“I want to hope that no threats were made…..I also want to hope there’s a Santa Claus.”
—Rep. Ernest D. Wooton (I-Belle Chasse), on the failure of the House to override Gov. Bobby Jindal’s veto of the renewal of a 4-cent cigarette tax.
Posted in Governor's Office, House, Senate, Legislature, Legislators, Notable Quotables, Taxes, Transparency, Veto on June 16, 2011| 4 Comments »
“I want to hope that no threats were made…..I also want to hope there’s a Santa Claus.”
—Rep. Ernest D. Wooton (I-Belle Chasse), on the failure of the House to override Gov. Bobby Jindal’s veto of the renewal of a 4-cent cigarette tax.
Posted in Governor's Office, Health Care, Legislature, Legislators, OGB, Office of Group Benefits, Prison, Privatization, Teague, Transparency on June 16, 2011| 3 Comments »
Consistent: Unchanging in achievement or effect over a period of time; showing steady conformity to character, profession, belief, or custom; dependable, unswerving.
It’s an adjective that’s not been used very frequently in describing Gov. Bobby Jindal. It should be. The governor has been a veritable model of consistency. As ol’ Casey Stengel would say, you can look it up.
Jindal has consistently tried to unemploy state civil service workers in his repeated attempts to privatize their agencies from under them. He started with the Office of Risk Management, a relative small agency ($100 million budget) in the overall scheme of things.
Flushed at the ease with which that was accomplished, he next turned his eyes on state prisons, the Office of Group Benefits (OGB), and Medicaid.
Those weren’t as easy. The prison plan fell through, at least for this year. OGB has met with considerable resistance from judges, state employees, retirees, and legislators. And the Medicaid plan ran into an unexpected hurdle during confirmation hearings for the secretary of the Department of Health and Hospitals.
He consistently has been out-of-state on fundraisers, book promotion tours, or campaign appearances on behalf of other Republican candidates when he should have been home minding the store that was fast going broke.
He consistently visits Protestant churches, mainly in north Louisiana, to pass around clipboards with forms for church members to fill out, giving their names, phone numbers, mailing and email addresses for future fundraising solicitation efforts.
The only reason his out-of-state trips and church visits have stopped in recent weeks is because of a law that prohibits fundraising activities during the legislative session.
Jindal also has been consistent in withholding information from legislators, reporters, and even the state auditor. His Office of Economic Development refused to provide records requested by auditors who were attempting to perform a routine state audit of the agency. And the Division of Administration (DOA) simply refuses to disclose anything more than the time of day and more often than not, even that’s a half-hour late.
Then there was the infamous Chaffe Report. Without rehashing old news, Jindal hired Chaffe & Associates of New Orleans to perform a financial overview of OGB with the idea in mind to plug the data into his executive budget. When the budget contained nothing relative to the report, it soon became evident that the report’s analysis indicated privatization of OGB was not a good idea.
The public, press, auditors, and even legislators would never have known that, however, had Rep. Jim Fannin and Sens. Ed Murray, Karen Peterson, and Butch Gautreaux not pressed for the report. Even then, DOA attempted to withhold the document.
Jindal has been consistent in that he brooks no dissenting opinion.
During public hearings on governmental streamlining in October of 2009, Melody Teague, a contract grants reviewer for the Department of Social Services, testified against the administration’s streamlining proposals and was fired the next day. She appealed, but it took about six months for her to get her job back.
Then, on April 15 of this year, her husband, Tommy Teague, was fired as CEO of OGB—and he had not even publicly opposed privatization of his agency. He did, however, take OGB from a $50 million deficit to a $520 million surplus in a period of only five years.
His successor, Scott Kipper, had the temerity to tell the Senate Retirement Committee that if nothing changed at OGB, if there was no sale, no privatization, no third party administrator, there was not a single employee he would lay off at the agency. In fact, he told the committee, he had inherited a staff of excellent, dedicated employees. From that moment forward, his days were numbered.
His boss, Commissioner of Administration Paul Rainwater, had only a few minutes earlier testified that OGB staff needed to be reduced by 149 persons.
Finally, there are the confirmation hearings for Jindal appointees which thus far have been an unqualified—but consistent—disaster for the governor.
