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“I don’t think you have come close to showing there’s either a cost saving or efficiency. Until that can be done, I think we have to reject.”

–Civil Service Commissioner Scott Hughes of Shreveport, to Carol Steckel, chief of the Department of Health and Hospital’s Center for Health Care innovation and Technology, on her presentation calling for a plan to contract out DHH’s information technology services, a plan that would result in the loss of jobs by state employees currently performing those functions.

The Jindal administration has made last-minute changes in the executive budget to be submitted to the Joint Legislative Committee on the Budget on Thursday that could, if passed, result in “massive layoffs” in the Office of Group Benefits (OGB), LouisianaVoice has learned.

Under the revised budget, OGB will not be sold outright as originally advanced in an earlier version of the budget but instead OGB’s Preferred Provider Organization (PPO) will be taken over by a third party administrator (TPA) to be run in the same manner as the state’s HMO plan that is currently administered by Blue Cross/Blue Shield of Louisiana.

The original executive budget included a provision for the outright sale of OGB. Had that remained on the table and a buyer found, Morgan Keegan financial advisors of Memphis, Tennessee, stood to reap a $750,000 bonus for finding a buyer for OGB.

It was not immediately clear if the bonus for the legally-troubled firm—Morgan Keegan was fined $210 million by the Securities and Exchange Commission nearly two years ago for misrepresenting critical information to investors—would still be an option.

What is clear, however, is that there would be massive layoffs of OGB employees who currently run the state’s self-insured PPO which presently has a surplus of some $500 million.

Commissioner of Administration Paul Rainwater testified to the legislature last year that it was necessary to reduce the work force at OGB by 149 persons. Ostensibly, those would be the employees who now handle claims for state employees, retirees and their dependents.

The good news is there will be no premium increase to state employees and retirees in Fy-2013.

While the plan to sell OGB has been altered, the contracting of a TPA will nevertheless be tantamount to privatization of an agency that is generally well-received by state employees. The agency has established a record of rapid turnarounds on claims and under former administrator Tommy Teague, amassed the $500 million surplus.

Teague was fired by when he didn’t fall into line quickly enough to suit Rainwater over last spring’s efforts to privatize the agency. In his testimony, Rainwater flip-flopped several times as to whether the governor’s intent was to sell OGB or contract with a TPA. He used both terms almost interchangeably during questioning by legislators.

OGB is only one of several state operations Jindal is attempting to privatize. He succeeded with the Office of Risk Management (ORM), but only partially. The state paid F.A. Richard & Associates (FARA) $68 million in 2010 to take over ORM only to have FARA return eight months later for a contract amendment of $6.8 million, bring the total price to nearly $75 million. A scant two weeks later, FARA was sold to an Ohio company and last fall, that company was in turn sold to a firm out of New York. Neither transfer of ORM to the second or third firm was given advance written approval as was required of the state’s contract with FARA.

Jindal’s efforts to sell two state prisons were thwarted last year but it is expected that those efforts will be renewed.

The governor also is moving ahead full-throttle with his efforts to create for-profit charter schools to replace so-called failing public schools. There are some non-profit charter schools scattered throughout the state but the emphasis has been on for-profit schools as well as vouchers to enable children to move from failing schools to charter schools.

Jindal recently fired a shot across the bow of public school teachers when he unveiled his ambitious education program not before teachers but at the annual meeting of the Louisiana Association of Business and Industry, a virtual slap in the teachers’ faces by the proponent of virtual schools.

Jindal elevated—or lowered, if you prefer—the debate be suggesting that the executive director of the Louisiana Association of Educators should resign for his remark that poor, uneducated families might not have the wherewithal or the expertise needed to navigate the bureaucracy to transfer their children to better schools under Jindal’s proposed voucher system.

The governor, not content with simply promoting his program, suggested that teachers are given pay raises for the simple act of breathing and that they could only be fired for selling drugs in the workplace (schools).

Parts of the state’s Medicaid program have also been privatized by Jindal but his efforts to contract out the Department of Health and Hospital’s information technology services met stiff resistance from the state Civil Service Commission last week.

That confrontation, won for the moment by the Civil Service Commission, could serve as the impetus for Jindal to renew his unsuccessful 2010 efforts to abolish civil service and the Civil Service Commission.

State Rep. John Schroder (R-Abita Springs) introduced a handful of bills that year dealing with merit pay raises for state classified workers, and civil service in general, none of which were passed.

All of Jindal’s privatization proposals appear to be ripped directly from the pages of the playbook of the American Legislative Exchange Council (ALEC).

That playbook, an actual internet web page, includes a section entitled “Tools to Control Costs and Improve Government Efficiency. Among the “tools” it recommended were:

• Adopt a state hiring freeze;

• Reform state pensions;

• Delay automatic pay increases (we wondered where legislators came up with the term “automatic” in freezing merit increases a couple of years back;

• Embrace the expanded use of privatization and competitive contracting;

• Restructure state retiree health care plans.

