The version
of HB
1 that came from the House represented a significant departure from the
version initially introduced by Gov. Bobby
Jindal. Most dramatically, it removed large swaths of some kinds of “one-time
money,” such as transfers of surplus money from dedicated funds and borrowing
from dedicated funds of state-authorized entities, and replaced it with another
kind, a tax amnesty program. It also made some minor across-the-board spending
cuts, eliminated a small amount of wasteful tax credits, and hiked taxes somewhat
on retailers by eliminating the state provision to pay for them acting as sales
tax collectors for the state in a timely fashion.
It also came weighed down by a series of measures that the GOP faction,
self-styled as “budget hawks” because they
talk loudly about budget reform without ever actually addressing satisfactorily
the issue for the most part, stumped to institute budget process reform at
the margins. With
one exception, these would be innocuous to helpful in defining the process.
What came back from the Senate had some substantial differences. It
restored over half of the one-time money in order to reduce many cuts, to fund
public school teacher and some staff pay raises, to make available additional
Medicaid waiver slots to address the huge backlog for service provision, and to
pump more into higher education. It also did have additional money to play
around with, courtesy of better-than-expected
state revenue forecasts recently certified, which proved helpful to pay for
school scholarship vouchers that released (by court order) more money for
public schools and for higher-than-anticipated transition costs for moving the
state out of its archaic and wasteful model of operating public hospitals.
It also took the opportunity, in conjunction with other bills, to
decouple the presumed reform measures from the budget, setting up conflict with
the “hawks” on that issue and on the use of one-time money they refuse to
sanction as legitimate. Almost all of the group are House members and
Republicans, meaning of this kind they comprise about 30 in number or at most a
little more than half of the GOP delegation (their website lists 19 of this
kind, but several more have lent their names to legislation and/or voted with the
19 admitted on measures identified with the group). Add a Democrat and no-party
member identified with the group and they come close to a third of the House
membership.
The only reason the House version came as it did was a product of the
strange bedfellow alliance between the “hawks,” as that budget let them
continue their jihad against one-time
money to make with the inserted process changes their reform posturing more
credible, and Democrats, who this way get the minor tax increase, at least some
influence where otherwise they have none, a chance
to weaken the GOP by exploiting the rift, and get a chance to poke Jindal
in the eye (who propounds the idea of sweeping idle funds gathered in a
predictable and recurring matter for operating expenses). But the Senate budget
version drives a wedge between the two with the spending sweeteners.
In recent years, Democrats have taken to braying long and loudly about underfunding
of education and social services. Yet now the Senate version hands them $2
million more permanently on New Opportunities Waiver slots, tens of millions of
more this next year in higher education, $50 million in a bonus for public
education salaries, and generally bigger government. So they are going to vote
against (and also contrary to all of their Senate colleagues except for the most partisan, ideologically-driven,
race-baiting, and bitter of them all) getting these things they have thrown
hissy fits over and bigger government as a whole?
Not that all of this added stuff is necessary, even for attracting
their votes. The waiver slots are relatively inexpensive although a permanent
commitment and needed to reduce a backlog that might get the state in legal
trouble if not addressed. The jury is out on whether higher education is
committed enough to continuing progress of moving towards a more efficient and
effective system, but that extra money may be justified on that basis. Least
needed is the salary bonus, given the relative gravy train of compensation
enjoyed by teachers (who make on average in base salary in the state make
several thousand dollars more annually that median family income and nationally make about
one-and-a-half times what private school teachers make – and this doesn’t include
the very generous benefits) and that other state employees aren’t getting the
same. Even so, it could be justified if linked to educational reforms, resisted
by a number of teacher unions, by arguing the bonus compensates for the
additional work being put in during the transition process.
However, this budget also might rent dissension within the “hawks.” In
the House, there exists a “hawk”-inspired rule that states under
the present conditions that a two-thirds majority must be secured to approve of
the use of one-time money going to recurring purposes above a certain level,
which pegs the total at about $188 million this year. The Senate version proposes
$272 million of one-time money, but it’s unclear if more than two-thirds of
that total is for recurring things. If not, a simple majority in the House
passes the budget. If so, then the “hawks” would have to achieve essentially
unanimity to even have a chance to block it, without Democrat allies.
Yet given that vetoing it at this late date basically forces an immediate
special session and that Jindal still can cast vetoes on items that deviate more
than trivially from the Senate plan (his office already having signaled assent
to it), and with all of the incentives attached, Democrats would seem to have
little enthusiasm for opposing the product because this likely is the best they
can get in taking advantage of the internecine GOP struggle. If so, this gives
the “hawks” the green light to kvetch about the budget and its decoupling from their
legislative devices (which have become reduced to pilot programs in statute) yet
actually avoid failure and all its implications and inconveniences in having
one on time.
And perhaps this is the outcome everybody wants: the one-time money
goes through with “hawks” opposed, and then this is repeated on the entire package
with perhaps a few more defectors from each party (only a majority of the
seated membership being needed to pass). The budget is solved for another year
and the “hawks” get to “prove” they are reformists by voting against the budget
without actually having to propose and execute responsible and effective
reforms, giving themselves another year to talk a good game in front of their
constituents and the media.
Ironically, of course, if the “hawks” are against bigger government,
their very actions produced it. Had they not issued their fatwa against one-time money, the unholy alliance never would have been
made, and therefore the inducements of more government spending to break it
never needed to happen. Again, Democrats should be thrilled by getting this
something for nothing even as they also tend to their public images by carping
and moaning about the end result.
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