Letter grades that show a sizable percentage of Louisiana public schools are either failing or under-performing continue to generate controversy. Officials representing a coalition of teachers unions, superintendents and school board associations claim that they were set up to advance a political agenda built around the expansion of charter schools and privatization initiatives.

While many of the schools in the New Orleans state-run Recovery School District (RSD) and the local Orleans Parish School Board showed measurable improvement, a majority received a letter grade of D or F when the Louisiana Department of Education released the letter grades for the first time earlier this week. Statewide, 44 percent of Louisiana schools received D’s or F’s. Even so, there were visible signs of improvement.

If the current letter grade system had been in place back in 2007, 55 percent of Louisiana schools would have earned D’s or F’s.  The means the number schools that failed to achieve at least a C grade fell by 20 percent from just a few years ago. Moreover, the number of schools that received a grade of B or A almost doubled from 14.9 percent in 2007 to 28.4 percent in 2011.

“We see the letter grade system as an attempt to make more of the schools to appear as failing schools so the [Jindal] administration can make the case for more companies to come in and open charter schools,” said Jack Loup, founder of the Coalition for Louisiana Public Education. “We are already dealing with cutbacks in funds and the school boards are being asked to do more with less. There is an effort here to make the school system look bad to advance a political agenda.”

The Louisiana Board of Elementary and Secondary Education (BESE), which formally approved the new letter grade program last December, set up a 200-point scale based on student test scores for the individual schools. A school is considered top performing if it reaches a mark of 120 or higher, while schools that fall below 65 are considered failing. District Performance Scores and State Performance Scores intermix standardized test scores, attendance rates, graduation rates and dropout figures.

In June, Rep. Jonathan Perry (R-Abbeville), with the support of the teachers unions, introduced a bill to delay the new system, but the Senate Education Committee voted it down in a 5-4 vote. Stafford Palmieri, an education policy adviser to Gov. Jindal, described Perry’s bill as “an attack on accountability.”

The letter grade system sharply divides candidates competing for contested BESE seats in the Oct. 22 elections. Those in favor of the letter grades view them as a distinct improvement over the “star system” that had been in place, which they described as “vague” and “ambiguous.”

“The idea here is to provide clear communication,” said Holly Boffy, who was named as the 2010 state teacher of the year. “The letter grades will help us to understand where we are failing and how we can better deliver resources to the schools that need it most. This is a system everyone can understand. If we are assigning letter grades to students, then why not to schools?”

Boffy is looking to unseat incumbent Dale Bayard in the 7th district, who has been endorsed by the coalition.

“The letter grade system will be eye opening for the public, we need to see where our schools fall in comparison to each other and how we look nationally,” Boffy added. “The star system was always a bit vague and didn’t tell us very much.”

All eight of the elected seats on the 11 member Board of Elementary and Secondary Education (BESE) are being contested on Oct. 22. Only one incumbent, Linda Johnson, has announced that she is not seeking re-election. Thus far, incumbent Walter Lee is running unopposed in District 4 with the endorsement of Gov. Jindal.

Gov. Jindal has weighed in favor of several BESE candidates. In addition to Boffy, he has endorsed incumbent Jim Garvey in District 1, incumbent Glenny Lee Buquet in District 3, incumbent Chas Roemer in District 6 and newcomer Jay Guillot in District 5.

The Tea Party of Lafayette has also interjected itself into the race endorsing Boffy.

Gov. Jindal and former Superintendent Paul Pastorek frequently secured 6-5 votes on BESE to advance school choice initiatives and other policy changes that attracted opposition from union officials.  The governor would need eight votes on BESE to gain approval for John White, the RSD superintendent, as his preferred successor to Pastorek.

With the exception of BESE member Johnson who is running unopposed, the Louisiana Association of Business and Industry (LABI) has issued endorsements to all of the candidates backed by Gov. Jindal.

Kira Orange Jones, who is challenging incumbent Louella Givens has also been endorsed by LABI and strongly favors the letter system, but said it should not be seen as a panacea.

“I think this does foster transparency and transmits a clear message to parents,” she said.

“But we need to revisit the issue of student growth, because that is not being measured and I’m concerned that a lot of remarkable stories are getting lost. We have to remember where students started from and how far they have come. But I do see the letter grades as a helpful change. The star system to me was a little too ambiguous.”

Michael Walker-Jones, executive director of the Louisiana Association of Educators (LAE), a coalition member, has misgivings about the letter grading system because it omits key pieces of information.

