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One of the most frustrating things in writing about this administration is obvious wrongdoing is reported and nothing is done.

In Bobby Jindal we have a governor who is constantly bitching about Washington in general and the Obama administration in particular while turning a blind eye to corruption, profiteering and ethical violations within his own administration.

You would think that the man who, upon taking office in 2008, said, “We have zero tolerance for corruption” would make at least a token effort to keep his house in order.

Instead, he gutted the enforcement authority of the State Ethics Board, ran off members of the board, and commenced to allow his political pals to run unchecked.

The sordid episode of State Police Superintendent Mike Edmonson and the manner in which he was allowed to increase his state pension by nearly 70 percent is just the latest in a sorry laundry list of loose enforcement of ethics rules in this administration.

We have already written about some of these:

  • Board of Elementary and Secondary Education (BESE) member Kira Orange Jones simultaneously serves as executive director of Teach for America (TFA), which in turn, has been issued contracts worth more than $3 million with the Department of Education (DOE) since she became a member of BESE in 2012. BESE is the governing board for DOE and as such, must approve all contracts with the department.
  • The resignation of the vice chairman of the Louisiana Board of Ethics only weeks after the Tribune, a newspaper serving the African-American community of New Orleans published a story in its May/June 2013 issue headlined “Kira, Kira on the Wall” which explained Schneider’s own conflict of interests in ruling on an Aug. 21, 2012, conflict of interest decision about Orange Jones.
  • BESE President Chas Roemer consistently votes on issues concerning charter schools even though his sister, Caroline Roemer Shirley, is executive director of the Louisiana Association of Public Charter Schools which much apply to BESE for approval of charters and other matters concerning charter schools, including funding.

And while we have not written about it, BESE member Walter Lee of Mansfield, who recent retired as Superintendent of DeSoto Parish Schools, is currently under investigation for allegations that he billed both the school board and BESE for travel expenses to and from BESE meetings in Baton Rouge and for lodging while in Baton Rouge.

Now, thanks to public records we belatedly obtained from the Division of Administration, we learn that another BESE member’s company has reaped more than $1.5 million from contract work his company performed on behalf of a dozen South Louisiana school boards and the Recovery School District in 2013 and 2014.

Hunt Guillot and Associates (HGA) of Ruston previously held two state contracts since Hurricanes Katrina and Rita that together totaled more than $38 million. The latest, for $20 million, expired on June 30 but is expected to be renewed.

Jay Guillot, of the 5th BESE District, is an HGA partner.

The HGA contract is with the Louisiana Office of Community Development for “grant management activities for infrastructure and other projects undertaken as a result of damages incurred as a result of Hurricanes Katrina/Rita and to a lesser extent, as a result of Hurricanes Gustav/Ike,” the contract details contained on the state’s LaTrac web page which lists active and expired state contracts and contractors.

Though the funds to pay HGA are federal funds allocated through the Community Development Block Grant (CDBG) program, the company’s contract is with the state and the state cuts the checks to HGA from the state’s CDBG funds.

Much of HGA’s work involved other branches of parish governments but in our search of records we found no fewer than 138 billings to school boards and the RSD totaling $1.58 million since January 2013. Of that amount, 17 separate invoices totaling $488,000 (30.9 percent of the total billed) was for the RSD.

The Department of Education has responsibility for the oversight of RSD and cannot be considered separate entities for purposes of say, a lawsuit against the RSD. At the same time, BESE is the governing authority over DOE, thereby creating a straight line of authority between BESE and the RSD as well as the dozen school boards for whom HGA also performed work.

School boards for whom HGA performed services and the amounts billed from January of 2013 through May of 2014 are as follows:

  • Plaquemines: 17 billings for $342,726;
  • Cameron: 16 invoices, $227,126;
  • St. Tammany: 16 invoices, $142,598;
  • Orleans: 17 invoices, $116,507;
  • Jefferson: 17 invoices, $97,598;
  • Calcasieu: 16 invoices, $64,813;
  • St. Charles: 14 invoices, $56,390;
  • St. Bernard: 12 invoices, $29,539;
  • Terrebonne: three invoices, $9,202;
  • Lafourche: four invoices, $2,968;
  • Washington: five invoices, $2,222;
  • Lafayette: one invoice, $50.

