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Archive for the ‘Transparency’ Category

The late Supreme Court Justice Louis Brandeis, speaking of open meetings and above-board actions of elected and appointed officials, once said that sunshine is still the best disinfectant.

A metaphoric observation, of course, but nonetheless applicable in the case of the recent first-ever joint meeting of Louisiana’s five higher education boards.

Apparently at least two members of the University of Louisiana System Board of Trustees don’t see the necessity of making board decisions in the open and in public view.

Strangely enough, it took a suggestion from an outsider to inadvertently elicit remarks by the two ULS trustees that perhaps Louisiana should have no open meetings laws on the books.

Their utterances, whether made out of arrogance or ignorance, should anger every voter in Louisiana. Gov. Bobby Jindal’s “transparency in government” long ago turned into a sick joke, so there’s no need to add insult to injury.

Terry MacTaggart of the national Association of Governing Boards of Universities and Colleges (yes, it turns out even university governing boards have their own national lobby), served as moderator for the event and suggested to board members that they hold a “pre-meeting” in order to formulate policy.

Such “pre-meeting” would be in direct violation of the state’s open meetings laws which expressly prohibit any public body meeting in secret to discuss business. Board of Regents Chairman Bob Levy of Ruston, who also serves as district attorney for the Third Judicial District of Louisiana that includes Lincoln and Union parishes, was quick to set MacTaggart straight. He told MacTaggart, who works out of Washington, D.C., that Louisiana law strictly prohibits such activity.

It was at this point that ULS board member Gerald “T-Boy” Hebert and board Chairman Winfred Sibille contributed their opinions that should demand their immediate resignations.

Hebert, a major financial contributor to the University of Louisiana Lafayette, responding to Levy’s reminder of the requirements of the state’s “vigorous open meetings law,” hinted that perhaps a “joint effort to lobby the Legislature will change the law.”

Wait. What?

Did he really suggest weakening or worse, abolishing the state’s open meetings law? Sounds that way to us.

But in a statement that dripped with irony, Sibille said, “The worst thing that can happen at a board meeting is a surprise.” That remark in itself was something of a surprise. Apparently all public meetings are supposed to go smoothly with no debate or open discussion. Sibille then underscored that sentiment when he added, “All problems should be resolved before the meeting.”

Perhaps not since the days of Huey Long has anyone been so brazen as to suggest that public input be shut out of the decision-making process by any public body in Louisiana.

Open political debate has been the hallmark of this country’s government since its founding nearly 235 years ago. In New England they still have town meetings which are nothing like the orchestrated, controlled town meetings held by presidents Bush and Clinton and our current governor. Those are sound bite opportunities. New England town meetings are the bedrock of democracy. At those events, local citizens actively participate in policy-making decisions. To suggest otherwise to the citizenry there would be an open invitation to a new American Revolution.

If Hebert and Sibille are so arrogant as to have even a scintilla of conviction in what they said in that joint meeting, they should resign immediately.

If they are so ignorant as to not realize the ramifications of their remarks, then they have no business serving on any public board—certainly not the self-parody of a board of higher education—and they should resign immediately.

In short, there is no logical reason for either man remaining on any board.

There is no room for public men to advocate private decision-making by a public, taxpayer-supported board out of the sight of the taxpaying public. Their comments should incite outrage among voters.

Conversely, Louisianans owe a debt of gratitude to both Regents Chairman Bob Levy and ULS board member Jimmy Faircloth.

Faircloth, former executive counsel to Gov. Jindal, fired his own volley when he said board members get agendas and background information prior to the meetings so they should be prepared to discuss issues going in. But the public doesn’t always get the full story, he said. “Some of the substance is not discussed in meetings,” he said. “News about higher education is distributed through carefully-tailored press releases.”

Faircloth said none of the board members are elected but instead are appointed, so they should be prepared to make tough decisions and not be afraid of speaking their minds. “It would be healthy for open discussions to be on the record,” he said.

Levy was even blunter. Many board members are afraid of open discussions at open meetings, he said.

That begs the obvious question: Why are they afraid?

We’d be interested in hearing their answers.