“I think the simplicity is the danger of it,” he said. “What happens when you have an A school? Does that mean the school is perfect? When we are talking about the effectiveness or ineffectiveness of teachers and administrators I think that’s ill-defined. The real concern we should have is with resources and we have to ask if we are equating the resources to all of our schools in a fair and equitable way.”

Walker-Jones also said that the assignment of an “F” grade to a school can be misleading and drive people away from a community that may have valuable assets.
“There could be unintended consequences here,” he added.

Les Landon, director of public relations for the Louisiana Federation of Teachers, has his own misgivings.

“The letter grades are not helpful,” he said. “If you assign one letter grade to a school that implies that same sort of rigor that goes into grading a student in all the different subjects they are taking, but it does not include the same kind of information. So I don’t see this letter grade system has necessarily being so easy to understand and discern.”

Guillot, who is challenging incumbent Keith Guice in District 5, disagrees and views the letter grade system as a promising new start.

“This is not about being punitive, it is about establishing a baseline and putting down markers that can serve as the basis for improvement,” Guillot said. “I’m sure there is room for improvement in how we make these measurements, but this does bring transparency and openness to our education system. All of the stakeholders – parents, teachers and administrators – will see this information put out there in a way that it hasn’t before and I see that as a step forward.”

The upshot of having candidates in the race who are sharply divided over policy is that it has helped to generate more interest in the BESE elections, which are typically overlooked, Guillot observed.

In a letter addressed to Vermillion Parish School Board employees that took aim at Gov. Jindal and his school choice initiatives, Superintendent Randy Schexnayder expressed his support for union-backed BESE candidates. He wrote: “Please be on guard and forewarn your family and friends against falsehoods and half truths which will be coming out in the near future against any of these candidates through paid advertisements, phone surveys and in newspaper articles. While it is hard to believe, the truth is… these ‘special interest’ groups will use the lowest level of gutter politics in order to affect this election to suite their own policy motives.”

A new political action committee (PAC) called The Alliance for Better Classrooms or ABC PAC has entered the fray as a counterbalance to the coalition. ABC will spend at least $1 million on “reform candidates” who support its policy objectives, Lane Grigsby, a Baton Rouge contractor who helped form the PAC, has told members of the press.

Brigitte Nieland, vice-president, communications director, of the Education and Workforce Development Council for LABI, is unmoved by the arguments from union officials.

“Sometimes the truth hurts and this is turning into a public relations nightmare for them,” she said. “For them to say that a clear, understandable grading system is not valuable in comparison to what we had before is just not convincing. Only in public education can taxpayer funded employees come out and talk about how citizens and taxpayers don’t deserve transparency. This is the dividing line; this is the coalition versus taxpayers and this is about hiding the truth from taxpayers.”

LABI announced two additional endorsements this week: Russell Armstrong and Carolyn Hill, who are both seeking the open seat in District 8. Jim Guillory is the other candidate.

The Pelican Institute also sought interviews with the coalition backed candidates including BESE incumbent members Guice, Bayard and Givens, but did not receive a response.

Kevin Mooney is an investigative reporter with the Pelican Institute for Public Policy. He can be reached at kmooney@pelicaninstitute.org and followed on Twitter.

A new study issued by the Brookings Institute evaluating the number of “clean jobs” on the local, state,  and national level has determined that New Orleans and Louisiana lag behind in the growth of this industry.

Titled ‘Sizing the Clean Economy: A National and Regional Green Jobs Assessment,’ the report focuses on the development of “clean jobs” on all three regional levels. According to the Brookings Institute, a “clean job” is “any economic activity measured in terms of establishment of jobs that produce goods and services with an environmental benefit. “ This definition is further broken down into categories of renewable energy, energy efficiency, green house gas reduction, agriculture, and education.

According to the results, metropolitan New Orleans ranks 67^th overall with 7,298 clean jobs, while Louisiana ranks 30^th with 28,673. Nationwide, the report found 2.7 million jobs count as “clean jobs.”

Unfortunately, the study falls into the misguided rubric that government largesse is the sole engine for spurring job creation, while ignoring the notable private investment within our area. The recommendations for promoting clean energy growth by Brooking’s Bruce Katz are fallacious. He advocates a clean energy standard, $16 billion in annual clean energy research and development, tax provisions, and a “green bank” to provide financing within the industry.

