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BATON

THURSDAY, JULY 10, 2014

Treasurer: State Engaged In ‘Check Kiting’

ROUGE,

LOUISIANA

VOL. 39 • NO. 43 • FREE

A PEOPLE’S PUBLICATION

Louisiana Legislature Will Not Try to Override Jindal’s Vetoes

McClinton Named Acting Chancellor At Southern University Baton Rouge Campus

State floating funds to cover 2013-14 shortfall

Flandus McClinton,Jr. finance administrator at Southern University, has been named acting chancellor of the Baton Rouge campus.

John Kennedy

BATON ROUGE — State Treasurer John Kennedy says a fund Louisiana used to plug holes in its 2013-14 state budget ended the year with a $63 million hole in it that the Jindal administration plugged by taking money from the new budget that went into effect July 1. Kennedy said $70 million was owed to higher education institutions for 2014 expenses and when the administration used money from the new budget to cover that commitment, it created a $63 million shortage that will have to be handled during the next year. “In the banking business, they call this ‘check kiting,’” he said. “If you or I did it, we’d be in jail. It’s like taking out a payday loan” to pay off a prior debt. Commissioner of Administration Kristy Nichols said the money to cover the prior year shortfall is expected to come in by August when the books on the fiscal year officially close. But Kennedy said the fiscal year in which the money was spent ended June 30, so the budget for that year wasn’t balanced for “the sixth year in a row. “We need to fix the state budget, stop spending more taxpayer money than we take in and get serious about stabilizing the funding for our critical priorities such as higher education,” he said. The problem arose in what’s called the “Overcollections Fund,” a pot of money assembled by “sweeping” cash from trust funds created by state and local governmental bodies and depositing income from nonrecurring ventures, like lawsuit settlements, year-end reversions of money not spent by state agencies and sales of state property during the year. The administration and the Legislature count that as cash when budgeting and sometimes the money doesn’t come in when expected or doesn’t come in at all. The state primarily used its Overcollections Fund to pay for higher education. Several times during the fiscal year, the money wasn’t there when colleges and universities needed it. The administration got the treasurer to take “seed loans” from other funds in the treasury to cover the shortages, See CHECK KITING, on page 2

The Louisiana Legislature declined to hold a session this month to override the 12 vetoes Gov. Bobby Jindal issued last month.

The Louisiana Legislature will not meet to try to override the 12 vetoes Gov. Bobby Jindal issued during the 2014 lawmaking session. The legislature’s decision was expected, particularly since lawmakers have declined to hold any veto session since a new state constitution was signed 40 years ago. This year, 34 of the 39 state senators and 64 of the 105 state House members sent ballots to

legislative staff indicating they thought a veto session was unnecessary. The staff had to receive the lawmakers written response by Monday night (July 7) at midnight for it to be tallied. If a veto session had been held, it would have started Saturday (July 12), forty days after the legislators finished up their regular lawmaking session. It’s difficult to tell whether any Louisiana lawmakers wanted

a veto override session. Legislators only send in ballots if they think a veto session is unnecessary. There is no way for them to indicate -- short of a public statement -- they want an opportunity to override the governor’s vetoes. Lawmakers who don’t send in a response might prefer a veto session or they could just have forgotten to send in their ballot, according to legislative staff.

Green Light Plan Completes Construction on Staring Lane BATON ROUGE, LA. — Mayor-President Melvin L. “Kip” Holden will host a ribbon cutting ceremony for the Green Light Plan’s Staring Lane project on July 9 at 10 a.m. at the General Assembly Church of Baton Rouge at 420 Staring Lane. The ceremony will mark the completion of one of the largest road construction projects included within the Green Light Plan. “Staring Lane is one of the busiest roadways in East Baton Rouge Parish and has been in desperate need of capacity improvements for many years,” Mayor Holden said. “This is a project that was a top priority to complete and ties into a number of other improvements in and around the area, like the Staring Lane Extension – another project completed through the Green Light Plan. The end result is a wider, safer and greatly improved Staring Lane that will serve the citizens of Baton Rouge for many years to come.” J.B. James Construction, LLC completed the $27.8 million construction project by widening Staring Lane from a two-lane, undivided roadway to a four-lane roadway stretching from Perkins Road to Highland Road. Project improvements include the