Like Louisiana Music? Be sure to check out Louisiana Rocks! The True Genesis of Rock & Roll! This book is the only complete history of all genres of Louisiana rock and roll. Re-live all those great old songs that used to play late nights on WTIX, WNOE, KAAY. Learn about all the great artists like Elvis, Johnny Cash, Jim Reeves, D.J. Fontana, Floyd Cramer, and Hank Williams who got their start on the Louisiana Hayride. Check your local bookstore or log onto http://www.louisianarockstomaswell.com.

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The big news out of the nation’s capital last week was a Feb. 3 Washington Post story trumpeting the fact that the federal government spent $15 billion less on contracts for outside products and services during fiscal 2010, the first reduction since 1997.

The $15 billion cutback in contracted services will barely show up in the federal budget but the decrease from $550 billion to $535 billion is a start for those seeking ways to reduce the federal deficit.

The $550 billion spent on contracts during fiscal 2009 was more than double the amount awarded in federal contracts as recently as 2001. Federal contracts have gone unchecked for so long that the practice spawned its own organization. The Professional Services Council is a trade association (read: lobbyist group) formed specifically for the government professional and technical services industry.

Gov. Bobby Jindal and the Louisiana Legislature might be wise to take their cue from Washington for a change instead of continuing to snipe at the Obama administration—at least on this one issue. Obama’s fiscal 2012 budget will propose an additional reduction of 10 percent in federal contracts. That’s another $50 billion or so in cuts, something that should make fiscal conservatives weep for joy.

For fiscal year 2008-09, the latest data available, Louisiana had 6,304 contracts for goods and services worth a whopping $5 billion, according to the state’s annual report for that year. That figure is somewhat misleading in that nearly $3.2 billion was in the form of 1,083 cooperative endeavor agreements ($2.9 billion), 468 interagency contracts ($213.4 million) and 495 intergovernmental contracts ($79.4 million). In other words, it was money simply shuffled between agencies.

But that still leaves 1,292 professional services contracts ($178 million), 160 personal contracts ($7.4 million), and 1,275 consulting contracts (an eye-popping $1.4 billion).

Like the federal contracts, state contracts have increased by 153 percent in dollar amount since fiscal 2005-06 when a paltry $2 billion in contract work was on the books. That amount made a quantum leap to $3.3 billion the very next year (a 64.6 percent increase), and jumped to $4.7 billion in 2007-08, an increase of another 44.5 percent.

Granted, much of that increase in 2006-07 was for contracts for recovery from two devastating 2005 hurricanes—Katrina and Rita—and granted, much of the money was from the influx of federal disaster relief dollars. But once the genie is out of the bottle, it’s hard to put her back. In 2008-09 the dollar amount nudged up another $337 million, helping to set the stage for the budgetary disaster now being faced by the Legislature and the Jindal administration.

The state has a $37.2 million interagency contract with the office of the attorney general for legal representation to various state agencies, boards, commissions, and departments but still sees the need for scores of private legal firms across the state to “provide legal services to various state agencies.” Only the top 50 contracts were listed in the report, but 41 of those totaled an additional $33.4 million. Eight of those contracts were for legal services totaling $18.3 million on behalf of indigents statewide, the report said.

Contracts, particularly professional service and consulting contracts are handed out by the state like so much candy on Halloween night and there appears to be little oversight. Fully half of all state contracts awarded during 2008-09 were not approved by the Office of Contractual Review (OCR).

The $5 billion for the 6,304 contracts approved by OCR is only part of the problem. Hidden away among all the numbers spewed out so far is another $655.5 million for 6,341 contracts that were awarded in fiscal year 2008-09 which were approved not by Contractual Review, but by the individual agencies awarding the contracts.

These contracts, awarded under an obscure state law that allows the OCR director to delegate authority to state agencies for approval of professional, personal, consulting and social services contracts. Typically, such contracts are for $20,000 or less but the statute also grants leeway to the OCR director to delegate that authority to any state agency as deemed appropriate.

Accordingly, 5,334 of those contracts awarded under the delegation of authority were for amounts below the $20,000 threshold. Those 5,334 contracts totaled $51.7 million, an average of $9,700 per contract. Another 1,007 contracts totaling $603.7 million, however, were also awarded under the delegation of authority.

