally is held during normal duty hours.”

To the question, “Would attending a rally be considered lobbying?” the circular said, “No, it would not. A rally is a gathering of people to inspire enthusiasm for a cause.”

The circular also said that classified employees are allowed to place signs in their yards in opposition to or in support of proposed legislation.

The legal counsel at UMC could well be up for special recognition and perhaps even a merit raise from the Jindal administration for doing such an effective job of stifling employees’ First Amendment rights.

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Bobby Jindal, the “most transparent, most ethical, most accountable” governor in Louisiana’s history just also happens to be a governor who will brook no dissent.

If you don’t believe that, of course, you need only contact Tommy Teague, the firmer director of the Office of Group Benefits (OGB), who was summarily fired last April when he didn’t jump on board the OGB privatization bandwagon quickly enough. Or his wife, who had the temerity to testify against Jindal’s proposed governmental streamlining plan and was fired the very next day. (She won her job back through Civil Service, but it took several months.)

But a more recent example has just surfaced in the form of a lengthy email from LSU System President John Lombardi and the contents of that memorandum are quite revealing of the Politburo mindset of this administration: “Be grateful for what we give you or suffer the consequences.” (The “Politburo” term was given us by friend Judith Howard, a columnist for Ruston’s Morning Paper.)

Lombardi’s memo went out to LSU administrators only hours before the Joint Legislative Budget Committee convened on Thursday to receive Jindal’s executive budget that called for, among other things, the elimination of 2,837 positions in higher education that turned out to be actually “only a handful,” according to testimony given by the Division of Administration (DOA) during Thursday’s testimony.

The discrepancy was explained that the bulk of the job eliminations were for vacant positions that will not be filled. Commissioner of Administration Paul Rainwater did not explain how eliminating already vacant positions would save the state money. And no one asked, certainly no one in higher education.

“In this upcoming session,” Lombardi said in his email, “the administration will be focused on K-12 and retirement reform, and the administration does not think it helpful to have complicated or difficult or contentious higher education initiatives brought before the legislature. Special tuition bills or other initiatives that do not have the complete support of all of higher education will only distract from their effort to hold the budget intact for higher education and complete the rest of their agenda.”

Does not think it helpful Indeed. How many parents would love to be able to sell that concept to their teenagers?

Lombardi also said the LSU Board of Supervisors leadership “has indicated strong support for coordinated messaging to accompany coordinated representation during the upcoming legislative session.”

Of course Jindal appointees make up the majority of that board’s membership. ‘Nuff said about that.

Lombardi also just happens to be in the final year of his contract. ‘Nuff said that, as well.

The budget counts tuition increases in the system’s total state budget allotment and includes tuition paid through the college scholarship program TOPS in much the same manner as it used grants from the 2009 federal stimulus act to prop colleges and universities.

But rather than complain, Lombardi wrote, “In exchange for this good treatment, the administration would appreciate” it if higher education officials recognize that the budget “gives higher ed special treatment and thank the administration for their attention and concern for higher ed.”

You can almost visualize the college presidents, deans and department heads down on their hands and knees at the fraternity hazing initiation saying as the fraternity president lays the leather strap to their backs and buttocks, “Thank you, sir! May I please have another?”

Here is the complete text of his email, which went out at 6:07 a.m. on Thursday:

As you all know, the Division of Administration will present the Governor’s budget to the legislature today. The best information we have from the Administration is that the general outlines of the budget for higher education will include the following:

1. higher education will be provided the same total all funds budget level as last year;

2. the new budget will include Grad Act tuition increases as part of the total all funds budget;

3. savings from the retirement adjustments will be given back to higher ed institutions;

4. only higher ed receives both the hold harmless all funds budget and the additional opportunity to use any retirement savings;

5. there will be no freezes on salary adjustments for employees whether in civil service or not;

In exchange for this good treatment, the administration would appreciate higher ed leadership doing the following:

A. recognize that the budget gives higher ed special treatment and thank the administration for their attention and concern for higher ed;

B. avoid negative messages about higher ed funding this year or overall as the total means of finance for higher ed has experienced a relatively low
reduction compared to other parts of the state budget and compared to other states;

C. recognize the need for retirement reform and recognize the benefit to higher ed of the ability to use the retirement savings at the institutions,
something not possible for other state agencies. Estimate is $100M from retirement savings to higher ed;

D. provided coordinated responses from our PR offices so that all units of higher education respond in the same generally positive and supportive way
to the Administration’s efforts to avoid significant loss of funding from the all funds budgets of higher education institutions.

