Cost of consulting contracts again questioned

A version of a bill to reduce the state’s consulting contracts that was unanimously passed by both chambers of the Legislature last year before being vetoed by Gov. Bobby Jindal appears to be heading back to his desk.
This is the fourth attempt by the duo of Treasurer John Kennedy and Rep. Dee Richard, No Party-Thibodaux, to cut the amount of money the state spends on professional, personal and consulting service contracts.

Earlier efforts suggested across-the-board reductions to such contracts, but the House Appropriations Committee approved without objection last week the latest incarnation.

HB 30 would instead allow lawmakers on the Joint Legislative Budget Committee to reject or approve practically any consulting contract with an annual value of $40,000 or more. The money saved by rejecting contracts would then be placed into the proposed Higher Education Financing Fund.

If approved, Kennedy said the bill would allow lawmakers to have the final say on as many as 1,700 contracts worth $2 billion, based on an annual report from the Division of Administration, which reviews contracts. Division officials, however, said the number would be closer to 150 or so contracts valued at $21 million.

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