This Morning's Headlines / Fri, May 09, 2008
News Alert: State income boosted by $824 million
Natural resources continue to keep Louisiana afloat, according to the Revenue Estimating Conference. The panel, which is charged with identifying money for the state, recognized an additional $462 million for the current budget year and another $362 million for Fiscal Year 2009. It’s a "conservative" estimate, according to Greg Albrecht, chief economist for the Legislative Fiscal Office, buoyed chiefly by soaring oil and natural gas prices. "I've been in meetings and said this looks like the late 1970s," Albrecht says, "but this is a different world." Tax collections are in varied conditions as Louisiana remains in a post-hurricane economy, he added, but mineral money is solid -- even though the dollars swim in an unpredictable sector. Still, there were reasons for many lawmakers, eager to spend the newfound cash, to rub their collective hands together. The estimated price for a barrel of oil was increased by more than $10 for the coming year, up to $84.23. Even with the increase, that's still a conservative estimate -- oil is trading at more than $125 a barrel right now and there are no indications the price will go down significantly. As for natural gas prices, a hike of $1.46 is also projected for 2009, up to $8.72/mmbtu. "It's an increasing reliance on oil and gas," Albrecht says, framing a budget picture that a few on the panel didn't relish.
Senate President Joel Chaisson, a Destrehan Democrat, and Commissioner of Administration Angele Davis sought to soften the projection by manipulating oil and gas prices in a more conservative manner. But in a move that shows a widening split in Gov. Bobby Jindal’s leadership team, GOP House Speaker Jim Tucker of Terrytown opposed the change, arguing that the panel has traditionally accepted the forecast prepared by the LFO. "We have to protect that process," Tucker says.
James A. Richardson, the final member of the estimating panel who works as an economist at LSU, made the motion to approve the forecast -- with the caveat that a special committee be formed to explore different ways of preparing the projections. It’s a difficult science, he says, that's difficult to get exactly right. "The only thing we really know about the forecast is it's going to be wrong," Richardson says. --Jeremy Alford
Coca-Cola expanding, adding 113 jobs
Baton Rouge Coca-Cola announced today it is increasing the the size of the bottling and distribution plant it is building near Baton Rouge Metro Airport by 50%, a move that will add up to 113 new jobs over the next four years. The expansion will allow the plant to produce and distribute Powerade and Vitamin Water drinks for Louisiana and neighboring states.
Coke officials made the announcement along with Gov. Bobby Jindal, Louisiana Economic Development Secretary Stephen Moret, Mayor Kip Holden and Baton Rouge Area Chamber of Commerce President Adam Knapp. Darian Chustz, president of Baton Rouge Coca-Cola, says the first phase of the new plant will open at the end of the year. "Baton Rouge is perfectly positioned to be a southeastern regional hub for the Coca-Cola system, and we are excited to play a key role in the expansion of our industry, as well as serve as a driver of economic growth in our community," he says.
The new jobs will have an average salary of $45,000. The 270,000-square-foot expansion will bring the size of the plant to 770,000 square feet and raise Coke's investment to $178 million. The plant will begin producing Powerade and Vitamin Water next year, followed by additional drink lines in 2010 and 2012. With the additional hires, Baton Rouge Coca-Cola will have more than 600 employees.
Eight vie for seat on Library Board
The Metro Council is scheduled to make a key appointment to the East Baton Rouge Parish Library Board of Control next week. Council members will vote on a replacement for Dorothy Stepteau, who is going off the board after 15 years. Candidates for the seat are Mariano Hinojosa, Rev. Tommy French, Eric Lewis, Leroy Colter, Elaine Rougeaux, Elizabeth Bingham, Kathryn Arrington and Eleanor Perret. Lewis, the head of the Baton Rouge Black Chamber of Commerce, reportedly has the backing of Council member Joe Greco. Stepteau had been a supporter of relocating the main library branch downtown. The new spot on the seven-member board comes as the issue of building a library branch in the Rouzan development heats up. Stepteau was seen as being a swing vote on the issue. The Metro Council will appoint another member to the board in July, to replace Stephen Moret, who is stepping down because of time constraints from his job as Louisiana Economic Development secretary.
Master plan complete for riverfront project
Developer Pete Clements says the master plan is complete for River Park, his mixed-use development on 36.3 acres next to Hollywood Casino. Mayor Kip Holden and Clements will announce the details at Tuesday’s 8 a.m. meeting of the Downtown Development District at the Louisiana Art & Science Museum planetarium. Clements declined this morning to discuss specifics of the plan before Tuesday, but has indicated the development could include condos, office and retail space, a hotel and a restaurant.--David Jacobs
Fleur de Lis closed because of 'family emergency'
Looking for a place to eat tonight? Scratch Fleur de Lis off the list. The venerable Government Street pizzeria is closed indefinitely because of an undetermined family emergency. Mid City business owners say they are keeping an eye on Fleur de Lis, which has been closed since last Saturday. The 61-year-old restaurant has long been one of the favorite pizza places in the city.