With government spending in the crosshairs of politicians, it is unreasonable for the federal government to needlessly increase outlays for research which can, and is, financed privately, especially when the stimulus plan allocated an excessive amount for this very purpose. Likewise, various think tanks have repeatedly expounded on the job-killing implications and costs of a broadly imposed energy standard.

The notion of a separate, federally-created bank for green industries is unacceptable to anyone who has witnessed the trajectory of existing government administered banks. Aside from an overreach of government, federally administered entities lack the market discipline and accountability which private industries should have. This echoes the distortion of the housing market under Fannie Mae/Freddie Mac, but sensible Americans have no wish to see another government-subsidized industry implode at massive cost to taxpayers.

What is overlooked are the private efforts to promote clean jobs and energy in New Orleans as reported by the Times-Picayune. New Orleans has recently made strides towards becoming an entrepreneurial hub, which is visible in the collaborative venture between the Greater New Orleans Foundation and the Idea Village to provide a grant towards decontaminating ground water.

These are the initiatives which are necessary to spur job creation and innovation in this industry. The market should determine the legitimacy of these jobs, not an agenda-driven government.

Jamison Beuerman is a contributing writer and policy analyst at the Pelican Institute for Public Policy. He can be contacted via email at jbeuerman@pelicaninstitute.org or followed on twitter @jbeuerman.

Over at The Lens, contributor Nathan C. Martin recently criticized the Louisiana legislature for cutting statewide funding for the arts. While Martin rightly celebrates Louisiana’s culture, his argument for increased government subsidies falls short. He claims that the budget cuts undermine the valuable asset that is our culture, but how can the legislature undermine something it has never been responsible for in the first place?

There are many reasons why Louisiana has “generations-old traditions like jazz, second lines, Mardi Gras Indians, zydeco and parade floats.” Our state’s unique history, geography and demographic diversity have all played a hand. If there is evidence that government support has been integral to any of these great traditions, Martin does not offer it.

If government funding were so vital to the existence of a rich local culture, wouldn’t other states have figured this out by now? According to this logic, Minnesota and Kansas need only spend a few more millions of dollars on the arts and they would become destinations for the educated young newcomers now heading to New Orleans.

Of course this is absurd. Just as New Orleans has its own culture, Minneapolis and Wichita have theirs. Each of these cultures has developed over many years and each appeals to some people but not others. State spending on the arts has never been a key factor in this process.

Some recognize that cultural traditions are created independently of government, but claim the state plays an important role in keeping these traditions alive. This, however, places too much faith in the government bureaucracies that deliver poor outcomes in so many other endeavors. To assume that taxpayer dollars are being used wisely just because they are dedicated to the arts is to ignore the rampant corruption and incompetence found in every other government realm. If the vitality of Louisiana culture depended on government support, we would all be in trouble.

The good news is that in a free society people voluntarily lend their support to the arts. This occurs in countless ways and has a track record of success that no government bureaucracy can match.

Preservation Hall, for example, was founded by individuals whose passion for traditional jazz spurred them to create a venue for the great musicians of New Orleans that had been fading into obscurity. Over the course of the past half-century it has grown into one of the most popular jazz venues in the world. Its owners have succeeded in preserving one of America’s great artistic achievements while turning a profit.

Another example is Frenchmen Street in New Orleans. This once-moribund area has become a world-renowned destination for visitors and locals seeking a range of music that cannot be found on Bourbon Street. Once again, individuals in the private sector found a way to make money while showcasing Louisiana artistry.

Undoubtedly there are worthy artistic projects that have benefited from state funding. But ultimately, the development of “new and innovative forms of expression” that Martin praises does not hinge upon government funding. The human instinct to create and consume art is too powerful to be extinguished by lack of state support.

When it comes to supporting the arts, government just needs to get the basics right: Keeping streets safe so artistic pioneers can revive blighted neighborhoods, removing unnecessary regulatory obstacles that might hinder enterprising investors in the arts, and ensuring that our children have access to a quality education so that they, too, will someday become participants and protectors of Louisiana’s rich cultural heritage.

NEW ORLEANS. La. – Mayor Mitch Landrieu has requested the limited removal of seniority privileges from consideration in city lay-offs, and the local chapter of the Service Employees International Union is unimpressed.

The “bumping right” in jeopardy is the power employees with seniority have to displace workers in other departments when they lose their own position. This proposal comes in the wake of a March Public Strategies Group report commissioned by the Mayor’s Office – a 29-page “Transformation Plan for City Government.”

