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Only in Louisiana.

A lawsuit filed in 23rd Judicial District Court in Ascension Parish challenging the legality of the proposed approval of $450 million in industrial tax exemptions raises two immediate questions:

  • What are Projects Magnolia, Zinnia, Bagel and Sunflower/Sunflower Seed?
  • Why is the Ascension Parish Council being so secretive about the true identities?
  • Why did the Ascension Parish Council’s Finance Committee not follow the law in considering the proposed tax exemptions?
  • Most important of all, what is the Ascension Parish Council trying to hide?

These are all questions to which plaintiffs Dr. Henrynne Louden, George Armstrong and Lana Williams are seeking answers in their petition filed last Friday.

On Sept. 12, the council’s Finance Committee, which in truth is comprised of all 11 council members, met and added to its agenda for the full council meeting of Sept. 21 Item 7, calling for the consideration of “resolutions to award industrial tax exemption at levels recommended by the Ascension Economic Development board for the following projects:

  • Project Magnolia;
  • Project Zinnia;
  • Project Bagel;
  • Project Sunflower/Sunflower Seed.

Altogether, the four projects would cost Ascension Parish $55.6 million—for a grand total of 32 new jobs, or $1.7 million per job.

To see the lawsuit in its entirety, click HERE.

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“The identity of the projects on the agenda for the meeting of the council held on September 21, 2017, are fictitious,” the lawsuit says, adding that neither the plaintiffs “nor any other member of the public could determine, from a review of the consent agenda:

  • The identity of the company (or companies) seeking the benefit of an industrial tax exemption;
  • The amount of the exemption sought for each project;
  • The cost of granting each of the exemptions;
  • Whether any of the projects comply with requirements of the Louisiana State Constitution, or
  • Whether any of the projects comply with requirements of Executive Order Number JBE 2016-73.

“There are two things at issue in this suit,” said a spokesperson for an organization calling itself Together Louisiana: “Whether public subsidies can be approved by a public body without disclosing the identity of the entity receiving the subsidies, and whether reasonably specific public notices must be provided regarding approval of such subsidies.”

Article 7, Section 21(F) of the Louisiana State Constitution of 1974 spells out the requirements for approval of the ad valorem tax exemptions for new manufacturing facilities.

“After being elected,” the lawsuit says, Gov. John Bel Edwards determined that the Board of Commerce and Industry “…had approved industrial tax exemptions contracts ultimately resulting in an average of $1.4 billion in foregone ad valorem tax revenue each year for the next five years for parishes, municipalities, school districts and other political subdivisions of the state that directly provide law enforcement, water and sewage, infrastructure, and educational opportunities to Louisiana citizens.”

On Oct. 21, 2016, Gov. Edwards issued Executive Order Number JBE 2016-73 entitled “Amended and Restated Conditions for Participation in the Industrial Tax Exemption.”

The executive order requires that the governor and Board of Commerce and Industry be provided with a resolution adopted by, among others, “the relevant governing parish council, signifying, “whether it is in favor of the project,” the lawsuit says.

The executive order further says that contracts for industrial tax exemptions which do not include a resolution by the relevant local governing authority “will not be approved by the governor.”

The agenda for the Sept. 12 Finance Committee meeting, the plaintiffs say in their petition, “failed to indicate that (it) would be considering whether or not to approve a resolution signifying that the council was in favor of one or more industrial tax exemption.” Despite failing to include the item on its agenda, the Finance Committee did, in fact, recommend approval by the council of such a resolution, placing the committee, the lawsuit says, in violation of the state’s open meeting laws.

“Not only are meetings of the public bodies to be open,” the lawsuit says, (but) “citizens have the right to know—in advance—the subject matter upon which governing bodies will deliberate and vote.”

The state’s open meeting laws require posting written notices of the agenda of all meetings “no later than 24 hours, exclusive of Saturdays, Sundays, and legal holidays, before the meeting” and “shall include the agenda, date, time, and place of the meeting.”

