Kennedy pushes for consultant contract cuts

State Treasurer John Kennedy paid a brief visit to the LSU Eunice campus on Monday to speak before the LSU Eunice Faculty Senate, urging higher education faculty and supporters to drum up support and to let Baton Rouge know of their support for HB 142 by Rep. Dee Richard.
Kennedy said that the bill – approved unanimously by the House of Representatives and is now set to come before the Senate Finance Committee – would reduce spending on state government’s consulting contracts by 10% and dedicate the $528 million saved to higher education.
He said that all funds saved would be forwarded to the state’s Board of Regents, who would decide how to disperse the money among state colleges.
“This bill will work, this bill will save money, this bill will be controversial,” said Kennedy. “When you’re taking $500 million dollars away from a special interest group like our consultants, they’re going to fight back. They’re already fighting. With your help, we can pass this bill.”
“Now, this vote is going to be close, it shouldn’t be, but it will be,” said Kennedy. “I need the legislature to hear from the higher education community. They have not heard from you.”
Kennedy cited various state-sanctioned consulting contracts and the amount of taxpayer dollars allotted for some out-of-state consulting firms such as a $225,000 contract that would develop and provide workplace- and marketplace-driven workshop seminars, focus groups and field trips that would educate and train youth and young adults in selected areas of the fashion industry. The group with this state contract has state consulting agreements totaling $2.1 million dollars, according to Kennedy.
“I’m not saying that these are not appropriate or good things to do...but I know this much, not a single one of these consulting contracts is as important as our universities,” said Kennedy. “The agency heads don’t have to eliminate contracts, they can renegotiate their consulting contracts to save money. We have a provision in all state contracts, and particularly in consulting contracts, that provides that the state can get out of the contract in 30 days with written notice.”
Kennedy said that the state has nearly 19,000 consultants with approved contracts. He said that even if Governor Bobby Jindal negotiated for a 3 percent discount on all contracts, Louisiana could better fund higher education– which has been marred in recent years by state budget cuts.
“This is important. I don’t think a single, solitary member of our legislature wants to hurt higher education,” said Kennedy. “I don’t think that our governor wants to hurt higher education. I think they just don’t understand what’s going on in our university communities.”
Kennedy urged everyone who supports higher education in Louisiana to attend the committee meeting. He said that if attendance could not be made, concerned citizens should at least call or contact their elected legislators.
“I need your help on this bill,” said Kennedy to the attending LSUE faculty. “This state needs two things right now. We need decent- paying jobs for adults, jobs with a future, and a better education for our kids. And you can’t have one without the other.”
With that said, Kennedy also said that he supports the passage of another upcoming bill that would provide $40 million to higher education with ties to workforce development. He said that Louisiana higher education is “more than just an employment agency.”
“I’m sorry, I apologize on behalf of the state for what we’ve done to higher education,” said Kennedy. “But it can be fixed, I’m telling you. We have the money, we’re just spending it in the wrong places.”