In this upcoming session, the Administration will be focused on K-12 and retirement reform, and the Administration does not think it helpful to have
complicated or difficult or contentious higher education initiatives brought before the legislature. Special tuition bills or other initiatives that do
not have the complete support of all of higher education will only distract from their effort to hold the budget intact for higher education and
complete the rest of their agenda.

As usual, we will ask Bob Keaton to coordinate the LSU System institution’s responses to legislative issues, and Charlie Zewe will coordinate with
campus public relations offices on the various messages needed.

The Board of Supervisors leadership has indicated strong support for coordinated messaging to accompany coordinated representation during the
upcoming legislative session.

Many thanks.

John

The email may have been written by Lombardi and sent out by him over his name but the document has Jindal’s fingerprints all over it.

Jindal’s promise of $100 million for higher education should his retirement package pass the Legislature this year isn’t really that much when it’s divvied up among all the universities. The LSU system alone is comprised of 11institutions.

Then there are the various campuses of Southern University (Baton Rouge, New Orleans and Shreveport), University of Louisiana-Monroe, Louisiana Tech, Grambling, Northwestern, McNeese, University of Louisiana-Lafayette, Nicholls State and Southeastern. Without even factoring in the junior colleges, that comes to 22 campuses, or an average of less than $5 million each.

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The Jindal administration has made last-minute changes in the executive budget to be submitted to the Joint Legislative Committee on the Budget on Thursday that could, if passed, result in “massive layoffs” in the Office of Group Benefits (OGB), LouisianaVoice has learned.

Under the revised budget, OGB will not be sold outright as originally advanced in an earlier version of the budget but instead OGB’s Preferred Provider Organization (PPO) will be taken over by a third party administrator (TPA) to be run in the same manner as the state’s HMO plan that is currently administered by Blue Cross/Blue Shield of Louisiana.

The original executive budget included a provision for the outright sale of OGB. Had that remained on the table and a buyer found, Morgan Keegan financial advisors of Memphis, Tennessee, stood to reap a $750,000 bonus for finding a buyer for OGB.

It was not immediately clear if the bonus for the legally-troubled firm—Morgan Keegan was fined $210 million by the Securities and Exchange Commission nearly two years ago for misrepresenting critical information to investors—would still be an option.

What is clear, however, is that there would be massive layoffs of OGB employees who currently run the state’s self-insured PPO which presently has a surplus of some $500 million.

Commissioner of Administration Paul Rainwater testified to the legislature last year that it was necessary to reduce the work force at OGB by 149 persons. Ostensibly, those would be the employees who now handle claims for state employees, retirees and their dependents.

The good news is there will be no premium increase to state employees and retirees in Fy-2013.

While the plan to sell OGB has been altered, the contracting of a TPA will nevertheless be tantamount to privatization of an agency that is generally well-received by state employees. The agency has established a record of rapid turnarounds on claims and under former administrator Tommy Teague, amassed the $500 million surplus.

Teague was fired by when he didn’t fall into line quickly enough to suit Rainwater over last spring’s efforts to privatize the agency. In his testimony, Rainwater flip-flopped several times as to whether the governor’s intent was to sell OGB or contract with a TPA. He used both terms almost interchangeably during questioning by legislators.

