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Archive for the ‘Teague’ Category

Were they Teagued? 4 top-level IT employees leaving over Jindal plans to outsource Office of Information Technology

Posted in Campaign Contributions, Contract, Contracts, Privatization, Teague, Uncategorized on February 5, 2013| 25 Comments »

LouisianaVoice has learned that Louisiana’s Chief Information Officer (CIO) Ed Driesse and three members of his staff have already or are quitting, apparently over ongoing disagreements with Gov. Bobby Jindal’s staff regarding the outsourcing of the State Office of Information Technology (OIT).

Driesse, who makes $167,000 a year, was contacted Tuesday and said his last day will be April 5.

Assistant Director Barbara Oliver and Deputy CIO Randy Walker retired on Jan. 18. The third, Assistant Director Mike Gusky, is also scheduled to leave, Driesse said.

Oliver presently earns $118,000 per year and Gusky’s salary is $117,000, according to State Civil Service records. Walker’s salary was unavailable.

As the state CIO, Driesse heads the Office of Information Technology in the Division of Administration (DOA) within the Office of the Governor.

The CIO is the state’s point person for matters related to IT and IT resources, including setting policies, standards, hardware and software deployment, strategic and tactical planning, acquisition, management, and operations in keeping with industry trends, both private and public. The CIO oversees several IT organizations within the DOA, acting as architect and primary executor of technical and business strategy for IT in Louisiana state government.

Act 772 of 2001set forth several policies of OIT, including:

• The implementation of IT standards for hardware, software and consolidation of services;

• The review and coordination of IT planning, procurement and budgeting;

• The providing of oversight for centralization/consolidation of technology initiatives and the sharing of IT resources;

• Assuring compatibility and connectivity of Louisiana’s information systems;

• The providing of oversight on IT projects and systems for compliance with statewide strategies, goals and standards.

Several additional legislative acts in 2001 provided for:

• The electronic government structure for the executive branch (governor’s office) of state government;

• The duties of the Office of Telecommunications Management (OTM);

• Electronic governmental transactions;

• Electronic transactions by certain state agencies.

Act 409 of 2009 abolished the Office of Electronic Services and transferred its duties to OIT. At the same time, it redefined the duties of the Louisiana Geographic Information Systems Council and the Louisiana Geographic Information Center.

Last February, the Civil Service Commission rejected a plan to terminate 69 IT employees in the Department of Health and Hospitals when DHH attempted to push through a privatization contract with the University of New Orleans (UNO).

Last October, eight months after that initial effort, the Civil Service Commission signed off on a revised proposal that called for revamping DHH IT services.

That plan, which involved no layoffs, called for various IT functions to be spread out among four different entities—DHH, the University of Louisiana Lafayette, UNO and a private vendor, Venyu Solutions. The move was projected to save about $1.12 million from the current $37.8 million expense, the administration said.

Venyu contributed $5,000 to Jindal’s re-election campaign in October of 2011.

In 2012, Louisiana was one of only seven states to receive an A-grade in national rankings on providing online access to government spending data. The state’s score of 92 out of 100 was tied with Massachusetts. Arkansas, by contrast, received a grade of F. The state received a score of only eight out of 100, for third worst in the nation.

The rankings were compiled by the U.S. Public Interest Research Group (PRIG) Education Fund, a consumer watchdog organization that promotes and evaluates transparency in government spending.

Louisiana’s OIT was also cited as having taken the lead among states in providing detailed performance evaluations of government agencies.

Driesse has 15 years’ experience as a chief information officer in both the public and private sectors, including three Fortune 500 companies.

Prior to his appointment, he served as CIO for DHH and also served as CIO for AECOM Technology Corp., a global design and management services company in Los Angeles, where he managed a budget of more than $50 million and a staff of 260.

He also served as CIO for Foster Wheeler, Ltd., a global engineering and construction company in Clinton, N.J., where he oversaw the global deployment of the JD Edwards integrated applications system.