The committee’s violation of the open meeting laws, the plaintiff say, deprived the public of the right to:

  • Know what was being considered by the Finance Committee;
  • Directly participate in the deliberations of the Finance Committee;
  • Protect themselves from secret decisions made without any opportunity for public input.

The lawsuit is asking the court to declare actions of both the Finance Committee and the full council void as provided by law.

The plaintiffs and their attorneys, Brian Blackwell and Charles Patin of Baton Rouge are, in all probability, correct in their interpretation of the state’s open meeting laws (Article XIL, Section 3 of the 1974 Louisiana State Constitution and Louisiana Revised Statute 42:19).

But this is Louisiana and it has been the experience of LouisianaVoice and other members of the media that the law is whatever some judge says it is. Judges apparently have wide discretion in concocting their own interpretations of the law to accommodate whomever the judges wish to accommodate—usually campaign donors.

The three plaintiffs in this case have the full moral support of LouisianaVoice but the reality is there is usually negligible correlation between law and justice once you walk through those courtroom doors.

Typical political solution to Louisiana’s economic problems.

(Purchase Fred’s latest book of Life in Looziana cartoons at the Louisiana Book Festival at the State Capitol grounds in Baton Rouge on Oct. 28)

It took an article in Everybody’s magazine by writer Charles Edward Russell to embarrass the state of Georgia into enacting reforms to the state’s inmate work release program. Following a special legislative session called to address that specific problem, the governor signed into law a compromise bill which, while restructuring the program, still assigned certain inmates to work release programs administered by private contractors for up to one year.

All Russell did was to follow the trail of a single inmate from his conviction for the theft of $300 from his employer, to his sentence of four years’ jail time to his selection for work release under the supervision of a private firm that would be responsible for his housing, his feeding, his rehabilitation, and his work assignment.

The food was of low quality, often inedible. No education programs or practical job training were offered him or the other inmates, medical care was unheard of, and recidivism was off the charts.

His every movement was made under the watchful eye of the armed guards and any prisoner who made a mistake or who did not meet his work quota paid a price.

It was a great arrangement for everyone but the prisoners. True, they broke the law and society says one must be punished for transgressions against it. No one argues that point. But as more and more prisoners were shuttled off on the private concerns, the state had fewer and fewer prisoners to care for, to feed, to educate, or to provide medical car for.

The private concerns, meanwhile were reaping huge profits through what had become a form of legalized slavery and everyone was happy but those upon whose backs the profits were being realized.

And when Russell wrote his story, it was only natural that the Georgia legislature and the governor went just a little ballistic. “Georgia didn’t waste any time finding fault with us for calling attention to the spot on her pretty gown,” said the magazine in an editorial afterwards. “All we did was criticize.”

Typically, however, when the light is focused on widespread and ingrained abuses, it is the abuser who squeals the loudest, professing to have been grievously wronged by what one prominent politico likes to call “fake news.”

But it’s not fake news. Not now and not in 1908 when Russell actually wrote his story for the long-defunct Everybody’s magazine. His story was reprinted in The Muckrakers: Journalism that Changed America, a BOOK comprising a compilation of investigative newspaper stories edited by Judith and William Serrin.

The practice described by Russell more than a century ago, lives on. It has been tweaked, adjusted, and fine-tuned but remains basically the same and today is making a lot of people wealthy. It was called convict leasing then. Today, it’s called by a much more benign name: transitional work program. It is better known as work release.

CONVICT LEASING actually predates the Civil War in Louisiana. It was legalized slavery then and not much better today. Its popularity mushroomed following the Civil War and the loss of slave labor as southern politicians saw it as a natural alternative to the real thing. It was no coincidence that the vast majority of “leased” convicts were African-Americans.

Private concerns profiteered off prisoners and they still do, even if in methods that are a little subtler. And just as it was when Russell wrote his story, the practice is sanctioned, encouraged even, by the political establishment.

