**

 

>>> SUPPORT FOR THIS PROGRAM IS

PROVIDED BY THE FOUNDATION FOR

EXCELLENCE IN LOUISIANA PUBLIC

BROADCASTING.

AND FROM VIEWERS LIKE YOU.

 

**

 

>> HELLO AND WELCOME TO

"LOUISIANA PUBLIC SQUARE," I'M

BETH COURTNEY, PRESIDENT OF

LOUISIANA PUBLIC BROADCASTING.

>> AND I'M KIRBY GOIDEL,

PRESIDENT 6 POLITICAL SCIENCE

AND MASS COMMUNICATION AT LSU.

A BIG PUSH BY GOVERNOR BOBBY

JINDAL SINCE ENTERING OFFICE HAS

BEEN THE PRIVATIZATION OF STATE

GOVERNMENT OPERATIONS WHICH HE

SAYS WILL SAVE MONEY OF THE

ACCOMPLISH THIS, THE STATE HAS

CONTRACTED WITH OUTSIDE

PROVIDERS FOR PROFESSIONAL,

PERSONAL AND CONSULTING

SERVICES.

>> CURRENTLY LOSE HAS NEARLY

13,000 ACTIVE CONTRACTS, THE

MAJORITY FOR $50,000 OR MORE.

A PROPOSED BILL WOULD REDUCE

SPENDING ON STATE CONTRACTS BY

10%.

THE JINDAL ADMINISTRATION SAYS

THE AMOUNT THAT LOUISIANA

CONTRACTS FOR IS ALREADY BEING

REDUCED AND SOME OF THE BIGGEST

CONTRACTS ARE FOR ESSENTIAL

SERVICES SUCH AS THE

ADMINISTRATION OF HEALTH

INSURANCE OR DRUG PRESCRIPTION

PROGRAMS.

HOW NECESSARY ARE THE MAJORITY

OF STATE CONTRACTS?

ARE THEY COST-EFFECTIVE?

AND ARE THERE CERTAIN GOVERNMENT

SERVICES THAT SHOULD NOT BE

PRIVATIZED?

TONIGHT "LOUISIANA PUBLIC

SQUARE" LOOKS FOR ANSWERS ON

"STATE CONTRACTS 101".

>> SOON AFTER THE NUTRITIONAL

SERVICE FOR THE SOUTHEAST

LOUISIANA HOSPITAL IN JACKSON

WERE PRIVATIZED, STATE

REPRESENTATIVE KENNETH HAVARD

BEGAN RECEIVING COMPLAINTS FROM

PATIENTS' FAMILY MEMBERS.

THE CONCERNS WERE ABOUT THE

PENNSYLVANIA COMPANY PROVIDING

MEALS FOR THE HOSPITAL AND A

NURSING HOME, BOTH IN HAVARD'S

DISTRICT.

>> THEY RAN OUT OF FOOD 93

TIMES.

THEY BOUGHT HAMBURGERS FROM

McDONALD'S.

THESE ARE ALL PEOPLE, GERIATRIC

PATIENTS TAKING MEDICINE AND

IT'S VERY, VERY IMPORTANT FOR

THEM TO HAVE THE RIGHT NUTRITION

TO THEIR MEDICINES WORK.

>> THE COMPANY HAS NOT MET

PERFORMANCE INDICATORS AND IS

STILL BEING PAID.

THEY NOW RECEIVE OVERSIGHT FROM

STATE EMPLOYEES.

>> NOW WE'VE GOT A BUNCH OF THE

STATE WORKERS COMING IN EARLY IN

THE MORNING TO WATCH OVER AND

REVIEW WHAT A PRIVATE CONTRACTOR

WAS SUPPOSED TO DO TO BEGIN

WITH.

>> THIS SESSION HAVARD IS

RESPONSIVING HOUSE BILL 127 THE

LAW WOULD REQUIRE A

COMPREHENSIVE REVIEW BY THE

LEGISLATURE AND NAL ASSESS BY

THE LEGISLATIVE AUDITOR'S OFFICE

BEFORE THE TROUBLE OF STATE

CONTRACTS WORTH MORE THAN $5

MILLION.

HAVARD HAS CONCERNED WITH

CONTRACTS SUCH AS THE

PRIVATIZATION OF THE STATE'S

CHARITY HOSPITAL, WHICH WAS

APPROVED WITHOUT PARTICIPATION.

>> I WAS ELECTED AND 104 OTHER

ONES IN THE HOUSE WAS ELECTED TO

BE THE PEOPLE'S LOBBYISTS.

WE'RE RESPONSIBLE FOR THEIR

MONEY AT THE END OF THE DAY AND

WE SHOULD HAVE A STAY IN THESE

CONTRACTS.

>> DON GREGORY IS STATE DIRECTOR

AND ANALYST FOR THE PUBLIC

AFFAIRS RESEARCH COUNCIL OR PAR.

HE COAUTHORED A REPORT FOR PAR

ABOUT THE PRIVATIZATION OF THE

LOUISIANA CHARITY HOSPITAL

SYSTEM.

AMONG THE ISSUES WAS THE

SUSTAINABILITY OF THE FUNDING

STREAM.

>> WE TRIED TO FOLLOW THE MONEY

THEY WERE INVESTING IN THE NEW

PARTNERSHIP HOSPITALS.

ABOUT HALF OF THAT MONEY IS

FEDERAL MONEY THAT COMES FROM

UNCOMPENSATED CARE FOR PEOPLE

THAT ARE UNINSURED.

WE ARE CONCERNED BECAUSE THE JIM

OBERSTAR CALLS FOR FOR AN $18

BILLION REDUCTION IN THAT SOURCE

OF FUNDING BETWEEN NOW AND 2020.

>> SOME OF THE CONTRACTS DO NOT

HAVE SPENDING CAPS ON THEM WHICH

WILL LEAVE THE TAXPAYER ON THE

HOOK FOR OVERRUNS.

>> THEY BUDGETED FOR THOSE

HOSPITALS FOR THE CURRENT FISCAL

YEAR.

IF THEY EXCEED IN THAT COSTS THE

STATE IS OBLIGATED TO MAKE UP

THOSE COSTS.

>> HAVARD SAYS WHILE IT COSTS

$100 MILLION TO RUN THE EARL K.

LONG HOSPITAL IN BATON ROUGE IN

12, COSTS HAVE CONTINUES TO

CLIMB SINCE THE CONTRACT WITH

THE HOSPITAL WERE SIGNED.

>> THE YEAR BEFORE THAT IT WAS

$138 MILLION, THIS YEAR

PROJECTED AT $169 MILLION.

THAT'S A 68.MINE% INCREASE.

>> THE FISCAL OFFICE SAID THERE

COULD BE A SHORTFALL RELATED TO

HOSPITAL AND RETIREE BENEFIT

COSTS FOR WHICH THE STATE WILL

BE RESPONSIBLE.

EARLIER THIS MONTH THE CENTERS

FOR MEDICARE AND MEDICAID

SERVICES TOLD STATE OFFICIALS IT

WOULD NOT PAY $307 MILLION

WWW.FIRST CONSULTING.

>> THE REMAINDER, WE'RE NOT

NEGOTIATING HARD ENOUGH TO GET A

GOOD ENOUGH DEAL FOR TAXPAYERS.

>> FOR LOUISIANA TREASURER JOHN

KENNEDY, IT'S NOT THE

PRIVATIZATION CONTRACTS BUT THE

CONSULTING ONES THAT GIVE HIM

PAUSE.

>> WE SHOULDN'T USE EITHER THE

PUBLIC OR THE PRIVATE SECT TORE

HIRE SOMEBODY FOR $70,000 A YEAR

TO GO AROUND RAPIDS PARISH TO

URGE OUR HISPANIC NEIGHBORS TO

WEAR THEIR SEAT BELTS.

THEY SHOULDN'T BE SPONSORING

GOLDEN GLOVE BOXING TOURNAMENTS.

THEY SAY IT'S FOR OBESITY.

WE'VE ALREADY GOT PROGRAMS FOR

OBESITY.

IT'S CALLED P.E.

>> ACCORDING TO THE DIVISION OF

ADMINISTRATION, LOUISIANA IS

CURRENTLY INVOLVED IN NEARLY

13,000 ACTIVE CONTRACTS WITH

MORE THAN HALF OF THEM FOR

$50,000 OR GREATER.

HOUSE BILL 142 SPONSORED THIS

SESSION BY REPRESENTATIVE

DERICHARD WOULD REDUCE SPENDING

BY 15% AND DEVOTE THE SAVINGS TO

HIGHER ED.

>> WE SPEND ABOUT $6 BILLION A

YEAR IN STATE CONSULTING

CONTRACTS.

THIS YEAR 10%, IF IT PASSES IT'S

GOING TO SAY YOU CUT 10% OF LAST

YEAR'S DOLLAR FIGURE, ROUGHLY $6

BILLION.

>> ADMINISTRATION COMMISSIONER

CHRISTY NICHOLS TESTIFIED.

>> THIS APPROACH DOES NOT LEND

ITSELF TO GOOD GOVERNMENT.

THIS IS AN ARBITRARY APPROACH TO

PUTTING IN A PLUG YOU DON'T KNOW

WILL HAVE ANY VALUE AT ALL.

