The big sell-off

Even in tough times, the lesson here, I guess, is never run your department at a budget surplus. It attracts way too many predators.

But critics of the governor's plan contend that any financial benefit will be a one-time thing. In the long run, they charge, privatizing will result in higher costs for employees, the state and, therefore, the taxpayer. Some have even suggested that the plan is a way for the state to get its hands on part of the agency's sizeable surplus, which Louisiana law prohibits from being used for "cash flow purposes" or any other purpose "inconsistent" with the administration of the department that generated it.

A few days after Jindal unveiled his budget, blogger and local reporter Tom Aswell, who was at the time still an employee of the state's Office of Risk Management (which was itself privatized last year), reported that investment bank Goldman Sachs had helped write the OGB's Request for Proposals. He says the only bid that came back for the advisory role -- and the $6 million fee -- was from Goldman. Among the questions TPM has posed to DoA, with no response so far, is what, if any, involvement Goldman Sachs had in the request for proposal. TPM has also reached out to Goldman for comment. Aswell also wrote that an employee at the DoA, who did not want to be identified, had informed him that, as part a sale of the OGB, the state would receive $150 million to $200 million of the surplus, with the rest going to the purchaser.