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22.4.23

Maybe not new boss same as old, but fooled again

A new revelation from Bossier City’s contracted city engineer relating to a state grant and a water deal between the city and Port of Caddo-Bossier may explain why a City Council majority passed the deal despite numerous red flags at least one of its members seemed to miss, as part of campaign pursued by the Port, contractor Manchac Consulting Group, and the Republican Mayor Tommy Chandler Administration.

It’s frustrating to me, and perhaps repetitive if not boring to readers, to have to go through this again, because the facts outlined below have been discussed time and time and time and time and time again, and well in advance of the Apr. 4 meeting that approved the deal. But it all necessarily deserves another look as a consequence of statements made at the last, Apr. 18, Council meeting shedding light on the possibility that a strategy of ambiguity engaged in by several parties with a vested interest in seeing the deal go through sought to steer, and seemingly successfully did, skeptical councilors away from a true and full understanding of the deal’s implications.

By now, details of the water deal are familiar: the Port would issue bonds to pay for a water facility for distribution and treatment that Bossier City would run, which would commit itself to a long-term liability equal to the total cost of the bond issue for the right to run it and keep all revenues past costs once that amount had been reached. While the deal would last 40 years, the obligation to rebate (legally necessary because of city ordinances that don’t let the city treat customers in the same water/sewerage class differentially in rates charged) would begin only if and when the city drew a single drop of water from the plant, which could be years into it.

19.4.23

Decree ready to take toll on Arceneaux fortunes

The issue of which no Shreveport mayoral candidate would speak now threatens to exact its toll on the nascent Republican Mayor Tom Arceneaux Administration.

Almost a decade after the city entered into a consent decree with the Environmental Protection Agency and other federal agencies, it finds itself in an increasingly deteriorating situation. With an end date at the tail end of his term – in fact, right around the election for the next – it’s far behind on the work to replace aging infrastructure that threatens water quality and wastewater treatment; so far, in fact, that Arceneaux revealed the city is getting ready to be hit with a $4 million fine for dilatoriness.

Progress drags because the remediation continues to escalate. The final price tag, which started with an estimate of $350 million, now has tripled and the work isn’t nearly complete. Of the 64 identified critical projects as of nearly the end of last year, only a quarter have been finished. An eighth only have started the planning stage.

18.4.23

Don't revive costly, wasteful LA film tax credit

The lobbying has begun in earnest for Louisianans to continue the equivalent of flushing their tax dollars down the toilet with Republican Speaker Clay Schexnayder’s HB 562.

Not only would the bill allow the Motion Picture Investors Tax Credit to continue past fiscal year 2025 it also would make it open-ended, where it currently has a limit of $150 million issued a year (with $180 million redeemable in a year). The credit allows for reimbursement of expenses in film or television production anywhere from 25 to 55 percent of expenses from a base amount of $50,000 to $300,000 on state income taxes; alternatively, these may act as a refundable credit at 90 cents to the buck (which is how the vast majority of the payout occurs given that few beneficiaries principally do business in the state).

The law requires an analysis every couple of years, and over the two decades of the credit’s existence those have shown it to be a black hole spending far more taxpayer dollars than what was returned to state and local governments, costing the state well over a billion dollars. The latest returned the typical dismal numbers for fiscal years 2021-22: total tax dollars collected were about an eleventh of what earnings were generated for, and the return on investment for the former year was 35 cents and the latter 39 cents, meaning for FY 2022 every dollar spent saw 61 cents evaporate.

17.4.23

End ITEP as part of LA property tax overhaul

Republican Treas. John Schroder got told by GOP state Rep. Richard Nelson that anything you can do, I can do better. Voters need to listen to that even if legislators don’t.

Both have announced a run for governor this fall, and both have spoken publicly about something that other candidates haven’t: reform of the Industrial Tax Exemption Program. ITEP allows the state to forgive local property taxes up to ten years for a concern that builds new infrastructure.

However, the governor has veto power over those arrangements, and since Democrat Gov. John Bel Edwards took office he has shaped how the program has worked by saying he will veto anything that doesn’t feature fewer years, a smaller portion written off, and approval of major local government bodies. These actions have had an indeterminate but negative impact on it: a poorly-designed report attempting to show the rules changes didn’t scare off new business failed to assess that properly but in passing indicates those did discourage new activity.

13.4.23

LA colleges shouldn't use race, sex preferences

Why should Louisiana wait on the U.S. Supreme Court? Ban its public universities and colleges from using race, sex, or national origin in admissions decisions – and go further by extending the same to most financial aid.

SB 128 by Republican state Sen. Jay Morris would accomplish this. Insofar as admissions, it anticipates what the Court likely will do before the quarter is out in a pair of cases before it, although that decision also would apply to private and proprietary schools in the state that receive any kind of federal funding, even indirectly.

It makes sense. Even proponents of the practice of affirmative action, where admittance decisions give extra weight to individuals with certain immutable characteristics as a compensation for past discrimination of the entire broad class of such people, admit at best it has a mixed record in aiding presumably disadvantaged groups, while opponents – which include a solid majority of the American public – point out it actually poses harm to such individuals in that it sets them up for failure by admitting them to more-demanding institutions when their backgrounds on the basis of past achievement suggest they would do better at other, less selective schools.