>> KEN NAQUIN SAYS THE BILL

WOULDN'T BE NEEDED IF GOVERNOR

JINDAL RANDOM STATE GOVERNMENT

LIKE A BUSINESS.

>> JUST IMAGINE WHAT WOULD

HAPPEN IF THE GOVERNOR WROTE ALL

13,000 -- I THINK THE FIGURE'S

HIGHER -- OF OUR CONSULTANTS AND

SAID, TIMES ARE TOUGH IN

LOUISIANA, WE NEED MONEY FOR

HIGHER EDUCATION.

WE WANT YOU TO REDUCE YOUR

CONTRACT THIS YEAR BY 10%, 5%,

3%, OTHERWISE WE'RE GOING BID IT

OUT AGAIN.

THEY ARE NOT GOING TO SAY NO.

THEY ARE GOING TO MOAN AND GROWN

AND DO IT.

IN THIS ECONOMY?

THEY ARE GOING WALK AWAY FROM A

CONSULTING CONTRACT BECAUSE

WE'VE ASKED FOR A MODEST

DISCOUNT?

>> WHILE HE HAS CONCERNS WITH

PARTS OF BOTH HAVARD'S AND

RICHARD'S LEGISLATION, ROBERT

TRAVIS SCOTT SUPPORTS ANY

EFFORTS THAT MAKE THE PROCESS

MORE TRANSPARENT FOR ITS

CITIZENS.

>> STATE CONTRACTING IS A BIG

PART OF PUBLIC SPENDING AND A

BIG PART OF TAXPAYER SPENDING.

LET'S KNOW WHAT WE'RE DOING AND

WHY.

>> JOINING ME IN OUR STUDIO

AUTOPSIES TO EXPLORE THE STATE

CONTRACTING PROCESS ARE

RESIDENTS FROM THE GREATER BATON

ROUGE AREA, INCLUDING RETIRED

STATE EMPLOYEES, MEMBERS OF THE

LEGISLATIVE YOUTH ADVISORY

COUNCIL AND BUSINESS OWNERS.

WELCOME, EVERYONE.

LSU'S PUBLIC POLICY RESEARCH LAB

SURVEYED OVER 150 CITIZENS ON

TONIGHT'S TOPIC.

HERE'S A LOOK AT SOME OF THE

RESPONSES.

WHEN ASKED ABOUT WHO THEY THINK

PROVIDES SERVICES IN A MORE

TIMELY AND HIGH QUALITY MANNER,

48% OF RESPONDENTS SAID PRIVATE

EMPLOYEES HIRED BY PAID

CONTRACTORS.

30% SAID STATE GOVERNMENT

EMPLOYEES.

AND 22% WERE UNSURE.

WHEN ASKED IF THE CHARITY

HOSPITALS IN LOUISIANA SHOULD BE

RUN BY THE STATE OR BY PRIVATE

COMPANIES, RESIDENTS WERE

DIVIDED.

44% SURVEYED FAVORED THE STATE

RUNNING THEM, 41% WOULD PREFER

PRIVATE COMPANIES RUNNING THEM,

AND 15% EITHER REFUSED OR WERE

UNSURE.

ASKED THEIR OPINION ON CURRENT

LEGISLATION THAT WOULD REDUCE

PRIVATE CONTRACTS BY 10%, 46% OF

RESPONDENTS SUPPORT THE

LEGISLATION, 31% OPPOSE IT, AND

23% WERE UNSURE.

AND WHEN ASKED IF THE STATE

SAVES MONEY, SPEND MORE MONEY OR

THE COSTS REMAIN ABOUT THE SAME

WHEN THE STATE CONTRACTS OUT

STATE SERVICES TO PRIVATE

COMPANIES, 40% OF THOSE SURVEYED

IT THIS STATE SPENDS MORE MONEY,

WHILE EQUAL PERCENTAGES, 24%,

SAY EITHER THE STATE SAVES MONEY

OR THAT IT COSTS ABOUT THE SAME.

13% WERE UNSURE.

SO LET'S START THERE.

IS CONTRACTING OUT STATE

SERVICES A GOOD IDEA?

OR A BAD IDEA?

WHO WANTS TO START?

>> I'LL START IT.

I THINK IT DEPENDS ON THE

CONTRACT.

I REPRESENT 140 CONSULTING

ENGINEERS.

A LOT OF OUR WORK IS CONTRACTED

WITH THE STATE, EITHER THROUGH

THE DEPARTMENT OF

TRANSPORTATION, CPRA, FACILITY

PLANNING.

THOSE ORGANIZES AREN'T LARGE

ENOUGH TO DO THE WORK THEY HIRE

OUR PEOPLE TO DO.

>> SO IT DEPENDS SPECIFICALLY ON

THE CONTRACT BUT THERE'S NOT A

GOOD OR A BAD HERE, IT DEPENDS

ON PARTICULAR SERVICE?

DO OTHER PEOPLE AGREE WITH THAT?

>> TREY.

AUTO AIM PROPONENT OF FINDING A

GOOD BALANCE BETWEEN CONTRACTS

AND PRIVATE COMPANIES AND THEN

GOVERNMENT ORGANIZATIONS.

I THINK BOTH CAN BE BENEFICIAL

DEPENDING ON THE SCENARIO.

ONE OF THE ISSUES YOU RUN INTO

IS WHEN PRIVATE COMPANIES CAN'T

REACH THE STANDARDS GOVERNMENT

ORGANIZATIONS CAN.

MY DAD IS A ASSISTANT PUBLICTORY

HERE IN BATON ROUGE.

WHEN HE'S TRYING TO FIND

REHABILITATION FROST TROUBLED

TEENS, WHILE ONE ORGANIZATION

MAY HELP A KID WITH DRUG ABUSE

PROBLEMS, THEY WON'T ALSO HELP

THE KID WITH MENTAL PROBLEMS

FROM DOMESTIC VIOLENCE IN THE

HOUSEHOLD.

THEY HAVE TO FIND LIKE ANOTHER

PRIVATE COMPANY, WHICH JUST

TAKES MORE TIME AND MONEY.

IF WE ARE GOING TO INVEST INTO

THESE PRIVATE ORGANIZATIONS,

THEY NEED TO REACH THE SAME

STANDARDS THAT GOVERNMENT

ORGANIZATIONS WOULD SLIGHT

PEOPLE WITH.

>> YOU THINK GOVERNMENT IS

PROVIDING A HIGHER QUALITY OF

SERVICE, AT LEAST IN SOME CASES

AND ON SOME SERVICES?

>> IT'S ABOUT BALANCE.

>> WILLIAM.

>> YES, I THINK SOME OF THE

AREAS SUCH AS CORRECTIONAL AND

PROBEBATIONAL INSTITUTIONS

SHOULD NOT BE RUN PRIVATELY,

SIMPLY BECAUSE YOU'RE PUTTING

THE PERSON'S RIGHTS IN JEOPARDY.

I MEAN, THEY HAVE BEEN -- THEY

ARE IN THE JUSTICE SYSTEM AND

THEY DESERVE THE STATE AND THEY

DESERVE PEOPLE'S REPRESENTATIVES

RUNNING THAT.

THERE HAVE BEEN SOME TERRIBLE

CASES IN THE SOUTH IN GENERAL,

THANK GOODNESS LOUISIANA HASN'T

YET JUMPED INTO THAT, BUT THERE

HAVE BEEN SOME PEOPLE THROWN IN

JAIL AND FINED HEAVY FINES FOR

TRAFFIC TICKETS AND ENDING UP

YEARS IN JAIL.

IT'S BECOME AN EXTORTION RACKET.

THERE'S CERTAIN AREAS AND THAT'S

ONE THAT GIVES ME A REAL

PROBLEM.

>> DOES ANYBODY BELIEVE PRIVATE

INDUSTRY CAN DO A BETTER JOB IN

PROVIDING SERVICES?

>> I DON'T THINK THEY CAN DO

100%.

EVERYONE IS PRETTY SPLIT.

SOME THINGS ARE BETTER BY

PRIVATE COMPANIES, PRIVATE

COMPANIES AND SOME ARE BETTER

WITH THE GOVERNMENT.

I DON'T THINK YOU'RE GOING TO

FIN 100% IN EITHER CORNER.

>> I THINK SOMETHING WE SHOULD

PROBABLY KEEP IN MIND, HOW IT

AFFECTS STATE EMPLOYEES.

I WAS A STATE EMPLOYEE BEFORE

FOR A COUPLE OF YEARS, I KNOW I

WAS EMPLOYED BY EARL K. LONG

BEFORE THEY KIND OF WENT

DEFUNDAMENT.

FIRST AND FOREMOST, WHEN YOU'RE

TALKING ABOUT THE DIFFERENCE

BETWEEN PRIVATE VERSUS PUBLIC,

KEEP IN MIND HOW IT AFFECTS

THOSE EMPLOYEES, OF COURSE.

>> AND ESPECIALLY FROM YOUR

PERSPECTIVE, THE PUBLIC

EMPLOYEES.

>> OF COURSE, NO DOUBT ABOUT

THAT.

>> JOHN.