First, Rainwater sat at the witness table texting as Kipper was grilled by Murray and Peterson, never offering to come to his rescue by clarifying an answer or volunteering to rescue Kipper who twisted slowly in the wind.
Then, when Rainwater reversed himself on his promise to the Senate and Governmental Affairs (S&GA) Committee, made during that same hearing, to make copies of the Chaffe report available to them, Kipper was caught in the middle. His fate sealed, he resigned, effective June 24. At his final board meeting on Wednesday of this week, he received extended laudatory praise from the board.
The confirmation hearings have been the number one entertainment attraction this session.
That’s because of Jindal’s consistent persistence in trotting out nominees with baggage and expecting them to slip by Murray and Peterson. Invariably, the senators ambush the unsuspecting appointees with pointed questions about conflicts of interest or a lack of that now overused word, transparency.
With Rainwater and Deputy Commissioner of Administration Mark Brady, it was the refusal to come forward with the Chaffe report. With Bruce Greenstein, things took a little nastier turn when he refused to reveal the name of the winner of a 10-year, $34 million-per-year contract for DHH.
As secretary of the agency, he assured S&GA Committee members that he took a decidedly hands-off approach in the selection process for the contractor to install and operate the Medicaid Management Information System for DHH.
Despite that, he refused for more than an hour under withering demands to reveal the name of the contractor. When he finally relented, he revealed that the contractor was CNSI of Gaithersburg, MD., a company for whom he once worked.
Then, on Wednesday of this week, Ed Antie of Carencro, a Jindal appointee to the Board of Regents for Higher Education, took his seat in the witness chair to begin his confirmation process before the S&GA Committee.
Things got ugly early.
Murray started the carnage by asking an apparently innocuous question: “Do you have any outstanding contracts with the State of Louisiana?”
“No,” Antie assured Murray.
“Do you know of a company called Sun America?”
Antie shifted uncomfortably before answering. “I own a company, a holding company that’s dormant, that owns a company that owns a company that owns maybe 10 percent of Sun America. I’m inactive.”
“Have you ever heard of LONI?” Murray asked. LONI is an acronym for the Louisiana Optical Network Initiative, a state-of-the-art fiber optics network that connects eight major research universities—LSU, Louisiana Tech, LSU Health Sciences Centers in New Orleans and Shreveport, Southern University, Tulane University, the University of Louisiana at Lafayette, and the University of New Orleans.
“I politicked Sun America to give them a discounted rate for our fiber optics,” Antie said.
“I thought you said you were inactive,” Murray said. “Does Sun America have a contract with the Board of Regents?”
“They may. I was not involved in the negotiations and I have no idea what the contract value is,” Antie said.
“You were given a questionnaire and that question was left blank,” Murray said.
Antie, who heads up Central Telephone, replied, “I didn’t realize that a company from which I was so far removed was relevant.”
“Sun America has a contract with the Board of Regents in the amount of $531,000,” Murray said. “You first said there was no contractual relationship and now there is. Don’t you think that’s relevant?”
“I asked Sexton Gray (Gray Sexton, a Baton Rouge attorney who once headed up the State Ethics Board) and he said to recuse myself from any votes,” Antie said. “I’m not trying to hide anything. I took retirement from the telecommunications industry to serve on this board.”
“Which one of those companies that you mentioned owns Sun America?” asked Murray.
“Central Telephone is my company. It’s just a holding company. Central Telephone owns Network USA, about 30 percent, and Network USA owns Delta Media which owns 10 or 15 percent of Sun America.”
He said Charles Chatelain is the registered agent for Network USA, Delta Media, and Sun America.
“First you said you had no contractual relationship with the state and now we find that your company has a $531,000 contract with the Board of Regents,” Murray said. “You said you didn’t know, but you said you approached Gray Sexton for advice on your apparent conflict.
“In terms of ethics, you may be breaking the law,” Murray said.
Sen. Lynda Jackson (D-Shreveport) observed that Antie claimed that Central Telephone was dormant. “Yet, when you check corporate records with the Secretary of State’s web page, it shows that Central Telephone is in good standing, which means it has filed annual reports,” she said. “Its last report was November of 2010 and it shows that you are the registered agent.”
