The Daily Beam

Jindal slashes state budget

noreply@blogger.com (Michael Meaux) — Wed, 23 Dec 2009 14:53:00 +0000

Health care services and public colleges are bearing the brunt of cuts to close a $248 million midyear state deficit under spending reductions made Tuesday by Gov. Bobby Jindal to rebalance the budget.

The Department of Health and Hospitals will lose $108 million, and higher education will take an $84 million cut to cover more than three-quarters of the gap in the $29 billion budget for the fiscal year that ends June 30.

"We've got to limit government spending so we can live within our means," Jindal said.

Other cuts are spread across state agencies. Every department received either a 7.6 percent cut to its state general fund appropriation or a 3 percent cut of its total budget, whichever was less, under the governor's executive order.

LASERS-Did you know?

noreply@blogger.com (Michael Meaux) — Fri, 18 Dec 2009 21:23:00 +0000

If a member selects the Maximum Plan as a retirement option, he/she will receive the basic benefit, paid monthly for the lifetime of the member.

It does not pay a monthly benefit to your spouse, or other dependents. Should you die before your member contribution account is depleted, your beneficiary receives a lump sum payment of your remaining member contributions.

State has $197 million budget deficit

noreply@blogger.com (Michael Meaux) — Thu, 17 Dec 2009 20:01:00 +0000

The latest state revenue forecast adopted today dropped income estimates by another $197 million this year, leaving the state with a midyear deficit to close.

Economist Greg Albrecht, with the Legislative Fiscal Office, says sales tax revenue has plummeted, and the uptick in severance and royalty money from oil prices isn't enough to combat the sales tax drop.

Division of Administration Commissioner Angele Davis said the reduction forecast would trigger cuts in spending to balance this year’s budget to $7.8 billion from $8.06 billion. That’s the money that state sources contribute to the annual $28.9 billion budget, she said.

The latest forecast was approved by the Revenue Estimating Conference.

Safety Not a Concern in H1N1 Vaccine Recall

noreply@blogger.com (Michael Meaux) — Thu, 17 Dec 2009 16:11:00 +0000

The voluntary recall of certain children's H1N1 vaccine by the vaccine manufacturer is not related to the vaccine's safety, and that this and all forms of the vaccine remain very safe, according to State Health Officer Jimmy Guidry.

Vaccine manufacturer Sanofi-Pasteur announced today that it is recalling four lots totaling about 800,000 doses of pre-filled syringes of H1N1 vaccine intended for use with children aged six months through 35 months. Louisiana vaccine providers have received about 10,900 doses of this particular form of vaccine, however, only 610 doses from the recalled lots have been administered statewide.

The lots were voluntarily recalled by the manufacturer after routine post-shipping tests of the vaccine found the vaccine to be slightly less potent than the manufacturer's license stipulates. However, even when just 20 percent as potent as called for, vaccines can still generate the needed response from the immune system. These lots of vaccine were found to be 88 percent as potent as specified. Therefore, there is no need to revaccinate those who received the slightly less potent vaccine.

"Parents of children who received vaccine from the recalled lots do not need to take any action, other than to complete the two-dose immunization series if not already completed," Dr. Guidry said.

Streamlining panel tries to rein in state expenses

noreply@blogger.com (Michael Meaux) — Mon, 14 Dec 2009 16:00:00 +0000

As the Commission on Streamlining Government prepares to issue its initial report this week, it remains to be seen whether the recommendations -- 238 in all -- will end up as a blueprint for a leaner government, or if the report will join the legions of well-meaning reform efforts that lie forgotten on dusty bookshelves.

The Legislative Fiscal Office is still sorting through the recommendations to determine their effect on the budget. But a tally using the streamlining commission's own cost-saving estimates shows that it would have a combined $778 million impact on the state budget. That number appears optimistic, however, as much of the savings suggested by the panel are things that state agencies already are doing, such as closing the New Orleans Adolescent Hospital.