Incredibly, with only a month left in its contract, HGA managed to allocate just enough work to almost exhaust the contract amounts for eight of the parish school boards and the RSD.

The last billing made available to us was for work done through May 25, 2014. Following are the total amounts billed through May 25 (with a month remaining on the contract) with the total allocated under HGA’s contract for the corresponding parish in parenthesis:

  • RSD: $786,988 ($817,567);
  • Orleans: $237,766 ($255,519);
  • Jefferson: $205,748 ($205,750);
  • Plaquemines: $831,968 ($826,970);
  • St. Bernard: $195,996 ($196,877)
  • St. Tammany: $377,372 ($382,863);
  • St. Charles: $147,763 ($148,353;
  • Calcasieu: $112,295 ($116,171);
  • Cameron: $629,750 ($639,031).

Section 1113 of The Louisiana Code of Governmental Ethics prohibits public servants and their family members from entering into certain transaction. That section says:

  • “No elected official or public employee or member of such public servant’s immediate family, or legal entity in which he has a controlling interest shall bid on or enter into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of the public servant’s agency.

That’s plain enough but for those wanting further clarification: “controlling interest means any ownership in any legal entity or beneficial interest in a trust, held by or on behalf of an individual or a member of his immediate family, either individually or collectively, which exceeds 25 percent of that legal entity.”

We do not know for certain what Guillot’s percentage of ownership is but inasmuch as his name is listed as a partner on the company letterhead we would assume he would meet that criterion.

And while the HGA contract is not specifically with DOE or BESE, the $1.5 million in work done for the local school boards and the RSD seems at best to skirt the edge of a conflict of interests for Guillot.

 

Editor’s note: House Speaker Chuck Kleckley (R-Lake Charles) has refused a request by Rep. John Bel Edwards (D-Amite) for an investigation into the $55,000 per year pension increase sneaked onto an unrelated Senate bill during the final day of the recent legislative session. State Treasurer John Kennedy, however, thinks such an investigation is not only appropriate but necessary.

 

By State Treasurer John Kennedy

Unless you just parachuted in from Mars, you’ve probably seen media reports about the retirement bill recently passed by the Legislature and signed by the Governor (Act 859) that boosts the retirement benefits for a small number (allegedly two) of Louisiana State Police Troopers.  The benefits-boosting provision, again according to media reports, was added to an unrelated bill on the last day of the legislative session by a six-person conference committee that did not meet publicly.  All six of the conferees say they did not sponsor the amendment.

It’s important we get the facts about what happened, how and why for two reasons.  First, fairness.  Whether you are a prince or a pauper, a king or a pawn, our retirement laws should apply equally to everyone.  Second, cost.  Louisiana’s four state retirement systems have a $19 billion deficit (called an unfunded accrued liability, or UAL, in accounting terms), which according to Standard & Poor’s is the sixth worst in America.  That means the present and projected future assets of the systems are $19 billion less than the retirement payments promised by law and guaranteed by taxpayers and the state constitution.  The Louisiana State Police Retirement System (LSPRS) has a $323 million UAL.

