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Archive for the ‘Transparency’ Category

BATON ROUGE (CNS)—The Retired State Employees Association (RSEA) Board of Directors has authorized the RSEA staff to move forward with the hiring of an attorney to proceed with litigation challenging the constitutionality of recently passed House Bill 61 by Rep. Kevin Pearson (R-Slidell) which became Act 483 of the 2012 Louisiana Regular Session, upon the signature of Gov. Bobby Jindal.

The act, commonly referred to as the “Cash Balance Plan” (CBP), is future, non-hazardous-duty state employees of the Louisiana State Employees’ Retirement System (LASERS), post-secondary education members of the Teachers Retirement System of Louisiana (TRSL), and is optional for certain other members of Louisiana School Employees’ Retirement System (LSERS) hired on or after July 1, 2013.

The act is being challenged on constitutional grounds with RSEA claiming that it did not receive a two-thirds vote in the House of Representatives as required under Article X, Section 29(F) of the Louisiana Constitution to enact benefit provisions for members of any public retirement system which has an actuarial cost.

The bill passed by a majority of the House (68-36) but lacked the required 70 votes.

The two-thirds vote was required since the legislative actuary determined that the CBP has an actuarial cost. The actuary wrote in his official legislative actuarial note that “the Cash Balance (CB) Plan will cost more than the current Defined Benefit (DB) Plan.”

The constitutional requirement was intended to add an extra level of protection against increasing the costs of the retirement systems, RSEA said.

“It is therefore the conclusion of RSEA and our attorneys that this legislation requires a two-thirds vote for passage, rather than a simple majority,” said Frank Jobert, Jr., executive director of RSEA.

RSEA President Benny G. Harris said members of the RSEA board of directors, representing the interests of current and future state employees and retirees throughout the state, “could not let the defined benefit retirement plan fall by the wayside on their watch by virtue of a ‘defective’ piece of legislation without a property legal challenge in the courts.

Attorneys Robert Tarcza of New Orleans and Robert Klausner of Plantation, Florida, are handling the case for RSEA and plan to file suit in 19th Judicial District Court in Baton Rouge next week. To be named as defendants will be the State of Louisiana, Gov. Bobby Jindal, and State Treasurer John Kennedy.

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LouisianaVoice will soon have a sister publication in the form of an online state newspaper, according to publisher Tom Aswell.

The new feature, which will be published online in newspaper format, will be a weekly publication geared exclusively to Louisiana political news.

“This will be a free-subscription publication because we want everyone in Louisiana—and elsewhere—to have access to what elected and appointed officials are doing that affect the daily lives of Louisiana’s citizens,” Aswell said.

The name of the new publication will be Louisiana Free Press and will be accessible via the link http://www.louisianafreepress.com, Aswell said.

Louisiana Free Press will be supported 100 percent by advertising revenue and our coverage will be broadened from publishing a single story at a time. There will be multiple stories posted each Friday and the coverage will vary greatly.

Several writers will be contributing coverage of many more agencies than have historically been covered by LouisianaVoice.

These writers will be covering the Louisiana Supreme Court proceedings, Louisiana Attorney General opinions, audit reports of all state and local agencies as they are provided by the Legislative Auditor’s office. Moreover, coverage of agencies will be increased—agencies like the Department of Health and Hospitals, Department of Environmental Quality, Department of Natural Resources, Department of Wildlife and Fisheries, and the Department of Education, the Board of Elementary and Secondary Education, Board of Regents, University of Louisiana System Board of Supervisors and the Public Service Commission, the governor’s office, the lieutenant governor, state treasurer and the legislature, as well as other more obscure state boards and commissions.

“We feel it is important that Louisiana’s citizenry remain informed about what their public officials are doing in Baton Rouge, New Orleans and elsewhere,” Aswell said.

“This is an ambitious endeavor but for too long, too many agencies, board and commissions have operated under the radar of the media,” Aswell said. “We anticipate that is about to change.

“That is not to say that everything we write will be of an investigative nature or that each story will be some major exposé. Most will be of a routine nature but will provide news otherwise not available to the public.”

LouisianaVoice will issue further updates as the schedule for launching Louisiana Free Press develops.

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Times are hard, the state budget is in the dumpster with devastating cutbacks to Medicaid, state hospitals and higher education, and layoffs of state employees abound, thanks to the untimely combination of privatization and revenue shortages.

But not to worry: the Louisiana Office of Student Financial Assistance (LOSFA), which recently advertised to fill a $76,000-a-year position—restricted to agency employees only, thank you very much—on the heels of the layoff of 58 employees, is going forward with its annual off-site annual Strategic Planning Session for upper management at a cost of $3,500 to the agency.

LOSFA Executive Director Melanie Amrhein did say that in years past both days of the session have been held off-site (at $6,000 cost for each of the past three years, according to records provided LouisianaVoice subject to its public records request). Those costs include a $1,000 set-up cost and $2,500 per day for the session at the conference facilities of SSA Consultants, Inc. of Baton Rouge, complete with the obligatory “facilitator.”