Jindal only recently unveiled his plan for restructuring the state retirement system, a plan that includes tighter retirement qualifications, increased employee contributions, a revised formula for calculating benefits, defined contributions as opposed to the present defined benefits plan (similar to 401K plans found in the private sector, and a proposed lump-sum payout upon retirement.

The one issue that has remained unaddressed in the retirement discussion is if the state does go to a defined contribution plan such as those found in 401K plans, will the state then be required to pay the usual employer share to Social Security?

Some state employees currently do not pay into Social Security and thus are not qualified for Social Security benefits or Medicare upon retirement unless they worked in the private sector prior to their state employment.

If Jindal should revamp state retirement, it could mean that the state could be required to pay the customary employer percentage into those programs which could mean any savings achieved by privatization could be negated.

Don’t say we didn’t warn you.

As recently as Jan. 31—less than a week ago—we told you that Gov. Bobby Jindal is following the playbook of the American Legislative Exchange Council (ALEC) almost to the letter.

That playbook includes a section entitled “Tools to Control Costs and Improve Government Efficiency.” Among the “tools” it recommended were:

• Adopt a state hiring freeze;

• Reform state pensions;

• Delay automatic pay increases (we wondered where legislators came up with the term “automatic” in freezing merit increases a couple of years back);

• Embrace the expanded use of privatization and competitive contracting.

Each of these has already been done or is in the process of being done.

Next Thursday, the administration will present the governor’s Executive Budget for Fiscal Year 2012-2013. Included in the budget will be the proposed sale of the Office of Group Benefits (OGB) for $189 million, to become effective Jan. 1, 2013.

The committee meeting is scheduled to be held at 9:30 a.m. in House Committee Room 5.

The $189 million apparently is the price tag derived by Morgan Keegan, the Memphis banking firm that stands to reap a $750,000 bonus over and above the $150,000 for assessing OGB’s value if it is successful in negotiating the OGB sale at the $189 million price.

Morgan Keegan was itself only recently sold after being fined $210 million nearly two years ago by the Securities and Exchange Commission for misrepresenting critical information to investors.

Whoever ultimately purchases OGB will take with them the $500 million surplus now carried on the OGB books which the new operators will use to pay claims.

LouisianaVoice has also learned that once the sale of OGB is successfully negotiated and the agency is taken over by private industry, premiums will rise by approximately 10 percent.

There are other proposed changes coming that we can tell you about next week.

We can tell you this much, though: It ain’t gonna be pretty.

“We are going to create a system that pays teachers for doing a good job instead of for the length of time they have been breathing.”

—Gov. Bobby Jindal, unveiling his education reform package before the annual meeting of the Louisiana Association of Business and Industry on Jan. 17.

“It’s a Biblical principle: if you double a teacher’s pay scale, you’ll attract people who aren’t called to teach.”

–Alabama State Senator Shadrack McGill (R-Woodville), speaking at a prayer breakfast in Fort Payne, Alabama, earlier this week. At the same time, he defended a 62 percent legislative pay increase as a deterrent to lobbyist influence.

Ron White of the Blue Collar Comedy Tour, arguably one of the funniest standup comics in America, once uttered the classic line, “You can’t fix stupid.”

The same might well be said of arrogance.

Case in point: Mitt Romney saying he was “not concerned about the very poor.” Even if true (which it probably is), it is arrogant to say it even privately, much less publicly.

Case in point: Gov. Bobby Jindal’s calling Louisiana Association of Educators Executive Director Michael Walker-Jones “arrogant” for Jones’s saying that some parents in poverty may not have the time or information to make a decision on their child’s education and suggesting that Walker-Jones resign.

That addressing poverty should be the key in seeking a solution to failing schools is a no-brainer to everyone except those who would gain political capital by bashing public education.

Walker-Jones made his comments in response to Jindal’s education reform plans that the governor unveiled before the annual meeting of the Jindal-friendly Louisiana Association of Business and Industry (LABI) as opposed to the more appropriate audience of those most affected by the proposed changes: teachers.

And therein, as Willie Shakespeare said, lies the rub.

Unveiling his plan at that particular venue was a touch of arrogance in itself, a breach of protocol. But look here for the real arrogance of this governor: http://gov.louisiana.gov/index.cfm?md=newsroom&tmp=detail&articleID=3197.

Here are some excerpts:

“…We are going to give (local school) districts more flexibility over their federal dollars….(and) We are going to reduce federal reporting requirements….”

One has to wonder if he has run this by the feds yet. It was Earl Long who asked civil rights opponent Leander Perez in the heat of the state’s battle over desegregation more than 50 years ago, “What’re you gonna do now, Leander? The feds got the A-bomb!”

Jindal, in attempting to apply the principle of teacher tenure to a hypothetical company in the private sector, said there is no accountability for job performance and “after three years of this, if they have survived, they are given lifetime job protection. Short of selling drugs in the workplace or beating up one of the business’s clients, they can never be fired.”

