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Experts sound the alarm over Garber’s cuts to diversion programs

The gist: After what his office called “repeated attempts to secure critical funding for daily operations,” Sheriff Mark Garber confirmed Tuesday that he is cutting 42 mostly corrections jobs from his workforce of 748. A press release announcing the reduction in personnel included more cuts to diversion programs started and expanded under his predecessor and long held up as successful models of prison reform and reintegration.

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Robideaux brings sensitive LUS review into public arena

The gist: Challenged by the council to be more transparent, Mayor-President Joel Robideaux delivered to the Lafayette Public Utilities Authority potentially damaging comments gathered by the administration during its investigation of payments by LUS to LUS Fiber.

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Get caught up, quickly. LUS and LUS Fiber have been under fire for a pair of potential violations of a state law that prohibits government dollars from propping up the municipal telecom. The most recent of the two, $8 million paid over eight years for a power outage monitoring system, was self-reported by Robideaux in July. In a press release distributed Oct. 11, Robideaux announced he was removing LUS and Fiber’s interim directors, claiming the swap was made to “facilitate an internal review on behalf of the Public Service Commission,” and connected the review to the power outage monitoring payments. The PSC denies any involvement and has distanced itself from Robideaux’s attempts to link his efforts to its limited oversight. Robideaux named his chief administrative officer, Lowell Duhon, to oversee LUS, and Kayla Miles Brooks, Fiber’s business administrator, as LUS Fiber’s interim director, replacing Jeff Stewart and Teles Fremin, respectively. LUS’s consulting engineer has deemed Duhon and Brooks unqualified for the posts.

Once closely held and secretive, the review was center stage at a special joint meeting of the council and the LPUA. Lafayette Public Utilities Authority Chairman Bruce Conque requested the meeting after a pointedly challenging email to Robideaux from Councilman Jay Castille, a frequent critic. “I think everyone agrees that if there was a violation of the law, that would be a very serious allegation,” Castille wrote the mayor on Nov. 13. “I think all anyone wants is a ‘comprehensive, complete and honest analysis.’ But the way you have handled this entire matter makes many doubt your sincerity.”

Castille, who declined to comment for this story, had also called the mayor to task for being untruthful about the Public Service Commission’s role in the ongoing review; Robideaux has said, and repeated Tuesday, that Public Service Commissioner Craig Greene asked for a wider inquiry of the relationships between LUS, LCG and Fiber. Greene’s office denies it played any role. The Lafayette Public Utilities Authority, a subcommittee of the council, regulates LUS, and the PSC has limited oversight over LUS and Fiber, ensuring they comply with provisions of the Local Government Fair Competition Act. 

Robideaux’s presentation came on the heels of a press conference called abruptly last week by former LUS/LUS Fiber Director Terry Huval, in which Huval defended the power outage monitoring system’s pricing and usefulness.

In his remarks, Robideaux responded to criticism with what may be the most damaging information to date. He released emails and anonymous comments gathered in interviews recorded under attorney-client privilege during the investigation into the power outage payments to LUS Fiber. The complete context of the comments isn’t clear, and Robideaux seemed to attempt to attribute the statements to eight people interviewed, including LUS’s and Fiber’s former interim directors, an LCG accountant, an auditor and two attorneys who work on LUS matters. (You can view his full presentation and comments here.)

“In my opinion, I’ve always thought it was kind of a stretch … as someone who works in the industry, that’s why we are eliminating it, to be honest with you,” said one interviewee. And another: “We need to let it fall off the books because we’re not seeing the justification.”

Former LUS and LUS Fiber Director Terry Huval defended the decision to implement POMS and the benefits of the system at a press conference last week. Photo by Travis Gauthier

Huval continues to stand by the POMS decision. “Last week, I explained how we incorporated the beneficial use of technology on the LUS system that resulted in significantly reduced electric outage durations, while still maintaining the lowest rates in the state,” Huval wrote in response to a request for comment. “During the implementation of such technological upgrades, I did not receive any indication by LUS staff or consultants that any of these initiatives were not cost effective. LUS customers are receiving the best service ever because of initiatives such as these.” (View Huval’s presentation here.)

