A version of a bill to reduce the state’s consulting contracts that was unanimously passed by both chambers of the Legislature last year before being vetoed by Gov. Bobby Jindal appears to be heading back to his desk.
This is the fourth attempt by the duo of Treasurer John Kennedy and Rep. Dee Richard, No Party-Thibodaux, to cut the amount of money the state spends on professional, personal and consulting service contracts.
Earlier efforts suggested across-the-board reductions to such contracts, but the House Appropriations Committee approved without objection last week the latest incarnation.
HB 30 would instead allow lawmakers on the Joint Legislative Budget Committee to reject or approve practically any consulting contract with an annual value of $40,000 or more. The money saved by rejecting contracts would then be placed into the proposed Higher Education Financing Fund.
If approved, Kennedy said the bill would allow lawmakers to have the final say on as many as 1,700 contracts worth $2 billion, based on an annual report from the Division of Administration, which reviews contracts. Division officials, however, said the number would be closer to 150 or so contracts valued at $21 million.
The debate drew a distinct line in the sand, with the bill’s author and Kennedy contradicting the arguments of the administration.
The treasurer cited several examples of contracts lawmakers might be in a position to reject, thus creating more money for higher education, like $413,000 spent with Rutgers University in New Jersey to study the aftereffects of the BP oil spill. While there might be some benefit to the research, who should receive it is the big question, he said.
“Should we be giving that money to McNeese or ULM or LSU or Southeastern?” Kennedy asked.
Other questionable contracts lawmakers didn’t get to review in the past, according to Kennedy, included one to promote seat belt usage for the Hispanic population of Rapides Parish and others directing taxpayer money to groups like Young Audiences of Louisiana, God’s Little Angels, Little People’s Play Station and Angels in Training.
Kennedy cited nearly $47 million in coastal restoration contracts this fiscal year that lawmakers could have negotiated.
“Don’t tell me they can’t do the job for 10 percent less,” Kennedy said.
Officials with the division argued that the bill would extend contracting periods by 30 days at a minimum and up to 60 days at most for each contract. They complained about being micromanaged by lawmakers and labeled the savings touted by Kennedy and others as unrealistic.
Some lawmakers also voiced concerns about dedicating the savings only to colleges and universities.
“The biggest problem we have is lack of flexibility,” said Rep. John Schroder, R-Covington. “I support higher ed as much as anyone, but we cannot keep dedicating all of our money.”