More than half of that amount, $330.9 million, was accounted for in 383 contracts awarded by the Office of Group Benefits.

Group Benefits had another 32 contracts totaling $898 million approved by OCR. Other contracts approved by OCR included 282 for the Office of Economic Development ($629.6 million), and 1,080 awarded by the governor’s office through the Division of Administration ($2.3 billion).

One contract, for $68.9 million was apparently a major windfall for Cypress Realty Partners of Baton Rouge. The contract was for an alternative housing pilot program for the Louisiana Recovery Authority. An internet company profile of Cypress Realty said the company employed six people and had annual revenues of $410,000.

Two other contracts, both intergovernmental, were with out-of-state universities and totaled more than $900,000. Jackson State University of Jackson, Mississippi, was awarded a contract in the amount of $536,435 to “recruit, select and train teachers for placement in high need local education agencies/school systems.”

Clemson University of Clemson, South Carolina, was awarded a $375,000 contract to develop “active, selective catalysts for the conversion of natural-gas derived syngas (synthetic gas) to ethanol.”

Several contractors were paid to represent the state in other countries. Pathfinder Team Consulting received a $690,000 contract to provide foreign representative services in Europe while Access Marketing got a $234,000 contract to serve as a foreign marketing representative in Ontario Province and western Canada for the Office of Tourism.

A contract for $148,500 was awarded to Louis Bowden, dba Asia Capital to provide foreign representative services in China. Steve Lee and Hernan Gonzalez each received $75,000 contracts to provide foreign representation in Taiwan and Mexico, respectively. Ofihotel S.A. had a $60,000 contract to provide foreign representation in Central America.

Following is a partial list of contracts for fiscal year 2008-09:

• V- Vehicle Company, Ouachita Parish ($87 million);

• Foster Poultry Farms, Union Parish ($50 million) as inducement to purchase and operate poultry production and processing plant and provide 1,100 jobs;

• Lafourche Parish Council ($24.8 million), repair, rebuild, replace hurricane-damaged infrastructure;

• Bayou Lafourche Fresh Water District ($17.5 million) to clear debris from Bayou Lafourche;

• Lafourche Parish School Board ($480,000) to provide academic assistance in literacy and/or math, enrichment, recreation, technology, tutoring parental involvement and family literacy activities;

• Lafourche Parish Council, Office of Community Action ($319,964) to provide services and programs in accordance with the Community Service Block Grant Act of 1981;

• Terrebonne Port Commission ($10 million) for bulkhead, land improvements and other related infrastructure improvements, planning and construction;

• Terrebonne Parish Consolidated Government ($2.2 million) to provide intensive residential treatment program, provide funding to assist with design of a ring levee to surround Chabert Medical Center;

• St. Mary Parish Government/Council ($3.55 million) to operate a 52-bed inpatient treatment programs to individuals with addictive disorders; to operate a 12-adult bed and 21-children’s bed for TANF-eligible women and their dependent children;

• Vermilion Parish School Board ($9.2 million), rebuild, repair, replace hurricane-damaged primary and secondary public school infrastructure;

• Vermilion Parish Police Jury ($5.5 million) to repair, rebuild, replace hurricane-damaged infrastructure;

• St. Martin Parish School Board ($302,784) to provide comprehensive/preventive services to registered students;

• Jefferson Davis Parish Police Jury ($310,821) to complete strategic prevention framework planning process for substance abuse;

• West Feliciana Acquisition, LLC ($6 million) for acquisition, improvement, and operation of a paper mill in St. Francisville, creating 200-375 jobs;

• City of Ville Platte ($675,000) to provide juvenile delinquency prevention/diversion services to youth;

• City of Hammond ($367,728) to provide juvenile delinquency/diversion services;

• Southeastern Louisiana University TIP Comptroller’s Office ($2.1 million) to provide a continuum of family preservation, community based family support services;

• Lallie Kemp Regional Medical Center ($785,000) to provide Ryan White Care Act Aids Drug Assistance program;

• Grambling State University ($106,601) to provide educational opportunities for persons committed to entering or continuing in the field of child welfare;

• Louisiana Tech University ($1.2 million) to provide lessons to youth ages 11-14 to prevent/reduce addictive disorders;