While none of the recommendations carry the force of law -- they are suggestions to the governor and Legislature -- Sen. Jack Donahue, R-Covington, the commission's chairman, said he expects the recommendations to be a useful tool as state officials try to balance the 2010-11 budget without raising taxes.

Commissioner of Administration Angele Davis, Jindal's chief budget adviser and a member of the 10-person panel, said many of the suggestions will be reflected in the governor's 2010-11 executive budget.

State Civil Service Commission Members Stumped by Jindal Response to Merit Pay Plan vote

noreply@blogger.com (Michael Meaux) — Fri, 11 Dec 2009 18:53:00 +0000

Some Civil Service Commission members said Thursday they don’t understand Gov. Bobby Jindal’s objection to a new state employee pay plan that ties pay raises to job ratings.

The seven-member Civil Service Commission on Wednesday morning approved the proposal that would change how 61,000 rank-and-file classified workers would receive pay raises in the future. Another 30,000-plus state unclassified employees are not affected.

Late Wednesday night, a top Jindal aide released a two-sentence statement saying the governor would return the issue to Civil Service for more work.

The prepared statement by deputy chief of staff Stephen Waguespack said bosses in government agencies needed more flexibility in deciding pay raises than was allowed by the plan the commission adopted.

“I don’t see where we are denying them any flexibility in what we proposed,” said commissioner Wilfred Pierre, of Lafayette. “It was fair and equitable for all. I don’t understand where the lack of flexibility is.”

The plan the commission advanced on Wednesday would grant employees who “meet expectations” a 3 percent pay raise; those who “exceed expectations” 4 percent; and 6 percent for those who rate “outstanding.” Agencies could seek commission approval for a variance from the pay raise to award less or none based on “rational business plans.”

If no new pay rules are approved, the current 4 percent system stays in place.

LASERS-Did you know?

noreply@blogger.com (Michael Meaux) — Fri, 11 Dec 2009 16:46:00 +0000

LASERS members do not pay Social Security Tax:

However, state employees hired after April 1, 1986 will pay Medicare tax.

Winter 2009 LASERS Beam

noreply@blogger.com (Michael Meaux) — Fri, 11 Dec 2009 16:10:00 +0000

The Winter 2009 LASERS iBeam is now available.

This issue primarily features stories on the results of the 2009 Board of Trustee Election.

Click this link to view the LASERS Beam

State Civil Service Commission Approves Modified Merit Pay Plan Change

noreply@blogger.com (Michael Meaux) — Wed, 09 Dec 2009 19:16:00 +0000

The state Civil Service Commission Wednesday morning approved a new state employee pay plan after eliminating a lot of the flexibility state agencies would have in determining levels of pay raises.

The commission, responding to employee complaints, amended the proposal to detail specific pay raises attached to specific employee job performance ratings.

Gone would be a four percent across the board raise most of the state’s 60,000 classified rank and file employees receive annually. Instead, employees would receive a 3 percent raise if they meet job expectations, 4 percent if they exceed expectations and 6 percent if they rate outstanding. The original proposal would have allowed agencies to award up to those amounts, leaving agencies the flexibility to award less or none.

Proposed Merit plan change opposed by state employees

noreply@blogger.com (Michael Meaux) — Wed, 09 Dec 2009 15:24:00 +0000

A proposed pay plan met protest Tuesday from a parade of state employees who said it lets cronyism, favoritism and budget issues decide pay raises rather than on-the-job performance.

The new system would give state agency officials greater flexibility in deciding — within ranges — what, if any, pay raise each employee would receive each year. No pay increases would have to be granted.

Shirley Coody, an assistant warden at Louisiana State Penitentiary at Angola, brought 2,172 protest letters signed by employees of five state prisons.

Coody and others, including former longtime state corrections chief Richard Stalder, suggested guaranteeing specific merit-pay increases based on employee performance ratings: 4 percent for “meets expectations,” 5 percent “exceeds expectations” and 6 percent for “outstanding” performance.