And just to make sure the skids continued to be greased, lawmakers from the halls of Congress to state legislatures annually pile on more and more bills calling for stricter and stricter sentences for even non-violent offenders, thus ensuring the beds in those privately-run prisons and sheriff-run parish jails will stay full. This in turn guarantees that the payments from the feds and the state will keep rolling in and those prisoners can be farmed out to private companies.

In reality, it is a system that feeds on itself.

Convict leasing, simply defined, is a method of control and distribution of convict labor practiced mainly in the southern states, including Louisiana. Contractors would pay the state a bargain basement price to take control of a given number of prisoners. Some of these private concerns, desperate for labor, included planters and manufacturers. Some contractors used the convict labor in their businesses while others were nothing more than labor brokers, or middle men, who sublet the prisoners to other concerns.

Unlike other southern states, convict leasing in Louisiana continued almost non-stop from 1844 to 1901.

It wasn’t until 1892 that efforts began in earnest to abolish the practice. Gov. Murphy J. Foster (does that name sound familiar?) supported those opposed to the leasing practice. The Louisiana Constitution of 1898, passed during his administration, abolished both convict leasing and the Louisiana lottery, which had become a notorious source of corruption. The last lease for convict labor expired in 1901 and the state took over operations of what is now the Louisiana State Penitentiary at Angola.

In Georgia, the practice continued until it was OUTLAWED by the legislature in 1908, the same year Russell wrote his story for Everybody’s magazine.

Exactly what is to be gained from work release?

Well, of course those who run the programs are quick to point out that prisoners are learning a trade.

That’s strictly a subjective evaluation at best. Swabbing the floors of a chicken processing plant isn’t very appealing as a career choice for most people, even prisoners.

Maya Lau wrote an excellent STORY for The Shreveport Times about one work release inmate in the Caddo Parish Sheriff’s Department’s work release program prior to moving to the Baton Rouge Advocate. Lau, now with the Los Angeles Times, reported that the inmate was paid $7.75 an hour, barely more than minimum wage. Of that amount, the sheriff’s office claimed up to 62 percent right off the top. Multiply that by the number of total hours all prisoners in the program work in fiscal year 2011-12, the latest year data were available for Lau’s Jan. 7, 2015, story and you come up with a cool $500,000 added to the Caddo Sheriff’s Department’s general fund.

That was in addition to the $25 per day the sheriff’s office was paid for housing state inmates and $47 per day per prisoner paid by the Federal Bureau of Prisons for federal inmates, most of whom have committed no greater crime than being illegal aliens.

Moreover, there are those commissaries operated by the private prisons that reach deeper into inmates’ pockets. With literally a captive clientele, private prisons were able to charge $4 for a Honey Bun and $5 for a cold drink. That’s according to Baton Rouge Public Radio reporter Sue Lincoln, who did an outstanding series on THE PRICE of JUSTICE earlier this year. It’s no wonder, then, that Correct Commissary, LLC, of Ruston approached the Lincoln Parish Police Jury several months ago about constructing a 50,000-square-foot commissary warehouse on the site of the former Ruston Municipal Airport. The company packages snack boxes that it sells to prison inmates, according to An April 2, 2017 article in the Ruston Daily Leader.

After 11 weeks, the prisoner about whom Lau wrote, took home a grand total of $416, or about $37.82 per week.

And what about businesses who employ work release inmates?

Well, besides the low wages, there is the obvious benefit of not having to pay for medical insurance or contribute to retirement funds—or to pay each such employee two weeks’ vacation pay each year. One could make the case that using this cheap prison labor could be knocking non-inmates out of jobs.

But that’s not the only consideration. For every work release inmate employed, the state gives the employer a whopping $2,400 tax credit. That’s not a tax deduction, but a full-blown tax credit, meaning that amount is lopped right off the top of the company’s tax bill. So, a company like the Foster Farms chicken processing plant in Farmerville in Union Parish, which uses up to 200 inmates from work release, gets an instant reduction of up to $480,000 off its state tax bill.

