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Jindal’s budget-cutting folly

Something Like the Truth

By Robert Mann

Say what you like about Gov. Bobby Jindal, but don’t say he lacks passion for budget cuts and privatizing government services. It only makes sense, therefore, that he would find a way to privatize budget cutting.

Jindal’s administration recently signed a $4.2 million contract with Alvarez & Marsal, a management consultant that Jindal expects to find $500 million in annual budget savings.

This contract was puzzling on several fronts. First, while Jindal’s aides touted the arrangement by insisting the firm was obliged to produce the $500 million in cuts, the contract they signed had no budget-cutting targets. Through a spokesperson, Commissioner of Administration Kristy Nichols argued the arrangement was binding because the desired savings were discussed in a cover letter.

That undoubtedly sent the lawyers scrambling to find chapters on cover letters in their contract-law books. Turns out such chapters don’t exist because these agreements are…

View original post 854 more words

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