Rumor has it …
In whispers and quiet conversations across Baton Rouge, stories have been heard of administrators issuing oral notice to LSU faculty members that salaries will be cut beginning with the summer session and that some have already been laid off because of budget cuts, forced to sell their homes and leave the city. And yet, amid these persistent rumors, the official word from the top is that no specific instructions have been issued.
From nine budget scenarios LSU ?administration had been considering, Chancellor Mike Martin narrowed it to one report outlining specific budget reductions if the worst happens—and that includes a laundry list of programs cut and staff and faculty positions axed. That report was sent to the LSU System office April 2. Still, the report isn’t the last word. Everything depends on what happens during the upcoming session.
“Everything I’m hearing is we still don’t know how much we’re being cut, so nothing is definite,” says Kristine Calongne, LSU’s director of media relations.
LSU Chancellor Mike Martin repeatedly has said, however, that “everything is on the table.”
Calongne says it’s conceivable individual departments have taken it upon themselves to make changes, though she knows of no such instance.
Kevin Cope, a professor of English and president of the Faculty Senate, says he’s heard no reports of instructors or other faculty members receiving formal notification of a layoff, salary reduction or anything else.
“I do know that if indeed we stay in the present budget configuration and need to think about any kind of financial exigency declaration, that we’ll need to notify people before July 1.”
July 1 is the start of the 2010 fiscal year. The most recent numbers have LSU absorbing a $35 million cut in state funding. That’s on top of a mid-year $10.3 million budget cut implemented for the 2008-09 fiscal year. University leaders are holding out hope that lawmakers will find a way to soften the blow of the next round of cuts.
“It may be that in the ?scuttlebutt out there in the university, some people got wind of being in jeopardy if ?indeed the budget crisis continues unabated,” Cope says.
One campus administrator says she had not heard of any actions on instructors’ salaries, though decisions on summer salaries could be up to individual colleges. Most colleges pay a one-month salary during the summer, though budget cuts might have prompted some colleges to pay per course instead, so every instructors receives the same amount per course taught. The administrator cautions this is pure speculation, and probably would be a college-level decision—not one from LSU’s top administration.
Another top administrator says some of his staff members already have been informed their jobs would be axed if current budget projections are borne out, the theory being it was better to give vulnerable employees fair warning of their standing rather than waiting until the final numbers are in.—Steve Clark
Let’s get digital, digital
Transparency just got a little bit easier—or harder—depending on how you look at it. The Division of Administration’s LaTrac, the Louisiana Transparency and Accountability online program [latrac.la.gov] has spawned a number of daughter sites including an “Expenditures” tracking site, the Louisiana Performance Accountability System [LA PAS], Louisiana Electronic Grants Research Engine [LA eGrants] and even a Federal Stimulus Tracking site for funds from the federal recovery plan that come to Louisiana.
Each site is full of tracking methods and agency listings, telling taxpayers where the money came from and where it is going. In some cases there are ways to determine how it was used, but like in the case of the timeline for the Federal Stimulus Tracking site, there’s no way to click through and determine whether or not Gov. Bobby Jindal actually met the “Deadline for Governor to certify state requests funds,” for those federal funds to be used for “economic and job growth” or what portion he certified.
The LA eGrant site, however, might be a useful tool for individuals, businesses and nonprofits seeking grant. The tool allows users to search for all grants or just those that meet certain criteria. A query at the end of March revealed five pages worth of available grants. For example, a search for all business grants revealed a link to the Louisiana Economic Development’s Office of Business Development for the Business Recovery Grant and Loan Program, which provides technical assistance to businesses in areas impacted by hurricane’s Gustav and Ike.
When the administration was asked if an abundance of information on LaTrac’s daughter sites would raise the issue of too much information making it difficult to distill the what was truly important in holding government accountable, a representative from the DOA said they didn’t believe that to be an issue.
“An informed citizenry is both the driving force behind and the intended beneficiary of more accountable government,” Commissioner of Administration Angele Davis says. “That’s why, through technology, this administration is continually improving and introducing new tools to help Louisiana citizens become better informed about the use of taxpayer dollars.”—Olivia Watkins
Poor, starving architects?
Commercial construction is at a near standstill, thanks to frozen credit markets, and it’s not just builders feeling the pinch. Architectural firms that rely on commercial projects also are facing cutbacks.
“We’ve gotten a number of resumes in from former employees of some of the local firms,” says Ken Novak of Group Novak. “We’re really getting a lot of resumes from architects out of state that are looking for work.”
