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Archive for the ‘Transparency’ Category

“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.”

–Gov. Piyush Jindal, to Greta Van Susteren in a Fox News interview about his plans to dismantle Louisiana’s Medicaid program in favor of private insurers, neglecting to mention that those “government-run hospitals” also serve as teaching hospitals for medical students at both the LSU and Tulane university schools of medicine.

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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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Reports out of the State Capitol on Tuesday has yet another state employee about to become a victim of the ongoing Piyush Purge.

LouisianaVoice has learned of plans by the administration to fire LSU System Office General Counsel Raymond Lamonica.

If true, Lamonica would be the third LSU official to be teagued by Jindal in less than six months. System President John Lombardi was fired in April by the LSU Board of Supervisors acting on directions from the governor and last month, Dr. Fred Cerise, head of the LSU health care system similarly dismissed.

Reached at home Tuesday, Lamonica acknowledged that he had heard the reports but had no additional comment. “Not yet, anyway,” he added.

Lamonica was appointed as United States attorney for the middle district of Louisiana in 1986 by President Ronald Reagan. President Bill Clinton appointed L.J. Hymel to replace him in 1994. Prior to that, Lamonica worked as executive counsel to Gov. Dave Treen.

If the reports are accurate, Lamonica would be only the latest in a growing line of rank and file state employees, agency directors and cabinet secretaries who Jindal has either fired outright or, in the case of two legislators, demoted from committee assignments.

Besides members of board and commissions who are routinely replaced by governors with political allies and campaign contributors, Jindal has replaced, in order:

• March of 2008—Louisiana Highway Safety Commission Executive Director Jim Champagne, who opposed Jindal’s campaign promise to repeal the motorcycle helmet law;

• September of 2008—Department of Social Services Secretary Ann Williamson, after criticism of shelter conditions following Hurricane Gustav and problems with a post-storm food stamp program;

• June of 2009—Board of Elementary and Secondary Education member Tammie McDaniel, after she disagreed with some of the administration’s public education policies;

• October 2009—Melody Teague, a social services grant reviewer, after testifying in opposition to Jindal’s plan to streamline government;

• February 5, 2010—Department of Transportation and Development Secretary William Ankner, after a company that contributed $11,000 to Jindal’s campaign was awarded a $60 million highway contract despite not having the low bid;

• August 13, 2010—State Alcohol and Tobacco Control Secretary Murphy Painter, after being accused of sexual harassment and fired after rejecting a permit application to SMG, the New Orleans Superdome management company, that would allow Budweiser to erect a large tent and signage in Champions Square. Budweiser had offered $300,000 to the Louisiana Stadium and Exposition District to sponsor the tent for tailgating parties at Saints home games;

• April of 2011—Office of Group Benefits (OGB) Director Tommy Teague (husband of Melody Teague), after failing to display sufficient enthusiasm over Jindal’s plans to privatize his agency;

• June of 2011—Tommy Teague’s successor Scott Kipper, after apparently irritating his boss, Commissioner of Administration Paul Rainwater over the number of OGB employees he would recommend to be laid off;

• March of 2012—Office of Elderly Affairs Executive Director Mary Manuel, after testifying she was never informed of Jindal’s plans to move her agency from the governor’s office to the Department of Health and Hospitals;

• March of 2012—State Rep. Harold Richie (D-Bogalusa), demoted from his vice-chairmanship of the House Committee on Insurance after voting against a tax rebate for those who donate money for scholarships (vouchers) to private and parochial schools;

• April of 2012—LSU System President John Lombardi, after publicly criticizing massive budget cuts imposed on higher education by Jindal;

• June of 2012—Secretary of Revenue Cynthia Bridges after it became obvious that an alternative fuel tax credit law signed by Jindal which granted tax credits for the purchase of certain fuel-efficient automobiles would cost the state upwards of $100 million;

• June of 2012—State Rep. Jim Morris (R-Oil City), was removed from his vice-chairmanship of the House Natural Resources and Environment Committee after resisting efforts by Jindal to use one-time money to fund recurring expenses in the state’s General Budget;

• August of 2012—Dr. Fred Cerise, head of the LSU health care system, after criticizing Jindal budget cuts which gutted the LSU medical system of hundreds of millions of dollars.

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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: LouisianaVoice occasionally runs guest columns that address Louisiana politics. Today’s column was written by Les Landon, director of public relations for the Louisiana Federation of Teachers.

Former U.S. Congressman and Louisiana Governor Buddy Roemer recently dropped his long-shot presidential aspiration to tackle an even more daunting goal: reforming our corrupt campaign finance practices.

Gov. Roemer even appeared before Congress last month to testify about the malign effects of unfettered campaign contributions on our political system. At a hearing entitled “Taking Back Our Democracy: Responding to Citizens United and the Rise of Super PACs,” Roemer complained that “Our institutional corruption places our elections in the hands of the mega contributors.”

Taking his argument just a bit further, the former governor said “The system is not broke … It’s bought.”

The theme of Roemer’s testimony, according to this article by Advocate Washington Bureau Chief Jordan Blum, was “the need to enact campaign finance reform and rein in runaway corporate spending in elections.”

It is a message apparently lost on his politically ambitious son, Chas, and other members of the state board of education who have thrown in with Gov. Bobby Jindal’s radical education agenda.

According to campaign finance reports, Chas Roemer was the beneficiary of $597,142.15 during last fall’s campaign for the Board of Elementary and Secondary Education.

The bulk of Chas’ contributions, more than $248,000, came from the Republican Party of Louisiana.

The Louisiana Association of Business and Industry, through its network of PACS, put $87,500 into the Roemer campaign.

The ABC Pelican PAC, the political arm of the Associated Builders and Contractors, contributed $20,000 to Chas’ campaign.

Gov. Jindal himself donated $15,000 to Roemer’s campaign.

The Standard Companies of New Orleans, a beverage company subsidiary of DS Waters of America, put up $14,000.

Publishing magnate Rolf McCollister gave Roemer $6,000, on top of invaluable column inches in his newspaper.

From its offices in Virginia, the pro-voucher Louisiana Federation of Children’s PAC sent another $6,000.

Roemer’s closest competitor, former Ascension Parish Superintendent of Schools Superintendent Donald Songy, raised a total of $56,660 for the race (full disclosure: the Louisiana Federation of Teachers contributed less than $6,000 to Songy’s campaign).

Given that disparity in resources – nearly $600,000 versus less than $57,000 – Roemer was able to mount a very effective, and very negative, multi-media campaign that overwhelmed Songy.

Roemer was not the only candidate blessed by Jindal and his big business friends. Candidates allied with the governor amassed contributions of more than $2.8 million. Even New York Mayor Michael Bloomberg got into the act, donating $55,000 to Jindal’s candidates. The closest competitors to the Jindal ticket raised a combined total of less than $348,000.

The money fueled a tsunami of advertising that had never been seen in BESE races, guaranteeing a victory for Gov. Jindal’s forces.

The immediate result of the election was the anointing of John White as superintendent, followed by a BESE kowtow to whatever privatization scheme the governor proposes. Which, as blogger Mike Deshotels writes here, means that hundreds of millions of dollars will soon be siphoned away from public schools into the pockets of “course choice providers” linked to big business.

Buddy Roemer is right. Big money donors and their unlimited contributions are the major corrupting factors in American politics.

When will he tell Chas?

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