The Public Service Commission is an independent regulatory agency that oversees public utilities and motor carriers. Each generation has found that a PSC seat can be a steppingstone to higher office, such as governor — such was the case for Kathleen Blanco, Jimmie Davis, Huey Long and John McKeithen. The question now is who the next PSC member to move on to greener political pastures might be. With a well-defined field for the fall’s U.S. Senate race shaping up, politicos are talking about Public Service Commissioner Eric Skrmetta of Metairie in the PSC’s 1st District.In a recent interview, Skrmetta said he’s very close to making a final decision about whether he’ll be a candidate.If he gets in, Skrmetta’s candidacy will add a new wrinkle in the U.S. Senate contenders’ efforts to capture southeast Louisiana. It’ll also create an interesting situation for the political action committees and individuals who traditionally give money to PSC members. Those donors will get leaned on heavily. In addition to Skrmetta’s U.S. Senate bid, there’s the case of Public Service Commissioner Foster Campbell of Elm Grove, from the 5th District, who is in the same race, and Public Service Commissioner Scott Angelle of Breaux Bridge, from the PSC’s 2nd District, who is running in the 3rd Congressional District. And there are two incumbents, commissioners Lambert Boissiere of New Orleans and Clyde Holloway of Forest Hill, up for re-election this fall. They represent the PSC’s 3rd and 4th districts, respectively. Holloway may already have a challenger in the 4th District. Community activists and donors are encouraging Mary Werner of Lake Charles to run against him. Werner is the CEO of Sweet Lake Land and Oil Co. and North American Land Co. She is the daughter of Buddy Leach, the former chairman of the Louisiana Democratic Party and one-time congressman. If Angelle wins in the 3rd Congressional District in the fall, Rep. Nancy Landry, R-Lafayette, said she may make a go at the PSC’s 2nd District. “I’m thinking about it,” she said. If the special election is needed, others seriously looking at the potential contest are Dr. Craig C. Greene of Baton Rouge, an orthopaedic surgeon; former Rep. Joe Harrison of Napoleonville; and Baton Rouge Metro Councilman Joel Boe.
Study: Louisiana Has Money Problems
A new study for the Mercatus Center at George Mason Univ. has ranked Louisiana 33rd among the U.S. states and Puerto Rico for its fiscal health. It found that the Bayou State has between 1.99 and 3.26 times the cash needed to cover short-term liabilities. Among the other findings: — Revenues cover 96 percent of expenses in Louisiana, producing a deficit of $216 per capita. — On a long-run basis, net assets are 4 percent of total assets, and total liabilities are 44 percent of total assets. — Total debt is $12.31 billion. — Unfunded pension liabilities are $73.26 billion on a guaranteed-to-be-paid basis. Other postemployment benefits add $5.48 billion to unfunded liabilities. All liabilities are equal to 46 percent of total state personal income.
