PSC rep claims fund grab illegal

By MICHELLE MILLHOLLON
Advocate Capitol News Bureau
Published: Sep 23, 2009 - Page: 9A- Baton Rouge Advocate

An official with the Public Service Commission accused the Legislature on Tuesday of unlawfully taking ratepayer money.

Eve Gonzalez, the PSC’s new secretary, told the Commission on Streamlining Government that the state swept the agency’s accounts.

She said the state took roughly $4 million in unspent money.

After the meeting, Gonzalez said she could not rule out the possibility of the PSC pursuing legal action.

“We’re maintaining that that’s ratepayer money and it does not belong in the general fund,” Gonzalez said.

The state is struggling with sizable financial problems in its budgets.

The shortfall for the budget year that started July 1 is expected to be $1.3 billion.

During the spring legislative session, lawmakers took the balances of several funds including $3.4 million, for example, from the PSC’s Utility and Carrier Inspection and Supervision Fund.

The PSC collects money from the utilities it regulates. The agency’s budget for the current fiscal year is $8.9 million.

Gonzalez was one of a number of state officials who spoke to the Commission on Streamlining Government on Tuesday.

The commission is tasked with finding ways to cut costs in state government.

Gonzalez said the PSC’s budget has been essentially flat for the past few years, leaving little for the agency to relinquish.

“We have been very frugal in our budgeting,” she said.

Commissioner of Administration Angèle Davis asked if the PSC was reducing employee positions.

Gonzalez said the agency has about 11 positions that are open.

Davis said the PSC has added three jobs since Gov. Bobby Jindal froze state hiring in an effort to save money.

Gonzalez retorted that the PSC is operating without necessary positions.