The seven commissioners could vote as early as today on the proposal.

Streamlining Commission Endorses Defined Contribution Plan for New Employees by Robyn Ekings

noreply@blogger.com (Robyn Ekings) — Tue, 08 Dec 2009 19:13:00 +0000

The Commission on Streamlining Government today voted to endorse a plan that would require new employees of Louisiana's four largest public employee retirement systems to enter a defined contribution retirement plan instead of the current defined benefit plan. The issue has been the subject of a study requested by House Speaker Jim Tucker. Supporters cite a multi billion dollar accrued debt for the systems as one reason to make the shift to a defined contribution plan.

"I happen to think that for all future employees, the advantages outweight the disadvantages." said State Treasurer John Kennedy, "It also eliminates the political tisk of the legislature adding benefits without funding them." Retirement system officials have pointed out that the move will not reduce the current debt of the systems, and have asked state leaders to set aside money that will pay down the debt, which has increased in large part because enough money was not set aside in the systems' early years to fund promised benefits.

The defined benefit plan provides a guaranteed lifetime payment for workers who have contributed to the system.

The Streamlining Commission approved the recommendation without comment in a 9-1 vote.

The recommendations of the panel will be used by lawmakers in the spring to craft a state budget.

Some La. drivers set to pay higher for auto insurance

noreply@blogger.com (Michael Meaux) — Mon, 07 Dec 2009 16:39:00 +0000

About 40 percent of Louisiana motorists — those with minimum liability automobile insurance — face higher bills beginning Jan. 1 when a new law that requires more coverage kicks in.

The two companies that write the most automobile policies in Louisiana — State Farm Mutual Automobile Insurance Co. and Allstate Insurance Co. — advised the state Department of Insurance that liability coverage costs will increase about 14 percent because of the higher mandatory limits.

Commissioner of Insurance Jim Donelon urged vehicle owners to shop now for insurance policies to get the best deal.

The rate increase does not mean the total policy cost will rise — only the liability portion, according to Insurance Department officials. The change does not involve other coverage such as collision and comprehensive.

State Civil Service panel considers proposal to end annual pay raise for state workers

noreply@blogger.com (Michael Meaux) — Mon, 07 Dec 2009 15:51:00 +0000

The state Civil Service Commission is preparing for an overflow crowd at a Tuesday public hearing to discuss a proposal that affects the future pay of about 61,000 rank-and-file Louisiana government employees.

The seven-member commission could vote as early as Wednesday on its staff’s recommendation to end the 4 percent annual pay raise received by nearly all classified state employees who meet or exceed job expectations.

Proponents say the proposed new system would better reward employees who perform better than their colleagues. The new system would give agency heads broad authority to decide who gets pay raises and by how much within ranges.

Tuesday’s two-hour commission hearing in Baton Rouge will begin 5 p.m. in the downtown Claiborne Building’s large meeting room. Another room will be provided for the expected overflow crowd to watch the meeting.

Jindal eyes privatizing state workers’ health plan

noreply@blogger.com (Michael Meaux) — Fri, 04 Dec 2009 15:59:00 +0000

The Jindal administration is considering the privatization of more of the state’s employee health-insurance program operations.

Commissioner of Administration Angèle Davis confirmed her agency is looking at drafting a “request for proposal” for a private third-party administrator of the preferred provider option run by the state Office of Group Benefits.

Some 69,460 employees, retirees and dependents are covered by the PPO plan.

“We are working through a pretty extensive review,” Davis said. “We are looking to see if it will improve services for plan participants and lower costs.

Group Benefits administrator Tommy Teague said his agency will compete for the work if the administration decides to seek proposals from private business on plan administration.

The Office of Group Benefits offers several options for employees to choose health insurance coverage. All the plans are self-funded with Group Benefits at-risk for all medical payments.