>> ONE OF THE THINGS THAT REALLY

HASN'T BEEN ADDRESSED

ADEQUATELY, WHEN YOU'RE TALKING

ABOUT THE PRIVATE VERSUS PUBLIC

DEBATE, IS THE FACT YOU HAVE TO

HAVE SOME KIND OF AN OVERSIGHT.

BECAUSE HAVE YOU AN EXTERNAL

PARTY PERFORMING THE SERVICES

DOESN'T MEAN THEY CAN BE LEFT

ALONE.

THEY HAVE TO HAVE STANDARDS,

EXPECTATIONS AND SO FORTH BUILT

INTO THE CONTRACT.

>> NOW, DO YOU FEEL LIKE THERE

ARE ADEQUATE PROTECTIONS TO MAKE

SURE THERE'S ACCOUNTABILITY IN

THE SYSTEM?

JOHN.

>> I DON'T THINK THERE'S

ADEQUATE -- NEARLY ENOUGH

OVERSIGHT.

THAT'S WHY WE'RE HERE AND

TALKING ABOUT IT, THAT'S WHY

THERE'S A HOUSE BILL ON THE

FLOOR.

WHETHER YOU CAN CONTINUE CAN

PRIVATIZATION OR STICK WITH MORE

STATE JOBS AND CONTRACT FROM

WITHIN, WE NEED OVERSIGHT FOR

BOTH OF THOSE, IT'S VERY

IMPORTANT.

>> TY.

>> I HAVE SOME DOUBT ABOUT THAT,

I THINK THERE'S TOO MUCH

OVERSIGHT.

IF YOU HAVE A GOVERNMENTAL

CONTRACT YOU'RE THINKING ABOUT

ISSUING, IT IS OF COURSE

REVIEWED BY WHATEVER DEPARTMENT

IT MAY BE COMING OUT OF.

IT'S SENT TO CIVIL SERVICE FOR

FURTHER REVIEW, BECAUSE IT MAY

AFFECT THOSE PEOPLE WHO ARE

EMPLOYED IN WHAT I CONSIDER TO

BE AN ALREADY BURGEONING

BUREAUCRACY, AND THE WHOLE

PURPOSE OF PRIVATIZATION THERE

WOULD SEEM TO ME TO BE TO REDUCE

THAT BUREAUCRACY.

IN MANY ACCOUNTS OR MANY

SITUATIONS IT BECOMES

UNACCOUNTABLE.

INSTEAD OF BEING GOVERNED BY

THOSE WE SELECT, WE'RE GOVERN

BESIDE NAMELESS, FACELESS

BUREAUCRACIES THAT HAVE NO

REALLY ACCOUNTABILITY

THEMSELVES, BUT ARE REVIEWING

THE PRIVATE CONTRACTS TO MAKE

SURE THEIR NEST DOESN'T GET

UNFETTERED.

I HAVE SOME ISSUES WITH THAT.

>> YOU'RE WORRIED ABOUT

ACCOUNTABILITY BUT ALSO THE FACT

THAT WE'RE TRYING TO REDUCE

BUREAUCRACY, BUT THE REVIEW

PROCESS ENDS UP WITH MORE

BUREAUCRACY.

>> PRECISELY.

YOU'VE GOT A BALANCE THERE, YOU

BROUGHT IT UP.

CERTAINLY THERE WILL BE POLICY

DECISIONS WHICH CONSTITUTIONALLY

THE JUDICIARY IS PART OF THAT

SYSTEM.

SOME OF THOSE SERVICES, FOR

EXAMPLE DRUG TESTING, THAT COULD

BE PRIVATIZED WITHOUT ANY

PROBLEM AT ALL.

HOWEVER, THE POLICY PART BECOMES

A LITTLE BIT MORE OF A STICKY

WICK KET BECAUSE YOU WANT TO

MAKE SURE THAT YOU HAVE THE

RIGHT PERSONAL, THE RIGHT

TRAINED PERSONNEL IN ORDER TO

KEEP THE PRISON POPULATION.

AS EVERYBODY KNOWS WE ALREADY

HAVE MORE PRISONERS THAN ANY OR

STATE IN THE UNION.

>> MICHAEL IS READY TO JUMP IN.

>> JOHN, WE CERTAINLY NEED --

ONE OF MY QUESTIONS IS, IF WE

HAVE THE PERFORMANCE MEASURES,

WHO IS ESTABLISHING THE

PERFORMANCE MEASURES?

AND PERHAPS MORE IMPORTANTLY,

WHO IS ENFORCING THE PERFORMANCE

MEASURES, ESPECIALLY WHEN WE

JUST SAW ON THE INTRO PIECE WHAT

HAS HAPPENED AT JACKSON AND IN

SOUTHEAST LOUISIANA MENTAL

HOSPITAL.

ARE WE FINDING THEM IN THAT

ASPECT.

AND I AGREE THAT WE DON'T WANT

TO GET INTO AN ASPECT WHERE

WE'VE CREATED SO MUCH BUYER

REVOKE CRACY THAT WE'RE TYRONN

LUE COSTING OURSELVES MONEY.

YOU, AND YOU'RE SHAKING YOUR

HEAD.

DO YOU AGREE?

>> I AGREE ON SOME ASPECTS.

THE ISSUE IS THE WASTE.

I BELIEVE THAT WE SHOULD HAVE

SOME OVERSIGHT, ESPECIALLY BY

OUR STATE GOVERNMENT, BUT LIKE

WHAT TY SAID, WE DON'T WANT TO

CREATE THIS BUREAUCRACY WHERE IT

TAKES SO MUCH TIME AND THE

GOVERNMENT BECOMES TOO LARGE.

BUT AGAIN, THE WHOLE POINT OF

THIS WITH AS TO REDUCE WASTE.

WE'RE SEEING AN INCREASE LIKE HE

MENTIONED IN SOUTHEAST WITH

JACKSON AND THE MENTAL HOSPITAL.

IT'S DEPLORABLE THAT WE'RE

HAVING TO HAVE FOOD BROUGHT IN

FROM McDONALD'S.

>> DO PEOPLE GENERALLY AGREE

THERE'S MORE WASTE WITH THE

GOVERNMENT CONTRACTING?

>> AGAIN, I THINK IT DEPENDS ON

THE CONTRACT.

USUALLY THERE'S 13,000 CONTRACTS

OUT THERE TODAY.

WELL, YOU ONLY SHOWED A HANDFUL

OF THEM THAT ARE PROBLEMATIC.

IF YOU WENT THROUGH 13,000 OF

THEM, HOW MANY ARE REALLY

PROBLEMATIC?

IT PROBABLY ISN'T THAT MANY.

THERE ARE PROBABLY A LOT OF GOOD

CONTRACTS OUT THERE THAT ARE

WORKING AND WORKING THE WAY THEY

SHOULD.

PEOPLE LIKE TO POINT TO THE FEW

BAD APPEARS AND SAY, LOOK, THIS

IS HOW THE WHOLE CYCLE IS.

IT'S A FEW AND GO TAKE CARE OF

THOSE FEW.

>> THAT'S ALL THE TIME WE HAVE

FOR THIS PORTION OF OUR SHOW.

WHEN WE RETURN WE WILL BE JOINED

BY A PANEL THE EXPERTS TO

FURTHER EXPLODE "STATE CONTRACTS

101".

>>> WELCOME BACK TO "LOUISIANA

PUBLIC SQUARE."

TONIGHT WE'RE DISCUSSING "STATE

CONTRACTS 101".

JOINING US NOW IS OUR PANEL OF

EXPERTS.

JOHN KENNEDY IS LOUISIANA STATE

TREASURER, A POSITION HE HAS

HELD SINCE 2011.

AS TREASURER HE OVERSEES THE

STATE'S $10.6 BILLION

ININVESTMENT PORTFOLIOS.

142 CALLS FOR A 10% REDUCTION OF

STATE CONTRACTS WITH THE SAVINGS

DIRECTED TOWARDS THE STATE'S

HIGHER EDUCATION.

>> KEN NAQUIN IS A OVERSEEING

CONTRACTORS REPRESENTING

BUILDING, HIGHWAY, HEAVY USE THE

AND INDUSTRIAL CONSTRUCTION

FIRMS.

LAGC MEMBERS WORK EVERY DAY

UNDER STATE CONTRACTS.

STATE REPRESENTATIVE KENNETH

HAVARD IS A REPUBLICAN WHO

REPRESENTS DISTRICT 62.

HE CURRENTLY SITS ON THE HOUSE

COMMERCE AND HEALTH AND WELFARE

COMMITTEES.

THE PRIV VACATION REVIEW ACT

WOULD OVERSEE CONTRACTS WORTH

MORE THAN $500,000.

THE INSTITUTE'S MISSION IS TO

PROMOTE FREEDOM AND PROSPERITY

IN LOUISIANA.

THERE'S NO FORMAL POSITION ON

THE PRIVATIZATION OF GOVERNMENT

SERVICES IT DOES PROMOTE

POLICIES THAT LIMIT THE SCOPE

AND COST OF GOVERNMENT.

BEFORE WE GO TO OUR AUDIENCE FOR

QUESTIONS, AUTO EACH OF YOU

COULD TELL ME BRIEFLY WHAT YOUR

THOUGHTS ARE ON LOUISIANA STATE

CONTRACTS AND PRIVATIZATION.

