This Morning's Headlines / Thu, Dec. 11, 2008
News Alert: Jindal: Budget cuts, but no tax hikes or tapping rainy day fund
Gov. Bobby Jindal has ruled out raising taxes or tapping the “rainy day” fund to address the current budget shortfall. He stressed that every department could potentially be cut, including those traditionally protected by statute or considered non-discretionary. While the state’s economy is outperforming the nation as a whole, “Louisiana will not be immune to the national downturn,” Jindal said, while flanked by his cabinet today at the Governor's Mansion. Jindal says infrastructure projects already approved are being accelerated in an attempt to jolt the economy. All departments have completed efficiency audits, which will be posted online. The Revenue Estimating Conference meets Monday to address the budget shortfall, expected to be at least $1.3 billion or greater due in part to falling oil prices and the overall economic slowdown--David Jacobs
Unprecedented early snowfall blankets Capital Region
This morning's snowfall was historic, according to Danielle Manning, meteorologist with the National Weather Service’s New Orleans/Baton Rouge office in Slidell. "This is the earliest measurable snowfall ever in the New Orleans area and also the Baton Rouge area," she says. "Obviously it's unusual for us to get snow, and very unusual for us to get it this early."
The snow—Manning estimates three inches fell in East Baton Rouge Parish—was caused by an upper level low pressure that "closed off" and became an extremely cold core system. The resulting cold air allowed the snow to hit the ground still frozen rather than melting in the atmosphere, Manning said.
This morning's snowfall is not necessarily an indication of more to come, she added, noting that individual storm systems have no bearing on how the rest of the winter storm season will shape up.
This is the first time that Baton Rouge has seen measurable snow since February 1988. The NWS forecast two to four inches of accumulation in grassy areas and elevated road surfaces such as bridges and overpasses and two inches on roads and highways.
The Capital Region remains under a winter storm warning until noon. A winter storm warning means significant amounts of snow, sleet or ice are expected or occurring. Strong winds also are possible, and travel conditions could be hazardous or impossible. The Baton Rouge forecast calls for clearing skies this afternoon with a high temperature near 43 and clear skies tonight with a low of about 31.—Steve Clark
Historic snowstorm creates business, electricity, travel headaches
City-parish officials asked drivers to avoid interstates 10, 12 and 110 if possible because of conditions caused by this morning’s historic snowfall. The Department of Public Works uses sand to address icy roads, responding to requests from law enforcement, DOTD and the public; call 311 in East Baton Rouge Parish to report icy roads. Nonessential city-parish employees were asked not to report to work, and there will be no garbage or recycling service today. Regular office hours resume Friday. For a list of highway and bridge closures, visit the Louisiana State Police Web site here. For information about what parish roads are open, go to brgov.com.
—Entergy Regional Customer Service Manager Jeff Holeman reported about 17,000 customers were without power in metro Baton Rouge at about 12:30 p.m. Workers are coming in to help from New Orleans and Lake Charles, and Holeman says most customers should have power restored tonight.
—As of about 3:30 p.m., DEMCO was reporting about 25% of their customers were without power, including nearly 4,800 in East Baton Rouge and 13,800 in Livingston. Spokesman David Latona says it’s too early to say how long it will take to restore power to everyone, but a call has gone out for 100 extra workers to help. The bad news is that some limbs damaged by the recent hurricanes have fallen on some of the power lines, he says. The good news: The rising temperature is melting the snow piled up on the lines.
—Anthony Marino, director of aviation at the Baton Rouge Metropolitan Airport, says the weather caused a few flight delays this morning, though things were back to normal by 11 a.m. Airport staff, meanwhile, spent the morning keeping the runways clear of slush using front-end loaders and brushes mounted to vehicles. Marino said the airlines maintain their own deicing equipment—even in south Louisiana—but won't start deicing until the frozen precipitation stops falling. "The airport was open," he says. "Our people were doing what they're supposed to do: keep the runways open. The airlines, now that's a different story."
—All of the anchor stores at the Mall at Cortana were open Thursday, though "a few dozen" of the 110 retailers in the shopping center were late in opening because employees were delayed by the winter weather. Mall officials say they anticipate a busy day because schools were closed and Christmas is two weeks away. Mall of Louisiana General Manager Todd Denton says the mall expects to become "extremely busy" Thursday, as the roads clear up. "Things are picking up over here," he says.
—The Capital Area United Way has set up a phone line for people who need assistance with the snowstorm. To get in touch with community services and volunteers, call 211.
—Cox says the widespread snow, sleet and ice could lead to service interruptions across south Louisiana. Customers don't need to call the company to report issues with cable, Internet or phone service.
—All East Baton Rouge Parish Library locations are closed today, but plan to reopen Friday.
—State government offices across the Capital Region were closed today.
—East Baton Rouge Parish Schools were closed today. They will reopen Friday.
—LSU is remaining open through finals. Any status changes will be posted at lsu.edu.
—It's Baton Rouge's snowiest day since 1988, and 225 magazine wants your pictures to prove it. E-mail your favorites to rebecca@225batonrouge.com. Then, check out 225's photo gallery of the snowy day across the Capital Region at 225batonrouge.com.
