Pelican Institute for Public Policy
Press Release
New Orleans Council Reverses Position, Votes to Double Attorney Contract
Despite Budget Woes, Outside Firm Handling E-mail Controversy Gets Another 125K

New Orleans, LA - Nov. 19, 2009 Just days before tackling the estimated $68 million shortfall in next year's city budget, the New Orleans City Council found money to double the contract for its outside attorney who battled constituent requests for council e-mails.

The move represents a complete flip-flop from the council's stern June 4 position that it simply didn't have the money to increase the contract. At that meeting, when the e-mail issue was still very much being played out in public, the council withdrew an identical measure that would have send an additional $125,000 to the Herman, Herman, Katz and Cotlar law firm, which already had a $125,000 contract.

Increasing the $125,000 contract to $250,000 is minor in the scope of a city budget of $486 million. Still, it's a whopping figure compared to the total lack of money for legal work that the council has budgeted for itself next year.

At the recent council meeting, Councilwoman Cynthia Hedge-Morrell wasn't clear on what the extra $125,000 covered. She initially said it was for a computer consultant, but then said she didn't know whether the law firm was getting money for its own troubles.

In responding to questions from The Pelican Institute, Steven Lane, managing partner of Herman, Herman said "the vast majority" of the cost was to pay for the consultant. However, he also said his firm incurred "the vast majority" of the costs covered by the new $125,000.

In a Times-Picayune article on June 16, though, Lane provided information that showed the consultant cost $33,000. Lane didn't say in his written response whether more costs were charged after that date, which would have been after the council turned down the request for more money.

Asked to explain what happened in the five months between the two council votes, Councilman Arnie Fielkow said through a spokeswoman that Lane's response spoke for him. Hedge-Morrell said more than a week ago that she had someone researching the matter but didn't respond further.

About the Pelican Institute for Public Policy

The Pelican Institute for Public Policy is a nonprofit, nonpartisan research institute dedicated to the principles of individual liberty, the free market and limited, accountable government. Through research papers, policy briefings, commentaries and conferences, the Institute seeks to educate and inform Louisiana's policymakers, news media and general public.

Pelican Institute for Public Policy
Kevin Kane
President
phone: 504-595-5183

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