>> WE'VE GOT TOO MANY.

WE'VE GOT ABOUT 19,000 ACCORDING

TO THE LEGISLATIVE FISCAL

OFFICE.

WE SPEND OVER $5 BILLION A YEAR.

WE'VE CUT HIGHER EDUCATION TO

THE BONE.

OUR BILL WOULD REDUCE THE

SPENDING BY 10% AND DEDICATE THE

MONTH IN TO HIGHER EDUCATION.

THERE ARE THE CONTRACTS OF ONE

DEPARTMENT.

CONSULTANTING CONTRACTS FOR THE

DEPARTMENT OF EDUCATION.

615 MILLION TAXPAYER DOLLARS AND

THESE AREN'T THE CONTRACTS.

THIS IS A LISTING OF THE

CONTRACTS.

PICK THE FIRST 50 NAMES OF THE

BATON ROUGE PHONE BOOK AND ASK

THIS TOMORROW ELIMINATE 10%.

THE TAXPAYERS WILL NEVER NOTICE

THE DIFFERENCE.

THE UNIVERSITIES WILL BE CUT TO

THE BONE.

WHAT WE'VE DONE TO HELP

CONSULTANTS, WE OUGHT TO BE

EMBARRASSED.

>> MR. NAQUIN, YOU REPRESENT

CONTRACTORS.

IS THAT THE RIGHT PERSPECTIVE?

>> WE TYRONN LUE CANNOT OPERATE

WITHOUT CONTRACTORS, KIRBY.

UNLIKE TREASURER KENNEDY WE'D

LIKE TO SEE MORE CONTRACTS.

THE PEOPLE WHO WORK FOR THE

COASTAL RESTORATION, FACILITY

PLANNING, DOTD, OUR CONTRACTORS,

ENGINEERS THAT WORK FOR THOSE

AGENCIES, THEY HAVE TO WORK ON

THE CONTRACTS.

THEY ARE VERY WELL-DEFINED, THEY

HAVE A TREMENDOUSLY -- ALL THOSE

DEPARTMENTS HAVE A CONTRACT

REVIEW SETTLEMENT.

WE THINK WE'D LIKE TO SEE MORE

CONTRACTS AND MORE WORK.

OUR PROBLEM IS NOT ROAD

CONTRACTS.

DEN'S RIGHT ABOUT THAT.

OUR PROBLEM IS NOT ROAD

CONTRACTS.

>> YOU'VE INTRODUCED LEGISLATION

ALSO TO DEAL WITH CONTRACTS?

>> THE ISSUE IS NOT NECESSARILY

THE STATE CONTRACTS,

ESPECIALLIES THE ROAD CONTRACTS,

CONTRACTS WE WOULD DO EVERY DAY.

MINE DEALS MOSTLY WITH

PRIVATIZATION CONTRACTS AND I

THINK WE NEED MORE OVERSIGHT,

MORE COM HELP VIEW PLANS.

RIGHT NOW WE DO NOT HAVE THAT

AND MOST PEOPLE THAT AREN'T IN

CONSTIT GOVERNMENT PROBABLY

REALIZE THAT WEAVER SPENDING

MILLION, $268 ONE CONTRACT,

ALMOST $1 BILLION OF THE OFFICE

OF GROUP BENEFITS AND THE

LEGISLATURE DID NOT HAVE

OVERSIGHT INTO THAT CONTRACT.

I WANT TO PUT SOME REVIEW

PROCESS IN PLACE.

THAT'S WHAT MY DILL DOES.

>> MR. KANE, FROM THE PELICAN

GROUP PERSPECTIVE, WHAT'S YOUR

--

>> SURE, WE ARE IN FAVOR OF

LIMITING THE STATE AND COST OF

GOVERNMENT.

I TEND TO THINK OF IT AS AN

OPPORTUNITY TO HAVE A HIGHER

LEVEL RATHER THAN A LOWER COST.

IF YOU CAN DO THAT WITH A

PRIVATE COMPANY RATHER THAN

GROWING BESIDE THE SIZE OF

GOVERNMENT, I THINK THAT'S A

GOOD THING.

HAVING SAID THAT, YOU DO NEED

OVERSIGHT SIGHT.

THERE'S NO PRIVATIZATION IS GOOD

OR BAD, YOU HAVE TO HAVE -- I

THINK THERE ARE CERTAINLY AREAS

OF GOVERNMENT WHICH PROBABLY

CAN'T BE PRIVATIZED.

I DON'T THINK THAT REAL NO, REALISTIC

WITH OTHER OUTCOME: THERE NEEDS

TO BE PROPHET OVERSIGHT OR IT'S

A DISASTER.

>> LET'S GO TO OUR AUDIENCE.

TREY, YOU HAD A QUESTION.

>> I DON'T THINK IT'S AN

EITHER/OR LIKE WHAT YOU WERE

SAYING JUST NOW.

BUT DO I FEEL LIKE THERE HAS TO

BE A WAY, IF WE'RE GOING THE

PRIVATE ROUTE, THERE HAS TO BE

SOME THINGS THAT IT WOULD MAKE

MORE SENSE TO GO PRIVATE.

BUT OTHER THINGS MAKE MORE

STONES GO GOVERNMENTAL.

HOW WOULD YOU OVERSEE PRIVATE

ORGANIZATIONS BECAUSE THAT'S

SOMEBODY SAYING IT MOO BUSINESS,

AS LONG AS AIM FOLLOWING THE LAW

ENFORCEMENT HOW WOULD, OVERSEE

IT.

>> I KNOW TREASURER KENNEDY AND

REPRESENTATIVE HAVARD KNOW MOTOR

VEHICLE IT'S ABSOLUTELY DOABLE

AND YOU JUST BUILD IT INTO A

CONTRACT.

WITH PRIVATIZATION IT'S EASIER

TO GET BAD OF A PRIVATE COMPANY,

THAN IT IS A A -- A PART OF

GROFT THAT YOU'VE GROWN AND

HIRED PEOPLE.

IT'S PROBABLY EASIER TO GET RID

OF THE BAD EGGS.

>> YOU'VE GOT MAKE A DISTINCTION

BETWEEN PRIVATIZATION.

PRIVATIZATION IS A CALCULUS, YOU

ASK WHAT ARE THE VITAL SERVICES

AND PRODUCTS THAT GOVERNMENT

SHOULD DELIVER TO TAXPAYERS?

ONCE YOU HAVE THAT LIST, ASK WHO

CAN DO A BETTER AND CHEAPER JOB

BUT EQUALLY EFFICIENT OF

DELIVERING THOSE PRODUCTS OR

SERVICES.

IF IT'S PRIVATE SECTOR, YOU GO

WITH THE PRIVATE SECTOR.

IF IT'S PUBLIC, YOU GO WITH THE

PUBLIC SECTOR.

THAT'S WHOLLY SPRAYS.

THE CONTRACTS I'M TALKING ABOUT,

WE TALKED ABOUT THIS IN THE

ABSTRACT, LET'S GET DOWN IN THE

WEEDS.

CONTRACT 672113.

CONTRACT WILL PROVIDE

PROGRAMMING TO ASSIST STUDENTS

TO LEARN VALUABLE SOCIAL SKILLS

THROUGH ORGANIZED PLAY ON THEIR

RECESS AND LUNCH PERIODS.

NOW, MY SON HAD LUNCH AND RECESS

DOWN IMMEDIATELY IN PRE K.

HE'S ANTI-YEARS OLD NOW, HE'S

STILL GOOD AT IT.

HIS TRIGS IS A SEPTEMBER OTHER

STORY.

INFORMATION AND EDUCATION RAPIDS

PARISH IN THE USE OF SEAT BELTS.

STATE SPONSORSHIP OF CHIMPANZEE

DISCOVERY DAYS INVOLVING BROAD

MEDIA ATTENTION TO OBSERVATION

OF CHIMPANZEES IN A SPACIOUS

FORESTRY HABITAT.

THESE RIGHT CONTRACTS THAT OUR

BILL WOULD ELIMINATE.

IT WOULD GENERATE ABOUT $528

MAINLINE EVERY YEAR AND WE'LL

SPEND THAT MONEY ON HE HAD CASE

INDICATION, ON LSU, SOUTHERN,

DELGADO.

WE HAVE CUT THEM 67%.

YOU DON'T BELIEVE ME, ASK KER BY

WHAT'S HAPPENS OVER THE ALL

RIGHT FIVE YEARS.

PART IS THE FRIVOL QUESTIONS,

ONE IS ARE WE PAYING FOR THINGS

THAT WE SHOULD, AND THE OTHER

ONE IS ARE WE GETTING OUT OF THE

CONTRACTS WHAT WE NEED TO GET.

REPRESENTATIVE HAVARD.

>> WE NEED TO SET UP A

COMPREHENSIVE PLAN UP FRONT

WHAT, WE EXPECT THE CONTRACTOR

TO DO AND HOW WE EXPECT TO GET

THERE AT THE END OF THE YEAR WE

NEED TO REVIEW THOSE CONTRACTS

AND MAKE SURE THAT WE ARE

GETTING WHAT WE PAID FOR.

