Governor, Treasurer Trade Words

Jeremy Alford Wednesday, May 4, 2016 Comments Off on Governor, Treasurer Trade Words
Governor, Treasurer  Trade Words

It was Oil and Gas Day at the State Capitol, and a group of elected officials spent their lunch break extolling the virtues of the industry and offering a small touch of political debate courtesy of the treasurer and governor.

One of the three U.S. Senate candidates who appeared before the group gathered outside the Capitol Park Welcome Center, state Treasurer John Kennedy, strayed from his campaign speech to question the policies of Gov. John Bel Edwards’ administration. He accused the governor’s Medicaid program of being riddled with fraud, and criticized Edwards’ tax proposals, many of which were adopted in this year’s special session.

“His plan is for Louisiana families to cut their budgets so Louisiana government doesn’t,” Kennedy said.

Marc Ehrhardt, executive director of the Grow Louisiana Coalition, one of the day’s sponsors, was tasked with introducing Edwards following Kennedy’s speech.

Ehrhardt said, “Either our timing is perfect or incredibly awkward.”

Edwards explained, as he has done before, that he inherited a $2 billion collective budget shortfall, which he also described as the largest in Louisiana history. He added that the energy industry was shielded from any major tax changes in the special session as well.

“I did not propose a single measure targeted at the oil and gas industry,” Edwards said. “I know now is not the time to do that.”

The governor described Kennedy’s accounts of Medicaid fraud as “inaccurate,” noting private companies are on the hook for that, not the state of Louisiana. He added that he is not trying to grow state government through tax increases.

“It was strictly a continuation budget, in the strictest sense,” Edwards said of the budget for the current fiscal year, which needed to be propped up with new revenue.

The event was co-sponsored by the Louisiana Mid-Continent Oil and Gas Assoc. and the Louisiana Oil and Gas Assoc. Some 50 businesses from around the state participated.

Opposition Juvenile Justice Bills

District attorneys are expected to oppose a move to include 17-year-olds in the juvenile justice system, one of Gov. John Bel Edwards’ centerpiece proposals for this legislative session.

Louisiana is one of only nine states that try all 17-year-olds as adults, and Edwards said he would look to change that in his opening statement to the legislature this year. SB 324 by Sen. J.P. Morrell, D-New Orleans, would make the change if it were passed.

Pete Adams, executive director of the Louisiana District Attorneys Assoc. (LDAA), said he will oppose the measure as it stands. The juvenile justice system already struggles to keep up with its current caseload, he said, and it simply wouldn’t have the funding or resources to take on the cases of an additional age group.

He said the juvenile justice reform promised under previous governors hasn’t been delivered, and in fact, the department’s funding has been slashed in recent years. Representatives from the LDAA will testify against the bill if it remains unchanged in committee, Adams said. “We believe this is dangerous and inappropriate for the situation Louisiana is in,” he added.

If funding and resources were available, however, Adams said he and the LDAA would be more likely to support a measure to move 17-year-olds into the juvenile justice system. He said with funding triggers that allowed the move to be made once a certain level of funding is provided, the change “would be more appropriate.”

Shauna Sanford, Edwards’ press secretary, said the administration plans to go forward with the bill and it is working with district attorneys to address their concerns. “We’re open to making changes,” Sanford said.

A report on the issue, which was commissioned by a House resolution last year and released in February by the LSU Institute for Public Health and Justice, recommended making the change, saying that “findings suggest that this change would benefit public safety, promote youth rehabilitation and create long-term savings.”

Legislature Considers Fantasy Gaming

Rep. Kirk Talbot, R-River Ridge, faced opposition to his HB 676 to legalize fantasy gaming before the bill even had its first hearing.

The Louisiana Family Forum asked its members and followers to oppose the bill “in the interest of protecting Louisiana citizens from the addictive nature of online gambling and from criminal activity and especially in the interest of protecting Louisiana children.”

Rep. Joe Lopinto, R-Metairie, got a similar bill through the House last year, but ran into trouble on the Senate side when the Louisiana Video Gaming Assoc. voiced concerns about his proposal and the competition it would have created.

“I think we’re only one of three states that don’t allow it, and I don’t see it as an expansion of gambling,” Talbot said, adding that it may be a few weeks until he tries to move his legislation.

The regular session is scheduled to adjourn on June 6.

Looking Ahead To Redistricting

The latest population estimates from the U.S. Census Bureau show that Louisiana’s population growth, while less than that of the rest of the nation, is still better than it has been since the 1970s. This likely means the state’s six congressional seats are safe. That’s according to John Couvillon of JMC Analytics and Polling, who has a new breakdown of the numbers on his website.

