It looks as if the SAVE plan will save Louisiana’s stressed fiscal year 2016 budget, thanks to the typical force alignment process seen in the state’s budgetary politics.
At present, the House of Representatives remains balky on SB 284 by state Sen. Jack Donahue, which would create a complex mechanism that allows higher education institutions to charge a fee, presumed to be $1,500 annually, per student; allows that to exist as a tax credit accessible for the families involved regardless of whether they have that much tax liability; and draws from the created SAVE Fund that gets filled from tax increases in other areas such as on cigarettes, meaning the families never pay the bill nor receive the credit rebate while the funds flow directly to higher education. The law promulgates such gyrations because Republican Gov. Bobby Jindal has declared that any bills that increase taxes without offsets elsewhere and any budget with a net tax increase he will veto.
Without the Student Assessment for a Valuable Education plan made into law, a budget with a net tax hike that no accounting gimmickry can hide (taxes definitely are going up) seems inevitable, bringing the state as previously mentioned to the brink of a clash between an irresistible force and an unmovable object, with resolution attained only when one side politically can overpower the other. While that conflict would play out, after the Jul. 1 start of the new fiscal year fiscal chaos will reign.