Novak’s firm has not had to let anyone go, he says, in part because they’re still getting a lot of institutional work—state projects and schools. Health care-related building has slowed a bit, but there are still projects to be had.
“A few years ago, we decided to diversify a lot more and spread our project base,” he says. “Hopefully, that’s going to pay off this year.”
Samuel Herpin says he’s heard of other local firms are letting people go, but his firm isn’t among that group. Remson Haley Herpin also is doing a lot of public projects, including work for the East Baton Rouge Parish school system, Ascension Parish Library and the state.
“If you’ve developed that [public sector] business and that clientele, it’s going to help you ride this rough spot out,” Herpin says. “But I’ve got to say this: Our area, for architects, is in a lot better shape than the rest of the country. It’s really bad out there for them.”—David Jacobs
Power [skirt] suit
Chances are you’ve met a powerful, influential, innovative woman in Baton Rouge and thought, “Wow, someone should really applaud her work.” Here’s your chance. Business Report is accepting nominations online for the most influential women in business.
Previous winners have included Madhu Beriwal, Sue Anne Kleinpeter Cox, Rannah Gray, Rose Hudson and Jacqui Vines, to name a few. They are small-business owners, company presidents, CEOs, CFOs, nonprofit leaders, community activists and entrepreneurs. They are the driving force behind many of Baton Rouge’s success stories—in the frontlines of industry, technology and business.
Through April 25, click here to nominate a woman who you think is making a noticeable difference in the Capital Region.
Executive Spotlight: David J. Bondy
CEO, LUBA Workers’ Comp
Hometown: New Roads
Standing amidst scaffolding of the building whose organization was founded nearly 20 years ago, David Bondy’s hopes surpass its highest peak. It is symbolic of the journey that has brought him to this point. Bondy was part of transforming a company that once faced an unstable future. But there was no easy elevator lift that brought LUBA high above ground. For Bondy, a smooth ride brings no challenges. And that’s no fun.
To find out more about Bondy, read the rest of his profile and Q&A here.
Book Review: What Would Google Do?
Author: Jeff Jarvis
Publisher: Collins
Year: 2009
Pages: 257
How does a cheap, quick vacation sound this summer?
Pretty good, huh? A little fun, plenty of relaxation. But where to go?
Pop on your computer for inspiration, and you’ll probably pull up Google. Type in a few words for some destination ideas. Google “flights” and “hotels,” search museums, maybe get some tickets, Google your maps, make reservations and your trip is planned.
Notice that? “Google” isn’t just a noun anymore. We “Google” something when we’re looking for information. So how in the www did that happen? Better yet, how does it affect the way you do business? Find out by reading What Would Google Do? by Jeff Jarvis.
Need to drag your business kicking and screaming into the 21st century? Reading What Would Google Do? is as good a place as any to start.
While this book is heavily steeped in geek-speak [which might be hard for some CEOs to catch at first], it’s filled with sound advice and real-life examples for working with and retaining today’s computer- and internet-savvy customers [or Generation Google, as Jarvis calls them].
In the last segment of his book, Jarvis is brutally specific with industry-by-industry advice, which is not for the faint-hearted. If he’s right—and his track record is impressive—you might not like what you read.
Not as techie as you want to be? Then read this book, read it again and turn it over to your IT staff. They’ll know what to do.—Terri Schlichenmeyer
Fast Forward: Overvalued overhead
When Business Report last profiled Lamar Advertising (“Digitally enhanced,” Jan. 16, 2007), the company’s stock was riding high. Lamar was pioneering the use of digital billboards, which allowed advertisers to change their spots through the Internet with just a few keystrokes. Investors were responding to the new, high-tech billboards, and Lamar aggressively planned to install more across the country. Stock prices went up 42% during 2006, and shares were trading above $65.
But Lamar’s stock hit a tailspin in early 2007, plunging more than 80% to below $6 a share in early March. That’s steeper than the nearly 40% the Dow Jones Industrial fell by during the same period.
There was, however, a feeling the company’s stock might have been a little overvalued, especially when compared to competitors such as Clear Channel Outdoors. Combine that with high gas prices that have reduced the number of cars passing by the outdoor signs, and the biggest factor in Lamar’s stock plunge has been the recession.
The four biggest sectors to buy ads on company billboards are restaurants, retailers, auto dealers and real estate companies—all industries that have been crushed by the national economic downturn. During a conference call with analysts in November, Lamar CEO Kevin Reilly said 15% of the company’s billboards were underwater in terms of what it was paying for the structures versus the ad revenues that were coming in. The tough financial times caused the company to curb back on buying digital billboards at $300,000 each and hang on to the cash to pay down debt.