Why this matters: Robideaux presented what may be the most compelling evidence to date that some LUS insiders suspected the power outage monitoring payments were a way to prop the fiber division up at a time it desperately needed cash flow. Should a new PSC audit determine the service was mispriced or unnecessary, the money may have to be paid back to LUS with interest, delivering a financial blow that could jeopardize the future of LUS Fiber. Robideaux is expected to give the LPUA an update by mid-December and complete the review by the end of the year. 

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Council Preview: six new taxing districts, a riverwalk, LUS controversy and more

The gist: Outgoing officials want to go out with a bang. Tuesday’s council meeting, one of the last of the year, is chockablock with major initiatives. On the table: the LUS inquiry, more pay raises and six new taxing districts, one of which would finance developing a river walk on the Vermilion.

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Robideaux opens the books on his LUS inquiry

At a special meeting of the Lafayette Public Utilities Authority, Mayor-President Joel Robideaux will unpack the findings of his ongoing inquiry into alleged improper payments at LUS Fiber. Robideaux intimated in an email last week that he would unseal interviews with LUS and Fiber staffers conducted by LCG lawyers. LPUA meetings are held at 4:30 p.m inside city hall.

Get caught up, quickly. LUS and LUS Fiber have been under fire for a pair of potential violations of a state law that prohibits government dollars from propping up the municipal telecom. The most recent of the two, $8 million paid over eight years for a power outage monitoring system, was self-reported by Robideaux in July. In October, Robideaux announced he was removing LUS and Fiber’s interim directors, claiming the swap was made to “facilitate an internal review on behalf of the Public Service Commission,” and connected the review to the power outage monitoring payments. The PSC denies any involvement and has distanced itself from Robideaux’s attempts to link his efforts to its limited oversight. The controversy spurred terse exchanges between Robideaux and Councilman Jay Castille.

$3.7 million in new pay raises up for final adoption

Earlier this month, the council approved $3.8 million in new raises for city police; now it’s got three more raises to consider:

  • $2.6 million for Lafayette Fire Department
  • $1.1 million for all other LCG employees
  • $137,000 for the city marshal’s office

If all of these raises get approved and these increases aren’t offset elsewhere in the budget, the city’s formerly flush general fund will be depleted in very short order. A proposal to eliminate currently vacant positions from the budget, in a bid to free up dollars for the pay raises, is also up for final adoption.

Six new taxing districts proposed, including one for a riverwalk

Robideaux has proposed setting up six new economic development districts that would levy 1% sales and 2% hotel occupancy taxes in each tax increment financing district to pay for infrastructure meant to spur development. The ordinances include cooperative endeavor agreements with various public and private partners. One proposal would create a TIF district to finance the development of a riverwalk promenade along the Vermilion near the old Trappey’s canning plant. The measures are up for introduction and would not be up for final vote until December. Here’s the list:

  • Downtown Lafayette Economic Development District
    CEA with Downtown Development Authority
  • University Gateway Economic Development District
    CEA with Townfolk Inc., and Oasis Community Coterie
  • Trappey Economic Development District
    CEA with Trappey Riverfront Development LLC
  • Northway Economic Development District
    CEA with Pride Opportunity Development Developers
  • Holy Rosary Institute Economic Development District
    CEA with Holy Rosary Redevelopment
  • Acadiana Mall Economic Development District
    No partner identified

EDDs are special taxing districts where additional taxes or fees are collected, and that money is then dedicated to projects benefiting those districts.

Girard Park Drive rezoning for new apartments

The rezoning will allow for the construction of a 140-unit apartment and office complex by Lafayette General. The rezoning has already received significant pushback from nearby neighbors who say a development of this size will hurt the character of their neighborhood. The zoning commission voted against recommending the changes.

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LUS becomes political football in waning days of M-P race

The gist: Long considered the goose that laid the golden egg, Lafayette Utilities System, along with its sister entity, LUS Fiber, is now mired in political controversy heading into Saturday’s mayoral runoff between Carlee Alm-LaBar and Josh Guillory. Mayor-President Joel Robideaux has floated accusations of unlawful transactions between the systems, initiated leadership changes and launched an internal investigation, all of which have drawn suspicions of political motives. 