THE LEGISLATURE IS RESPONSIBLE

FOR THE BUDGET AT THE END OF THE

DAY.

IF THREE GUYS IN THE BACK ROOM

ARE WORKING ON THE CONTRACT, AND

I'M NOT RESPONSIBLE FOR IT --

WELL, I AM RESPONSIBLE IT FOR

BUT I HAVE NO INSIGHT OR INPUT

INTO IT, WHAT GOOD AM I TO EVEN

BE THERE.

THESE PEOPLE HAVE TONS AND TONS

OF LOSTISTS.

I'M THE PEOPLE'S LOBBYIST IN THE

LEGISLATURE, I'M THERE TO MAKE

SURE THEIR MONEY IS SPENT WELL.

WE SHOULD HAVE A SAY OR AT LEAST

A LOOK AT THESE CONTRACTS.

>> MR. NAQUIN, DO YOU FEEL LIKE

THE REVIEW PROCESS IS ADEQUATE?

HOW DO WE KNOW THE CONTRACTS ARE

DOING WHAT THEY ARE SUPPOSED TO

DO?

>> THE THREE AGENCIES THAT WE

WORK FOR, THE CONSULTING

ENGINEERS AND ARCHITECTS AROUND

THE STATE.

THEY HAVE A CLOSE WORK OUT

SESSION AT THE END OF EACH

PROBLEM.

WERE THEIR ANY PLANNED JURORS

ERRORS, ET CETERA, ET CETERA.

THAT GOES INTO THE TEXT

PRESENTATION ON HOW THEY GOT

GRATED AS COMING AFTER THOSE

CONTRACTS.

THIS TESTIFY TO MAKE A

PRESENTATION, THEY HAVE TO NOT

BID TO THE LOWEST BIT BUT THEM

TO MAKE A PROPOSAL TO BE HIRED

AGAIN.

THEY HAVE GREAT CLOSE-OUT

SESSIONS ON THOSE.

THERE'S NO REASON IF THEY CAN DO

IT ON THESE, ANY OTHER --

>> WHAT ABOUT THE 10% ACROSS THE

BOARD IDEA, HOW WOULD THAT

AFFECT YOU?

>> BUSINESSWOMEN LITTLE, IT HAS

NOG DO WITH THIS BILL.

>> BUT THIS BILL DOESN'T AFFECT

THE CAP THAT WILL AS THE.

MY BILL HAS STRICTLY TO DO WITH

PRIVATIZATION CONTRACTS LIKE

EARL K. LONG HOSPITAL, THE

PERFECT EXAMPLE.

WHEN WE STARTED THE CONTRACT IT

WAS $100 MILLION.

THAT WAS TWO YEARS AGO.

THIS YEAR IT'S $169 MILLION.

IS IT SAVING MONEY?

I DON'T THINK SO IF WE LOOK AT

IT IN THOSE TERMS.

THERE ARE OTHER CONTRACTS THAT

WE'RE OUT THERE LOOKING AT CNSI

WAS A PERFECT RACKET THAT WE

HAD, AND WE ENDED UP PULLING

THAT CONTRACT.

>> COULD YOU EXPLAIN THE CNSI

SITUATION VERY BRIEFLY?

>> WE HIRED A CONTRACT TO DO THE

MEDICAID BILL AND IT WAS A FIRM

THAT CAME OUT OF MICHIGAN.

I THINK IT WAS MICHIGAN, AND

ANYWAY, OUR DUE DILIGENCE WASN'T

DONE UP FRONT.

LATER WE FOUND OUT THERE MIGHT

HAVE BEEN SOME IMPROPRIETOR

BETWEEN THE DEPARTMENT OF HEALTH

AND THE HOSPITAL.

SUMMER ACTS SAID THE SAME THING.

WE PROBABLY WOULD HAVE CALLED

SOME OF THIS STUFF UP FRONT.

>> MICHAEL, YOU'VE BEEN WAITING

TO GET IN.

HOW DO I GET ONE OF THOSE

CONTRACTS.

>> WE'VE GOT 19 HOW TO OF THEM.

MOSUL YOU HAVE TO KNOW A

POLITICIAN, I'M HOW THE ARE

WORMED THERE WE'VE GOT HAVE SOME

PERFORMANCE MEASURES AND WHO

TAKES CARE OF THE PENALTIES IF

THEY DON'T MEET UP WITH THE

PERFORMANCE MEASURES.

I'M JUST INTRIGUED OF WHY OLOL

HAS GONE UP.

DIDN'T WE HEALTH WHAT WE'RE

GOING PAY THEM.

>> WE ABSOLUTELY D. OUR MEDICAID

REIMBURSEMENT RATES WERE CUT

FROM THE FEDS AND THAT COST US

OUR SHARE.

MANY YOU HAVE HAVE TALKED ABOUT

BEING BUSINESS GUYS OR LADIES.

WE WOULD NOT HAVE SIGN A REPORT

THAT HAD A 50 BLANK PAGES BEFORE

WE SIGNED THEM AND IT'S COMING

BACK TO HAUNT US NOW.

THEY HAVE SEE THE WE DON'T AGREE

WITH THE WAY YOU SET THIS

LEASING THING UP OR THE NONCOSM.

SO THAT'S ALREADY A $307 MILLION

HOLE IN THE BUDGET BECAUSE WE

DIDN'T DO OUR WORK IN THE FLU

SHOT M. WE'RE KIND OF IN THE

BRAVE NEW WORLD SO TO SPEAK WITH

REGARDS TO PRIVATIZATION, GROUP

BENEFITS, THE CHARITY HOSPITAL

AND SO ON AND SO FORTH.

THE PART OF THE QUESTION I

HAVEN'T HEAR, AFTER SEVERAL

YEARS OF THESE CROCKETTS REPEL

-- IF WE'RE DETERMINED THEY ARE

NOT TO PROVIDE COST SAVING AND

BENEFIT TOTS STATE, WOULD IT BE

CONTEMPLATED THAT THE SERVICES

MIGHT BE INSOURCED AGAIN?

>> WELL, IT'S A HUGE CONTRACT,

AND LAST TAKE THE PRIVATIZATION

OF OUR HOSPITAL.

BUT ONCE YOU TURN OVER ALL OF

YOUR HEALTH CARE TO THESE SELECT

PRIVATE HOSPITALS, YOU CAN'T

JUST TAKE THEM BACK ON A DIME.

THAT'S PART OF THE PROBLEM.

I SUPPORTED THE PRIVATIZATION

BECAUSE WE WERE TOLD THAT IT

WOULD SAVE MONEY AND NOT ACT

ADVICE THE QUALITY OF CARE.

THE ORIGINAL ESTIMATE WAS $600

MILLION ON THE PRIVATIZATION OF

OUR CONTRACTS.

THE PROBLEM IS THAT 600 MILLION

GAME 1.2 MLB.

IT'SING GOING UP AGAIN NEXT

YEAR, I SUPPORT THE

PRIVATIZATION AND I HAVE HAVE

YET TO SEE THE SAVINGS.

WE JUST HEARD THEY ARE GOING TO

WITHHOLD OUR MEDICAID MONEY,

WHICH IS STILL INDEED LOVE -- IT

CAN WORK.

IT'S SUPPOSED TO SAVE MONEY AND

I HAVE BEEN SEEN TOO, WHEN WE

THROE AURAL K.

THERE WAS NOWHERE FOR THEM TO

BRING THE INMATES AND THAT'S

GOING TO PRIVATE.

ARCH.

ALSO YOU HAVE -- YOU NEED TO

LOOK AT THE PRIVATE HOSPITALS

THAT SURROUND EARL K. LONG,

YOU'VE GOT LANE AND ZACHARY, WHO

DIDN'T -- THEY DIDN'T HAVE THE

LUXURY OF CUTTING A DEAL TO GET

THE FULL REIMBURSEMENT FROM THE

STATE.

EVERY TIME AN INDIGENT PATIENT

WALKS INTO THAT HOSPITAL, NOT

THE HOSPITAL BUT INTO THE

EMERGENCY ROOM, THEY GET ZERO

REIMBURSEMENT IT FOR.

THE SAME THING GO THE OH WUR

SHOW THE CROWNING AREAS.

ARE WE GETTING THE SERVICES?

I CAN TELL YOU THIS, IF YOU TRY

TO GO THERE NOW, MANY, MANY

TIMES, WE JUST SAW THE OTHER DAY

ON THE NEWS WHERE THE EMERGENCY

ROOM RATES, WAITING TIMES HAVE

GONE UP.

>> NOW, WHAT HAPPENS IF WE CUT

THOSE CONTRACTS BY 10%?

ARE THOSE PART OF WHAT YOU

INCLUDED?

>> THEY ARE NOT INCLUDED.

THE CONTRACTS -- I WANTED TO

SAY, KIRBY, IT'S FOR DISTINGUISH

BETWEEN PRIVATIZATION AND

FRUITLESS CONTRACTS.

HERE'S ANOTHER ONE.

CONTRACT NO. 725404.

EACHING VALUES TO FOURTH AND

FIFTH GRADERS.

WE NEED TO BE TEACHING MATH AND

READING.