She said that ethics and conflicts of interest have become a recurring problem of the Jindal administration.
A check by LouisianaVoice also revealed that Antie made three contributions to Jindal’s campaign totaling $5,000. The contributions were made in August of 2007 and in August and September of 2010. His associate, Charles Chatelain gave $5,000 to the Jindal campaign in December of 2009; Network USA gave $5,000 in separate $2,500 contributions in August of 2009 and March of 2010, and Sun America contributed $3,500 to the governor’s campaign in november of 2010.
Jindal appointed Antie to the Board of Regents in January of this year.
At least that’s consistent with Jindal’s legacy of consistency.
Posted in Governor's Office, Notable Quotables, OGB, Office of Group Benefits, Transparency on June 15, 2011| 1 Comment »
“The governor turned 40 last Friday. I thought as he got older, he’d get wiser. Apparently not.”
—Office of Group Benefits (OGB) board member Kenneth Krefft of Shreveport, on Gov. Bobby Jindal’s determination to privatize OGB despite recommendations to the contrary contained in a report by Chaffe & Associates—the company hired by Jindal to prepare the report.
Posted in Governor's Office, House, Senate, Legislature, Legislators, Transparency on June 15, 2011| 6 Comments »
BATON ROUGE (CNS)—Two scheduled events dealing with the future of two Jindal administrative appointees and of the Office of Group Benefits (OGB) came and went with no official action though one of those has been re-scheduled for Friday.
It turns out that confirmation hearings on two of Gov. Bobby Jindal’s appointees may be held on Friday.
On the other, a spokesman for the Division of Administration (DOA) was less than congenial in responding to a status inquiry from LouisianaVoice.
The Senate and Governmental Affairs (S&GA) Committee was slated to continue its confirmation hearings on Commissioner of Administration Paul Rainwater and Deputy Commissioner Mark Brady but those hearings were cancelled Tuesday night. Different reasons for the cancellations were given by Sens. Ed Murray and Karen Peterson.
Peterson (D-New Orleans) said the confirmation hearings were pulled because the Senate Committee on Revenue and Fiscal Affairs was scheduled to meet. Three members of S&GA also sit on the Revenue and Fiscal Affairs committee. “We didn’t have enough time,” said Peterson, adding that the confirmation hearings were rescheduled for Friday at 9:30 a.m.
Murray (D-New Orleans) said the reason for cancellation was that the committee members received the Chaffe Report on OGB that it had requested earlier. No mention was made of additional hearings on Friday.
The Chaffe Report was released by an anonymous senator Monday night even though Rainwater had requested that the document not be released to the public. Sen. D.A. “Butch” Gautreaux (D-Morgan City), one of the more vocal critics of Jindal and DOA over the OGB privatization plan, said he was not the one who released the report. “But whoever it was, I’m glad it was done,” he said.
Gautreaux also is a member of the OGB Board of Directors.
The report was done by Chaffe & Associates of New Orleans and was basically an overview of the financial picture of OGB. Chaffe was retained to complete the report in time for Gov. Bobby Jindal to include the data in his executive budget that was due on March 19. Nothing in the executive budget made any reference to OGB.
That led to speculation that the report did not reflect Jindal’s opinion on the rationale for selling OGB. Those suspicions were confirmed with the Monday release of the report that said if OGB is privatized, premimums will increase and services will likely be cut.
One source said Wednesday evening that Friday’s meeting was for confirmation testimony only from Department of Health and Hospitals Secretary Bruce Greenstein.
Greenstein had difficulties of his own with the committee last week when he refused to divulge the name of the winner of a 10-year, $34 million-per-year contract with DHH. It took 40 minutes of sparring with members of the committee, but Greenstein finally admitted the contractor was CNSI of Gaithersburg, MD. Greenstein once worked for CNSI, prompting more criticism from senators.
The State Constitution mandates that the committee must make its recommendations on confirmation to the full Senate which must vote up or down on appointees before the end of the session. The session ends at 6 p.m. next Thursday.
A decision was also scheduled Wednesday on naming of a financial analyst to evaluate the assets of OGB and to help market the agency to potential buyers or third party administrators but DOA apparently did not meet that deadline.