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Analysis: Lafayette will have its hands full paying for pay raises

The City-Parish Council’s decision to authorize $3.8 million in pay raises for the Lafayette Police Department was unanimous but not without complication. While the move is a victory for police, who said the new money was needed to stop a crisis in officer turnover, the added costs have put a spotlight on a weakening of the city‘s finances. And there […]

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Innovation trust eyes Downtown, Oil Center for ‘innovation district’

The gist: The public innovation trust created by the mayor-president is targeting Downtown and the Oil Center as potential anchor points for a new innovation district. Trustees discussed options last week at the body’s fifth and final meeting of the year. 

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Get caught up, quickly. Mayor-President Joel Robideaux spearheaded the creation of the parishwide Lafayette Public Innovation Alliance last year. Its focus is growing Lafayette’s innovation economy. There is still no clear plan for how to fund these activities or execute upon these visions.

Uh. What’s an innovation district? Innovation districts are a national trend. The idea is to find the part of your city with the highest potential for nurturing startups, designate it an innovation district, and then try to stack as many economic incentives as you can to give companies that locate there the best opportunity to succeed. Examples include cities like Chattanooga, Tenn., and Cambridge, Mass.

Robideaux wants LPIA to lead the process of establishing this innovation district. He worked with LEDA staff to conduct an initial analysis of where an innovation district should be located in the city of Lafayette. The results of this analysis, presented Wednesday, suggested the best locations would be Downtown or the Oil Center.

But designating an innovation district will require council approval. Today that means the City-Parish Council, but come January Robideaux believes it will mean the City Council. One added wrinkle is that LPIA was set up with the parish as its beneficiary, so the Parish Council has authority over nominating and removing LPIA’s trustees.

Details of what Lafayette’s innovation district will ultimately mean “still has to be determined,” according to Robideaux. Trustees Bruce Greenstein, Chris Meaux and Ramesh Kolluru discussed the need to conduct some comparative analysis and economic modeling and to garner feedback from companies that might move here to better understand what incentives should be offered in this innovation district.

Robideaux and his political consultant Joe Castille have been pitching major companies. The United Bank of Switzerland, KPMG, Deloitte and Medici Ventures were some of the companies that Castille, also a campaign consultant to mayor-president candidate Josh Guillory and the local Republican Party, mentioned in his remarks to trustees.

They’ve been pitching a vision for transforming Lafayette into a techno-utopia. That vision could involve everything from setting up an e-residency program so entrepreneurs can claim residency here and start businesses in Lafayette without actually moving here to making LCG a testbed for digital ledger technologies that are trying to improve the delivery of public services, to LPIA even issuing its own cryptocurrency.

Robideaux plans to start meeting with interested VC funds to better understand their needs. Castille believes there are hundreds of billions of dollars in investment capital available to be deployed into these types of technologies. He suggested that some of the companies he’s met with with have already indicated they want to establish a presence in Lafayette, if LPIA and LCG come together to make this vision a reality.

What to watch for: Where the innovation district ultimately lands and what role the trust will play under a new administration. Robideaux, who appointed himself chair, will stay on despite leaving office.

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Robideaux’s LUS, Fiber management shakeup was not prompted by Public Service Commission

The gist: Changes to LUS and LUS Fiber leadership, announced suddenly the night before October’s primary, were said by the Robideaux administration to be tied to an ongoing internal review of transactions between the systems that was requested by the Louisiana Public Service Commission. PSC representatives, however, contradict that assertion — saying no such internal review was asked for, and the leadership change is not related to any request from the commission.

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Get caught up, quickly. LUS and its sister company LUS Fiber have been under fire for a pair of potential violations of a state law that prohibits government dollars from propping up the municipal telecom. The most recent of the two, $8 million paid over eight years for a power outage monitoring system, was self-reported by Mayor-President Joel Robideaux in July. In a press release distributed Oct. 11, Robideaux announced he was removing LUS and Fiber’s interim directors, claiming the swap was made to “facilitate an internal review on behalf of the Public Service Commission” and linked the review to the power outage monitoring payments. Robideaux named his chief administrative officer, Lowell Duhon, to oversee LUS, and Kayla Miles, Fiber’s business administrator, as LUS Fiber’s interim director, replacing Jeff Stewart and Teles Fremin, respectively. 