Driesse also served as Vice President and CIO for Zimmer, Inc., of Warsaw, IN, and for HealthTrust, Inc., of Nashville, TN.

He holds a B.S. in mathematics and a M.S. in computer science, both from the University of Louisiana Lafayette.

There was no word on the planned privatization of OIT.

An email inquiry to the Jindal’s office got no response.

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After three legal setbacks, the next logical step for π-yush is to follow the lead of Egypt’s Morsi: suspend the court system

Posted in ALEC, American Legislative Exchange Council, BESE, Education, Ethics, Golf Courses, Governor's Office, Health Care, Higher Education, Judges, Legislature, Legislators, LSU, Prison, Privatization, Retirement, Teague, Toledo Bend, Water Sale on December 6, 2012| 7 Comments »

First it was a federal judge who threw out Piyush Jindal’s voucher plan in Tangipahoa Parish because it posed a major setback to the parish’s current desegregation consent decree.

Then, last Friday, a state district judge, Tim Kelley, whose wife once worked for Piyush, said the method of appropriations to fund the statewide voucher program is unconstitutional.

Fast on the heels of Kelley’s ruling, fellow Baton Rouge District Judge William Morvant refused to throw out a lawsuit challenging the only part of Piyush’s far-reaching retirement reform proposals that survived the legislative session earlier this year.

In case you’re counting, that’s oh-for-three—not a good batting average for the governor who would be president.

Keep in mind that Piyush is the incoming chairman of the National Republican Governors’ Association.

Remember, too, that he thought he would be moving into that position in the hope that it would be the launching pad for his presidential aspirations. To do so, he needed to bring something substantial to the table.

That something was to be sweeping education reform. That was to be the centerpiece of his list of grand accomplishments, the bold-face type on his curriculum vitae.

Now, the status of both education and retirement reform are suddenly in jeopardy.

Suddenly the star of the errand boy of the American Legislative Exchange Council (ALEC) doesn’t shine quite so brightly.

What to do?

The obvious answer would be to teague someone. That practice, after all, has served him well in the past. No college president, attorney, doctor, agency head, legislator or rank-and-file state employee will dare rebuke Piyush lest he or she be shown the door.

There was a time when we would have run a recap of those teagued by this peevish little man, but the list has grown so long that it would take up far too much space.

On reflection, however, one must ask just what are Piyush’s alternatives?

Well, normally he could campaign against the re-election of judges Kelley and Morvant—except he already did the anti-judge campaign thingy in Iowa.

He can’t teague the federal judge; he was appointed by the president.

He can’t teague either of the state judges—Kelley or Morvant—because they were elected by voters of the 19th Judicial District.

He can’t teague Jimmy Faircloth, the attorney who so expertly represented the interests of the state in arguing on behalf of the voucher program because Faircloth was working under a contract that ends when all appeals are exhausted—about $100,000 or so down the road.

He can’t teague Angéle Davis, wife of Judge Kelley because she already resigned her position as Commissioner of Administration.

He can’t teague the legislator who introduced the education bills because they were not written by any Louisiana elected official but by the corporate honchos at the American Legislative Exchange Council (ALEC).

He might consider teaguing Superintendent of Education John White since there are already unconfirmed rumors floating around that he is leaving soon.

But there is a far better option open to Piyush:

He could take a page from the playbook of Egyptian President Mohammed Morsi.

It’s such a simple solution we’re surprised no one has thought of it before.

All he has to do is first invoke that obscure nullification clause which several states unhappy with last month’s presidential election are bantering about—the one that says states can unilaterally ignore a federal law they don’t like. Or even opt out of the union itself. Some in Texas are talking about splitting off and breaking the state into five separate states (pure lunacy, but a philosophy that dovetails nicely with that of the Tea Party).

Then, like Morsi, Jindal can unilaterally decree greater authority for himself, including issuing a declaration that the wrong-headed courts are henceforth barred from challenging his decisions.