The session will be held Aug. 30-31.

Amrhein said this year only one day of the session will be held at SSA with the other day of the event to be on-site. “It will be for one day instead of two,” she said of the SSA session, “and the cost will be one-half.”

Actually, assuming SSA will still charge the usual $1,000 set-up fee, the fee would be $3,500, or 70 percent of the usual cost, for about a dozen people expected to attend, she said.

Amrhein said it was considered “important to be away from our building with the facilitator” during the session in order to avoid distractions that would likely occur if held in the LOSFA offices.

During former Gov. Mike Foster’s administration, eight new state office buildings were constructed–each containing meeting rooms of all sizes designed to accommodate meetings, seminars and conferences. State agencies are not charged for use of the state facilities.

LOSFA is located in the Galvez Building at the corner of North and Fifth Streets in downtown Baton Rouge, within two blocks–easy walking distance–of three of those buildings.

Asked why the LOFSA Strategic Planning Session was not scheduled for one of the other seven buildings, Amrhein said, “It’s always been held off-site, or at least since I arrived here in 1999.”

“We need a five-year plan by July 1, 2013. That’s why this session is important,” she said.

“It’s not going to be restricted only to executive staff,” she said. “All directors in the office will be attending. Every division or agency in the state is encouraged to do this.”

She said the cost of the event will not come from state general funds, but from fees collected by the agency.

LouisianaVoice had requested a copy of this year’s contract along with those provided by LOSFA but it was not provided with the rest because, Amrhein said, “It has not been finalized yet.”

The 58 employees were laid off last month when LOFSA ceased guaranteeing student loans after the office’s loan program was ordered outsourced by Gov. Piyush Jindal.

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At least one of the three companies that submitted proposals to replace the Office of Group Benefits (OGB) as a third party administrator (TPA) for OGB’s preferred provider organization (PPO) has done what the Louisiana Civil Service Commission lacked the courage to do: ask tough questions about the selection process.

In fact, United Healthcare on Friday filed a formal protest over the awarding of the three-year, billion dollar contract to Blue Cross/Blue Shield of Louisiana (BCBS).

Reports received by LouisianaVoice indicate there was only a 20-point differential between BCBS and United in the scoring and that BCBS did not have the best score in certain important segments of the overall proposal, namely for the score on claims processing, an area in which one source said BCBS was actually the highest of the three companies.

The Civil Service Commission on Wednesday voted 3-2 in favor of approving the BCBS contract that will result in 121 OGB employees losing their jobs. The approval came after scant testimony supported by an eight-page Power Point presentation by the Division of Administration (DOA) and after allowing opponents less than 20 minutes in which to state their opposition.

Word leaked out immediately following the commission meeting that there had been heated discussion among commission members prior to their entering the aptly-named Louisiana Purchase Room for the meeting—in apparent violation of the state’s open meeting law.

It was also clear from the tone of commission members’ questions, mostly soft balls lobbed at DOA and OGB officials. Conversely, attorney J. Arthur Smith, representing about 100 OGB employees was allowed 15 minutes to present the opposition’s side as commission members appeared to pay scant attention and offer no follow up questions.

When Smith later attempted to correct what he said was incorrect information provided by DOA, commission Chairman David Duplantier rudely stopped him, saying, “This is not a public debate. This proposal was received by the commission in April and you submitted a three-inch thick set of documentation to us on Monday.”

Jindal has benefitted financially from BCBS and its parent company, Louisiana Health & Indemnity. The two combined to funnel $56,000 to Jindal’s political campaign and BCBS gave an additional $100,000 to the Supriya Jindal Foundation, a charity run by Jindal’s wife.

Jindal has been attempting to privatize OGB for more than a year now and is currently on his third agency director since initial efforts to privatize OGB.

Tommy Teague was fired on April 15, 2011, after failing to demonstrate sufficient enthusiasm for the privatization plan.

Teague had taken the agency from a deficit of about $60 million to a $500 million surplus in just over five years.

His successor, Scott Kipper, lasted only six weeks after testifying before a legislative committee that were it left for him to decide, he would not lay off any of the OGB employees. His remarks were made only minutes after his boss, Commissioner of Administration Paul Rainwater had insisted that OGB needed to be downsized by 149 positions.

Rainwater visibly winced at Kipper’s comment and his departure was announced soon thereafter.

It was not immediately clear if United Healthcare, if its protest is denied, would file a lawsuit over the selection of BCBS.

Humana was the other company that submitted a proposal for the PPO takeover.

Two years ago, when BCBS was selected as the TPA of the HMO program for state employees, Humana and United Healthcare filed suit and the court ordered the state to re-bid the proposal.

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Shane is no doubt one of the all-time quentessential western movies.