While analysts are mixed on the short-term future of Lamar, they note the company has a strong management team, a dominant share of the new digital billboard market and the long-term future for outdoor advertising is bright.—Timothy Boone
Nonprofit Spotlight: Greater Baton Rouge Food Bank
Total assets: $6,092,406
Expenses: $20,702,055
Revenue and support: $21,161,242
Number of staff: 21-100
Highest-paid executive: Michael Manning, chief executive director $98,010
Key projects: Providing “short-term, unmet food needs of households in the greater Baton Rouge area.” Supporting and providing for services to distribute food and fund educational programs.
SOURCE: 2007 Form 990, Guidestar.org and the Greater Baton Rouge Food Bank
Fortnight April 8 – April 21
April 10 – On this day in 1805 – The Louisiana General Assembly officially designated the original “counties” of Acadia, Attakapas, Rapides, Pointe Coupee, Ouachita, Orleans, Natchitoches, Lafourche, Concordia, Iberville, the German Coast and Opelousas.
April 11 – On this day in 1958 – The first official publication of a study by state officials suggested the construction of a new Mississippi River Bridget in Baton Rouge in the Morning Advocate. Ten years later, the bridge was built.
April 14 – The 2009 Spring Conference for the American Society of Civil Engineers in Baton Rouge begins at the Crowne Plaza Hotel. The conference’s theme is “Engineering Sustainable Water Resources,” and will address technical solutions to “coastal, flood protection, drainage improvement, wastewater and drinking water topics.” For more information visit ascebr.org.
April 16 – The American Advertising Federation’s Deep South District Spring Convention kicks off four days of ad-speak, industry news and, of course, good food and drink in downtown Baton Rouge. For more information on the event and how to register, visit aaf7spring.com.
April 16 – On this day in 1868 – Voters in Louisiana approved another new constitution. The current state constitution, Louisiana’s 11th, became effective in 1975. There have been constitutional amendments proposed each year in the state [except 2005] since 2000, including in the recently held April 4 election.
April 19 – Though the global celebration of Earth Day is April 22, Baton Rouge will celebrate three days earlier. The 20th annual celebration is tagged “Think Globally, Act Locally,” and asks Red Stick residents to take action on environmental issues by becoming sustainable living leaders and stewards. For more information visit earthdaybr.org.
Business of Politics
Watch out, Bobby
Agriculture and Forestry Commissioner Mike Strain has been telling his story to anyone who will listen. His budget has been reduced by nearly $8 million so far this year, and 25 positions have been slashed. In addition to these job eliminations, Strain says LDAF suspended the nuisance animal trapping programs, consolidated the critical wildfire firefighting aircraft fleet and closed several laboratories. Adding insult to injury, lawmakers will consider another $15 million in cuts during the upcoming regular session. “The LDAF can’t absorb that kind of a reduction in operation funds,” Strain says. “A cut like that will result in the elimination of more than 230 jobs, including 75 firefighters and more than 20 inspectors for seed, fertilizer and pesticides.”
Many lawmakers—or at least enough to matter—are in his corner. “I think it’s just unacceptable that we have these folks taking these cuts and we need to get behind them,” Rep. Harold Ritchie, a Bogalusa Democrat. Other members of the Rural Caucus and Acadian Delegation are on the same page, and those groups make up more than 75% of the legislative membership, creating quite a hurdle for Gov. Bobby Jindal’s budget priorities. “When the caucuses stand together, not a single bill can pass without them,” Strain says.
The mane concern
U.S. Sen. Mary Landrieu, a New Orleans Democrat, once again has filed legislation to address one of her perennial policy issues: slaughtering horses for food. The bill in question, which is co-sponsored by 13 other senators, including a few Republicans, would prohibit the shipping, transporting, moving, delivering, receiving, possessing, purchasing, selling or donation of horses and other equines for slaughtering for human consumption. “Although U.S. slaughterhouses have been closed, thousands of horses are transported across our borders and are inhumanely butchered,” Landrieu says. The proposed “Prevention of Equine Cruelty Act” would bring horse cruelty in line with other animal cruelty laws.
“The slaughter of horses for human consumption is not going to end by giving offenders a slap on the wrist,” Landrieu says. “If we are going to stop this inhumane treatment, traffickers must recognize that the consequences of their actions are severe, and the penalties will be stiff.”