Yesterday, in the lead up to Thursday’s Council Chambers hearing on the proposal, SEIU leaders and union members held a press conference and called for “facts, not urban legend” to drive the city’s reform.

The Local 21 LA chapter of the union represents most of the city government’s employees, and Chapter President Helene O’Brien (pictured above) wanted people to know that performance ratings are already the priority in lay-off decisions.

“Seniority is second,” she said. “And yet the kind of change that is being promoted, the argument behind it, is somehow leaving that important fact out.” (Listen to the complete interview below – six minutes.)
Download the MP3.

O’Brien believes the proposed change, to restrict seniority privileges to one department, would not keep the best employees in the New Orleans. However, she resisted an explanation as to why seniority, in and of itself, ought to be a consideration beyond a default position.

“It’s a default, that’s exactly what it is… And also because we all know that we get much better at our job the more we do it.”

The SEIU press release also describes the commissioned report as flawed, due to the small sample size of 60 individuals.

Even with that limitation, though, SEIU sees no connection between the report’s findings and the proposed change. They allege the report does reveal a top heavy bureaucracy and a history of poor management in city government, with lower level employees as victims of the dysfunction.

The public hearing will take place at 10am on Thursday (tomorrow) at the New Orleans Council Chambers.

Fergus Hodgson is the capitol bureau reporter with the Pelican Institute for Public Policy and editor of The Pelican Post. He can be contacted at fhodgson@pelicaninstitute.org, and one can follow him on twitter.
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NEW ORLEANS, La. – Suddenly, Republican leaders appear to be shifting their rhetoric toward Rep. Ron Paul of Texas, one of several presidential contenders who took part in the Republican Leadership Conference (RLC) last week.

Paul says that over the past several decades America has lost sight of its founding principles and has surrendered too much authority to government officials. He shared that message with GOP members gathered in New Orleans for the three-day event that ended on Saturday, and he lamented that after the 9/11 terrorist attacks constituents seemed to accept a loss of liberty for the prospect of greater security.

“I don’t buy that,” he said.

Although other Republicans were sharply critical of Paul’s views, especially on foreign policy, when the Texan previously ran for president, the party has moved strongly in his direction, his supporters from Huntsville, Alabama, declared after his speech

“Young people get it because we read,” Robbie Valentine, one of the attendees from Huntsville, Ala.said. “If you watch too much television, you don’t really see what’s happening. We know the country has gone off in the wrong direction and that it’s time to restore constitutional government.”

In previous elections cycles, both parties were “pro-war” and “pro-spending,” Derek and Tamar Page, also of Huntsville, Ala.observed. They believe Paul has not changed, but the Republican Party has shifted in the past few years thanks in large part to his efforts.

In his talk, Paul also said he would run under the banner of “no new regulations.” Another way to restore limited government is to prevent the executive branch and the judiciary from writing and creating new laws, he added. He believes that function belongs within the purview of the legislative branch.

Although some of delegates expressed disagreement with Paul and other libertarian leaning candidates on social issues like drug legalization, there was considerable unity on the question of government spending.

Attendees also praised  Gary Johnson (pictured left), the former Republican governor of New Mexico, for addressing entitlements and for outlining reforms that would help put the U.S. on firm financial footing.

With regard to Medicare and Medicaid, Johnson would block grant the states a fixed amount of money that they would use for delivery of health care to the poor and the elderly.

“We would have 50 states as the laboratories of innovation and best practices,” he said. “The notion that Washington [D.C.] knows best, that’s what has us in this situation.”

As president, he would push for raising the retirement age and the use of means testing for benefits, Johnson continued.

“We should also change the escalator that’s built into Social Security from the wage index to the inflation index,” he added. “That in and of itself would make Social Security soluble into the future.”

It’s also possible for policymakers to cut military spending while providing for a strong national defense, Johnson said.

Jack and Courtney Goldstein of New Orleans were impressed with Johnson’s comments. Although political figures have been reticent to take on entitlements, the country is ready for an honest discussion of Medicare, Medicaid and Social Security, they said.

“We liked him very much… We don’t agree with his views on drug policy and some of the foreign policy. But what he said about our financial situation makes a lot of sense.”

Johnson and Paul both support legalizing marijuana, or at least leaving the issue to the states.

While Johnson supports maintaining restrictions and provisos on marijuana that are similar to alcohol laws, his approach to legalization would end prohibition type restrictions that are responsible for most of the border violence with Mexico.