OGB is only one of several state operations Jindal is attempting to privatize. He succeeded with the Office of Risk Management (ORM), but only partially. The state paid F.A. Richard & Associates (FARA) $68 million in 2010 to take over ORM only to have FARA return eight months later for a contract amendment of $6.8 million, bring the total price to nearly $75 million. A scant two weeks later, FARA was sold to an Ohio company and last fall, that company was in turn sold to a firm out of New York. Neither transfer of ORM to the second or third firm was given advance written approval as was required of the state’s contract with FARA.

Jindal’s efforts to sell two state prisons were thwarted last year but it is expected that those efforts will be renewed.

The governor also is moving ahead full-throttle with his efforts to create for-profit charter schools to replace so-called failing public schools. There are some non-profit charter schools scattered throughout the state but the emphasis has been on for-profit schools as well as vouchers to enable children to move from failing schools to charter schools.

Jindal recently fired a shot across the bow of public school teachers when he unveiled his ambitious education program not before teachers but at the annual meeting of the Louisiana Association of Business and Industry, a virtual slap in the teachers’ faces by the proponent of virtual schools.

Jindal elevated—or lowered, if you prefer—the debate be suggesting that the executive director of the Louisiana Association of Educators should resign for his remark that poor, uneducated families might not have the wherewithal or the expertise needed to navigate the bureaucracy to transfer their children to better schools under Jindal’s proposed voucher system.

The governor, not content with simply promoting his program, suggested that teachers are given pay raises for the simple act of breathing and that they could only be fired for selling drugs in the workplace (schools).

Parts of the state’s Medicaid program have also been privatized by Jindal but his efforts to contract out the Department of Health and Hospital’s information technology services met stiff resistance from the state Civil Service Commission last week.

That confrontation, won for the moment by the Civil Service Commission, could serve as the impetus for Jindal to renew his unsuccessful 2010 efforts to abolish civil service and the Civil Service Commission.

State Rep. John Schroder (R-Abita Springs) introduced a handful of bills that year dealing with merit pay raises for state classified workers, and civil service in general, none of which were passed.

All of Jindal’s privatization proposals appear to be ripped directly from the pages of the playbook of the American Legislative Exchange Council (ALEC).

That playbook, an actual internet web page, includes a section entitled “Tools to Control Costs and Improve Government Efficiency. Among the “tools” it recommended were:

• Adopt a state hiring freeze;

• Reform state pensions;

• Delay automatic pay increases (we wondered where legislators came up with the term “automatic” in freezing merit increases a couple of years back;

• Embrace the expanded use of privatization and competitive contracting;

• Restructure state retiree health care plans.

Jindal only recently unveiled his plan for restructuring the state retirement system, a plan that includes tighter retirement qualifications, increased employee contributions, a revised formula for calculating benefits, defined contributions as opposed to the present defined benefits plan (similar to 401K plans found in the private sector, and a proposed lump-sum payout upon retirement.

The one issue that has remained unaddressed in the retirement discussion is if the state does go to a defined contribution plan such as those found in 401K plans, will the state then be required to pay the usual employer share to Social Security?

Some state employees currently do not pay into Social Security and thus are not qualified for Social Security benefits or Medicare upon retirement unless they worked in the private sector prior to their state employment.

If Jindal should revamp state retirement, it could mean that the state could be required to pay the customary employer percentage into those programs which could mean any savings achieved by privatization could be negated.

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It is a long-held tradition at all levels of government that anytime an agency does not want attention drawn to any official action, make the announcement late on a Friday afternoon when most of the “working” media have left for the weekend.

If that Friday just happens to be on the eve of a major holiday like Christmas or New Year’s, so much the better.

That’s what happened with the Division of Administration (DOA) and two news releases about major personnel changes recently. We waited until now to assist DOA in disseminating the stories.

DOA actually issued its official announcements not on Fridays but toward the close of business on Thursday, Dec. 22, and Thursday, Dec. 29 because, well, both Fridays were official state holidays for Christmas and New Year’s, respectively. It had the same effect, of course, as a Friday release on a normal work week: near zero media attention and less than zero media follow-up.