“Subsequent to the self-reports, the PSC requested that a more in-depth and internally unbiased review of all LUS Fiber inter-agency transactions be performed, necessitating the staff changes,” Robideaux wrote in his October press release, suggesting that the PSC itself had requested the leadership changes or supported the decision. 

There is no written record of such requests from the PSC. Requests for management changes “would absolutely be in writing,” commission spokesman Colby Cook says. “We rarely make those kinds of recommendations. It’s a financial audit.”

PSC Executive Secretary Brandon Frey confirms the commission has not asked for an internal review of inter-agency transactions. “There is nothing pending on anything like that,” he says.

To date, the PSC has investigated only one self-reported violation from 2018. Robideaux’s July letter concerning the power outage monitoring system triggered no new review or request from the PSC, according to PSC staff. The last formal correspondence between the administration and the PSC was a June audit report concerning the 2018 discovery of payments from LUS to Fiber for services to sewer lift stations and some electric system components that were never connected. After a comprehensive review of inter-system transactions, the PSC found that besides the $1.7 million in sewer and electric payments paid out over several years, which Fiber reimbursed, the system was in compliance with state law and PSC rules, according to the report. 

The June report raised concerns about having a single director run both Fiber and LUS. Longtime Director Terry Huval ran both LUS and LUS Fiber, an arrangement PSC staff wrote “may have weakened the strength of internal controls.” That concern was moot by the time the audit was concluded, as two different interim directors were already in place by the end of 2018. 

Robideaux took widespread criticism for a bid to privatize management of LUS. The deal, first revealed by The Current in the spring of 2018, would have sold management rights to private equity firm Bernhard Capital Partners and at one time potentially included Fiber. Huval retired early from a previously announced decision to step down amid the controversy. The episode pitted Huval against his former boss, as the retired director publicly opposed the Bernhard deal. Later that fall, the City-Parish Council and the mayor-president agreed to divide LUS and Fiber into separate divisions. Robideaux appointed Stewart and Fremin to their interim posts, which they held without incident until October’s shakeup. 

The self-reports have figured in political campaign materials. The Lafayette Parish Republican Executive Committee, whose Facebook page is run by Robideaux’s political consultant Joe Castille, used these transactions as a wedge issue against Councilman Bruce Conque, who lost his re-election bid to Andy Naquin, and mayor-president candidate Carlee Alm-LaBar.

(Disclosure: Alm-LaBar gave seed money to The Current in 2018; view our list of donors here.)

The administration has yet to officially respond to the June report from the PSC. Within a month of receiving the June audit, however, Robideaux claimed to have found the second potential violation of the act and said he hand-delivered a letter outlining those findings to the PSC, writing to the PSC that LUS may have made illegal payments totaling $8 million to LUS Fiber over an eight-year period. He actually hand-delivered the letter to Public Service Commissioner Craig Greene, when he visited the commissioner to discuss the June report.

“[Commissioner Greene] hasn’t had any more conversations other than when Mayor Robideaux had given us the letter, and we said we’ll get this to our staff. We gave no formal recommendation as to what they should do with [it],” says David Zito, Greene’s chief of staff. “None of the commissioners have approached us, and we have not approached any of the other commissioners about it.”

The legality of cross-subsidization between LUS and Fiber is regularly tested in annual attest audits, and interagency transactions are run through LCG’s finance department. In his letter, Robideaux, an accountant, took issue with the accounting method used to price the cost of power outage monitoring system, saying the approach likely violated state law. An audit conducted by LUS Fiber’s independent auditors in 2012 and a PSC audit for 2011 and 2012 did not take issue with the payment computations, which were based on the annual estimated savings from power outages. That means numerous oversight mechanisms, including Robideaux’s own administration, would have failed to detect any problems.

Robideaux has not asked the PSC to audit that issue, yet he references it as one of two self-reported findings to justify the leadership changes. 