Since 2008, Republicans have become more concerned about fiscal issues, Alton Russell, Republican chairman of the third congressional district in Georgia, observed. For this reason, he sees an opening for libertarian candidates.

“I certainly don’t think anything like the prescription drug bill could pass in today’s Republican Party,” he said. “But there are differences on the social issues. Rank and file Republican are not with Johnson on drug legalization.”

Kevin Mooney is an investigative reporter with the Pelican Institute for Public Policy. He can be reached at kmooney@pelicaninstitute.org and he can be followed on Twitter.

NEW ORLEANS, La. – New Orleans’ rate of adult illiteracy is almost twice the national average, and 40 percent of the city’s residents do not use the Internet. To address both illiteracy and the lack of access to solutions, Loyola University’s Lindy Boggs National Center for Community Literacy hosted its latest event, “Engaging Literacy: Research to Policy to Practice.”

The Center’s mission is to promote literacy as a “vehicle for personal, economic, and community empowerment.” And its guest speaker for the March 23 event was Stephen Reder, professor of applied linguistics at Portland State University.

Reder explained to approximately 60 attendees the findings and implications of his “Longitudinal Study of Adult Learning” (which resulted in this book) and his experience with the National Labsite for Adult English for Speakers of Other Languages. While asserting the importance of literacy as a key driver for health and economic prosperity, he outlined how he is applying this research to a new venture.

The “Learner Web,” a project of PSU, is a national partnership that will provide 30 months of Internet access and tutoring to 24,000 individuals. That includes 5,000 individuals from New Orleans, one of two participating cities. Richmond, California, is the other, and the project also includes Central and South Texas regions and Minnesota and New York states.

Federal aid, through the Commerce Department, comprises approximately one half of the $6 million cost, with the remainder from matching contributions of local partner organizations. Additionally, the project relies on in-kind donations such as the services of unpaid tutors who assist in computer labs.

For New Orleans, Goodwill Industries of Southeastern Louisiana is overseeing implementation, and they are more than matching the $500,000 of federal funding for the city’s project. Its promotional launch is today, April 1, and next week Goodwill staff begin training the volunteer tutors.

Unfortunately, Reder noted, illiteracy has been an enduring problem for Louisiana. In 2003, for example, Louisiana and New Orleans had illiteracy rates of 17 percent and 25 percent respectively. That compared to a national rate of 14 percent. More recent data, from 2009, indicates that 16 percent of New Orleans adults lack a high school diploma and 24 percent live below the poverty line.

While the 2009 national unemployment rate averaged 9 percent, the rate in New Orleans was 14 percent. Reder believes many of these unemployed individuals are caught in a poverty cycle, and effective adult literacy education would provide a way out.

In Reder’s view, though, current practices and perspectives on adult literacy education are deeply flawed. Government literacy programs also face perverse incentives, since they are funded by the number of current enrollees and the number that pass standardized tests. That encourages retention of students or short-term results, rather than preparation for long-term independent study.

Reder’s two longitudinal studies indicate that these measures poorly reflect program success, because literacy is not significantly increased until years after a student has begun studying. Such projects would be more successful if they focused on students’ “literacy practices,” a combination of the frequency and manner of reading in daily life.

His findings call for a new approach – one that focuses on persistent, long term learning practices that can be maintained outside of the classroom. He and his colleagues have designed the Learner Web with this end in mind.

Petrice Sams-Abiodun, executive director of the Center, described the event as extremely successful, with an engaged and diverse group of attendees. She is also optimistic about the impact of the Learner Web.

“The Learner Web will assist many adults in the greater New Orleans area gain access to important computer and technology skills that are so necessary in today’s digital economy. Hopefully, with strong partnerships we will be able to continue and expand this project beyond the two year funding cycle.”

Fergus Hodgson is the capitol bureau reporter with the Pelican Institute for Public Policy and editor of The Pelican Post. He can be contacted at fhodgson@pelicaninstitute.org, and one can follow him on twitter.

Charlotte McCray contributed to this article as a research assistant with the Pelican Institute for Public Policy. McCray studies philosophy and economics at Loyola University in New Orleans.

NEW ORLEANS, La. – Between now and 2014, utility companies participating in a renewable energy pilot program must address operating costs, logistics, fuel availability, and potential job losses before certification from the Louisiana Public Service Commission. All LPSC regulated utilities and electric cooperatives are included.