HERE'S ANOTHER ONE, HERE'S A

$547,790 CONTRACT, NO. 660531.

TEACH THE PARTS PENTS THE

SCHOOLS NEEDED.

I THINK WE ALL KNOW WE'RE BETTER

OFF WITH A JOB THAN WITHOUT.

BUT IF I'M THE BALLROOM TEACHER

AND YOU CUT MY CONTRACT BY 10%,

DO WE HAVE A PROBLEM THEM?

>> I WOULD CUT IT COMPLETELY.

BUT I'VE ALREADY GOT THE

CONTRACT.

>> NO, WE HAVE A VISION IN EVERY

CONSULTING CONTRACT WHICH SAYS

THE STATE CAN GET OUT OF IT BY

SENDING THEM A LETTER AND GIVING

THEM 30 DAYS' NOTICE.

>> WHY DON'T WE?

>> BECAUSE A LOT OF NIECE

CONTRACTORS ARE POLITICALLY

CONNECTED.

>> LET ME GET A QUESTION FROM

HALEY.

SHE'S BEEN WAITING TO GET IN.

>> YOU MENTIONED ALL THESE

FRIVOL CONTRACTS.

WHY HAS NOBODY OPENS TO THEM

BEFORE THEY WERE TINE.

THAT'S A GREAT QUESTION, I DON'T

KNOW THE ANSWER TO IT.

THERE'S A GROUP CALLED OFFICE OF

CRACKTUAL REVIEW, IT'S IN THE

PRIVATIZATION AND THEY ARE

SUPPOSED TO REVIEW ALL OF THESE

CONTRACTS.

THEY DON'T REVIEW THEM FOR

POLICY, THEY REVIEW THEM FOR

FORM.

>> THE LOUISIANA GOVERNOR IS A

VERY POWERFUL MAN, IT WAS SET UP

THAT WAY IN THE CONSTITUTION

CONVENTION YEARS AGO.

YOU HAVE VERY FEW PEOPLE THAT

ARE ABSOLUTELY LOOKING AT THE

CONTRACTS, ESPECIALLY THE

PRIVATIZATION CONTRACTS.

OUR REVIEW FORE OUR LADY OF THE

LAKE, THEY ARE NOT ELECTED.

THEY ARE APPOINTED, THEY DON'T

HAVE TO ANSWER TO ANYBODY EXCEPT

WHO POINTED THEM.

I HAVE TO ANSWER TO MY SITTIANS.

IF I'M RESPONSIBLE I WANT TO SEE

THE CONTRACT AND AT LEAST HAVE

SOME INPUT.

>> I THINK MOST OF YOU AGREES

THE BALANCE IS WHAT'S NEEDED.

THE CONTRACTS AROUND BAD OR

ABOUT THE.

I THINK THE PROBABLIES IN

PRESIDENT BOARD, HOW DO SOME OF

THESE CONTRACTS GET PASSED?

IT DOESN'T MAKE SENSE.

>> IT'S NOT THE LEGISLATION'S

FACILITY, THEY SAY LOOK, WHY ARE

YOU HIRING SOMEBODY, PAYING THEM

60,000 A YEAR TO TELL SOMEBODY

TO WEAR THEIR SEAT BELTS WHEN

IT'S THE LAW.

THERE ARE THOUSANDS OF THESE

THINGS.

THE MONEY, I WOULD ELIMINATE

EVERY ONE AND DEDICATE THE MONEY

TO EDUCATION.

>> IS IT POSSIBLE TO START HE

HAD CASES: THE GOVERNOR WILL DO

IT WITH AN EXECUTIVE ORDER.

WE HAVE A BILL, IT'S NOT AN

ACROSS THE BOARD CUT, DIRECTING

EVERY AGENCY OF STATE GOVERNMENT

TO REDUCE SPENDING ON

CONSULTANTS BY A VERY MOD

DECEMBER THEY CAN KEEP SPENDING

90 PERTAIN BUT WE'LL GOT THEY

HAVE CONTRACTS.

IT DOESN'T TOUCH THE ROAD

CONTRACTS OR MEDICAID PROVIDERS.

WE WILL DEAD CASE THAT MONEY TO

OUR UNIVERSITIES.

>> SO IF IT'S POLITICAL, THOUGH,

HOW DOES IT HAPPEN?

>> WELL, LOOK.

WE'VE GOT ENOUGH MONEY, KISH

WE'VE GOT ENOUGH MONEY TO BE NO.

1 IN THE SOUTH IN EDUCATION, OUR

COASTAL RESTORATION, OUR ROAD

CONSTRUCTION BUT WE DON'T HAVE

ENOUGH TO BE NUMBER ONE IN THE

SHOUT FOR THOSE THINGS OR

POLITICAL PATRONAGE.

>> THE PELICAN INSTITUTE --

>> WHO CAN ARGUE IN FAVOR OF

WASTEFUL CONTRACTS?

I'M NOT -- AND AGAIN, I HAVEN'T

LOOKED AT THE CONTRACTS IN

QUESTION.

I GENERAL IMPINGE.

>> OPPOSED AT SOME OF THESE

PROGRAMS.

YOU KNOW, I THINK SOME OF THAT'S

JUST INHERENT WITH A GOVERNMENT

THAT SPENDS THAT MUCH MONEY AND

IS INVOLVED IN SO MUCH DIFFERENT

THINGS.

ONE OF THE REASONS I'M SORT OF

PHILOSOPHICALLY INSPIRED TO

SUPPORT THE CONCEPT WHILE OF

COURSE IT HAS TO BE DONE RIGHT.

I DO THINK IT'S EASIER TO BUILD

ACCOUNTABILITY INTO IT AND GET

RID OF THE PEOPLE WHO AROUND

PERFORMING.

OF.

A GENTLEMAN EARLIER MENTIONED

THE ISSUE OF PRIVATE PRISONS.

AND IN LOSE, WE HAVE THE

HYDE'SERS RATE IN THE COUNTRY.

WE HAVE A SYSTEM WHERE ABOUT

HALF OF THE STATE PRISONS ARE

INCARCERATED IN LOCAL PRISONS

AROUND THE STATE.

AND THEN WE PAY THOSE SHERIFFS

PER DIEM MONEY FROM THE STATE

FOR THE MUST BE OF PRISONERS

THAT WE'VE HOLD.

NOW, I'M NOT ATTACKING THE

SHERIFFS HERE, THEY WERE DOING

WHAT THEY WERE ASKED TO DO.

IF THEY WEREN'T, WE WOULD HAVE

TO BUILD MORE PRISON, WHICH IS

ALSO VERY SPECIFY.

WE HAVE GRATED AN INCENTIVE THAT

MOST OF US WOULD AGREE IS

PROBLEMATIC.

A BIG PART OF THEIR BUDGET IS

DEPENDING ON HAVING A CERTAIN

NUMB OF PEOPLE INCRATER RATING.

PEOPLE GENERALLY THINK THESE

SORT OF PROBLEMS ARE CREATED BY

THE PRIVATE SECTOR.

MAYBE THEY CAN HELP GET US OUT

OF THAT SOMEHOW, IF YOU HAD

COMPANIES THAT WERE INCENTIVIZED

TO EDUCATE AND GIVE JOB TRAINING

TO PEOPLE IN JAIL, WHO WE KNOW

ARE GOING TO BE GETTING OUT AND

PREPARING THEM FOR LIFE ON THE

OUTSIDE, AND THEY ARE

INCENTIVIZED TO BRING DOWN

RECIDIVISM RATES OR MAYBE WE

COULD JUST FINED WITH A IT TO DO

WITH YOU THAT MEAL.

>> WHAT SORT OF ITEMS WE HAVE TO

HAVE THERE.

THAT'S REALLY WHAT MATTERS.

>> AND THERE IS A WAY TO TAKE

THE POLITICS OUT OF THE REVIEW

PROCESS?

CAN WE GOAT A NONPOLITICAL

OBJECTIVE FAIR REVIEW PROCESS?

>> MY OPINION, I DON'T THINK

YOU'LL EVER TAKE EMPLOYMENT

COMPLETELY OUT OF ANYTHING

BECAUSE WE'RE HUMAN BEINGS IT'S

A JUST THE WAY WE ARE.

I NEVER WE'VE GOT A LOT OF GOOD

PEOPLE WITH THE CAPITOL.

>> WHAT MY BILL WOULD DO IS AT

LEAST GET THE LEGISLATIVE YOU

HAD A SISTER IN ON THE FRONT

END, SERVICE THOSE TAPING OR IT

SAVING US MONEY SEND IT TO THE

HOUSE OVERSIGHT NIGHTMARE WHO

HAS A DECISION OVER THAT, AND

THEN LET US MAKE A DECISION FROM

THERE.

THAT'S WHAT MY BILL WOULD DO,

HAVING TROUBLE GETTING FOX WITH

HEIFER EFFACE UP.

 

I KNOW WE'RE TALKING ROADS

VERSUS FRIVOLOUS AND THERE ARE

SOME DISTINCTIONS WE'RE MAKING

HERE.

DO YOU FEEL LIKE THE REVIEW IS

TOO LIMITED?

TOO THOROUGH?

>> FROM MY STANDPOINT, IT'S

WITHIN THE DEPARTMENTS.