• Southeastern Louisiana Area Health Education Center ($5 million) to provide system point of entry services for St. Mary, Terrebonne, Lafourche, Tangipahoa, and Washington parishes;

• First Steps Referral and Consulting ($2.8 million) to provide system point of entry services and provide site development workshop training to school leadership and teachers in Acadia, Evangeline, St. Martin, and Vermilion parishes;

• Families Helping Families at the Crossroads of Louisiana ($2.7 million) to provide point of entry services in LaSalle, Avoyelles, and Winn parishes;

• Youth Empowerment Project ($1.3 million) to provide system point of entry services for reintegration services for youth and counseling for families in Acadia, Evangeline, St. Martin, Vermilion, Jefferson Davis, and Allen parishes.

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Vendors who wished to provide prison pay telephone service were scheduled to have submitted their bid proposals this week, according to information received from the Louisiana Department of Corrections.

Prison telephone service is big business, profitable to the vendor and to the Department of Corrections but has been a source of controversy across the country for several years.

The Center for Constitutional Rights (CCR) has been conducting a long legal battle against what it terms as inflated collect phone call rates and “kickback commissions” paid to states.

Louisiana’s contract, awarded on a competitive bid basis, does not approach CCR’s claim of charges levied against prisoners’ families who are the ones who ultimately pay the cost of the phone calls. While CCR maintains that some phone services charge up to $6 per minute for calls (in California, the rate is about $3.50 per minute), Global Tel Link Corp. charges from 9 cents to 25 cents per minute, depending on the distance and time of day.

In addition to the per-minute charge, there is a surcharge for each phone call placed from any state correctional facility that varies from 80 cents to $4.50, depending upon whether the call is local or person-to-person collect. All charges are paid by the call recipient, not the prisoner and therein lies the rub.

CCR and an organization called the New York Campaign for Telephone Justice feel that the exorbitant charges are not only wrong, but illegal. New York State receives 57.5 percent of all profits from prisoner phone charges. That comes to about $200 million per year for New York. Global Tel Link pays Louisiana 55 percent under its contract.

Some of Louisiana’s commissions are spent on computer software and security.

“We are not challenging how the commissions are spent,” CCR said. “But the high rates for prison phone calls are being paid by the families of incarcerated people.”

Louisiana’s 12 prison facilities grossed slightly more than $3 million during fiscal 2009-2010, netting the state more than $1.6 million, state records show.

In some states, the practice appears to be more questionable. While Louisiana, with the largest rate of incarceration in the nation, generated only $3 million in phone bills in FY 2009-2010 charges to California prisoners’ families came to more than $120 million.

Not surprisingly, prison phone contracts are a prized commodity in other states. Some carriers offer California counties signing bonuses. In the case of Los Angeles County, the bonus for the 2004 contract was $17 million.

An investigation conducted by Associated Press revealed that California counties received more than $300 million in revenue from prisoner phone calls over a five-year period.

“It’s a gouging of family members, those who have never committed a crime, said Charles Carbone, an attorney with Prison Focus, a San Francisco-based prisoner rights group.

The California State Assembly passed a law in 2000 that would have required negotiating for lower rates but then-Gov. Gray Davis vetoed the bill, saying it would cost the state $30 million per year in revenue.

Like Louisiana Music? Be sure to check out Louisiana Rocks! The True Genesis of Rock & Roll! This book is the only complete history of all genres of Louisiana rock and roll. Re-live all those great old songs that used to play late nights on WTIX, WNOE, KAAY. Learn about all the great artists like Elvis, Johnny Cash, Jim Reeves, D.J. Fontana, Floyd Cramer, and Hank Williams who got their start on the Louisiana Hayride. Check your local bookstore or log onto http://www.louisianarockstomaswell.com.

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The former state budget director says little has changed in the Louisiana Legislature’s spending mentality in the decade since he retired.

Stephen R. Winham, who served as the state’s budget director from 1988 to 2000 and as a budget analyst for the Department of Corrections budget, is also a vocal critic of the proliferation of professional service contracts.

“Back when the State Budget Office actually had some clout, budget analysts did a common sense review of professional services contracts,” he said. “But then Governor (Dave) Treen decided that the budget office had too much power and that no one should be questioning things his cabinet appointees did.”