Renewable energy sources in the LPSC program include biologically derived methane gas, biomass energy, black liquor, distributed generation systems, fuel cells, geothermal energy, solar thermal energy and wind power. And the renewables pilot program requires research and “request for proposal” components.

Entergy Gulf States of Louisiana (EGSL) and Entergy Louisiana (ELL) are required to seek 233 megawatts of the 350 MWs that have been reserved for the program. Some LPSC regulated energy providers have received limited waivers, such as CLECO, which is weighing the cost of co-firing biomass at its Madison 3 facility. (Co-firing enables the simultaneous combustion of two materials, and it enables existing plants to burn fuels considered environmentally friendly.)

The research component seeks data collection on renewable efforts that are potentially beneficial to Louisiana over the long term. The LPSC asks participants to submit written statements that explore the practicality of hydrokinetic energy and other technologies that may not be commercial viable at the present time.

Theoretrical technologies will be excluded from the research phase until they can achieve some level of operational capacity. By contrast, the RFP component focuses on existing technology that can be expected to come online within the 2011-2014 time-frame. Participants must also disclose the costs associated with renewable efforts to the commission as part of an extensive economic evaluation.

“The Commission may ultimately decide that a long term [renewables program] is not appropriate for the State of Louisiana,” says Melanie Verzwyvelt, a staff attorney for the LPSC. Commission members also have the ability to deny certification to a particular project if it proves too costly well before the pilot period expires in 2014, she added.

On the local level, New Orleans remains at the focal point of energy efficiency initiatives that seek to alleviate carbon emissions. New Orleans Councilwoman Susan Guidry, for example, has partnered with the Alliance for Affordable Energy to advance the “Energy Smart” program, which offers financial inducements to residents and business owners in exchange for making investments into “high efficiency” products. The city council approved the program during its previous term as a way to curb energy use and lower greenhouse gas emissions.

“Councilwoman Guidry and the Alliance for Affordable Energy are very much partners,” Deborah Langhoff, her chief of staff, explains. “Now that the program has been passed she is working with the Alliance to take the next step.”

Although rebates are promised to participating homeowners, Ginger Sawyer, vice-president of the Louisiana Association of Business and Industry (LABI), is less certain of the economic benefits.

“I don’t see the residential consumers benefiting from these arrangements… you have to keep in mind that similar programs have gone by the wayside and are now subsidized through federal grants. They are just not economically viable.”

Sawyer said she is not opposed to experimenting with renewable energy, but it would have to be as part of a pilot program that safeguarded consumer and taxpayer interests.

“We have a long-standing position of opposing mandates, which we know to be costly” Sawyer said. “But a pilot program is another matter so long as it does not include subsidies that are passed onto the public.”

Kevin Mooney is an investigative reporter with the Pelican Institute for Public Policy. He can be reached at kmooney@pelicaninstitute.org.

Despite ominous odds, New Orleans effectively has come back from the brink of annihilation to set a national standard for urban renewal. Yes, our crime rate is atrocious, and we face a looming budget deficit. New Orleans, however, is on the right track towards further prosperity and strength. We have joined the upper echelon of burgeoning metropolitan communities in what is becoming a divided national arena. On one hand, we have Milwaukee, Houston, and now New Orleans, as cities which have embraced innovative methods of educating our children, encouraging economic development, and promoting civic responsibility.

In contrast, we have cities, and entire states for that matter, which are being driven into the ground courtesy of expanding government and public sectors. As Gelinas so aptly notes, “In fiscal terms, [New Orleans] is very different from cities and states around the nation, which, bolstered by federal “stimulus” funds, continue to throw money around as if the property and credit bubbles had never burst.” These cities- Chicago and Los Angeles, for example- are being repeatedly bailed out for their own recklessness at great detriment to the rest of the country. Despite the huge amounts of money injected into these city lifelines, the benefits have been Lilliputian, if even that. We should be proud that New Orleans has become a microcosm of the former model, rather than an example of bankrupt failure.

That being said, New Orleans needs to continue on this path to ensure future growth and stability. As Gelinas mentions, our charter-based education system has become too dependent on federal cash, which is an unsustainable course. Continuing the progress of our schools will entail vouchers, tax credits, and increased school choice. Likewise, the reduction in city workers by 36% since Katrina has been a boon, but we need to further privatize city sectors such as transportation and security.

It should be clear from Gelinas’s excellent reporting, as well as from the Katrina experience of any New Orleanian, that the government failed us before, during, and after Katrina. It was the drive and initiative of our private citizens who reenergized the social and economic spirit of our city, and it will require these same characteristics to preserve our pace of growth.

