WWL>Topics>>1-20-14 12:10pm Garland: on Jindal's consulting firm hire

1-20-14 12:10pm Garland: on Jindal's consulting firm hire

Jan 20, 2014|

Garland talks with attorney C.B. Forgotston about the firm hired by Governor Jindal to instruct state agencies on how to spend money.

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Automatically Generated Transcript (may not be 100% accurate)

Numbers have always confuse movement in particular numbers when it comes to the stories -- museum. And remember reading that. And Louisiana -- a 163. Million dollar surplus from last year. Apparently and they -- quite a bit more than -- idea. Thought the world out of recent tax amnesty. Period that you put in place. I think that so ignorant of two million dollars -- more. Then I bring me do it and that governor is getting ready to propose his budget to via legislators for the U. Upcoming fiscal session. And -- talk about shortfall. Q we're -- 163. Million dollar surplus. Now the governor well it's been more than 200 million in on al-Qaeda. Irish. And we have -- shortfall. So in the second half of this or we're gonna try to figure -- out -- and true there's plausible explanation than even men understand. There's we could go couple weeks ago I begin to read and several blogs. In particular receive be productive and blunt. Above the big governor. -- Contra. With the road York based company. To ensure. At least 500 million dollars in savings. Or or identify -- -- In our state budgets -- state department's. And remember reading CBO and others saying when and why do we need to pay some body at. Discount ammonium things four point two million dollar contract. That's an okay once again to give a little confused by the say get confused by figures -- called CB CB production. Welcome the show won't tell you -- talk to happening here. Let's sign do you call I appreciate you have me mountain. Kind of interesting situation. I I didn't give a very good explanation to these listening public. Get an idea about what's been happening what looks like it's gonna happen. Well let's been happening is that the legislate -- Maine a governor has been proposing it budget. That counts. Basically one tampons. In spite of the fact that people say it doesn't which means they don't recur. And on the fact that. On the sat -- revenues sit -- always. Materialized. As a result we have chronic fiscal problems this -- only been going -- on a regular basis since Bobby Jindal became governor. Under the bad old days of Edward network in there's. We didn't have this chronic problem we. If it was -- to have a midyear budget cuts. But under Bobby Jindal. We have an annual midyear budget cuts. And recently they announced that no but midyear budget cuts would be needed. But I'm not even sure that's true but -- All the chickens have not come home to -- because there's a lot of money in the budgeted in the current operating budget. That has not necessarily materialize. They based it down things like. Savings from the privatization. The LSU hospital. We read in today's paper that. As say being may or may not come book. But we don't even know if that's they had -- to these privatization. Contracts. Delay today exist and therefore we don't and say things are coming. There we also have the question. Built into the current budget is money from this sale of certain properties around the state. And we say well. You know maybe it'll happen in maybe it won't happen that frankly. In the previous year's budget. Many of those same properties -- budgetary and there and they. Didn't happen. So maybe if we get elected -- coming. And and then we have the practice of raiding. Various farms. That our sport statutorily access. Four other. Items. Such is the artificial reefs program and the cotton. Believable program and the governor has just reached in those farms taken the money now. And -- announce something new house is perfectly legal as far as I'm concerned but it doesn't -- those firms don't necessarily. Generate. Those revenues every year because frankly the reason the money was sitting in the post on is because they were some reports. And you just that definition don't have a surplus every year. And so we we've we've run into some serious problems and it's the bottom line is that the legislature. Goes along with the governor's budget. Never really gets into the -- the budget yeah they talk a lot about it but. The truth is they they they get into a huge fights over. Probably less than 10% of the budget. Most of it is they just accept -- again. They say will we spent forty billion dollars last year. So the only question this year is how -- gonna spend the extra 163. Million. And and surplus. And -- and they say well we you know. So we're assuming that every dollar spent the previous year was -- And and you had to McCain didn't have budgets like that we've got to always be looking for ways to save money. But the state doesn't have that. Practice Islam is that revenues. Need to -- They blow it off to live action here. Frankly if we were finding a buggy -- factory. And our budget somewhere since the 1812. Which they'll still be doing in the guys each year we. We come up with this thing well we take flash your budget in the -- to the you mentioned and you right before it came home 500 million dollar shortfall for this year. It's it's funny that coming fiscal year the one of the in -- want. Surely not shortfall. It means if we want to maintain the status quo. And then again you get to the that in terms. Of government in the -- again. Maintain the status quo another words. Keeping what we had last year. Is not the same as what you and I would say we check almost in the same thing -- did it last year all of you say Obama the same thing about an elaborate get that extra money. When the states says that what they mean it is within a span slash years placid and installation right. And that ranges between -- I mean in six it may. Some of that is for automatic pay -- Some of that four they civil service simple. Some of that is utility cost increase some of that is pension fund increased some of that is. Florida. In church columns and so we we you have to be careful when they say they have a short while. They have page shortfall of money if they want increased this year's budget and and instead of powering. The consulting group out of New York. The committee the quickest way to -- money is to say we're gonna take. We don't we're not. To try to to have on -- Canadian dollars to -- -- the budget we have we gonna have a truly frozen budget. And here's how we going to sit those inflationary -- would in many cases a real. A lot and they've just listened across the board. And we just don't tell every agency. You've got to Europe per -- share the 500 million dollars based on the amount as state -- you're getting right now. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Find out exactly how it came out. What's happening that soon be forgotten what this Garland Robinette do you have questions you have comments to Sid 01 leads -- public. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Concerning your creating savings and ours they budgeted cars State Department with CB put -- and -- -- you were just beginning to explain this are hopeful Linda Gibson do what initially. Was going to be done. And the latest promised to amendment -- Well let's back up a little bit from that caller and how this thing came back out. It's it's pretty obvious from everything I have read -- seen in the media I think you'd agree that the legislators were taken by surprise. This contract. They actually the the same in the admitted rightfully so that they thought that was their job. And it begs the question in kind of goes back to something that's before the break about the legislature. Just. Passing what I call incremental budgeting -- -- looking at the top of each detail of the budget. Even in the governor's office must have its money appropriate. So the question is how it's four point two million dollars. It's slipped into the governor's office -- division and frustration. Under is office. To find -- full point two million dollar contract these things disposed to be hashed out in the legislative. Debate. All of the budget. Now. Apparently. The legislators didn't say it but they shouldn't have because each one of them approved it. And it and I agree with them it's their job to reduce the budget. And and so. They I've been asking the question where's the money come from especially when you consider. That the state general fund. Ballots for the revenues for this fiscal year. Have been reduced about thirty -- I'm a big answers. I know it chooses packet. The question apparently didn't even gone down any legislative. That that -- yeah we shouldn't you know that should have been a line item in the budget -- at least. It should have been discussed with we discussed the governor's budget but the truth is they just accept the governor's budget. -- whatever he wants they don't question is that that they get to that faster than anything. And and as far as that Alvarez in Marseille study. It is stiff than others that we've we've got dozens of them sitting around it. It's share houses BG aren't talks and other independent nonpartisan think tank -- state. What we need is not somebody like Alvarez and -- now. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- In the governor's office and the in the legislative branch to implement. Four for example -- the latest a big money. And Nate they claim they gonna say between now they don't claim that genocide that that's that's. I think that's an excellent point you -- what is in the contract what's not. They say that they will assist. In the implementation. Of 500 to eight billion dollars in saint. They do not promise. That there will be top hundred and have the in dollars and -- and I know that may sound like you know nitpicking. But represented -- -- From saint -- -- is pretty Smart lawyer and he picked up on that right away that at LA and even in the contract. But let's say we that was gonna cover letter and and you know even a first year law student knows that a cover letter and demand signed contract. But that's an important thing to -- There is no guarantee of any -- our enemy and outside there's not even make guarantees that they say the full point to me in where pain. It merely says that it will -- and these things and assist in infamy. Well when you start talking about. Travelers million dollars in savings you're talking about such structural. Changes in state government. You're talking about say merging colleges in and universities. You're talking about changing the pension plan from the defense and. Benefit to a defined contribution plan you're you're talking about merging state agency you're talking about eliminating state agencies. And there's just not been the political will we we all know how to do it. Calling you an act in sit down -- promise she. And -- million dollars and he has. And -- now. And yet. That then do anything that's not the problem. Ideas everywhere we have a streamlining commission that worked almost a year -- it. But from people from like state treasurer John -- they came up with. And is. Some -- more implement. But the big bucks. Never even looked at practice -- offered one it was a huge. Change you have. Structural change. That might save the state to be in -- opt -- -- this country and got into consideration is that just allowed me to make an appearance. -- -- We got a stop funding. Local governments and local and nonprofit agencies at the expense of state agency if we stop doing that I recommend that we could. Save the in the billions of dollars. And then actually reduce state taxes and just let people take care of it at the local. So -- that kind of things that need to be and even if Alvarez in -- comes up. With some of some similar ones the ones that have not already been discussed. Then there's no guarantee that any of it can be implemented and they will have -- four point two million dollars. -- in four months that's over a million dollars a month. For coming with is that India was to come out there. So do the announcement that the contract would be amended to ensure. That at least 500 million was found. -- is not insured before. No that was that was -- cover letter that says we will work with the state. To embed our employees. Actually finally found a couple of and and to assist and the implementation. Savings. That system implementation. Collins might be well let me hold list doubt you look at it and you do it while I'm holding. I'd do it is very goes through the big contract in the car or -- or water over. And never. Spelled out the bill the measurement rule requiring payment now. It it that it uses this vague term. In there about deliverables. And things like that but but there's no in two and and represent him burned mating nothing good point. He says. And this goes back to my initial concern about. You know these recommendations he says they got to be reasonable recommendations. Now he he says he'd like is that the that be in the contract. But you know then you can and -- what's reasonable. They they say the legislation uses terms weren't. Suggests not that that was maybe that is not politically doable and saying well that that's not really the question. The question is you've got to do so which one do you want to do. But you gotta be something you can't just keep kick in the -- Relevant virtual room and asked him we only have a minute left when you talked about all -- one time funds that are using. You and I can't do that after our budgets aren't aren't that big or or that endless. Us they can't do that can print the money like the federal government. Is that something that eventually with the chickens come home to Bruce and so we're talking about years -- decades. I think they'll come home to roost when Bobby Jindal -- opposition. Just under two years. Because he will keep patchwork in this stuff together in legislators. Act like they're not they'll be living in Louisiana. After he leaves office because they're not gonna like this state. Many and they left cleanup to match. -- interest and CB is always appreciate it called -- shoot him from Mitch and agreed today. Well.