I sit on the Board of Trustees of the LSPRS as State Treasurer.  My fellow board members and I take seriously our fiduciary obligation to protect the system’s assets for the 933 active state troopers, 893 retired troopers and 341 troopers’ survivors.  We have directed our legal counsel to investigate the facts surrounding the passage and signing of Act 859 and report back to us within the month.  We have asked for the answers to the following nonexclusive questions:

  • How many people will Act 859 benefit?
  • Who are the people who will benefit, so they can be invited to speak to the LSPRS Board to explain their side of the story?
  • What is the cost of Act 859 to the retirement system and its members?
  • Is it true that the actuarial note discussing the cost of Act 859 was added three days after the bill passed and, if so, why?
  • What would it cost to give the same retirement benefit increase to all troopers and their dependents who are similarly situated?
  • Who sponsored the benefits-boosting amendment, so they can be invited to speak to the LSPRS Board to explain why they offered it?
  • Does the amendment satisfy the legal requirement of proper notice for a retirement benefits bill?
  • Does the amendment meet the legal requirement of “germaneness”(relevance) to the amended bill?
  • Does the amendment violate the state constitutional prohibition (art. I, §23)against the Legislature passing a law that impairs the obligation of contracts?
  • Does the amendment satisfy the state constitutional requirement (art. I, §3) of equal protection of the laws?
  • Does the process by which the amendment was adopted violate the Legislature’s internal rules?
  • What are the Board’s legal options?

Let’s get the facts.  I do not believe the LSPRS Board of Trustees will tolerate preferential treatment to the detriment of other active and retired troopers and their families, if indeed that is what is found to have happened. 

Editor’s note:

The following is a guest column offered by Baton Rouge teacher Fred Aldrich who, along with thousands of others, listened Monday as Superintendent of State Police Mike Edmonson appeared on the Jim Engster Show to defend the amendment tacked onto an unrelated bill on the final day of the legislative session which will give Edmonson an additional $55,000 (not $30,000 as first reported—we’ll explain at the end of Aldrich’s guest column) upon his retirement—a nice bonus unique to Edmonson and one other state trooper.

 

I am a long-time listener to NPR station WRKF, and I listen to the Jim Engster show whenever possible. I don’t always agree with Jim or his guests, but I usually don’t find my disagreements worthy of a response. Today was an exception.

The comments of Jim’s guests are not the opinions of Jim or WRKF, but unfortunately those comments may be spin and/or misinformation which listeners will take as truth.

State Police Superintendent Mike Edmonson was on the show this morning. I have great respect for the state police, and I have considered Edmonson one of the good guys in the Jindal administration. This morning’s interview, however, was problematical for me in several ways.

Engster congratulated Edmonson for having the fortitude to come on the program at a time when the superintendent is facing a lot of heat statewide. His performance suggested that he has paid attention during the years he has also served as a prop for the governor. He sounded earnest, sounded passionate, and sounded determined to serve his troopers and the people of the state. So far, so good, but that’s not why he’s on the hot seat. No one questions his dedication.

As a teacher with 38 years of experience in Louisiana and one who participated in the Deferred Retirement Option Plan (DROP) about the same time as he did, my understanding and experience with the program are much different from what Edmonson expressed on the program. He wanted to dispel “inaccuracies” with “facts,” but in my estimation he mostly promulgated misinformation, to wit:

  • The retirement systems which offer DROP are not “different” retirement systems than they were at the time he or anyone else went into DROP. DROP was simply a program within these retirement systems which was offered to employees for a few years, theoretically to provide valued employees an opportunity to continue working while putting three years of retirement checks in an interest-earning escrow account that could not be accessed until the employee finally retires, as which time federal laws regarding taxes and withdrawals apply. Though officially retired, the employee continued to draw his regular pay while payments were made into his DROP account. These three years do not count as service credit toward figuring eventual retirement benefits.
  • Despite Col. Edmonson’s casual use of the word, no one was “forced” into DROP. It was a choice for anyone with 30 years of service, or 25 years of service for those 55 years old or older. Those who chose to not enter DROP simply continued to work, with the three years counted as regular service credit, and allowed the employee to draw the retirement benefits he/she accrued upon final retirement. Had Col. Edmonson, and myself, and others, chosen to not participate, his, and our, retirement benefit would have been what it took him a specious legislative effort to attain.
  • The form that each DROP participant had to sign made the options and possible outcomes very clear. It states, in no uncertain terms, that the employee understands that his basic retirement benefit is frozen at that time, that the decision is irrevocable, that service credit past the exit from DROP is calculated in a different manner, and that DROP may not be the best option, depending on future circumstances. It urges employees to consider their decision carefully and seek financial counsel before they choose to enter the program.
  • The articles I’ve read and the radio program in particular fail to mention the three years of retirement pay in Col. Edmonson’s DROP account plus the accrued interest and whether he plans to return that money to the system if he gets his new benefit. In my case, and I was in DROP at the same time as Edmonson, my account balance has nearly doubled in ten years. (And my eventual retirement benefit will be approximately 65% of what it would have been had I not chosen to go into DROP.)
  • Col. Edmonson misstated the application of the $30,000 yearly bump that has been mentioned. No one I know of has claimed that this is a bonus on top of his new yearly retirement benefit. It is the difference between the benefit that he is entitled to as the result of his voluntary participation in DROP and his new benefit, courtesy of a friendly conference committee.
  • Blaming the confusion at the end of the legislative session for the “misunderstanding” is ridiculous. It’s beyond obvious that he and his allies (which could range from the governor down to legislative staffers) gamed the system and took advantage of this dysfunctional process for his benefit, then blamed the process for a misunderstanding.
  • As for the integrity in which Col. Edmonson bathed himself and the commiseration he offered a caller who found herself in a similar retirement situation, he could have demonstrated his concern by including all DROP participants in his legislation. I, and several of my colleagues, (and apparently many others) have tried to lobby for the same remedy that Col. Edmonson and his allies sneaked through (Let’s call it what it is.) We have met the runaround
  • from every source we’ve approached, and we’ve accepted that most of us will have been long dead before anything actually could be done.

Unfortunately, we’re not in the governor’s loop and teachers with 35-50 years of experience who make less than half the salary of Col. Edmonson don’t have the same voice. His assertion that everyone should get the same consideration that he does begs the fact that all troopers, state workers, and teachers don’t have the same political connections and the same willingness to go through this foul-smelling process to enrich themselves.

This is my understanding based on my experiences with DROP and my following of Edmonson’s gift from the conference committee. If anything is factually incorrect, I will readily stand corrected. As a reaction to what happened, I remain convinced that the whole action smells. There are many hard-working, conscientious, productive people in state government, law enforcement and education, who don’t get special treatment through a disgusting legislative process.

            In addition to Mr. Aldrich’s comments, we have some comments and additional information of our own to add:

During his appearance on the Jim Engster Show, Edmonson who last week said he never asked for the legislation and did not know about it, acknowledged that an unidentified” staff member” brought the matter to his attention and he authorized the effort to go forward. He also told Engster that the issue of the special legislation actually arose several weeks before the end of the session.

That being the case, why was it necessary to wait until the last day of the session, when the pace becomes hectic and confusing, to insert the amendment into a benign bill completely unrelated to retirement (the bill, Senate Bill 294, dealt with disciplinary procedures for law enforcement officers under investigation)? That tactic alone smacks of covert intent designed to keep the measure from the prying eyes of the media and public.

Edmonson, during his interview, acknowledged that when he voluntarily (and the word voluntarily should be emphasized here) entered DROP, he was a captain earning $79,000 per year in salary. By entering DROP, his retirement was frozen and would be calculated on that salary. The trade-off was that he earned a higher salary.

But he probably did not foresee his advancement to Superintendent of State Police at a salary of $134,000.

Based on a formula multiplying his salary by the number of years of service by 3.33 percent), he would have retired at 100 percent of that $79,000 salary instead of 100 percent of his higher salary of $134,000 after 30 years.

Until the passage of the secretive-shrouded amendment to SB 294, that is. The amendment will mean an additional $55,000 per year to Edmonson during his retirement years—$134,000 (100 percent of his current salary).