NEW ORLEANS—Nine days after President Lobo Sosa’s September 7th visit, Louisiana’s Hispanic Chamber of Commerce hosted an Honduran delegation to promote an array of trade opportunities between the two regions. Mayra Pineda, president of the Chamber and sister of the Honduran president, introduced approximately 50 guests to an influential and passionate line-up of speakers.

Aline Flores, formerly a student in New Orleans and now president of Honduras’s largest chamber of commerce, set the tone for “Enfoque Honduras” (Business Focus in Honduras), describing the United States as “partner number one.” Already the United States is by far the leading exporter to Honduras with 47 percent, and Louisiana provides 10 percent of that total. She then provided compelling reasons why Americans ought to consider more investment in and trade with the Central American nation.

From left to right: Darlene Kattan (Executive Director, Hispanic Chamber of Commerce of Louisiana), Mariebelle Lieberman (President, Mariebelle Chocolates), Alexander Hedman Alas (Director, Honduras Council of Private Businesses), Aline Flores (President, Chamber of Commerce and Industry of Tegucigalpa), and Mayra Pineda (President, Hispanic Chamber of Commerce of Louisiana)

As a workforce, the nation’s population is young – with a median age of 21 years and more than two million between 18 and 35 years old – increasingly bilingual, and willing to work at low cost. 150 Honduran elementary and high schools are teaching in English and following American curriculums. However, Hondurans remain poor and extremely underemployed. According to the 2009 census, more than half of the working-age population are without employment. Even of those working, 36 percent were earning less than the domestic minimum wage.

She also highlighted the unique ecosystem, suitable for tourism and agriculture, the internationally bolstered financial system, and the strategic location. Perhaps of greatest concern, though, is political stability.

President Lobo Sosa, whose daughter studies at the University of New Orleans, has partnered closely with her and the business community with an eye for long-term stability and fertile ground for foreign investment. As part of the Central America Free Trade Agreement, American companies are almost universally free from tariffs and quotas; foreign investors are exempted from many taxes; and the country’s main port, Puerto Cortés, is the only one in Central America to have compliance with the United States Container Security Initiative.

These policies have found support from the Heritage Foundation and Wall Street Journal’s 2010 Index of Economic Freedom, which for trade freedom gives the nation a score of 84 out of 100 and the highest possible categorization.

Alexander Hedman Alas, director of the Honduras Council of Private Business, concurred with Flores; “She said it all.” He shared insights into the rapidly growing tourism industry and presented video footage from various destinations. He projects that for 2010, the number of tourists to visit Honduras will comfortably surpass two million, up more than a third from 2005.

“As you can see,” Pineda followed, “the sky is the limit,” as she summed up the sentiment in the room. “We have ties that go back generations, and I think it’s time to strengthen them and to make the relationship even better… It goes both ways. We want investors to go to Honduras… but I live in New Orleans; I live in Louisiana, so I also want Louisiana to flourish – to be what we all want, a successful economy.”

During the president’s visit a week prior, he met with New Orleans Mayor Mitch Landrieu, hospital administrators, university presidents, and leaders of the Port of New Orleans. Pineda believes that dividends are already coming in.

“There was a very important memorandum of understanding signed between Honduras and the eight local universities, and that is a direct outcome. That memorandum is an historic document… It means opportunities for scholarships, opportunities for research, opportunities for exchanges – faculty and students going from here to Honduras to train and to develop, as well as vice versa.” (Click below to hear a five minute interview with Mayra Pineda.)

The final speaker of the day, Mariebelle Lieberman, president of Mariebelle Chocolates and a New York based Honduran, shared her migration and business success story. She joked about her earlier years in the United States; few people had heard of Honduras or taken her seriously. Apparently “half Mayan half Spanish” was a more impressive combination, so that’s what she proceeded to tell people.

Maribelle Lieberman, president of Mariebelle Chocolates, shares her story of success.

Through her company she sought to rediscover the Central American approaches to processing and flavoring cocoa, and the company has “exploded” since her products achieved fame as favorites of Oprah Winfrey. She encourages other Hondurans to take her lead and follow their entrepreneurial passions with opportunities in the United States.

The audience included members of industry, government, and academia, including at least three groups from Mississippi. John Lambert, an international business professor from the University of Southern Mississippi brought five students. At the end one declared, “I know where my future assets are going,” to applause all around. While not a speaker at the event, Lambert was willing to share an insightful perspective regarding why this event drew such interest and support.