La. Politics by John Maginnis: The windfall challenge
After today's meeting of the Revenue Estimating Conference, legislators have more to spend in the coming budget, but the governor has served notice that he won't let them do it. Gov. Bobby Jindal announced Wednesday that he wants the new recurring revenue to go to replace $420 million in one-time money in his proposed budget. Then he wants to set aside that freed-up, one-time money to form a surplus not to be spent until next year. His enforcer is the constitutional spending cap. There is only room under it for $40 million more in the current fiscal year and $116 million more in the budget bill. To lift the cap would take a two-thirds vote of both houses, which the governor's allies can easily block in the House. The governor's next and harder challenge will be to rein in and make room for the major income tax cut bill to be voted in House Ways & Means Committee on Monday.
--Though Woody Jenkins, who lost the 6th Congressional District race to Don Cazayoux, is keeping open his options of running again in the fall, the new congressman might face another Republican challenger. Laurinda Calongne, whom Jenkins beat in the GOP primary, says in a statement she is "very likely to run in November." Also, Board of Elementary and Secondary Education member Chas Roemer, the 38-year-old son of former Gov. Buddy Roemer, said he would decide about running in the next two weeks. Rep. Hunter Greene, R-Baton Rouge, is not running, sticking to the decision he made for the special election.
--Despite his own disclaimers and experts' arguments of why it won't happen, speculation persists that Gov. Bobby Jindal will be Sen. John McCain's running mate this fall. Now McCain's staff is putting Jindal's name out there, according to New York Times columnist William Kristol. Kristol wrote this week that in separate conversations four McCain staffers and advisers mentioned Jindal as a possible vice-presidential pick. Those comments came after McCain and Jindal spent time together in New Orleans recently, with observers noting the chemistry between the two.
John Maginnis publishes LaPolitics Weekly at Lapolitics.com.
Editor: 'Cutesy deal' for Senators, not for taxpayers
The Louisiana Senate jokingly passed a bill to wipe out state income taxes, in a move that one senator called a "cutesy deal." But Business Report Editor JR Ball says the real joke is on middle-class taxpayers, who won't be getting any sort of relief. "(Gov. Bobby) Jindal didn’t want to have to veto a tax-cut bill that was certain to pass in the Legislature," Ball says. "So what do you do? Get your legislative allies to alter the bill so that it’s so ridiculous no one in their right mind would ever pass it." Read the column here. Send comments to editors@businessreport.com.
Columnist takes aim at Greene's move
State Rep. Hunter Greene, R-Baton Rouge, has introduced a bill that calls for the state to stop publishing legislative acts in its official journal, The Advocate and post them instead on the Legislative Web site. While Greene says the measure will save the state $200,000, Sam Hanna Jr., a columnist with The Concordia Sentinel questions the move. Hanna says it's caused by personal issues Greene has with the Louisiana Press Association, Business Report and The Advocate. "In short, Greene wants to amend the state's constitution to do away with an independent watchdog providing the people with the means to read about official acts passed by the Legislature," Hanna says. Read the column here.
Poll: Holden overwhelming early favorite in mayor's race
Mayor Kip Holden has a big early advantage on his re-election campaign, according to Daily Report readers. Seventy-eight percent of the people who responded to an online survey say they would vote for Holden if the election were held today. Eight percent say they would vote for Metro Councilman Wayne Carter, who announced his candidacy earlier this week. Fourteen percent say they would vote for neither Holden nor Carter. More than 2,250 people participated in the survey.
Today's question: What best describes your spending habits for this Mother’s Day?
News roundup: Many working mothers would take pay cut for more time with children; LSU students win regional advertising competition; postal rates going up Monday
The one Mother's Day present you can't buy: Forty-three percent of working mothers say they would take a pay cut in order to spend more time with their children, according to a survey by CareerBuilder.com. Fifty-one percent of working mothers would quit their jobs if their spouse made enough money to support the entire family. Advertising students to compete nationally: Advertising students from LSU's Manship School of Mass Communication won first place in District 7 of the National Student Advertising Competition in Chattanooga, Tenn. They'll compete against 17 teams from around the country at the American Advertising Federation national convention in Atlanta on June 8-9. Three days left to save a penny: The cost of mailing a first-class letter will go up a penny to 42 cents on Monday. The U.S. Post Office has already started selling the new stamps. The increase comes one year after postage rates jumped up two cents.