Here are the major legislative takeaways from Couvillon:

— Orleans and St. Bernard were the fastest growing parishes between 2010 and 2015. They could recapture two of the four state House seats that were eliminated during the 2011 reapportionment in the wake of Hurricane Katrina.

— The I-10/I-12 corridor parishes posted a 5 percent population gain between 2010 and 2015. The growth between Lafayette and the Mississippi state line means that a new House district is likely to be created either in Ascension, Livingston, Tangipahoa or St. Tammany parishes, while a fourth new seat will likely be created in and around Lafayette.

— Since the state House is fixed at 105 seats, those four gained seats have to be offset somewhere else. Currently, it looks like Caddo and Jefferson Parishes could lose a seat each, while a third seat would come from central/northeast Louisiana and a fourth seat from East Baton Rouge Parish.

A final qualifier from Couvillon: “It’s important to emphasize that nothing is final until the official April 1, 2020 Census count. (The July 1, 2015 figure was an estimate.) Furthermore, internal legislative politics can and will play a large part in determining the specific seats that are added or eliminated.”

Thresholds For LABI PACs Changed

The four independent political action committees of the Louisiana Assoc. of Business and Industry have voted to increase the threshold for automatic endorsements of legislators.

To get endorsements in the past, lawmakers had to vote along with LABI 75 percent of the time on select legislation. That bar has now been raised to 80 percent for an automatic endorsement.

Last year, nine senators and 30 House members received automatic endorsements. If the new rule had been in place in 2015, only five senators and 19 House members would have gotten the big nod.

“This year has been a pivotal year for Louisiana businesses,” NORTHPAC chair Terry Baugh said. “It is more important than ever that our legislators support pro-growth policies that will create more jobs for Louisianans and generate more revenues for the state.”

LABI’s PACs last increased the threshold for legislative endorsements in 2000, hiking the 70 percent line up to 75 percent.

“The LABI endorsement sends a strong signal to voters whether or not their lawmakers are voting for policies at the Capitol to support job growth and economic expansion back home,” said Brian Landry, executive director of LABI Political Action. “Given the increasing value of this endorsement and the growing role it has had in recent elections, our members felt it was time to raise the bar.”

Union Chief Floats Policy Ideas

At a public forum sponsored last month by Leaders With Vision in Baton Rouge, Louis Reine, president of the Louisiana AFL-CIO, offered two ideas he thought lawmakers should take up this year in regard to budget management and tax revenue.

He said lawmakers may want to consider separating the state budget from the federal budget, or the portion of spending that Louisiana gets directly from the federal government. They should then address each of the two categories individually.

“Then you’re talking about apples and apples and oranges and oranges,” Reine said. “If we’re going to talk about state revenue, this will give you a clearer picture.”

If a second special session is called, Reine told those gathered at the forum, he’d like to see a 25-cent tax passed on all alcoholic drinks served in businesses for the purposes of public consumption.

A second special session would be needed to raise taxes, which is not allowed during regular sessions in even-numbered years. The budget being drafted in the ongoing regular session is $750 million short of being fully funded.

“Four drinks at dinner would cost you one dollar,” he said. “The DWI on the way home costs about $10,000.”

After the forum, he added, “The majority of people who walk in a bar just ask for a Bud Light. They don’t ask how much it is.”

House Education Committee Restocked

Over the past few weeks, there have been at least seven changes to the House Education Committee’s membership. And there could be more alterations to come.

Those removed from the committee received their appointments early on in the term during a rush to fill seats, and subsequently made requests to be reassigned. In many respects, their replacements represent solid votes in favor of the education reforms of recent years ushered in by former Gov. Bobby Jindal and the business community.

Some of those reforms, including vouchers and charter schools, have been targeted by Gov. John Bel Edwards’ administration for overhauls.

The committee being stacked with votes to block Edwards’ push is partly the spoils of having an independent speaker.

Rep. Chris Broadwater, R-Hammond, and Rep. Reid Falconer, R-Mandeville, were recently added. Removed from the Education Committee over the past few weeks were Reps. Dodie Horton, R-Haughton; Barry Ivey, R-Central; Rogers Pope, R-Denham Springs; and Julie Stokes, R-Kenner.

For more Louisiana political news, visit www.LaPolitics.com or follow Jeremy Alford on Twitter @LaPoliticsNow.

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