IT DOESN'T GO TO THE OFFICE OF

CONTRACTS.

WITHIN THE INDIVIDUAL APARTMENTS

I THINK THEY DO A VERY GOOD JOB

OF CLOSE OUTAND PERFORMANCE

MEASURES, HE DOES.

I THINK WHAT TREASURER KENNEDY

SAID, THERE REALLY IS NO REVIEW

PROCESS TODAY.

THE OFFICE OF REVIEW IS SIX

PEOPLE, ALL THEY DO IS AT THIS

TIME AND LOOK AT THE REALITY OF

THIS YOU KNOW.

THE AUDIENCE AND SOME ELECTED

OFFICIALS AND PEOPLE PEOPLE IN

LAST ARE LOOKING FOR.

>> IF IT'S AN OUT OF STATE OH

COMPANY THAT GETS THE CONTRACTS,

WHAT ARE THE TAX IMPLICATIONS

VOUS AN ANYONE STATE COMPANY.

>> AUSTIN, YOU'VE BEEN WAITING.

>> I HAVE A QUICK QUESTION,

YEAH.

IT REALLY SURPRISES ME LIKE

GETTING SUPPORT FROM THE

ADMINISTRATION.

THERE WAS A BIG PUSH FOR FISCAL

REFORM IN THE STATE.

I SAW YOUR BILL BARELY MADE IT

THROUGH A SENATE COMMITTEE.

MY WHOLE THING IS RETURNS RUN ON

BEING FISCALLY CHERTIVE.

LAST YEAR I SENT THE BILL TO TWO

COMMITTEES AND GOT OUT OF BOTH

COMMITTEES WITHOUT OBJECTION ON

THE HOUSE SIDE.

93 VOTES ON A NO VOTE.

IF I HAD ABOUT A THREE-MINUTE

HEARING, I HAD THAT HEARING AND

THEY KILLED ME.

THIS IS THE SAME BILL I'M

BRINGING THIS YEAR.

I DON'T CARE WHO THE GOVERNOR

IS, I'M GOING TO BRING IT EVERY

YEAR AS LONG AS I MEAN UNTIL I

GET IT BACK.

>> I WAS JUST CURIOUS TO SEE IF

YOU ALL AGREED OR DISAGREES.

WITH THE ADDITION OF THE

CONTRACTS, THE WAY THE CONTRACTS

ARE AT SISTERED, THE WAY THEY

ARE THEN REVIEW.

THEY ARE ULTIMATELY GOING TO

HAVE THE RESPONSIBILITY FOR

THIS, RIGHT?

LET ME PUT IT THIS WAY.

DO YOU ALL AGREE THAT PERHAPS

THE BEAUROCRACY ITSELF THAT WE

HAVE CREATE THE IS OPERATING OUT

THERE AS ITS OWN PLANET AND

UNACCOUNTABLE TO ANYONE FOR THE

DECISIONS IT MAKES ABOUT RECRESS

AND CHIMP PINCH.

>> I DON'T THINK -- THE ROAD

CONTRACTS ARE DIFFERENT, THERE'S

A WHOLE SEPARATE APPARATUS.

I DON'T THINK THE CONTRACTS ARE

BEING REVIEWED FOR POLICY.

WE'VE CUT HIGHER EDUCATION FROM

OUR GENERAL FUND BY 67%.

SINCE 2008.

>> YEAH.

>> NOW, IN LIGHT OF THAT, WHY

WOULD ANYBODY APPROVE CONTRACT

NO. 686276.

IT'S A ONE-DAY SEMINAR,

LEADERSHIP DISNEY STYLE FROM THE

LEADERSHIP ACADEMY AT DCRT.

WHY WOULD ANYBODY PROVE -- DHH

IS SHORT OF MONEY.

THEY JUST SIGNED A CONTRACT FOR

$20,000 TO SPONSOR TWO BOXING

TOURNAMENTS.

>> DO WE TURN IT OVER TO THE

DEMOCRATS WHO SIMPLY OPERATE IN

THEIR OWN ATMOSPHERE?

>> THESE DECISIONS COME FROM

HIGHER UP.

>> REPRESENTATIVE HAVARD, LIKE

HE WAS SAYING THESE ARE

RIDICULOUS.

BUT ALSO HOW DOES A $100 MILLION

CONTRACT BECOME A $100 MILLION

CONTRACT?

I THINK IT WAS WITH BENEFITS,

GROUP INSURANCE.

WITHOUT YOUR EYES SEEING IT

INWHO CHECKS THE CHECKER IS

GUESS IS MY QUESTION.

IT WOULD DATAUP, WE WEREN'T SET

UP FOR THAT.

WITH HE HAVE NO REVIEW PROCESS

AND THAT'S WHAT THIS BILL WOULD

DO.

>> THE PRIVATIZATION HAS BEEN

THE LAST COUPLE OF

ADMINISTRATIONS?

>> RIGHT.

>> OKAY.

>> JUST SO I'M CLEAR, SO YOUR

CONCERN AS I HEAR IT IS MOSTLY

VIEW OF ON THE FRONT END, MAKING

SURE WE'RE NOT SPENDING MONEY ON

THINGS WE DON'T NEED, AS OPPOSED

TOES TO A REVIEW ON THE BACK END

THAT MAYBE THERE ISN'T AS BIG OF

A PROBLEM?

>> WELL, I'LL JUST SAY THIS.

OVER THE LAST FEW YEARS SINCE

I'VE BEEN THERE, I'VE HEARD THE

GOLD STANDARD OF ETHICS AND TRAN

PARAPHERNALIACY AND ALL OF THESE

THINGS.

IT'S TIME THAT WE MATCH OUR

ACTIONS TO OUR RHETORIC.

THAT'S ALL I'M ASKING.

THAT'S WHAT WE NEED TO DO.

ESPECIALLY ON A PRIVATIZATION

CONTRACT, I'M NOT AS FAMILIAR

WITH BRIDGE CONTRACTS AND

MAINTENANCE CONTRACTS AND

ENGINEERING.

YOU'RE TALKING A $50,000

CONTRACT VOUS A $1 BILLION

CONTRACT.

>> IT'S A QUESTION OF

PRIORITIES, KIRBY.

THE DEPARTMENT OF CHILDREN AND

FAMILY SERVICES SPENT $100

MILLION ESTABLISHING A WEBSITE.

THE CONTRACTOR BELOIT, FROM OUT

OF STATE, I THINK THEY ARE OUT

OF PENNSYLVANIA, THEY ARE ALL

OVER THE WORLD, DIDN'T FINISH

THE JOB.

THEY GOT A NEW CONTRACT.

YOU KNOW WHAT THEIR PERSONALITY

WAS FOR NOT FINISHING THE JOB?

NOTHING.

THAT WOULD NEVER HAPPEN IN THE

PRIVATE SECTOR.

I DON'T THINK WE SHOULD HAVE

SPEND $100 MILLION ON A WEBSITE.

I THINK THAT SHOULD HAVE SPENT

IN OUR UNIVERSITIES.

IF THE CONTRACT DOESN'T PERFORM

AND CREWS UP THE WEBSITE,

SHOULDN'T THERE BE A PENALTY?

>> ARE THERE INADEQUATE

PENALTIES,.

>> BEFORE WE ISSUED THIS FRONT

END VERSUS BACK SEND.

LET ME GIVE YOU AN EXAMPLE OF

THAT.

I'M ON THE BOARD OF AN

ORGANIZATION THAT RUNS CHARTER

SCHOOLS.

I THINK AN EXAMPLE OF THIS THING

BEING DONE PROPERLY,

ORGANIZATIONS THAT ARE GIVEN

CHARTERS TO RUN SCHOOLS ARE

REVIEWED BY THE STATE.

AFTER A FEW PROVIDED, THEY LOSE

THE CHARTER.

WE'RE SEEING SCHOOL IN NEW

ORLEANS, FAILING FOR PERFORM IN

MANAGING SCHOOLS AND THEY LOSE

THE CHARTER.

TO ME, THAT'S HOW IF YOU'RE

GOING TO -- I MEAN, THIS IS A

FORM OF PRIVATE DECISION.

OUT OF CROFT TROL, I THINK

THAT'S A GOOD EXAMPLE OF HOW

THAT CAN WORK PROPERLY.

>> I'M GLAD HE BROUGHT THAT UP

ABOUT THE CHARTER SCHOOLS.

A LOT OF PEOPLE DON'T KNOW THIS

OR REALIZE IT.

A LOT OF THEM ARE FOR-PROFIT

CHARTERS SCHOOLS.

THEY ARE BEING PARADED THROUGH

THE VEIL OF A NONPROFIT

ORGANIZATION.

IN ORDER TO PRAYS IS A CHARTER

SCHOOL IN LOUISIANA YOU HAVE TO

BE A NO.

THE STATE GIVES ME MFP DOLLARS,

WHICH ARE CAR ACCIDENT KNOT

BETTER THAN.

I THEN TURN AROUND AND GIVE TO

IT A FOR-PROFIT COMPANY WHO

MAKES MONEY, YOU KNOW, AND IS

MAKING ENOUGH FOR A PROFIT.