Winham said after that, central oversight of state agency expenditures began to decline “and now nobody routinely second-guesses the need for professional services contracts above the agency level.”

The State of Louisiana Annual Report for 2008-2009, the latest report available, shows that the state issued more than $5 billion in contracts, fully 20 percent of the state budget. That figure is somewhat misleading because 1,083 contracts for $2.9 billion, nearly 60 percent, were in the form of cooperative endeavor agreements with other public agencies; $213.4 million was for interagency contracts, and $79.4 million was for intergovernmental contracts.

Still, the report showed there were 1,275 consulting contracts in the amount of $1.4 billion; 1,292 professional contracts totaled $178 million, 160 personal contracts came to another $7.4 million, and 1,531 contracts for social services came to $288.9 million.

Winham said during his tenure, his office presented an annual budget to the Legislature that cut funding to programs “below the line” of available funds. He said that list was a best effort at a fair representation of what people want and need from state government. “Every year the program ranked dead last on our list was funded,” he said. The program consistently ranked last by his office was an appropriation of about $3,000 for CODOSPAN (the Council for the Development of Spanish). It was the Spanish equivalent of CODOFIL (the Council for the Development of French in Louisiana),” he said. “Always last on our priority list and always funded.”

He said there were other local subsidies (now called Non Governmental Organizations, or NGOs) that were always funded, like basketball tournaments and festivals.

He said his worst experience was coming to realization that “when it comes down to a choice of politics and what makes the most sense, politics always wins. In a political environment, you can’t avoid that but when politics always supersedes everything else, it’s always frustrating.” His best accomplishment, he said, was getting the budgetary process automated and available on line. “We made the budget more accessible to the citizens.”

Given a choice, he said he would make a different career choice. “I felt I was spinning my wheels,” he said. “I would not do it over. I felt I was accomplishing things early on but I became less and less effective. The Joint Legislative Committee on Appropriations just started ignoring my presentations. Everything was just a formality,” he said.

“They say all politics are local, and they’re right,” he said. “That’s why (Gov. Bobby) Jindal goes all over the state handing out those little checks to local governments. It’s the same reason legislators want to protect their turf with those local appropriations and it’s also the reason Jindal won’t veto any of those appropriations.

“Jindal is always thinking about the next thing,” Winham said. “We need a governor who will think about the now.”

He said government is not a business. “When a candidate says he is going to make government operate like business, it’s just rhetoric. Government and business do not exist for the same purpose; government exists to serve the people and business exists to make a profit.”

Still, he expressed concerned about the Legislature’s apparent inability to rein in pork spending. He said he agrees with State Treasurer John Kennedy’s assessment that until individual legislators, working together in large numbers, begin to take their responsibility seriously, funding decisions will remain irrational, irresponsible, and reckless.

Winham said former Gov. Buddy Roemer was a strong fiscal conservative but where he cut in some areas, he added in others, so he never got credit for any cuts.

“I was surprised once when I did an analysis and found the least budget growth occurred during one of Edwin Edwards’s terms, his third term, I believe,” he said.

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The Alabama firm that threatened to fire its employees who provide security for 15 Baton Rouge state office buildings for complaining about their bounced or non-existent paychecks has itself been fired.

Former security provider, Inter Parish Security Corp. (IPSC) of nearby Hammond was brought back in to complete the remainder of the contract term of JAT Bureau of Protective Services.

JAT, of Montgomery, Alabama, said in a December 6 memorandum to employees that complaints “will not be tolerated.” It said that any employee “found to be in violation of this police will be given a written warning,” and that “further violations would result in termination.”

Instead, JAT has been terminated and replaced by the company it replaced on Oct. 1 when it was awarded a million dollar contract after bid openings last August. JAT’s contract was to have run through June 30 of this year with unarmed guards receiving a minimum of $8.50 per hour and armed guards getting a dollar more per hour. Supervisors were to have received a minimum of $12 per hour under JAT’s contract.

JAT employed 74 guards in 15 Baton Rouge state office buildings, plus employees in other state buildings scattered across the state.

IPSC held the state contract for three years before being underbid by JAT.

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