Goldman Sachs was one of three firms to submit proposals on the RFP, the second to be issued by DOA. Goldman Sachs was the lone bidder on the first RFP but withdrew over a refusal by the state to indemnify the Wall Street banking firm from any liability in the event of litigation.
A second RFP was issued by the state. The deadline for submitting proposals on that RFP was June 6 and Wednesday, June 15, was the tentative date to name the contractor.
DOA Chief of Staff Dirk Thibodeaux, asked if a contractor had been selected, responded rather curtly, “If you read the RFP, you will see that June 15 was a ‘tentative date.’”
LouisianaVoice acknowledged the “tentative date,” and asked again if a “tentative decision” had been made.
“No decision has been made,” Thibodeaux said.
A follow up email was sent to Thibodeaux, Rainwater, and Brady asking that LouisianaVoice be notified as soon as a contractor was selected. Kirkpatrick opened his email but, like Brady and Rainwater, did not respond to the public records request.
Just another open and accountable day at the Jindal administration of tentative transparency.
Posted in Governor's Office, House, Senate, Legislature, Legislators, Transparency on June 14, 2011| 10 Comments »
A series of dust-ups between three appointees of Gov. Bobby Jindal and legislators may have left the permanent status of those appointees up in the air.
First, there was the standoff between Commissioner of Administration Paul Rainwater and Sen. D.A. “Butch” Gautreaux (D-Morgan City), chairman of the Senate Retirement Committee over the proposed privatization of the Office of Group Benefits. Besides chairing the retirement committee, Gautreaux also is a member of the OGB board of directors.
In fact, Rainwater attended only one of those Retirement Committee meetings, choosing to send Division of Administration underlings in his stead to subsequent meetings. That did not go unnoticed by committee members, particularly by Gautreaux.
Then there were the confrontational confirmation hearings by the Senate and Governmental Affairs (S&GA) Committee, chaired by Sen. Bob Kostelka (R-Monroe) but starring Sens. Ed Murray and Karen Peterson, both New Orleans Democrats.
Peterson and Murray are each members of the S&GA Committee that has been holding hearings on the confirmation of Rainwater, his top assistant, Deputy Commissioner of Administration Mark Brady, and Bruce Greenstein, secretary of the Department of Health and Hospitals (DHH).
Confirmation hearings have turned into successive turns by senators at dressing down the three men—Rainwater and Brady for their refusal to turn over the Chaffe report on the financial status of the Office of Group Benefits and Greenstein for refusing to divulge the name of the winner of a 10-year, $34 million per year contract with DHH. When Greenstein finally relented and named the contractor, it turned out to be CNSI of Gaithersburg, Maryland, a company for whom Greenstein once worked.
The S&GA is scheduled to resume hearings Wednesday (June 15) at 9 a.m. but posted on the state’s legislative web page is a notice in red italic letters: “REMOVED—Division of Administration from Confirmation Hearings.”
The significance of the removal of confirmation hearings on DOA personnel is not immediately clear but the action could conceivably place the jobs of all three men in jeopardy.
One school of thought was that the release of the Chaffe report prompted the decision to cancel further confirmation hearings. That report indicates that senators were misled by Rainwater’s insistence that the privatization of OGB would have “no negative effect” on premiums paid by the state and by state employees. The report said any privatization would force an increase in premiums.
The state presently pays 75 percent of the premiums for active employees and 50 percent for eligible dependents. The state pays 75 percent of premiums for retirees and all eligible dependents. Any premium increase would have a significant impact on premiums paid by the state and, to a lesser extent, employees and retirees.
Another theory, however, is considerably more serious: members of the committee may be planning to recommend to the full Senate that neither of the three men be confirmed.
Under the State Constitution, appointees by the governor must be confirmed by the end of the next legislative session or they are out. Each of the three was appointed by Jindal after the close of last year’s regular session.
Final adjournment for the current legislative session must be no later than 6 p.m. on Thursday, June 23.
That gives the committee scant time to make recommendations to the full Senate and even less time for the Senate to vote up or down on confirmation.
One senator hinted that the latter theory may be the correct one.
“We’re pissed off,” he said. “We’re tired of all the lying and the arrogance.”
Failure of either one of the three men to be confirmed would be considered an embarrassing defeat for Jindal.
Rejection of all three would be devastating.