NOW, THERE ARE SOME CHECKS AND

BALANCES IN THERE TO MAKE SURE

THEY ARE DOING PROPERLY AND

OPERATING PROPERLY.

IF THEY ARE TAKING TAXPAYER

DOLLARS AND BUYING A PENCIL

THAT, PROPERTY THROUGH STATE

WITH THE TAKE THE OR THE

INJURIED YET, THE ORGANIZATION.

--

>> I'D A RAISE A QUESTION BASED

ON THAT.

IF SOMEBODY IS CREATING A

NONPROFIT FOR SORT OF GOVERNOR

FOR.

I'VE JUST RAISED THIS QUESTION I

THINK WE OUGHT TO CONSIDER.

LET'S SAY A FOR-PROFIT COMPANY

DOES A BETTER JOB OF EDUCATING

OUR CHILDREN.

ASK ANYBODY REALLY HAVE A

PROBLEM IF THEY TURN A PROFIT IN

DOING THAT?

>> I DON'T.

>> I'D HIRE SOME MORE OF THEM IF

THEY CAN WORKED.

>> JOHN HAS A QUESTION.

>> THIS IS FOR ONE OF YOUR PANEL

MEMBERS, I GUESS.

WE KIND OF KEEP TRAVERSING BACK

TOWARD EDUCATION, MY QUESTION

WILL BE HOW DO YOU AS I THE MOVE

WOULD AFFECT PRIVATIZATION IN

SOME WAYS?

>> LET ME TALK ELEMENTARY AND

SECONDARY FIRST.

I'LL SUPPORT ANYTHING THAT

IMPROVES.

>> ANYTHING.

IN TERMS OF HIGHER EDUCATION,

OUTHERN LSU, UNIVERSITIES, THEYS

HAVE THE TOOLS, THEY JUST DON'T

HAVE THE FUNDING.

SO IT'S A SEPARATE PROBLEM.

>> WILLIAM, YOU HAD A QUESTION.

>> THE BIG ISSUE HERE IS

CONFLICT OF INTEREST.

I HAVE NO PROBLEM WITH THE

SCHOOL DOING BETTER A PRIVATE

SCHOOL, ALTHOUGH WHO'S CHECKING?

WHO'S ACCOUNTING FOR IT?

DOES THE PUBLIC GET TO SEE WHAT

THEY ARE TEACHING?

IF A PRIVATE COL HAS OIL

INTERESTS OR SOMETHING, THEY

MIGHT NOT WANT TO TEACH

ENVIRONMENTAL SCIENCE.

CONFLICT OF INTEREST IS MY

BILLER STUMBLING BLOCK.

BUT IS IT TOO ABOUT TURKCAN

VALLEY IN THE HEALTH CARE?

WHAT KIND OF LEGAL RESOURCE IS

THE STATE GOING TO HAVE IF

THERE'S A PROBLEM DOWN THE ROAD?

ARE THERE PROVISIONS TO AVOID

LENGTHY LITIGATION THAT A BIG

HEALTH CARE COMPANY COULD AMASS

A HUGE WAR CHEST TO TIE YOU WANT

STATE?

HOLD US OVER A BARREL.

>> CNSI IS A GOOD EXAMPLE.

>> WE'RE IN THE MIDDLE OF A

LAWSUIT NOW WITH CNSI.

WE COULD HAVE DONE THAT BY DUE

DILIGENCE ON THE FRONT END.

>> DANIEL, YOU'VE BEEN WAITING

TO GET IN.

>> I HAVE.

REPRESENTATIVE, 19,000

CONTRACTS, HOW DOES 135, 40 OF

YOU ALL TRY TO GET YOUR HANDS

AROUND THAT?

YOU'D HAVE TO DO WHAT WASHINGTON

DOES AND BACK FULL-TIME

LEGISLATOR.

>> NO, YOU WOULDN'T.

MY BILL IS EVERYTHING OVER 5

MILLION DOLLARS.

AS FAR AS THE CONTRACT, I'M NOT

GOING WANT TO DEFINITELY INTO

EVERY SINGLE ENGINEER AND

CONTRACT ON THE ROAD.

THAT'S AN ISSUE I THINK

REPRESENTATIVE RICHARD AND JOHN

KENNEDY IS TALKING ABOUT.

WE'RE NOT TALKING ABOUT A BUNCH

OF CONTRACTS, BUT WE ARE TALKING

A HUNDRED HERE, ONE BILLION

DOLLARS, WE SHOULD LOOK AT THOSE

CONTRACTS.

>> HERE WHAT'S YOU DO, DAN.

IT'S REALLY SIMPLE.

HOUSE PREPARATION SENATE

FINANCE, WE MEET ONCE A MONTH.

BEFORE THEY HAVE A MEETING THEY

GET A LIST OF ALL OF THE

CONTRACTS SIGNED THE PREVIOUS

MONTH.

IF NOBODY HAS ANY QUESTIONS THE

CONTRACT'S APPROVED.

IF SOMEBODY HAS A QUESTION, YOU

HOLD A HEARING ON IT.

THE PEOPLE BEHIND THE CHIMPANZEE

DISCOVERY DAYS CONTRACT, THEY

ARE NOT GOING TO TRY TO GET THAT

CONTRACT ANY MORE.

THEY KNOW THE COMMITTEE WILL

CALL -- THEY ARE NOT GOING TO

EVEN TRY IT ANYMORE.

A LOT OF THESE FRIVOLOUS

CONTRACT WILL JUST GO AWAY.

UNLIGHT IS A PRETTY GOOD

ANTISEPTIC.

>> BUT THE NEW CONTRACT DOESN'T

BECOME FINAL UNTIL IT'S APPROVED

BY THE JOIN LEGISLATIVE

COMMITTEE ON THE BUDGET.

THERE'S NO LAW FOR THAT RIGHT

NOW.

>> DOES SOMEBODY HAVE A BILLING

TO DO THAT?

>> YOU WILL SEE LEGISLATION TO

DO THAT.

BEFORE WE DO THAT I'D LIKE TO

REDUCE THE SPENDING BY 10%.

IT'S NOT ACROSS THE BOARD.

WE TELL EVERY AGENCY HEAD REDO

THE YOUR -- WE'RE ASKING THEM TO

USE THEIR MANAGEMENT SKILLS.

THEN WE'RE GOING TAKE THAT MONEY

AND SPEND IT IN OUR UNIVERSITY

COMMUNITIES.

>> WELL, WE'VE RUN OUT OF TIME

FOR OUR QUESTION AND ANSWER

SEGMENT.

WE'D LIKE TO THANKS OR PANEL

IT'S, MR. KENNEDY, MR. NAQUIN,

REPRESENTATIVE HAVARD.

WHEN WE COME BACK WE'LL HAVE A

FEW CLOSING COMMENTS.

>> WELL A LIVELY CONVERSATION

AND I THINK IF THE VIEWERS WANT

TO KNOW MORE INFORMATION THEY

CAN GO TO THE DIVISION OF

ADMINISTRATION WEBSITE.

AND ALSO ONE OF OUR GUESTS HAS A

WEBSITE SUNSHINE.ORG, RIGHT?

>> YEAH, AND ALWAYS A GREAT

CONVERSATION AND I ALWAYS LEARN

A LOT FROM OUR GUESTS AND OUR

PANELISTS.

>> SECRETARY KENNEDY SAYS IT'LL

TAKE YOU THREE YEARS TO SEE ALL

OF THE CONTRACTS.

IT'S A LOT OF READING.

THAT'S ALL THE TIME WE HAVE FOR

THIS EDITION OF "LOUISIANA

PUBLIC SQUARE."

WE ENCOURAGE TO YOU VISIT OUR

WEBSITE AT LPB.ORG/PUBLICSQUARE.

WHILE THERE TAKE THIS MONTH'S

SURVEY, VIEWER EXTENDED COMMENTS

AND TONIGHT'S SHOW.

DORIAN WRITES TO US, MINIMUM

WAGE INCREMENTS SHOULD BE

INCREASED ANNUALLY UNTIL IT

REACHES NATIONAL LEVEL.

CHARLENE WRITES, THIS IS VERY

SIMPLE, RAISE MINIMUM WAGE SO

PEOPLE CAN PAY BILLS AND HAVE

ENOUGH LEFT TO DO THINGS WITH

THEIR FAMILIES.

>> THESE JOBS WERE CREATE THE A

PART-TIME JOBS, THEY WERE NEVER

INTENDED AS FULL-TIME FAMILY

SUPPORT JOBS.

>> THE MONTH OF MAY MEANS THE

ENTRY THE THOUSANDS OF NEW

COLLEGE GRADUATES INTO

LOUISIANA'S JOB MARKET.

THIS YEAR THESE JOB SEEKERS WILL

BE JOINED BY HUNDREDS OF

RETURNING VETERANS AS THE

MILITARY DOWNSIZES TROOPS

OVERSEAS.

WHAT DOES LOUISIANA'S EMPLOYMENT

MARKET LOOK LIKE FOR THESE JOB

HUNTERS?

JOIN US NEXT MONTH AND

"LOUISIANA PUBLIC SQUARE" LOOKS

FOR ANSWERS ON JOB MARKET 2014.

GOOD NIGHT.

 

NOTES

 

**

 

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