“We are committed to providing the most complete and unbiased report possible to the PSC, and the need for fresh sets of eyes is what prompted the naming of new interim directors at LUS and LUS Fiber,” LCG spokeswoman Cydra Wingerter writes in an emailed response to questions about the management changes sent this week. “The outcome of this in-depth, internal review will be formally provided to the PSC, and it is expected that a decision will be made as to whether the findings will be included in the initial self-report or taken up separately.”

Robideaux told commissioners in the July letter that Fiber’s annual attest audit began in May 2019 and would be filed with the commission by August. As of Tuesday, the attest audit had not been turned over to the PSC, its records show. 

“There’s nothing pending at the commission involving the July letter,” says the PSC’s Frey. “I don’t think there’s been any request from them to open up an audit.”

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ICYMI: Robideaux shakes up LUS/Fiber leadership just ahead of primary

The gist: Breaking the day before Saturday’s primary, Mayor-President Joel Robideaux removed interim directors for LUS and LUS Fiber, installing his chief administrative officer over the utilities system and elevating a longtime staffer within Fiber.

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Get caught up, quickly. LUS and its sister company LUS Fiber have been under fire for a pair of potential violations of a state law that prohibits government dollars from propping up the municipal telecom. The most recent of the two, $8 million paid for a power outage monitoring system, was self-reported by the mayor-president in July. Last year, Robideaux put LUS and LUS Fiber under the authority of separate directors, following the exit of longtime Director Terry Huval, who retired early partially in protest of the mayor-president’s effort to sell management of LUS to Bernhard Capital Partners. Robideaux appointed Huval lieutenants Jeff Stewart (LUS) and Teles Fremin (LUS Fiber) as interim directors of the now independent divisions. 

The shakeup was sudden. The directors and the Lafayette Public Utilities Authority, the council sub-agency that oversees LUS, were informed Friday afternoon, shortly before a press release was circulated announcing the decision. 

Fremin and Stewart remain with LUS and Fiber. Robideaux temporarily put CAO Lowell Duhon in charge of LUS, and Fiber business administrator Kayla Miles over LUS Fiber, moving LCG Communications Director Cydra Wingerter to fill in for Duhon. Both civil service employees, Fremin and Stewart have returned to the positions held prior to their interim appointments.

Robideaux suggests the move was requested by the Public Service Commission. The PSC is a state agency that has limited regulatory authority over LUS Fiber, primarily for the purposes of enforcing a state fair competition law passed to protect incumbent telecoms when Fiber was created more than a decade ago. A press release sent out Friday claims the PSC requested an “internally unbiased” review of transactions between Fiber and other municipal agencies. 

“It is important that we provide the PSC with assurance that this review process removes any internal bias that might be associated with long-term employees,” Robideaux says in the release. “The best way to accomplish that is with fresh sets of eyes.” 

The PSC produced an audit in June. It was spurred by the 2018 discovery of $1.6 million in payments to Fiber for services that were never connected. Fiber reimbursed those payments before the PSC audit. The audit report went to an administrative judge in August. The judicial review is ongoing, and the PSC hasn’t taken action since July, when Robideaux self-reported more questionable payments. 

Lagniappe. The Advertiser reported what it claims are more suspicious payments totaling $4 million over eight years. The report, published shortly after Robideaux’s press release, centers on charges for a set of communications hubs used by LUS, for which Fiber bills the utilities system $680 a month. It’s unclear whether the payments violate state law — Fiber is audited annually with transactions examined by LCG’s finance department — or if the administration intends to report them. The administration did not respond to requests for comment.

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COLUMN: A post-primary postmortem

Christie Maloyed unpacks what went down during the jungle primary and what’s to come in the runoff.

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Robideaux vetoes Louisiana Avenue extension, kicking the ball back to the council

The gist: As expected, Mayor-President Joel Robideaux vetoed a council budget amendment that would have kept $7 million in a project to complete Louisiana Avenue. Instead the money will go into a stormwater diversion fund he proposed at budget introduction. The council could override the veto with a six-member majority, an unlikely outcome. 

