A state senator wants the upper chamber to subpoena the Jindal administration to have it produce a consultant’s report on the possible sale of a health insurance plan for state employees, now administered by the Office of Group Benefits. Sen. Butch Gautreaux, D-Morgan City, introduced the resolution directing the Division of Administration to produce the report. “I just visited with administration officials on sidelines and was told, no, we would not get the report,” says Gautreaux. “It is time we issued subpoenas.” Commissioner of Administration Paul Rainwater shrugged off the resolution, stating that he had given the report by Chaffe & Associates to Legislative Auditor Daryl Purpera this morning. Critics of the privatization move say the importance of the report is that it is said to raise doubts about selling the health plans. The OGB controversy rocked the Capitol again this week with news of the resignation of director Scott Kipper, who replaced director Tommy Teague, who was fired in April. The division is proceeding with evaluating proposals for a financial adviser to seek a buyer for the insurance plan.
— The overwhelming rejection of a fee increase bill by the House yesterday puts an exclamation point on the lower chamber’s series of rejections of administration revenue-raising plans. After the defeat of bills to authorize prison sales and to increase state employees’ retirement contributions, the governor and his Senate allies are running out of options for raising money to restore cuts made by the House. Since all revenue-raising measures must start in the House, some senators say they will be looking for bills coming over on which can be attached the repeal of tax exemptions or credits in order to raise revenue. But the constitutionality of using the amendment process to initiate a revenue increase in the Senate could be challenged. Also, the governor has said he would veto any tax exemptions. The biggest budget problem facing the administration concerns how to restore an $81 million reduction by the House that could delay privatization of a large segment of the Medicaid program.
(John Maginnis will publish a daily update on the legislative session at 3 p.m., available to LaPolitics Weekly subscribers on the Subscribers Only page at LaPolitics.com. You can register your user name and password on the Lapolitics home page.)