(Come to think of it, such a move is not exactly unprecedented. President Andrew Jackson said of the U.S. Supreme Court’s decision that the state of Georgia could not impose its laws on Cherokee tribal lands, “(Chief Justice) John Marshall has made his decision, now let him enforce it.”)

After that, he could even take it a step further and, like North Korea’s late Kim Jong-il, bestow upon himself the title of “Dear Leader,” and, again like Kim Jong-il, commission a song of the same name in his honor.

Think about it. If he were to take that action, he could sell prisons, the old insurance building property, hospitals, roads, universities, the Saints and the Zephyrs, not to mention a few state-owned golf courses and state parks.

That water from Toledo Bend Reservoir? Sold. Gone to Texas and a few select political cronies are even richer than before.

And you only think you’ve seen a lot of corporate tax breaks, incentives and exemptions. Once he issues his decree, corporate taxes would disappear into that sink hole in Assumption Parish.

All state employees who aren’t fired outright (to be replaced by telecommuting administrative types from Florida, California, Alabama and elsewhere) would immediately forfeit all health and retirement benefits—except for friendly former legislators who, of course, would be elevated to six-figure salaries with full benefits.

The Department of Civil Service, public schools and the State Ethics Board would become distant memories for the nostalgic among us.

Of course, were he to take such action, he could always say his decision was predicated “by three things: one, to protect needed reform packages; two, to streamline government so at the end of the day, we can do more with less, and three, I have the job I want.”

Opponents could be expected to condemn his decrees as heavy-handed and dictatorial but what else would you expect from those who represent the coalition of the status quo?

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Notable Quotables (in their own words)

Posted in Governor's Office, Health Care, House, Senate, Legislature, Legislators, OGB, Office of Group Benefits, Politicians, Privatization, Teague on November 2, 2012| 2 Comments »

“Everything they (legislative committees) do is scripted. I’ve seen the scripts. They hand out a list of questions we are allowed to ask and they tell us not to deviate from the list and not to ask questions that are not in the best interest of the administration.”

—Rep. Joseph Harrison (R-Gray), on his removal from the House Appropriations Committee by House Speaker Chuck Kleckley (R-Lake Charles) on Friday, one day after Harrison voted against the Jindal administration on the proposed contract between the Office of Group Benefits (OGB) and Blue Cross/Blue Shield of Louisiana (BCBS).

“I was elected by the people of (House) District 82 on a platform of fiscal responsibility. It is the job of legislators…to ask difficult questions necessary to ensure that taxpayer dollars are spent efficiently and wisely.”

—Rep. Cameron Henry (R-Metairie), on his removal from the House Appropriations Committee on which he served as vice-chairman following his vote against the Jindal administration on the proposed OGB contract.

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Caroline Fayard was right: some Republicans eat their own; π-yush teagues 2 GOP Appropriations Committee members

Posted in Ethics, Governor's Office, House, Senate, Legislature, Legislators, OGB, Office of Group Benefits, Politicians, Privatization, Teague on November 2, 2012| 13 Comments »

House Speaker Chuck “The Eunuch” Kleckley Friday removed House Appropriations Committee vice chairman Cameron Henry (R-Metairie) and Appropriations Committee member Joe Harrison (R-Gray) one day after each voted for a motion by Rep. Katrina Jackson (D-Monroe) that the administration opposed.

(Eunuch: (1) a castrated man placed in charge of a harem; (2) a man deprived of the testes or external genitals (3) one who lacks virility or power—Merriam-Webster Online Dictionary.)

Henry was reassigned to the House Civil Law and Procedure Committee while Harrison was moved to the House Commerce Committee.

When Sen. Dan Claitor (R-Baton Rouge) jokingly referred to himself as the “former member of the Senate Finance Committee” during Thursday’s joint hearings by the House Appropriations and the Senate Finance Committee, he was closer to the truth than even he wanted to admit.