Implying that teachers can only be fired for selling drugs at school is arrogance in its purest form—and stupid beyond belief. By his standards, it must be fair to say that now that he has been re-elected, he can only be removed if he sells drugs in the House or Senate chambers. Certainly, that is a far-fetched and most unreasonable analogy—but no more so than his own remarks.

Case in point: “We are going to create a system that pays teachers for doing a good job instead of for the length of time they have been breathing.”

Does anyone know of a single instance in the history of mankind where someone has been paid for the length of time he or she has been breathing? Anyone? Anyone? Bueller? Bueller? Anyone?

We’re talking sheer arrogance here.

Perhaps Jindal should resign after making such an ass of himself.

In fairness, he did make one accurate comment to LABI: “Our system today often crushes talented teachers and it makes their jobs harder, not easier.”

At least he’s spot-on with that assessment.

Of course Jindal’s education reform proposals are drawn almost exclusively from the American Legislative Exchange Council’s sweeping agenda but it no doubt also draws heavily on a study done by Raj Chetty and John Friedman of Harvard and Jonah Rockoff of Columbia University.

Without going into too much detail, that study concludes that good teachers cause students to get higher test scores, which in turn lead to higher lifetime earnings.

Well, duh. How much was that grant? Bet we could’ve arrived at that conclusion for less.

But wait. Let’s look a bit more closely at the specifics of that study that has become the mantra of reform-minded governors like our own.

“Replacing a poor teacher with an average one would raise a single classroom’s lifetime earnings by about $266,000,” the New York Times quoted the study as saying.

Wow. $266,000? Really?

But let’s break that down a little further. Let’s say for simplicity that the average classroom has 26.6 kids and on average, those kids will become adults who will work, say, from age 25 to age 65. Forty years. So, we have $266,000 divided by 26.6, divided by 40 years. That comes to a whopping….$250 per year per student, about $20 per month or $4.81 per week.

But for all of Jindal’s disdain for teachers—Public Service Commission Chairman Foster Campbell recently opined that someone must have broken Jindal’s pencils when he was in school—and public education, nothing can quite compare to the arrogance, ignorance and convoluted logic of one Alabama state senator.

State Sen. Shadrack McGill (R-Woodville) recently spoke to a prayer breakfast in Fort Payne at which he justified a 62 percent pay raise for legislators while at the same time saying raising teacher pay could lead to less-qualified educators, according to the Fort Payne Times-Journal.

On the face of it, given his Biblical first name and the asinine statement, most readers might reasonably conclude that the story was straight out of the Onion, an on-line parody of news events. But the story is real and the speaker’s remarks were sincere if misinformed, misguided, and laced with idiocy.

The legislative increase, to be fair to McGill, was passed in 2007, before his election. It was approved by voice vote and later in an override of then-Gov. Bob Riley’s veto.

McGill said the pay raise—from $30,710 to $49,500 for legislators’ part time positions—better rewards lawmakers and makes them less susceptible to lobbyist influence.

“That (the old salary) played into the corruption, guys, big time,” he said. “You had your higher-ranking legislators that were connected with the lobbyists making up in the millions of dollars. They weren’t worried about that $30,000 salary they were getting,” he said, adding that legislators have to pay for their expenses out of pocket.

Legislators need “to make enough that (they) can say no, in regards to temptation,” he said.

Well, Mr. McGill, it may come as a surprise to you to know that members of Congress pull in about $180,000 per year and they are still very much susceptible to being swayed by lobbyists. Only a fool would argue that a salary of $49,500 would keep lobbyists at bay.

It may also come as a shock to you to know that we all pay expenses out of pocket—especially teachers, who regularly spend their own money for classroom resources.

For pure audacity, McGill, who home-schools his children, went on to say, “If you double what you’re paying (teachers), you know what’s going to happen? It’s a Biblical principle. If you double a teacher’s pay scale, you’ll attract people who aren’t called to teach.

“And these teachers that are called to teach, regardless of the pay scale, they would teach. It’s just in them to do. It’s the ability that God give ‘em. And there are also some teachers, it wouldn’t matter how much you would pay them, they would still perform to the same capacity.

“If you don’t keep that in balance, you’re going to attract people who are not called, who don’t need to be teaching our children. So, everything has a balance.”

First, of all, Mr. McGill, please direct us to the scripture in the Bible that admonishes us not to increase teacher pay. Please provide us with the specific chapter and verse.

And taking your logic to its ultimate conclusion, preachers should not be paid; it’s a calling. Instead of paying attorneys $250 per hour, they should accept $25 per hour since it’s a calling. And why pay firemen at all? Let ‘em volunteer. Same thing for police officers, judges and social workers.

Oh, and let’s not overlook legislators. It’s a calling, so let them forfeit all pay in exchange for the privilege of serving.

There you have it, folks. The contempt for teachers and public education, simply because they’re easy targets, is the most current and most popular trend in America. So, c’mon, jump on the bandwagon. The kids? They’re just an afterthought. It’s political hay and the harvest is ripe.

But one last thought: if you can read this, don’t forget to thank a teacher.