12.4.23

Agenda shifts might fail ambitious candidates

It’s no accident that earlier this week a Louisiana legislator made a long-predicted party switch and a statewide official would choose to announce a deferral of reelection. Both relate to the political fortunes and future of Republican House Speaker Clay Schexnayder.

State Rep. Jeremy LaCombe proclaimed he had shed his Democrat label in favor of the Republican. By the numbers, that now gives the GOP at 71 seats a chamber supermajority plus one and sends Democrats to a dismal 32, of which only five are white like Lacombe.

LaCombe saw the writing on the wall after losing a special election for state Senate against a rookie but solidly conservative Republican, and additionally as a result of reapportionment his district saw its proportion of white voters increase five percentage points relative to its proportion of black registrants, who typically vote for Democrats. Whether that means much in terms of supporting a conservative Republican agenda at first glance seems minimal: with a Louisiana Legislative Log score averaging just over 53 for the past term, it puts him at a lower score than every Republican along with another relatively recent convert who plans to leave the chamber after this year, state Rep. Malinda White (higher scores mean more fidelity to a conservative/reform agenda, and his score is well below both the chamber mean and that of GOP representatives). Conservative votes on some social issues, primarily related to abortion, elevated his score.

11.4.23

Honesty, not evasion, best remedy for mistake

The toughest thing for an elected official to do is pick himself up off the ground after making a blunder. So it’s encouraging that even if they made the wrong choice on hanging a huge future liability around Bossier City’s neck, Republican City Councilors Chris Smith and Brian Hammons made the right choice to face constituents publicly on this issue, as well as take questions on other matters.

The pair will appear Apr. 12 from noon to 1 PM at the Bellaire South Complex at 4330 Panther Drive Bossier City for the monthly meeting of the South Bossier Lunch Group. Smith is an at-large councilor but who lives in south Bossier City, while Hammons represents the southern-most constituency in the city, District 1.

Last week, both voted for a proposal that would reimburse the Port of Caddo-Bossier for costs related to the Port’s construction of a water distribution and treatment facility on its property. The city would operate and maintain this but would not own it. Using figures stated by the Port Commission’s executive director Eric England and reviewing similar bond issue costs, the total liability the city signed onto is $62 million over 40 years beginning payouts as soon as it draws one drop of water at any time during those four decades.

10.4.23

Edwards last speech sanctimonious, deceptive

It didn’t take eight years to understand the hypocritical charlatan that is Democrat Gov. John Bel Edwards, but it was his last State of the State speech that laid it out most plainly.

The annual address by the governor to the start of the regular legislative session was larded up with the typical assortment of misleading statements, either because these didn’t have the proper context or implied something false. As examples of the former, Edwards proclaimed how the state’s all-time low unemployment rate equated to more Louisianans working than ever – but not mentioning the unemployment rate is at a historic low largely because of depopulation (the state having 91,000 fewer residents than when he took office, likely largely economic refugees) and the labor force participation rate being at a 45-year low (absent the pandemic period), 1.4 points lower than in 2016 and in the nation’s bottom ten, leaving the state with almost 35,000 fewer nonfarm jobs than six years ago. And as for the latter, he placed “climate change” and “Storms are getting stronger and more frequent” in the same breath to imply a relationship, when in fact storms haven’t changed in severity or frequency in recent times.

At a few points, however, he did outright lie. One he has often repeated cropped back up on this occasion, that because of Medicaid expansion he triggered – which now costs state taxpayers directly, not even counting the extra federal taxes they pay for it, $451 million a year –  “we haven’t had a single rural hospital closure. Not. One.” In fact, even before he ran for reelection that was demonstrably false.

9.4.23

Easter Sunday, 2023

This column publishes five days weekly after noon U.S. Central Time (maybe even after sundown on busy days, or maybe before noon if things work out, or even sometimes on the weekend if there's big news) except whenever a significant national holiday falls on the Monday through Friday associated with the otherwise-usual publication on the previous day (unless it is Thanksgiving Day, Independence Day, Christmas, or New Year's Day when it is the day on which the holiday is observed by the U.S. government). In my opinion, in addition to these are also Easter Sunday, Memorial Day and Veterans' Day.


With Sunday, Apr. 9 being Easter, I invite you to explore this link.

5.4.23

Prudence requires rejecting LA spending cap hike

Conservatives in the Louisiana Legislature can’t flinch at the chance to keep state spending at a more sensible level.

The Wuhan coronavirus pandemic bonus tax revenues for states, from record increases in federal borrowing sustained by Washington Democrats that force-fed an expanded money supply through the economy, has made state coffers flush last year, this year, and likely the next before it fades away – although this action also eroded the value of those dollars by triggering record price inflation that hardly has moderated. This has produced for last year, this year, and forecast for next year extra dollars to the tune of two and a quarter billion for Louisiana.

Naturally, politicians have plans for that. Around a third has to go to nonrecurring spending that includes mandatory paying off unfunded pensions and replenishing the Budget Stabilization Fund, with the remainder to a few select uses. Both Democrat Gov. John Bel Edwards and legislative leaders have offered to use the balance for capital outlay projects.