Claitor had just objected to a motion by Senate President John Alario (R-Westwego) to defer action on the proposed contract between Blue Cross/Blue Shield (BCBS) and the state that called for BCBS to take over as third party administrator for the Office of Group Benefit’s (OGB) Preferred Provider Organization health coverage plan.

His objection forced a vote on Alario’s motion and the motion subsequently passed by a vote of 11-3 but the House never got a chance to vote because Commissioner of Administration Kristy Nichols pulled the contract from the committees’ agenda before the House members could vote on Rep. Katrina Jackson’s substitute motion to reject the contract.

Claitor, at this writing, still has his seat on the Senate Finance Committee but that, as Jindal has shown, is subject to change on very short notice.

The latest purge brings to four the number of legislators Gov. Piyush “The Putsch” Jindal has teagued this year for having the temerity to oppose the state’s absentee chief executive. Earlier this year, Reps. James Morris (R-Oil City) and Harold Richie (D-Bogalusa) were removed from the vice-chairmanship of their respective committees.

Morris was demoted from the House Natural Resources and Environment Committee for opposing Jindal’s decision to use one-time money to fund recurring expenses in the state’s General Budget. Richie opposed tax rebates for those who donate money to private and parochial schools.

Jindal has made it abundantly clear on several other occasions that dissention will not be tolerated in his administration. There is simply no room for dialog. This incredibly petulant governor has never learned that politics is the art of compromise. He has fired department heads, university presidents, physicians, attorneys, board members and rank and file employees at the slightest hint that they are not 100 percent on board with his agenda.

Jindal spokesperson Shannon Bates, of course, issued the standard denial that the administration had requested (read: demanded) that Harrison and Henry be removed.

The administration did provide a prepared statement from the governor who, as usual, is campaigning, ostensibly, for Mitt Romney in Ohio: Speaker (“Eunuch”) Kleckley is a fair-minded and proven leader,” Piyush (or Timmy Teepell or Kyle Plotkin—who knows who writes this stuff?) said. “We support the Speaker and the decisions he makes regarding the organization of House committees.”

While he didn’t say so, it is rumored that Jindal also has some ocean front property in Kansas that he’s willing to sell.

Just how long the legislature—and the state’s citizens—will stand for his unabashed grab for absolute control of every facet of state government is anyone’s guess but Henry and Harrison were livid over their ouster.

Harrison, interviewed by LouisianaVoice, said the occupants of the State Capitol’s fourth floor “are not people of good character. Their word is no good.”

Seven members of the Appropriations Committee are elected by members of the House—one from each congressional district—and Harrison was the leading vote getter for the position from the Third Congressional District when Kleckley (aka “Gelding”) approached him and asked that he withdraw as a candidate so that the second-leading vote-getter, Rep. Simone Champagne (R-Erath) could be on the committee. “He (Kleckley) said he would then appoint me and he promised that he would not remove me,” Harrison said.

Ironically, Champagne was promoted by Kleckley to Henry’s old vice chairmanship.

“I agreed and when he called me on the phone to tell me I was no longer on the committee, I reminded him of that. I said, ‘So, you are not a man of your word.’

“He didn’t even show me the dignity of calling me into his office to fire me; he did it over the phone. And he wouldn’t even give me a reason,” Harrison said of Kleckley. “He just said some other Republicans had complained about me. I asked, ‘Which Republicans, Timmy Teepell?’ He said, ‘I don’t take my orders from Timmy Teepell.’ I said, ‘Yeah, right.’”

Harrison lashed out at the administration, saying, “Everything they do (on the legislative committees) is scripted. I’m not making this up; I’ve seen the scripts. They hand out a list of questions we are allowed to ask and they tell us not to deviate from the list and not to ask questions that are not in the best interest of the administration.

“That is not how the State Constitution defines the three branches of government,” he said. “We no longer have a legislative branch of government.

