Last
night (just about early this morning), the 2018 Second Extraordinary
Session of the Louisiana Legislature ended in paralysis. The previous hour had
seen some productivity for better or worse.
Worse
was accepting HB 18 by
Democrat state Rep. Katrina Jackson
that expanded the state’s Earned Income Tax Credit. A dozen
Republicans who should have known better supported it, although at least
they placed a hard sunset date on it. To fund it, they raised taxes on mostly higher-income
earners. Also bad: the sunset date for this and discussed tax measures was all
the way into 2025, leaving little incentive to right-size state government.
Better was the operating budget HB 1 by Republican state Rep. Cameron Henry achieving passage. Henry ended up steering a conference committee to accepting a Senate version of the operating budget that relied upon about $500 million in temporarily renewing sales taxes and removing exemptions on a smattering of others, and also set out a schedule of cuts excluding principally health care in case that revenue didn’t manifest.
It
didn’t. Failing first, HB 12 by
Democrat state Rep. Walt Leger
would jacked the sales tax back up by a half percent at the start of next
fiscal year, providing all needed for HB 1 (which gained approval a few minutes
later). It fell
just seven votes short of the two-thirds majority needed to pass a tax only
because 21 GOP members joined with Democrats voting to supersize state
government.
Minutes
later, HB
27 by GOP state Rep. Lance Harris,
which would have pegged the sales tax back on the books at a third of a cent to
raise just over $100 million fewer than HB 12, fell much shorter. While about half of
Republicans voted for it, only three Democrats did. A baker’s dozen of
Republicans rejected both.
With
time about up, Leger brought back up HB 12. It fared even worse, barely
capturing a majority.
Democrats
in the House, joined by a few select Republicans such as state Rep. and
Secretary of State candidate Julie Stokes,
as the clock struck midnight whooped and hollered to pass something. But the
fact is Democrats could have gotten 80 percent of HB 12 in HB 27 had
three-fifths of the over 90 percent who voted against the latter joined the
two-thirds of Republicans in approving it.
Instead,
they got nothing except an almost-certain third special session of the year
that Edwards will call because he’s just about back to where he started at the
session’s start— a budget hundreds of millions of dollars smaller than he would
like. He vetoed the previous attempt like that.
The
events that unfolded show he has little control over his own party. A number of
Democrats originally voted to pass HB 27 in a form hardly different from its
conference committee report and were supposed to have done so again as part of
a deal with HB 18 passage. Yet when the time came, they reneged.
So,
Edwards still can’t claim he’s done anything to change the state’s fiscal
environment, and still finds himself baying for higher taxes. All he
accomplished this session was some minor wealth redistribution by beefing up a
counterproductive tax credit. And, he has the chance to make himself look like
the decimator of state government by vetoing another budget or, absent any
future tax increases, implementing it.
None
of this helps his reelection chances. And he can thank his own party for that.
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