City-parish plans to buy Government Street land for parking garage
A measure that would authorize the city-parish to spend $1.05 million for a .6-acre piece of land at Government and St. Louis streets is scheduled to go before the Metro Council next month. Walter Monsour, chief administrative officer, says the land would be used for a parking garage that would be needed for a proposed River Center expansion. "It would be a good piece of property to have," Monsour says. If the council approves the deal, Monsour says that would give the city more than half the land needed for the parking garage. Voters rejected a $989 million bond issue that would have paid for the River Center work and a downtown tourist attraction last month. The plan is to put the measure back on the ballot in fall 2009, the earliest a new election can be held, Monsour says.—Timothy Boone
Murky future for auto rescue amid GOP opposition
The Senate's top Democrat called for a vote on the $14 billion auto industry rescue package as early as this afternoon while the White House lobbied for votes, arguing that the economy can't stand massive new layoffs. "We have danced this tune long enough," Senate Majority Leader Harry Reid said, adding he hoped for separate votes today on compromise legislation backed by Democratic leaders and the White House, and a Republican version. If not, the Nevada Democrat said, senators will have a test-vote Friday morning to force a final up-or-down vote within days.
Republicans are directly challenging President George W. Bush, arguing that any support for the domestic auto industry should carry significant concessions from autoworkers and creditors and reject tougher environmental rules imposed by House Democrats. The House approved the plan late Wednesday on a vote of 237-170. It would infuse money within days into cash-starved General Motors Corp. and Chrysler LLC. Ford Motor Co., which has said it has enough cash to make it through 2009, would also be eligible for federal aid.
Foreclosures drop 23% statewide
The number of foreclosure filings in Louisiana fell by 23% in November, while the figure nationally was up 28%. According to RealtyTrac, there was one foreclosure filing per 3,631 Louisiana households in November, compared with one filing per 488 U.S. homes. Despite the year-to-year bump, officials with RealtyTrac say foreclosure activity was at its lowest level since June, thanks to new state laws, aggressive loan modification programs and self-imposed moratoriums on seizures for the holidays. But the lower activity may be a lull before foreclosures pick up in early 2009, because of rising loan delinquencies. Once again, Nevada had the highest foreclosure rate, with one per 76 homes in the state.
Shaw awarded Corps contract
The Shaw Group's environmental and infrastructure division has been awarded a contract by the U.S. Army Corps of Engineers to remove munitions and provide environmental cleanup at military bases and other defense sites. Shaw is one of five companies that will share the Department of Defense's Military Munitions Response Program contract, which could be worth a total of $180 million. Shaw has helped the Department of Defense with munitions cleanup for more than 20 years.
PAR calls for caution on Medicaid reform plan
The Public Affairs Research Council outlines concerns with the state's new health care reform agenda in "Assessing the Louisiana Health First Plan." The research brief urges lawmakers to be cautious in deciding whether to support the Department of Health and Hospitals in its proposal to reform the state's Medicaid program by applying managed care principals used in the private-sector insurance market. One provision of the plan being pitched by DHH Secretary Alan Levine would change how Medicaid services are provided and paid for by adopting a system similar to what Levine implemented in Florida while serving under Gov. Jeb Bush. The Florida model coordinates care through HMO-style private companies. Two of PAR's two chief concerns are that DHH's reforms would not be implemented statewide and would rely on nonrecurring revenue to pay for ongoing services. PAR's research brief is available at la-par.org.—Steve Clark
Two LSU biologists make science magazine's top 100 list
LSU professors Mark Batzer and Brent Christner have made Discover magazine's annual list of the top 100 science stories of the year. Batzer, a distinguished professor in biological sciences, was mentioned in the No. 90-ranked story on the sequencing and analyzing of the platypus genome, which determined the animal had bird, reptile and mammal ancestors. Read the article about his work here. Christner, an assistant professor of biological sciences, was mentioned in the No. 88-ranked story on his research on rain-making bacteria. Read the article about his work here.
EATEL adds three HD channels
EATEL has added three more high definition channels to its FiberEdge lineup. Customers can now watch ABC Family, Disney Channel and Fox News in HD. EATEL now offers 43 channels in HD.
News roundup: 'Benjamin Button,' 'Frost/Nixon,' 'Doubt' lead Golden Globe nominees … More families cutting back on day care to save money … IberiaBank prices stock offering
Awards season has started: The Curious Case of Benjamin Button and Frost/Nixon led the Golden Globes today with five nominations each, among them best drama. Doubt also received five nominations, including four acting slots. Other best drama nominees: The Reader, 'Revolutionary Road and Slumdog Millionaire. None of the films nominated for best drama has been released in Baton Rouge. The year's biggest hit, The Dark Knight, earned just one nomination despite strong buzz. As expected, Heath Ledger was nominated posthumously as supporting actor for his acclaimed portrayal as the Joker.
Gotta save somewhere: Enrollment at some day care centers is dropping, and nanny agencies are reporting mounting layoffs as families look to cut child care costs, The Wall Street Journal reports. For some families, child care expenses are as high as mortgage payments. Parents are asking grandparents to serve as babysitters, switching shifts at work or bringing their children to work.
Plans to raise $95 million: IberiaBank, which earlier announced plans to offer 2.5 million shares of stock, says it will price them at $40 a share. The Lafayette-based bank expects to net about $95 million from the deal, which is expected to close Tuesday.
Are you the fittest exec in the Capital Region?
Monday is the deadline to enter Business Report’s first Fittest Execs competition, in which Capital Region business executives compete in four categories (men under 50, men over 50, women under 50 and women over 50). The competition is limited to C-level, president, vice president, owner, partner, executive director or retired executives of companies or corporations with more than five employees. Fitness appraisals will take place at Bally Total Fitness Baton Rouge through Friday, Dec. 19, with the results to be announced in the Jan. 13 issue of Business Report. Click here to register or for more information.