WOMAN’S HOSPITAL DEVELOPING UNUSED LAND

addition of six-foot sidewalks on each side of the roadway to support enhanced pedestrian access, a raised grass median and signalization upgrades and access improvements at key intersections along Staring Lane. In addition, as part of a dedi-

cated effort to improve older and potentially unsafe bridges across East Baton Rouge Parish, the bridge over Dawson Creek was replaced with two new bridges to help accommodate southbound and northbound traffic See LIGHT PLAN, on page 3

BATON ROUGE, LA.— Flandus McClinton,Jr. a longtime finance administrator at Southern University, has been named acting chancellor of the Baton Rouge campus. The Southern University Board Supervisors voted today to approve McClinton as the acting chancellor. McClinton officially takes over on July 1. Dr. James L. Llorens’ term as chancellor ends today. “We welcome Mr. McClinton as acting chancellor and look forward to working with him to lead our flagship campus,” said SU Board of Supervisors chairwoman Bridget A. Dinvaut. McClinton, who has been Vice Chancellor for Finance and Administration since 1998, said he will be seeking “input, par-

5.7 Million People Losing Out on Health Care because 24 States Won’t Expand Medicaid WASHINGTON -- Louisiana and 23 other states that have opted not to accept federal funding to expand Medicaid will deprive 5.7 million people of health coverage in 2016, according to a report being released Wednesday by the White House Council of Economic Advisers. The report said if Louisiana reverses course and accepts the Medicaid expansion, 265,000 residents could gain health coverage in 2016. The federal government is picking up 100 percent of the cost for the expansion through 2017, and, after that, no less than 90 percent, as part of the 2010 health care law, known as the Affordable Care Act or Obamacare. For the 26 states that are expanding Medicaid, adults with incomes up to 138 percent of the federal poverty level would qualify for health coverage, or $16,105 for a single adult and $27,000 for a family of three. In Louisiana, adults in a family of three are not eligible for Medicaid if they earn over $4,685

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LOCAL NEWS

STATE NEWS

ticipation and support from our students, faculty, alumni and the entire Jaguar Nation.” The new acting chancellor said he met Tuesday with the senior staff and others on the Baton Rouge campus to start the process of “developing short- and longterm strategies to address the university’s current challenges.” Among his top priorities, McClinton said, would be dealing with SUBR’s budget, along with student recruitment and retention. McClinton, who is a CPA, has been at Southern in several capacities, all deal with finance positions, since 1971. He has a BS degree in accounting from Southern University and Masters of Business Administration from Louisiana State University.

BUSINESS NEWS

a year. The White House report estimates that if all 24 states that opted out of the expansion decided to participate it would result in 15.4 million more physician office visits and 255,000 fewer people facing catastrophic out-of-picket medical costs in a year. Most of the non-participating states have Republican governors. The report projects that 214,000 women aged 50-64 would get mammograms and 345,000 women would receive pap smears annually , likely resulting in significant health cost savings through early diagnosis of cancers. And the report argues that an expansion would be good for state economies. “If the 24 states that have not yet expanded Medicaid had done so as of January 1 they would have boosted employment by 85,000 jobs in 2014, 184,000 jobs in 2015 and a total of 379,000 job-years through 2017,” the See MEDICAID, on page 3

RELIGION

Greater Mt. Canaan Baptist Church located at 5820 Evangeline St. is pastored by Rev. Levie “Ash” Wright will host revival on July 16 - 18, starting at 7:00 p.m. nightly. ..See Page 4

INDEX

BAKER HIGH GRAD ON THE WAY TO SU Kelli Marks is on her way to SouthWoman’s Hospital is closer to developing more than 800,000 square feet of unused land at its new campus.. ..See Page 2

ern University in Baton Rouge. The Baker High School grad will have a little something extra when she arrives on August 18. That something extra was a surprise to her a few weeks ago...See Page 3

LA. BABIES LIKELY TO BE BORN POOR

Newborns are significantly more likely to be born into poverty in Louisiana than they are in most of the rest of the nation, according to the U.S. Census Bureau.... See Page 3

HOMEBUYER PROGRAM Receive up to $25,000 in assistance for the purchase of existing East Baton Rouge Parish homes and up to $50,000 on new construction under the City-Parish Office of Community Development’s Homebuyer Assistance Program..See Page5

Local News...............................2 State News...............................3 Religion....................................4 Business....................................5 Classifieds.................................5

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