A 2016 AUDIT by the Legislative Auditor’s Office revealed that there were 8,700 prisoners in work release programs across the state. That computes to nearly $21 million in tax credits—and that’s in addition to the $80 million or so the state pays private and parish prisons for housing inmates.

And while the Emancipation Proclamation of 1863 may have abolished plantation slavery, it may have unwittingly opened the door to another form of slavery that while flying below the radar, nevertheless remains legal more than a century-and-a-half later, enriching the modern slaveowner, aka private and parish prisons.

So, it is understandable perhaps that Caddo Parish Sheriff Steve Prator was so FURIOUS at the new Louisiana sentencing and parole laws that go into effect on Nov. 1. The new law will mean the release of about 1400 non-violent offenders. He will, he says, lose some of his best CAR WASHING prisoners.

 

Before getting to my subject—the final day of our fall fundraiser—I would like to put this disclaimer out there:

I’ve been told by one of my readers that an ad for Public Service Commission candidate Dr. Craig Green keeps popping up on my LouisianaVoice page each time he opens it, leading the perception that I might be endorsing his candidacy.

First of all, I know nothing of Dr. Green. Second, I don’t endorse candidates. And third, as I have said on previous occasions, I do not accept any advertising other than that to Cavalier House Books, a local book store in Denham Springs—and that only because the proprietor, John Cavalier, was kind enough to construct the LouisianaVoice web page to get this blog started. I do not charge him for the ad.

The way I’m told it works is this: When you, the reader, go to web pages on your computer, the web browser somehow retains that information as the type information that you are interested in. So, when you open subsequent pages, i.e. LouisianaVoice, ads containing information similar to the previous search you did may pop up on your computer screen. I don’t know how accurate that information is because when I opened my LouisianaVoice page to write this, pop-up ads touting some financial investment service appeared. I certainly haven’t searched any investment bank pages because I have nothing to invest, but anyway, there’s your explanation: LouisianaVoice is not endorsing any candidate for any office. Period.

Enough about that and enough (finally) about LouisianaVoice‘s fall fundraiser.

Today is the final day for me go come hat in hand, asking for alms. But the fact is, it takes more and more financial resources to keep this going.

What started as investigative reporting only on state government in Baton Rouge has expanded statewide into all branches of government—state, parish, and municipal. That puts considerable strain on the ol’ pocketbook with the purchase of gasoline, public documents and filing and defending court actions when some aggrieved agency or bureaucrat wants to push back.

So, please, on our last day of the fall fundraiser (You can contribute any time; this is just our official fundraising effort), do what you can to support us. Large or small, all contributions matter and are deeply appreciated. Just click on the yellow “DONATE” button to the upper right of this post and contribute by credit card to our Pay Pal account. You don’t have to be a member of Pay Pal to do it. If, as in the case of one would-be contributor, the “DONATE” button doesn’t work for you, or if you prefer to send a check, the address is:

LouisianaVoice

P.O. Box 922

Denham Springs, LA. 70727

And a most sincere thank you for your support, both financial and moral!

I’m not going to write a long justification for my semi-annual spiel. Just know that stories like the one beneath this solicitation are what I do here at LouisianaVoice.

It’s not always easy. It takes hours of cultivating sources, verifying what they tell me or digging for public records that substantiate what I write.

I only do this once a year because afterward, I always need a shower. It makes me feel slimy, but it’s necessary.

I rely on your generous contributions to keep doing what I do. You’ve heard and read all the reasons, so there’s no need to reiterate, be repetitive, redundant, repeat myself or say the same thing over and over.

Please click on the yellow “DONATE” button to the lower right of this groveling post and contribute what you can by credit card or send a check through the snail mail to:

LouisianaVoice

P.O. Box 922

Denham Springs, LA. 70727

All this unpleasantness will be over Friday—at least until next April, so please help.

Thanks to all of you for reading LouisianaVoice and for supporting my efforts.

Tom Aswell, publisher