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Robideaux expected to veto Louisiana Avenue budget amendment

The gist: Last week, the City-Parish Council restored $7 million in funding to extend Louisiana Avenue, narrowly passing an amendment to next year’s budget that blocked the mayor-president’s proposal to move that money to undetermined drainage projects. Mayor-President Joel Robideaux is expected to veto the amendment and send the issue back to the council where a supermajority vote would be needed to overrule him.

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Flare-up on jail funding previews tough sledding for the future parish council

The gist: A public spat between the sheriff and the Robideaux administration over jail funding is closing out the end of budget preparation. The sheriff wants parish government to shell out $1.7 million more to fund jail expenses and has brought lawyers to bear. 

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Get caught up, quickly: The Lafayette Parish Correctional Center is funded by a combined property tax that partially funds both the jail and the parish courthouse, services mandated by the state. Historically, the jail has taken the lion’s share of that millage, which was created to fund much smaller outfits at both facilities decades ago. Parish government is hard-pressed to pay more out of its general fund for state mandated services generally. 

What does the sheriff want? $1.7 million in contracted salaries for jail expenses like medical and mental health care, food service, maintenance, laundry, all of which are services mandated by the state, according to LPSO Chief Deputy Carlos Stout. The revenues would come from the parish general fund.

“We never considered this to be an argument,” Stout tells me. “It’s a difference of opinion about the way the law’s being interpreted. This is an issue that’s been discussed since 1992.”

What’s the dispute? Whether the state actually requires the parish to pay what Garber’s asking. The administration argues parish government isn’t responsible for costs associated with housing non-parish prisoners. Of 644 inmates currently housed at LPCC, roughly 55% is held on parish government’s behalf. City prisoners comprise the second largest share of the population at 24%. The remaining 20% is a mix of inmates housed for other Lafayette Parish municipalities, the state Department of Corrections and the U.S. Marshal. In a memo to council members, Mayor-President Joel Robideaux touted a $500,000 increase in the proposed budget for “operational expenses.” Stout says that figure covers state mandated costs for housing prisoners and isn’t available to cover the contractual services needed.

Where’s the beef. Council members and sheriff’s officials have blamed the administration for failing to acknowledge the jail’s budget shortfall and opposing new taxes for the jail and district court system, proposed by council members in 2018. Robideaux maintains the budget is just fine and that the existing millages will grow enough over the long term to take care of business. In the memo published Tuesday, Robideaux pushed back against the criticism and suggested the issue could play out in a suit, pointing out that attorneys retained by the sheriff have pressed similar litigation elsewhere in the state. 

“I think what’s being overlooked in [Robideaux’s] projections are the capital improvement needs that require urgent attention for the courthouse,” Councilman Bruce Conque tells me. “When you see a surplus, that doesn’t even begin to cover the capital improvement needs.”

We can work it out. Robideaux has urged councilmembers to wait for further legal input before making any moves, budget-wise. The issue could be taken up after final adoption as a budget amendment by the current council or the next councils. Stout notes the LPSO brought the budget issue to the council and administration in April of this year. Conque, for his part, agrees with Robideaux’s suggestion to let the lawyers figure it out. 

Speaking of new councils. This is a great illustration of the serious budget pressure the new parish council will face. As Robideaux points out, paying the sheriff would likely mean cuts elsewhere in the parish budget, which last year briefly went into the red after the mayor-president’s plan to sell a parking garage fell through. Some argue this is precisely the sort of issue better addressed by a dedicated parish council. 

“When they start looking at the needs of the parish, it’s like ring around the rosey,” Clerk of Court Louis Perret, who serves on the council transition committee, tells me. “When the chairs are set somebody is going to be left standing up.” 

Why this matters. The parish budget is, objectively, a dumpster fire. While it takes in close to $100 million each year, most of the revenue is in dedicated funds. Unlocking the consolidated budget under the new split council configuration could put even more pressure on parish finances while capital needs for facilities like the jail and courthouse continue to grow. Political observers expect a difficult slog for those elected to the new parish council, and the political theater around the jail could be a glimpse of what’s to come. The budget is scheduled to be finalized at a special council meeting Thursday, but a flurry of amendments could delay adoption until later this month.

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