“I don’t mind following men, but I don’t follow boys,” he said in obvious reference to the gaggle of young aides with which Jindal has surrounded himself. “We’re being directed by a bunch of youngsters on behalf of a man not even in the state. How can we, in the critical financial situation this state is in, have inept youngsters telling us what the governor wants when we don’t even see the man?”

He then singled out Jindal’s former chief of staff Timmy Teepell who resigned a year ago to hed up the Baton Rouge operations of OnMessage, a political consulting firm out of Maryland. OnMessage has no Baton Rouge address or phone number and Teepell apparently runs his consulting business from the governor’s office on the fourth floor of the State Capitol.

“Teepell is the puppeteer in this administration. How can you have a man serving as de facto head of state government who never went to school and who never interacted with other people while growing up? The man is anti-social,” Harrison said.

Henry was no less critical of Jindal.

“It is the job of legislators, particularly those serving in leadership roles, to ask the difficult questions necessary to ensure that taxpayer dollars are spent efficiently and wisely,” he said.

“I have been at odds with the speaker and the administration over fiscal issues for the last several years, asking questions about the constitutionality of the state budget; use of one-time and contingency money, fund sweeps and disastrous mid-year budget cuts that impact healthcare systems like LSU, as well as higher education.

“This action by the speaker and the governor demonstrates that they are afraid of having legislators do the job they were elected to do. The people of Louisiana are suffering as a result.”

He said what he called a series of “irresponsible decisions by the speaker and administration” demonstrate that they are not serious about fiscal discipline and following the Constitution.

“The State Constitution contains clear and strict limitations on the budget process for a very good reason,” he said. “These sensible limitations on deficit spending exist so that we can craft realistic, fiscally-responsible budgets through a transparent and deliberative process. Following the constitution is the only way to have a stable, sustainable budget that best serves the needs of the people, families and businesses of Louisiana.”

He said he was disappointed but not surprised at the administration’s action. He said Jindal and Kleckley were trying to ensure they had “yes-men and yes-women” on important committees who would trust the administration and not challenge it.

“We didn’t get elected to trust people. We got elected to ask questions,” he said.

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Former OGB employee critical of BCBS contract with OGB: Legislative committees to consider proposal on Thursday

Posted in Civil Service, Contract, Contracts, Governor's Office, Health Care, Jobs, Layoffs, Legislature, Legislators, OGB, Office of Group Benefits, Privatization, State Agencies, Teague on October 31, 2012| 2 Comments »

Editor’s note: LouisianaVoice would like to acknowledge and thank Kay Prince of Ruston for contributing much of the research that went into this article. She has worked tirelessly with former Sen. Butch Gautreaux on this issue and was gracious enough to share this information with us for our use.

A former employee of the Louisiana Office of Group Benefits OGB) has taken issue with several points in the proposed contract between the Division of Administration (DOA) and Blue Cross/Blue Shield of Louisiana (BCBS) that calls for BCBS to take over the operations of OGB’s Preferred Provider Organization (PPO) plan as the plan’s third party administrator (TPA) in January.

The former employee, who is now retired, examined the contract which is scheduled for consideration by a special joint meeting of the House Appropriations and Senate Finance committees on Thursday, Nov. 1 and found several areas in which he said the state will be getting a bad deal if the contract is approved.

Gov. Piyush Jindal has pushing for the transition for nearly two years now in what he insists will be a cost-cutting measure but which will result in the loss of 177 positions at OGB and 111 actual jobs. The other 66 positions are currently vacant.

One of the things the former employees warns about is an obscure clause on page 8 the contract which says the maximum amount to be paid BCBS shall not exceed $1.1 billion for any one year “unless the director of the Office of Contractual Review approves a contract amendment.” (emphasis ours.)

That is an important provision considering what happened with the privatization of the Office of Risk Management (ORM) in September of 2010. Under terms of that contract, the state was to pay F.A. Richard and Associates (FARA) of Mandeville $68 million to be the TPA for ORM but only a few months into its contract, FARA asked for and received a $6.8 million amendment to its contract, increasing the over contract cost to just under $75 million.