Furloughs for state workers supported by Streamlining Commission

noreply@blogger.com (Michael Meaux) — Wed, 02 Dec 2009 16:18:00 +0000

A cost-cutting commission wants state government to take a cue from private business and furlough state workers.

Without much discussion, the Commission on Streamlining Government on Tuesday endorsed a proposal that state government workers next year take four days off without pay.

Any furloughs would have to be approved by the state Department of Civil Service.

Commission members suggested furloughing all employees in a particular location on the same day to save on utility costs.

The commission also suggested prohibiting merit pay raises to state workers whose appraisal is rated "meets expectations" and lengthening the minimum probationary period for a newly hired state worker to two years instead of six months.

Retirement Plan funding reviewed

noreply@blogger.com (Michael Meaux) — Wed, 02 Dec 2009 14:36:00 +0000

With the state’s public retirement system debt increasing $4.8 billion during the past year, state officials said the pension program has to change.

The Louisiana House and Senate retirement committees have been meeting jointly to study whether a new system of paying retired state government workers — such as, private 401(k)like plans, called “defined contribution” plans — would be better than the current “defined benefit” plans, which guarantee lifelong benefits to state retirees. Any changes would only affect new hires.

Paul Richmond with the legislative auditor’s office said the majority of state employees and teachers fund their own pension plans through their contributions. Some plans, such as those for some law enforcement agents, are more costly, he said.

Cindy Rougeou, director of the state employees’ retirement system, said she is pushing one plan for hazardous-duty employees that will help the system control costs.

House Retirement chairman Joel Robideaux said the committees have a lot of information to digest before they start making recommendations. The committees were asked to submit a report to the Legislature before the 2010 session.

State Employees can Use Catalyst Rx website to compare prescription prices

noreply@blogger.com (Michael Meaux) — Wed, 25 Nov 2009 17:06:00 +0000

State Employees enrolled in OGB’s standard PPO, EPO and HMO health plans can check prices at area retail pharmacies using the prescription price comparison tool on the Catalyst Rx website. Catalyst Rx administers prescription drug benefits for OGB plan members.

Plan members can log in to the secure Catalyst Rx website at www.catalystrx.com for costs for both brand and generic drugs, with prices displayed from lowest to highest. The search results include the address and phone number of each pharmacy, along with maps and directions to each location.

LASERS-Did you know?

noreply@blogger.com (Michael Meaux) — Wed, 25 Nov 2009 16:06:00 +0000

State’s worker makeup shifts

noreply@blogger.com (Michael Meaux) — Mon, 23 Nov 2009 16:17:00 +0000

The number of better-paid, politically appointed, fire-at-will state government employees has climbed dramatically in recent years, according to the Louisiana Department of State Civil Service.

Meanwhile, the number of lower-paid, rank-and-file, classified employees generally has been declining.

Louisiana government’s employment agency reports that the number of the state’s unclassified employees has risen by 22 percent between 2002 and 2009. The classified work force has dropped 8 percent over the same eight-year period.

Also, unclassified employees make an average of about $20,000 more annually than classified employees, the latest Civil Service numbers show.

“I’d like to know why … the dramatic shift from classified to unclassified,” said Public Affairs Research Council President Jim Brandt. “The unclassified are usually the political appointed members of the state work force.

Brandt said it is time to get behind the numbers and find out exactly where the unclassified jobs are located and how they came into being.

LASERS-Did you know?

noreply@blogger.com (Michael Meaux) — Thu, 19 Nov 2009 19:57:00 +0000

DROP/IBO account funds may be paid to you monthly, yearly, in a lump sum, or rolled over to an IRA or other qualified plan.

The money in your DROP/IBO account must be withdrawn within your expected lifetime in accordance with IRS rules.

Streamlining Panel looks at budget cuts

noreply@blogger.com (Michael Meaux) — Wed, 18 Nov 2009 15:03:00 +0000

A group set up to devise ways to cut costs in state government recommended Tuesday closing ferries, trimming Medicaid expenses and privatizing the laundry work at juvenile prisons.