Starring Alan Ladd, Van Heflin, Jean Arthur, Brandon DeWilde and Jack Palance, the flick has stood the test of time and has been remade in various shapes, forms and titles by such Hollywood legends as John Wayne, Jimmy Stewart and Clint Eastwood. Perhaps the closest any movie has come to capturing its true appeal is one that came along half-a-century later—2003’s Open Range, starring Robert Duvall, Kevin Costner and Annette Bening.

Even the most casual movie-goer knows the storyline: mild-mannered stranger rides into town—not looking for trouble but invariably finding it in the person of the villain, a ruthless land baron/cattle rancher/banker. Said land baron/cattle rancher/banker has brought in hired guns from out of town to maintain tight control over the local populace, usually personified as honest but helpless homesteaders who only wish to care for their families by trying to scratch a living out of mother earth.

The hired gun, of course, is obligated to ridicule or otherwise demean the weakest among the local homesteaders who, upon attempting to defend himself, is summarily gunned down as an example to the others.

The lesson, of course, is to toe the line or be eliminated in like fashion. This heavy-handed tactic, of course, helps to consolidate the power and control of the land baron/cattle rancher/banker.

Now fast forward to a certain southern state in the years 2008-2012:

A new land baron/cattle rancher/banker has appeared on the scene in the form of an egomaniacal governor who fancies bigger and better things for himself—perhaps even thinking of himself as presidential timber.

But he doesn’t leave anything to chance by bringing in a single hired gun; he hires an entire posse. He surrounds himself with subordinate hangers-on who feed his presidential aspirations like any loyal sycophant, while at the same time cautioning him to keep saying he has the job he wants over and over ad nauseam.

These toadies, or hired guns, if you will, are mostly from out of town, much like the hired guns in Shane and its many clones. They don’t wear guns any more, of course, but the threat they hold over the homesteaders, in this case state employees, is their livelihoods—their jobs.

• If you’re head of the state’s highway safety program and you oppose the governor’s attempt to repeal the state motorcycle helmet law? Gone.

• If you are criticized for the way in which shelter conditions are administered following a hurricane? Goodbye.

• If you are a member of the Board of Elementary and Secondary Education and you don’t agree 100 percent with the governor’s education program? So long.

• If you are a state employee who testifies against his plan to streamline government? You’re history.

• If you are a legislator who happens not to agree with his royal decree? Kiss your committee chairmanship goodbye.

• If you are president of a university who disagrees with cuts to higher education? Take a hike.

By the same token, if you are a recently out-of-work politician who was smart enough to align yourself with the governor, not to worry: you have a nice state job waiting for you at a six-figure salary.

These hired guns, with names like Plotkin, Palmieri, Greenstein, Steckel, Vallas, Levine, Zachery Jiwa (DHH chief technology officer), and John White, each brought in from places like Seattle, Chicago, New Jersey, New York, Alabama and Florida, roam the corridors of state government, making certain that no dissention will be tolerated from lowly state employees. They are to keep their heads down and noses clean if they like their jobs.

If a few naïve state employees, namely teachers, do show up to testify before a legislative committee, there is always a friendly legislator who will insist that they reveal not only their name and agency, but whether or not they took annual or sick leave to attend the committee hearing, or if they are on their own time.

If a few state employees wish to participate in a rally against closure of or cutbacks to their agency, there is always an agency head who can be coerced into telling the employees—illegally—that they are not allowed to participate in said rally.

Then, of course, the governor can always call on more than 200 campaign contributors who coughed up more than $784,000 to his 2007 election campaign and appoint them to plum positions on important boards and commissions. And in case anyone tries to pass a bill requiring him to divulge that information, he can always call on compliant legislators to kill the bill.

Finally, to maintain an unyielding grip on his political power, this governor must not allow any federal encroachment, such as helpful federal grants, to tarnish his own stellar reputation. Thus:

• Grants to bring broadband internet to rural parishes must be stymied in the name of private enterprise;

• Grants to build a high speed rail system between Baton Rouge and New Orleans must be discouraged because of accompanying maintenance costs;

• Grants for early childhood development must be rejected because of federal oversight. Besides, let the little darlings attend one of the voucher schools where they teach that the Loch Ness monster really exists and that the earth is only 6,000 years old. That’s all the early childhood development they could possibly need.

This land baron/cattle rancher/banker is so confident of his unchallenged power that he now feels it is not even necessary that he remain in the town much. Instead, he chooses to hop scotch all over the country auditioning for bigger and better things.

The little town is simply holding him back so he spends all this time away from his office even though the town back home is drying up; education and health care are undergoing drastic cuts because he has given all the money needed to support them to his corporate friends in the form of tax incentives.

But why settle for being a local land/baron/cattle rancher/banker dominating a comparatively small spread when there is an entire nation out there over which he can hold sway?

Normally, in a situation such as this, we would summon the Lone Ranger. But not this time: one masked man is more than enough.

But we can almost hear the last line of that great old movie: “Shane! Come back! We need you!”

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