Legislators were upset to learn that the amendment was legal because the law allows a one-time contract amendment of up to 10 percent with only the approval of Contractual Review. The FARA contract amendment was exactly 10 percent and legislators had no say in the matter.

The Jindal administration claims that allowing BCBS to become the TPA for OGB will save the state $20 per year. But if BCBS should seek a similar 10 percent increase in its contract, the $110 million in additional contract costs would wipe out any savings.

Administration projects of OGB’s spending 100 percent of budgeted amounts in several areas whereas the agency historically has spent between 65 and 80 percent of budgeted amounts on administrative costs. “This inflates the projected savings by approximately 20-35 percent,” the retired OGB official said.

Projected savings on building rental may also be overstated, he said, because OGB is locked into a 10year lease for its Baton Rouge office space. The cost of that lease is $100,000 per month and will not be reduced unless OGB can renegotiate its lease.

He said it was misleading to compare Louisiana to other states. First, the only other state that self-administers its health benefits program is Utah which has a smaller population. “You cannot compare staffing patterns for completely different ways of doing business” as the administration did with Florida and Mississippi, for example. “You need to compare total administrative costs for the other states, not just (the) number of employees,” he said.

But of even more importance, he said, is the misconception that it was a sound move to reduce premiums by 7 percent last July.

“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 in premium that was approved by the Division of Administration,” 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.

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

State health insurance programs have varied over the years and remained pretty much in a state of flux until the administration of OGB CEO Tommy Teague, who was fired on April 15, 2011. It took a major political scandal involving a top state administrator and underworld boss Carlos Marcello to pull the state’s health and life insurance programs out of the doldrums.

OGB itself is relative new as a state agency, having been created on Sept. 1, 1979, as a result of the FBI’s Brilab sting operation which resulted in Commissioner of Administration Charles Roemer’s conviction of conspiracy to violate federal racketeering laws over accusations that he and Marcello took part in a scheme to win a multi-million dollar state group insurance contract through bribery.

Roemer served 15 months of a three-year prison term before his conviction was overturned.

Prior to July 1, 1970, each state agency was responsible for procuring its own insurance contract for its employees. This created a multitude of problems since each contract had different dates, coverage, premiums, etc. Plus, when an employee transferred from one agency to another, it forced the employee to switch coverage which resulted in considerable confusion and in some cases, loss of coverage because of different waiting periods among the various contracts.

The Uniform Insurance Act was passed and went into effect on July 1, 1970 and all Executive Branch agencies were brought under one consolidated health/life insurance contract, which was awarded to Blue Cross for health and Pan American Life for life insurance.

In 1973, when Blue Cross proposed a significant rate increase, the contracts with both Blue Cross and Pan American were terminated and the state’s health and life insurance programs became self-funded by the state. Continental Assurance (CNA) was retained as the TPA to handle claim payment functions, an arrangement that remained in effect for the remainder of the seventies.

It was during this time that the FBI began its sting operation after learning of alleged bribes and the legislature subsequently passed Act 749 of the 1979 regular session which created OGB and placed it under the State Treasurer’s office.

On May 1, 1981, the CNA contract was terminated and all employees who were working for CNA were offered an opportunity to become Civil Service employees, effective May 1. The agency operated under this arrangement until 1998 when the legislature was forced to make a supplemental appropriation of $77 million to cover an unfunded accrued liability (UAL) in the program because the OGB trustees had failed to increase rates to keep up with the program’s claims experience.

The program continued to operate with an UAL until the mid-2000s at which time it began generating a surplus each year through FY 2011, going from a $105 million deficit to its current $500 million surplus in about five years.

Here are the links to the committee memberships:

http://house.louisiana.gov/H_Cmtes/H_Cmte_AP.asp
http://senate.legis.louisiana.gov/Finance/Assignments.asp

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