The Commission on Streamlining Government is tasked with helping state officials grapple with a $3 billion state budget shortfall over the next two years.

Commission members must finalize a list of recommendations for Gov. Bobby Jindal and the Louisiana Legislature by the end of the year. Lawmakers would decide which of the proposals to enact.

The full commission deferred some controversial ideas. The panel decided to delay a decision on:

Temporarily increasing the employee share of Group Benefits premiums.
Reducing the number of state government jobs by 5,000 a year.

LASERS-Did you know?

noreply@blogger.com (Michael Meaux) — Fri, 13 Nov 2009 18:41:00 +0000

LASERS recommends that members request an estimate of their retirement benefits one year before they plan to retire.

If a member is more than one year away from retirement, the benefit calculator, located on the LASERS web site should be used to calculate a regular benefit.

State Civil Service Commission to hold evening session to consider merit change plan

noreply@blogger.com (Michael Meaux) — Thu, 12 Nov 2009 17:26:00 +0000

The State Civil Service Commission will hold a 5:00 p.m. public hearing on Tuesday, December 8th. to take comment on proposed changes to state employee pay rules. Chairman James A. Smith said the Commission decided to hold the evening meeting to make it easier for state employees to attend. Commission meetings are usually held during business hours.

The proposed changes, would impact classified state employees’ annual merit increases. After hearing initial comments at their public hearing on the morning of November 4th, the Commission decided to continue the matter to December to allow more time for comment.

The December 8th hearing will be from 5:00 p.m. to 7:00 p.m. A further hearing is scheduled at 9:00 a.m. December 9th. Both hearings will be held in the Louisiana Purchase Room in the Claiborne Bldg at 1201 North Third Street in Baton Rouge.

The best option for those wishing to address the Civil Service Commission will be to call in advance to 225-342-8083 or email Foster.Alessi@La.gov to pre-register. Those that pre-register will have reserved seating in the Louisiana Purchase Room. Registration on Tuesday, December 8th for the Civil Service Commission meeting will begin at 4 p.m. There will be three sign-in tables outside of the Louisiana Purchase Room:

· A table for individual employees

· A table for individuals representing groups

· A table for pre-registered employees

Comments will be limited to three minutes and will be strictly enforced to ensure all comments can be heard.

State Retirement Plan Administrators Reaffirm Strong Opposition To Pay-To-Play

noreply@blogger.com (Michael Meaux) — Mon, 09 Nov 2009 17:04:00 +0000

In response to heightened media attention to isolated but high profile cases of so-called “pay-to-play” in the public sector, the Executive Committee of the National Association of State Retirement Administrators (NASRA) unanimously voted at its fall meeting to reaffirm the Association’s long-held resolutions promoting ethics policies and disclosure requirements for those entrusted with the investment and management of public pension funds.

“In light of the publicity surrounding recent disclosures and allegations of unethical or illegal activity, the Executive Committee wishes to restate and reaffirm the Association’s long-standing belief that public plan fiduciaries should be held to the highest ethical standards,” said Eric Stanchfield, NASRA President and Executive Director of the District of Columbia Retirement Board.

“We encourage all public retirement systems to exercise due diligence and vigorously enforce disclosure requirements and ethics policies that demand unassailable fiduciary conduct by system staff, trustees and service providers, including undivided loyalty to the fund, open and honest decision-making processes, and interests that are aligned solely with the plan,” he said.

NASRA members are the directors of the nation’s State, territorial, and largest statewide public retirement systems. Together, these systems hold more than $2 trillion in assets and provide pension and other benefits to more than two-thirds of all state and local government employees.

LASERS-Did you know?

noreply@blogger.com (Michael Meaux) — Fri, 06 Nov 2009 15:32:00 +0000

LASERS is a qualified defined benefit pension retirement plan under section 401(a) of the Internal Revenue Code.

Employees contribute to LASERS at a percentage of their actual earnings. These contributions are tax sheltered until retirement.