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14.2.18

Use special session to break from old tax model

That Gov. John Bel Edwards endorsed sham “tax reform” in his recent special session call becomes all the more apparent when another example surfaced of Louisiana’s subpar fiscal policy.

In the days prior to the session’s launch next week, the state announced Gameloft would close its New Orleans office, reneging on a deal to bring more jobs to the state. This meant it gave away nearly a million dollars over the past seven years to the gaming firm under the Digital Interactive Media and Software Tax Credit, or almost $25,000 per job created. The total amount actually comes close to $2 million, but the state plans on clawing back over half.

Given its relatively high corporate tax rate, long ago the state adopted a strategy of attracting industry by offsetting this with breaks like these. In fiscal year 2016, these reduced corporate income tax liabilities of around $307 million, compared to total potential corporate income tax liabilities of almost $1.55 billion and actual payments of $145 million. The credit in question handed out around $9 million in that year.

13.2.18

Done right, Medicaid work rules will save much

Although Louisiana imposing work-related requirements for able-bodied adults to receive Medicaid won’t save a lot of money, neither would it have trivial positive pecuniary benefits.

With the state kicking around ideas on how to accomplish this, the devil is in the details. Since federal law doesn’t let the federal government place such a stricture, states must come up with their own regulations consistent with the law’s demand that these improve the health and well-being of participants.

Thus, whatever states come up with, they must show that work conveys physical or mental health benefits, which likely would manifest only among those healthy enough to work and who do not have to care for an infant or one in the offing, and that potential loss of Medicaid because of inability to meet the requirement does not cause the reverse of the law’s imperative.

12.2.18

Democrats ready to sink again good recall bill

Once again, Republican state Rep. Paul Hollis has introduced a sensible bill to put into effect a realistic recall provision in the Louisiana Constitution. Once again, lawmakers, particularly in the Senate, will fight to prevent that from happening.

HB 54 by Hollis would leave unchanged the present 40 percent standard of registered voters for jurisdictions with fewer than 1,000 to trigger a recall election. The remainder of his bill, which tracks his effort HB 272 from last year, would keep 33 and a third percent – the current standard for all populations 1,000 and above – for the 1,000 to 24,999 range, drop it to 25 percent for 25,000 to 99,999, and lower it to 20 percent for 100,000 and above.

Hollis points to the inability to recall past corrupt officials, particularly one in his neck of the woods, as a reason to reduce the numbers in this fashion. Only three recalls in state history (when permitted under a Constitution) have succeeded in gaining ballot placement in jurisdictions over 10,000. Further, no state even approaches Louisiana in terms of the large number of signatures needed; most have far lower standards (although 22 states don’t have such a provision).

8.2.18

Rather than clarify, sweeps decision confuses

Confusion is as confusion does, which sums up perfectly an incomprehensible ruling on an important question in Louisiana governance.

Yesterday, state District Judge Don Johnson issued a ruling declaring a case of a fund sweep unconstitutional. In this instance, the Legislature lifted from Public Service Commission revenues collected by fees on regulated carriers, appropriating some of that amount to pay for other operations of government.

Interestingly, Johnson last week appeared to have delivered two versions, taking different sides. For whatever reason, it all got sorted out yesterday in favor of a dramatic substitution of judicial opinion for the actual wording of the Constitution.

7.2.18

Big-govt senators ask Edwards to help them

Memo to a bunch of Louisiana state senators: Read the Louisiana Constitution.

Earlier this week, 11 of the majority Republicans joined by three Democrats sent a note to Democrat Gov. John Bel Edwards, urging him to call a special session prior to the start of the regular session Mar. 12. This being an even-numbered year, legislators can’t deal with tax bills in a regular session. With a nearly billion-dollar deficit staring lawmakers in their faces for fiscal year 2019, it seems likely that, at the least, the Legislature will have to tackle renewing temporary taxes.

Most prominently signed by the GOP Sen. Pres. John Alario, the authors point out that the sooner, the better for such a session, in terms of options available. Edwards has said he won’t call the session, a power granted to him under Art. III Sec. 2 which also allows him to set the agenda, unless he has a commitment from the leadership of both chambers to raise specific taxes on a permanent basis. So far, particularly the House leadership, like the Senate’s composed of Republicans, has not assented to any permanent tax increases.

6.2.18

Political intrigue swirls around casino move threat

Whether it’s a power play to extract concessions, DiamondJacks Casino’s possible move to Tangipahoa Parish carries plenty of political intrigue.

Peninsula Pacific, the parent company of the facility which bought it about a year-and-half ago, has said it has $100 million to invest in the laggard of Bossier City’s four boats. However, that might not happen in Bossier Parish. That company has floated the idea to move the boat to the Amite River in Tangipahoa Parish in a bid to improve its fortunes.

By most measures, DiamondJacks performs worse than any of the 15 non-land casinos in Louisiana. For fiscal year 2016, it registered the second-smallest take, behind only the Amelia Belle located in an area relatively far from state borders with a far smaller population base than Shreveport/Bossier. Its admissions were among the lowest; together, these statistics translated into the smallest take per admission of all state boats.

5.2.18

Change LA law to bolster govt accountability

Atty. Gen. Jeff Landry may feel pressured into pursuing legal action against opioid manufacturers. But he has no reason to continue defending an unconstitutional law, nor should Louisiana legislators keep it as is on the books.

Recent federal court decisions have taken a dim view of the state’s R.S. 14:122, which begins “Public intimidation is the use of violence, force, or threats upon any of the following persons, with the intent to influence his conduct in relation to his position, employment, or duty …  Public officer or public employee.” It has good intentions, to prevent discouraging such officials from carrying out their duties.

However, it goes overboard as its language can apply to citizens expressing their rights to hold public servants accountable for their actions. In two recent cases, federal courts have registered strong reservations about overbroad application regarding police behavior, refusing to side with government when it has issued citations utilizing this law.