LED Scrutinizes AAR Project
Over the past 24 months, Louisiana Economic Development has seen 15 companies obliged to pay back $8.3 million in reimbursements to the state for up-front business incentives they were provided to relocate or expand here. The money had to be returned to the state because the companies — most often due to unforeseen market conditions — didn’t measure up to expectations outlined in their cooperative endeavor agreements. The issue made a splash in statewide news coverage as a handful of companies that had received incentives announced plans to make layoffs, shutter operations or abandon construction. That’s why, LED secretary Don Pierson said, the state requires contract language for discretionary incentives that compels companies to reimburse the state. For statutory incentives — those established by law — LED also builds in performance-based rules. The number of projects that have made reimbursements or reduced payments so far this year has been four, with the reimbursements valued at $134,357. But more could be on the way as reporting deadlines draw near. AAR’s aircraft maintenance operation in Lake Charles is one of the latest that has observers concerned. Expansion plans appear to be slowing, and LED is evaluating the company’s performance — an analysis that could lead to a reduction of the reimbursement of AAR’s capital expenditures. “We are working hard to support AAR in its goal of continuing and expanding operations at its Chennault International Airport facilities,” Pierson said. “The company is actively pursuing long-term contracts with major airlines and air transport companies. In the event that the company were to close its facilities before Sept. 30 — an outcome we are working hard to avert — the company would owe approximately $490,000 to the state for payroll underperformance in the project year ending Sept. 30, 2016. The company also would owe the state of Louisiana $2 million for unmet performance targets in future project years.” Over the past couple of months, Bell Helicopter changed its jet production plans in Lafayette and Union Tank Car moved forward with lay-offs in Alexandria. Bell Helicopter is not in an underperformance situation right now, Pierson said. But the company would owe the state a reimbursement equal to 30.5 percent of any payroll shortfall if it doesn’t create 75 jobs by the end of the calendar year. Union Tank Car did have payroll underperformance issues and has made reimbursement payments totaling $1.7 million. Nucor announced plans in December to shutter its St. James Parish steel mill. Pierson said Nucor and the state “continue to maintain a positive dialogue about the company’s existing facilities and investment, as well as constructive discussions about potential future investment in Louisiana.” To date, Nucor has received a $30 million performance-based grant. Due to the company’s decision not to move forward with another phase of capital investment, Nucor is repaying $30 million in state bond obligations. Pierson said it’s important to note that sometimes “clawback” penalties are not fully invoked. If a company produces a portion of what they projected, LED will provide a portion of the incentive benefit at a reduced rate.
U.S. Senate Forums Stack Up
There’s at least one televised debate already on the books for the U.S. Senate race. It’ll take place Wednesday, Nov. 2, in Baton Rouge, and is being hosted by Raycom Media. Stations carrying the debate include WVUE-TV New Orleans, WAFB-TV Baton Rouge, KSLA-TV Shreveport and KPLC-TV Lake Charles. In the event of a runoff, a second debate will take place on Thursday, Dec. 8, in Baton Rouge. To participate, candidates must be polling at five percent or higher in a survey that will be commissioned by Raycom Media and its partners. Candidates have until June 15 to agree to participate. Once again, the Louisiana chapter of the National Federation of Independent Business will be partnering with the Restaurant Assoc. and the Retailers Assoc. to host a forum focused on small business issues. The U.S. Senate forum will be held at Ruffino’s De La Ronde Hall in downtown Baton Rouge on Wednesday, June 29 at 11:30 am. Invited candidates include Congressman Charles Boustany, Public Service Commissioner Foster Campbell, Congressman John Fleming and Treasurer John Kennedy.
Administration Splits With Unions On Bill
On the final day of the second special session, it went largely overlooked when Gov. John Bel Edwards signed into law HB 887, despite appeals from the teachers unions to veto it. It was an independent move from a governor who’s always been closely linked to the groups. The bill from Rep. Steve Carter, R-Baton Rouge, paves the way for a new charter called Thrive Academy that will operate autonomously in Baton Rouge with oversight from the Legislature. The bill passed the House and Senate during the regular session with overwhelming support. Les Landon, spokesperson for the Louisiana Federation of Teachers and School Employees, said opponents may have waited too late to lobby the bill. “We believe it’s bad policy and will be monitoring it,” Landon said. “But we can’t fault the governor for signing something that had so much support.”
State GOP Gets Day In Court
The Republican Party of Louisiana has begun its courtroom challenge to provisions of the McCain-Feingold campaign finance law that, they say, “disadvantage state political parties as compared to super PACs.” “PAC” stands for political action committees. Executive director Jason Doré, who’s spearheading the effort, said the challenged provisions prevent state political parties from using state-regulated contributions for traditional party activities even if the activities involve communications that are undertaken with no candidate coordination. Politico Magazine is calling the case “The Next Citizens United” — referring to the groundbreaking U.S. Supreme Court case that gave super PACs the ability to collect unlimited donations. That would certainly be a big takeaway for the state party with this legal challenge. The oral arguments on summary judgment took place before a special three-judge court, from which direct appeals to the U.S. Supreme Court are allowed.
For more Louisiana political news, visit LaPolitics.com or follow Jeremy Alford on Twitter @LaPoliticsNow.
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