Should Edmonson live for 30 years after retirement, that’s an extra $1.14 million in retirement benefits.

The amendment prompted one retired state trooper, Jerry Patrick, to express his embarrassment “that one of our troopers was so selfish that he would tarnish the badge that I and so many others worked and sacrificed to honor.”

Patrick said that it was “no stretch to believe that the governor’s office was directly involved in requesting this for a member of the governor’s cabinet.”

To that end, LouisianaVoice has made three separate public records requests. The first was to the Louisiana State Police communications director (which was handed off to the agency’s legal team) requesting the opportunity to review “all emails, text messages and/or other communications” between Edmonson, his staff, State Sen. Neil Riser, his staff, and the governor’s office pertaining to any discussion of DROP and/or retirement benefits for Edmonson and any discussion of retirement legislation that might affect Edmonson.

We made similar requests of both the House and Senate for any similar communications between members of the conference committee that approved the special amendment, Edmonson, the governor’s office and Laura Gail Sullivan, legal counsel for the Senate Revenue and Fiscal Affairs Committee. Riser is chairman of that committee and was on the conference committee that inserted the amendment for Edmonson.

Through the grapevine, we have learned that Sullivan has already invoked the sacred attorney-client privilege to prevent releasing any of her emails. But that objection is questionable at best inasmuch as Edmonson is not her client. Neither is the governor. Nor is, for that matter, Riser.

Of course, she will probably include Riser by extension by virtue of his chairmanship of the committee for which she works but Riser, should he have nothing to hide, could always waive the attorney-client privilege.

If he does not, and if Sullivan does resist releasing the contents of her emails, we can only assume the obvious: there is something contained in those messages that the principals would rather we not know.

And to quote my favorite poet and playwright Billy Wayne Shakespeare of Denham-on-Amite from my favorite play, Hamlet Bob: “Ay, there’s the rub.”

But we are confident they would never try to hide anything from the public. This administration, after all, is the gold standard of ethics, openness and transparency. Gov. Jindal himself has said so on countless occasions in his many out-of-state appearances.

Oh, but wait. We also learned on Tuesday that House Speaker Chuck Kleckley (R-Lake Charles) has refused a request by State Rep. John Bel Edwards (D-Amite) for a full investigation of the secretive amendment. Kleckley said that because it was a Senate bill to which the amendment was attached, it becomes a matter for the Senate to investigate. Apparently, Kleckley neglected to note that three members of the conference committee that approved the amendment were House members.

Kleckley’s dancing around the issue, folks, is what is known as the Bureaucratic Shuffle.

 

Someone (and we are not pointing fingers at anyone—yet) has attempted to plant a computer virus on the LouisianaVoice web page which, once you log onto our site, first gives you a virus message, locks you out of the site and then gives you a message that the site cannot be found whenever you attempt to log back on.

We first got the warning from one of our readers earlier today and when we tried to log on a couple of hours later, we got a virus warning. Once we closed the page, we found that we were unable to log back on and we received the “site not found” message.

We solved the problem by re-booting (logging off our computer and then logging back on) and found that the problem was solved.

Should you experience the same problem, simply re-boot your computer and you should be able to access LouisianaVoice without any further problems.

As we said, we are not pointing fingers at anyone, but we will say this much:

Last year, when we were writing a series of stories about the shenanigans of Louisiana Office of Alcohol and Tobacco Control Director Troy Hebert, we were told by one of his agents that Hebert had boasted that it would be a simple matter for him to have his IT people to hack into our computer.

We made a direct email inquiry of Hebert as to the veracity of that report. More than a year later, we are still awaiting his response.

Again, we’re not point fingers. We’re just saying….

“Hopefully the board can—or someone will—challenge the constitutionality of the rogue amendment.”

—State Rep. Kevin Pearson (R-Slidell), chairman of the House Retirement Committee, commenting on the amendment to SB 294 which added $30,000 per year to the retirement income of State Police Superintendent Mike Edmonson.