On Thursday, Dec. 22, the official news release went out announcing the appointment of Charles Calvi, Jr., to serve as Chief Executive Officer of the Louisiana Office of Group Benefits (OGB).

The following Thursday, on Dec. 29, it was announced that Mark Brady was leaving as DOA Deputy Commissioner of Administration.

Both announcements were made by Commissioner of Administration Paul Rainwater.

Actually, the second news release was not so much to announce Brady’s departure as to proclaim the appointment of Assistant Commissioner Ray Stockstill as his successor. In fact, Rainwater devoted precisely two sentences to Brady:

“Rainwater also thanked and praised outgoing Deputy Commissioner Mark Brady, who will assist the Division in transition through January before returning to the private sector,” the news release said. The release quoted Rainwater as saying, “‘Mark’s contribution has been invaluable, and I am grateful for the integrity, intelligence, and passion that he brought to the job and that I’m sure will serve him well in his next endeavors.’”

That’s it. Nothing about his tenure at DOA, nothing about his previous background, nothing about his reasons for leaving or his future plans except that he was “returning to the private sector.”

There were no mentions of the previous two OGB CEOs, both of whom left or were fired in 2011. Nor was there any explanation of how the two moves may be inter-connected or how Brady was at the forefront of last spring’s efforts to sell off OGB to private investors.

Tommy Teague was fired by Brady last April 15 when Brady and Rainwater concluded that Teague was not sufficiently enthusiastic about the administration’s proposed selloff of group benefits and its $500 million surplus.

He was replaced by Scott Kipper, who resigned effective June 24, after a controversial report by Chaffe & Associates of New Orleans did not square up with the administration’s insistence that the OGB sale and accompanying elimination of 149 jobs would be good for the state, 62,000 state employees and even more retirees and dependents.

When the Chaffe report did not say what Gov. Jindal desired, the administration subsequently retained Morgan Keegan to conduct a financial analysis of OGB preparatory to a second effort to sell off the agency despite vocal opposition from retired state employees, retired teachers and a state district judges’ association.

The Morgan Keegan report is expected to be finalized and submitted to the state in February but if events play out the way they did with the Chaffe report, don’t expect Rainwater to be forthcoming with contents of the report. Rainwater, despite harsh criticism from legislators, steadfastly refused to release the Chaffe report to lawmakers.

Rainwater did not hesitate to throw Brady under the bus during Brady’s testimony before the Senate and Governmental Affairs Committee. Committee members, lead by Sen. Ed Murray, subjected Brady to withering criticism over the administration’s refusal to release the report as Rainwater busied himself texting even as Brady twisted in the wind.

Following the Chaffe debacle and Jindal’s embarrassing setback in his efforts to sell three state prisons, the administration pulled back on its privatizing efforts. In the interim, the Office of Risk Management (ORM) has been transferred to a third private firm in apparent violation of the state’s contract with F.A. Richard & Associates (FARA).

The state paid FARA $68 million to take ORM off its hands and then amended that contract by another $6.8 million less than two weeks before FARA was sold to Avizent Risk Management Solutions of Ohio which was in turn recently purchased by York Claims Service of New York.

The state’s original contract with FARA specifically prohibits any transfer of contractual services without prior written consent. When a public records request was made for written consent to transfer the contract, DOA responded that no such documents exist.

Rainwater announced nothing further will be done toward the sale of OGB until early 2013. And while OGB proposed a rate increase of about three percent for the coming year, the administration insisted on at least a five percent bump. The bigger increase will obviously make the agency far more attractive to potential buyers.

Calvi has more than 40 years of experience in the healthcare, insurance and employee benefits fields. For seven years he worked for Gulf South Health Plan. He also worked eight years as CEO of BestCare, Inc., where he developed and owned the first Physician Hospital Network in the state.

Stockstill is a retire-rehire employee who had previously worked in DOA as state director for planning and budget until being named assistant commissioner in February of 2010. He retired from that $180,000 per year position, effective Christmas Day of 2010 and returned as a re-hire two days later.

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