The Edwards Administration’s proposal to use $119 million from the state’s emergency savings account, known as the Rainy Day Fund, is meeting opposition from conservative lawmakers who worry there have been too many transfers in recent years.
A new national review of how each state treats their rainy day funds, conducted by Governing magazine using data from the National Assoc. of State Budget Officers, appears to highlight some of those concerns.
For example, Louisiana is one of 17 states that has not yet replenished its savings account since the 2009 recession, which was preceded by years of record deposits.
The balance in Louisiana’s Rainy Day Fund in fiscal year 2009 was $854 million.
Since then, the balance has dropped steadily. That is in spite of the fact that deposits have been made into the account.
As it stands now, the state’s Rainy Day Fund holds $359 million.
The Governing report offers this summary: “States now have a median 4.9 percent of annual expenditures saved for the fiscal year, down from 5.1 percent the previous year. What’s more, four states — Illinois, Nevada, New Jersey and North Dakota — now show no budget reserve funds, up from two states last year. The overall shift is a signal that tighter financial times could be ahead for states as a whole.”
In Louisiana, the Rainy Day Fund’s balance represents 3.7 percent of annual expenditures.
That percentage would, of course, decrease if lawmakers vote to use the Rainy Day Fund to help address a $304 million budget deficit for the current fiscal year, which ends on June 30.
Gov. Edwards is expected to call a special session to host that vote, and other matters, in mid-February.
Edwards Fundraising Report
Gov. John Bel Edwards raised roughly $3.4 million for his re-election campaign in 2016, his first year in office. He will soon report the total to the state Ethics Administration, according to a spokesperson for the Edwards campaign.
At press time, there was no further information about what the Edwards campaign spent last year or how much money it actually has socked away in the bank.
Annual campaign finance reports for major offices like governor are due to the Ethics Administration by Feb. 15.
Edwards’ first-year haul of $3.4 million is comparable to the $3.5 million former Gov. Bobby Jindal raised for his re-election campaign in 2008, which was the first year in Jindal’s two-term tenure.
Jindal was viewed as a rising national star in 2008. He received a handful of $5,000 maximum contributions from political action committees and individuals based in Washington, D.C.
Supporters of Edwards’ re-election campaign insist the governor’s upcoming campaign finance report will show a great number of donors located in Louisiana.
Into The Hall Of Fame
The Louisiana Political Hall of Fame will recognize a new crop of inductees on March 11. The event is back home in Winnfield after traveling off-site in 2016 for a special ceremony in Lafayette.
It’s a diverse mix this go-around, with a reporter, a lobbyist, a mayor and others joining the ranks.
Being inducted as part of the 2017 class are journalist Jim Beam, Judge Jimmy N. Dimos, Rev. Dr. T.J. Jemison, Sr., late lobbyist Bud Mapes and West Monroe Mayor Dave N. Norris.
Edwards May Steer Clear Of Races
As January reached its midpoint, Gov. John Bel Edwards hadn’t decided whom he might support in the Legislature’s upcoming special elections in north and south Louisiana.
It’s possible that the governor, a Democrat, could avoid the races for these legislative seats altogether, especially since all of them are located in districts that lean conservative.
Edwards made a small handful of endorsements last year, helping Baton Rouge Mayor Sharon Weston Broome get elected, but falling short on his other nods for the U.S. Senate, Congress and Public Service Commission.
There are three special elections slated for March 25 to fill seats in the House of Representatives. Candidates have already signed up for the House District 8 race in the Bossier City region, where newly seated Congressman Mike Johnson vacated the post. And there’s the House District 92 contest in the Kenner area, which was prompted by the election of former Rep. Tom Willmott to the City Council there.
The seat in the Acadiana-based House District 42 was made vacant when Jack Montoucet was appointed as the new wildlife and fisheries secretary by Edwards.
If they are needed, run-offs in all these special elections will take place April 29.
The legislative seats will remain vacant during the Legislature’s next special session, which the governor is expected to call for mid-February.
Edwards has said the special session will be needed to help address a $313 million deficit plaguing the current fiscal year.
This year’s regular session will convene on April 10. Thus, new lawmakers elected via special elections may miss a few weeks of the action.
The regular session is expected to host discussions on tax reform and a contentious budget debate for the 2017-18 fiscal year.
GOP Heads To Supreme Court
The Louisiana Republican Party finally filed its appeal with the U.S. Supreme Court for a challenge to the ban on unlimited donations to political parties. A three-judge D.C. District Court decided against the state GOP last year, holding that traditional party activities can “benefit” federal candidates.
“While super-PACs may receive unrestricted funds to do independent activities, political parties are severely limited in their participation by funding restrictions,” said lead counsel James Bopp, Jr., “Fairness and the First Amendment require that political parties be liberated from the ‘soft money’ restrictions on their independent activities so they can effectively participate in our political system by resuming their traditional voter mobilization activities.”
Scalise Delivers For D.C. Mardi Gras
As chairman of Washington Mardi Gras this year, House Majority Whip Steve Scalise, R-Jefferson, has secured a top advisor to President Donald Trump to address the gathering’s annual economic development luncheon.
Stephen Moore, Trump’s economic advisor and a Heritage Foundation fellow, will deliver the keynote at the event hosted by the Jefferson Chamber on Feb. 10 at the Washington Hilton.
Business leaders are already eager for the networking opportunity, which will come within the first 100 days of the new administration.
Washington Mardi Gras is a three-day event organized by the non-profit Mystick Krewe of Louisianans in conjunction with the state’s congressional delegation and others.
For more Louisiana political news, visit www.LaPolitics.com or follow Jeremy Alford on Twitter @LaPoliticsNow.
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