Imperial Calcasieu Human Services Authority seeks $10M public-trust bonds for Lake Charles office; commissioners press repayment sources

The State Bond Commission on Oct. 16 approved a Calcasieu public-trust financing that will allow the Imperial Calcasieu Human Services Authority (MCAL) to renovate a downtown Lake Charles office building damaged by hurricanes in 2020–21 (item 28).

MCAL Executive Director Tanya McGee told the commission the authority historically receives state general fund appropriations, federal block grants and self-generated revenues, and that it intends to fund debt service on the proposed bonds from self-generated revenues and lease revenues rather than direct state general fund dollars.

"Yes, sir," McGee said when asked whether MCAL can pay lease obligations from self-generated revenues without additional state general fund support. She added that MCAL expects to consolidate staff currently dispersed across multiple leased locations and to lease roughly 11,000 square feet of a roughly 28,000-square-foot building, which staff estimates will produce about $250,000–$300,000 annually in lease revenue. McGee also cited expected increases in Medicaid fee rates that she estimated would add roughly $230,000 in annual self-generated revenue.

Treasurer (chair) and several commissioners questioned whether those revenue assumptions were firm. The treasurer noted that Medicaid fee-schedule increases cited by MCAL may not yet have final federal approval through CMS. McGee said LDH (the Department of Health) supports the project and that MCAL has potential tenants and commitment letters to bolster projected revenues.

Commissioner Barra and other members asked about prior audit findings and revenue-collection practices. McGee said MCAL turned delinquent debt over to the Office of Debt Recovery and that an internal policy change was made to align with that contract; she noted collections generate approximately $150,000 annually. She also said that some program revenues are difficult to collect given MCAL's indigent client base.

Commission members expressed concern about precedent, noting that allowing a human services district to use a public-trust bond and historic tax credits could lead to similar requests from other districts when state budgets are constrained. "I just wanna make sure that you're confident that you're gonna be able to to cover the cost with your fees and self generated revenue and not have the state having to backfill," one commissioner said. McGee responded that staff had run conservative projections and that consolidating lease payments and new revenue streams make the project viable.

The commission approved the Calcasieu Public Trust Authority transaction by voice vote after Representative Romero moved approval and Senator Stein seconded; Senator Morris had earlier recorded recusal from item 28.

Why it matters: MCAL provides behavioral health and developmental-disability services in Calcasieu Parish. The structure approved places bond repayment responsibility on lease revenues and other non-state-general-fund sources; commissioners pressed MCAL for assurance that state general fund appropriations would not be the primary repayment source if revenues fell short.

What to watch: staff follow-up on tenant lease commitments, final CMS action on Medicaid fee schedules (if applicable), and LDH reporting on the authority’s projected revenues and debt coverage.