“I think that if you really take a hard look at the history of this entire region – from Louisiana, Southern Mississippi, Southern Alabama, Southern Florida – you’ll find that we have historically more of a kindred relationship with Latin America than we do with northern states in the United States… Spanish West Florida encompassed the southern areas of all of those states… so there is a relationship that goes back in history that’s incredibly important. This has been an important link for trade since the colonial days here… Why would this be of interest to the states? There has been an historic relationship that has if anything been interrupted by the federal government.”

One New Orleans sponsor of the event, Jerry Cole of Cole Construction Company, explained that he was there to network and identify ways to import raw materials. His intent fit the view of a prospective investor, Astrid Sandoval, in the audience, who believes, with free trade agreements in place, education and communication – “more publicity” – are now the key factors for a positive and growing American role in Honduras, not further legislation.

According to Darlene Kattan, executive director of the Chamber, “New Orleans is the 3rd largest city in Honduras because we have so many Hondurans here.” And she described the event as testament to the vibrancy between the two regions and for the city’s trade opportunities in general. She noted that this year alone Chile, France, and China have also brought trade delegations to New Orleans.

Fergus Hodgson is the capitol bureau reporter with the Pelican Institute for Public Policy. He can be contacted at fhodgson@pelicaninstitute.org, and one can follow him on twitter.

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Lecturers and panel discussion participants highlighted the growing importance of the trade relationship between Louisiana and China – which has risen more than 400 percent since the year 2000. Even during the latest recession, Louisiana’s exports to China have increased by 56 percent. And that trend has run counter to Louisiana’s exports to the rest of the world, which have declined by 29 percent. The growth in trade to China is driven primarily by the agricultural sector.

Organizers also wanted to show international trade relationships in a positive light, as a provider of approximately 500,000 jobs to the state, rather than anything sinister. To emphasize the importance of international entrepreneurship, an award was presented to Intralox president Edel Blanks. Intralox, headquartered in Harahan, employs more than 1,000 individuals and has offices in seven countries, including one in Shanghai, China.

Much of the event’s discussion centered on how to achieve freer trade. One audience member, for example, encouraged Boustany and Cao to continue what he described as a “process of education,” against what he saw as self-destructive nativism.

Cao concurred and reminded the audience that for many congressmen, particularly those from inland states, free trade “simply is not a priority.”

Boustany made it clear, however, that open trade is at the top of his priorities. He co-chairs the House US-China Working Group and is on the Ways and Means Committee with jurisdiction over trade policy.

“With the U.S. economy continuing to struggle, trade represents one of the most important ways to create new jobs as markets around the world open to American goods and services… I know Louisiana workers and businesses can compete and win around the world.”

In terms of specific policies, he would like to see the federal government “vigorously engage in and complete” all of the pending free trade agreements. That does not stop with China. He noted stalled negotiations in Colombia, Panama, and South Korea. He also desires alternatives to the WTO, which has had limited success in the last decade, be they bilateral or regional agreements like NAFTA.

Li Haiyan, China's Counselor for Economic affairs, responds to questions alongside Michael Hecht, President and CEO of Greater New Orleans Inc.

Li Haiyan (pictured left), China’s Counselor for Economic Affairs, was keynote speaker, and he reflected on incredible Chinese development over the past three decades. In his opinion, a key driver of that development was international trade, and he asserted that the majority of China’s leaders want to continue this trend. However, their concern is that other countries may not share China’s view and will head in the opposite direction.

“Because of the recent recession, domestic pressure is probably going to continue to be for protectionism, and that’s why we participate in events such as these.”

Michael Hecht (pictured above on right), president and CEO of Greater New Orleans Inc, is an economic development leader whose organization, along with nine others, sponsored the event. He spoke favorably of the event and of how New Orleans and the state are positioned, with the Mississippi River and modern infrastructure, to gain from trade. However, he is concerned that federal policies create a stumbling block for local jurisdictions.

“We’re focusing on building relationships, so we can increase commerce, but foreign direct investment is even more important… Events like this are the first step – necessary preconditions… However, at the end of the day, if you don’t have free trade at the international level, all of these local programs and investments come to naught.”

Fergus Hodgson is the capitol bureau reporter with the Pelican Institute for Public Policy. He can be contacted at fhodgson@pelicaninstitute.org, and one can follow him on twitter.