In 2006, it is estimated that more than 100,000 U.S. horses were inhumanely slaughtered for human consumption to supply European and Asian markets. Americans do not eat horsemeat, and a Public Opinion Strategies poll found that nearly 70% of Americans oppose the slaughter of horses for human consumption overseas. It is estimated that 1,500 horses are carried across the U.S.-Mexico border each week.—Jeremy Alford
Spoiling the [tomato] soup
Chelsea’s Café is being backed into a corner to change its rezoning status. David Remmeter, owner of the popular Perkins Road restaurant and live music venue, pleaded no contest to charges of operating a bar without a license and agreed to pay a $2,000 fine. His restaurant license is suspended for one year unless he meets conditions from the Louisiana Bureau of Alcohol and Tobacco Control. If Remmeter loses his restaurant license, he will be forced to shut down the business.
Remmeter says he is working to get his rezoning status through the Metro Council. In the meantime, he says, Chelsea’s will continue offering a full menu all day and live music after 10 p.m. Remmeter says alcohol sales outnumbered food sales at his old location just north of LSU. Since he moved to the Perkins Road overpass, food sales have surpassed alcohol sales. ATC Commissioner Murphy Painter, however, argues that records show Chelsea’s is “selling barely more food,” which still puts the restaurant out of qualifications to be considered a “bona fide restaurant.”
“This is just the tip of the iceberg,” Remmeter says. “It’s a big deal. We’ve got a strong business; people like this place.”—Rebecca Breeden
Pay to park
Parking meters are being installed for 190 parking spots in front of stores in the Perkins Rowe lifestyle center. The spots account for about 7% of all the available spaces in the shopping center, says Rachel Rivet, a spokeswoman for the center. Rivet says the spaces were converted to keep spots turning over in front of stores and to allow shoppers the convenience of paying for close parking.
The shift to paid parking is expected to reduce traffic by about 30% in Perkins Rowe, since shoppers won’t be hunting for open spots. For long-term visitors, such as people going to dinner and a movie, free spots are available in the parking garages. Center officials plan to use the proceeds from the parking meters for maintenance and events. The time increments for the meters and fees have not been determined.—T.B.
ONTHEBEAT
Slaughter-ed: The Southern University Board of Supervisors voted 11-5 on March 27 not to renew President Ralph Slaughter’s contract. Though the board found Slaughter’s job performance satisfactory, they decided to meet again April 15 to determine if he would be put on administrative leave until his contract expires on June 30. Slaughter was named systems president in March 2006.
“Getting better” in B.R.: A spokesman for Winn-Dixie says business is “good” in the New Orleans area and the Jacksonville, Fla.-based company is actively looking to open new stores in the Crescent City and Baton Rouge. That’s a turnaround for Winn-Dixie, which closed seven metro Baton Rouge stores in 2005, when the chain was going through bankruptcy.
Sign of the Times: The Times-Picayune was no longer being delivered to homes in the Baton Rouge area as of April 1, according to a letter sent to subscribers. The paper still will be available at retail outlets and vending machines.
Hit the easy button: Office Depot has applied for a building permit to turn an empty Ace Hardware store into its sixth Baton Rouge location. According to papers filed with the city-parish permit department, the office supplier plans to spend $200,000 remodeling the 15,500-square-foot store in the Bluebonnet Village Shopping Center.
Boom goes the corridor: Baton Rouge and Lafayette were ranked in the top 20 of America’s most robustly growing cities. The list, compiled by Newgeography.com, measures employment growth. Lafayette ranked 10th in the medium-sized cities list, and Baton Rouge ranked 17th. New Orleans was 13th in the large-city classification.
Freshly brewed: Teavana, which operates more than 80 tea houses at shopping malls across the United States, has applied for a building permit to open its first Louisiana store in the Mall of Louisiana. No opening date has been set, but Teavana is expected to move into The Boulevard, the mall’s open-air expansion. Atlanta-based Teavana specializes in high-quality, loose-leaf teas.
Cha-ching: Personal income grew 4.2% in Louisiana from 2007 to 2008, according to preliminary estimates from the U.S. Bureau of Economic Analysis. The average income per person increased 3.3% in Louisiana, to $36,271, while the nation’s per capita income increased 2.9%, less than the rate of inflation, to $39,751.
Pay here: Louisiana ranked third in an analysis of the most corrupt states in the United States by the Chicago Tribune. The ranking was based on federal corruption convictions from 1998 to 2007 per capita. The state had 332 convictions during that period, or 7.7 per 100,000 residents. Only Washington, D.C., with 380 convictions or a per capita or 64.6 per 100,000 residents and North Dakota, with 53 convictions and a per capita rate of 8.3, ranked higher.
