City plans to introduce new bond proposal in the fall

City-parish CAO Walter Monsour told consultants for downtown’s master plan to continue to plan for the River Center expansion, new parking garages and a significant riverfront development, because Mayor Kip Holden intends to put forth a repackaged bond proposal next fall to replace the one voters shot down Nov. 4. The Plan Baton Rouge Phase Two consultants visited this week to meet with various stakeholders. Monsour says the size and content of the next proposal has not been determined. "If you look at the votes of the parish, it's obvious the northern part of the parish, which has always declined to support a bond issue for the entire parish, made a big difference again." One option might be to create a smaller taxing district, reduce the tax and not include projects for the northern end of the parish. "We're going to figure out a way to get this done," Monsour says.—David Jacobs

Amedisys backs profit outlook, counters downgrade

Amedisys backed its 2008 profit and revenue forecasts, and says bill collections were strong in October. The Baton Rouge-based home health company expects a profit of $3.20 to $3.25 per share on the year, on revenue of $1.15 billion to $1.175 billion. The estimates exclude any future acquisitions the company might make. Analysts, on average, are expecting a profit of $3.23 per share and $1.174 billion in revenue. The company said its day's sales outstanding—a measurement of the average number of days it takes a company to collect payment after making a sale—fell by 3.5 days in October. For the first nine months of the year, Amedisys reported an average waiting period of 56.7 days. Analysts were grappling with questions about Amedisys' stock value, and company shares dropped by 12% on Thursday. A Deutsche Bank analyst downgraded the stock to "Hold" from "Buy," citing delays in bill collecting. Bills at least 91 days past due have grown significantly for the company over the past year. Analysts for Oppenheimer and Jefferies disagreed, however, saying the stock presents a buying opportunity at its current prices. Michael Wiederhorn of Jefferies said company management blamed the rising receivable figures on "some unique issues" in the third quarter, which would improve in the fourth quarter. Arthur Henderson said the issue was "overblown" and will improve in 2009.

LaPolitics by John Maginnis: Swapping surpluses for deficits

From an $865 million surplus from fiscal year 2008 to a projected $1.3 billion shortfall for fiscal-year 2010, the sharp reversal of the state's fiscal fortunes creates a whiplash effect for the new legislators and governor. For Gov. Bobby Jindal, the fiscal challenge complicates his long-awaited initiative to reform health care. Both will test his ability to deliver solutions, as he is telling national audiences that Republicans must do. Jindal must fashion a balanced budget to pass a Legislature where his relations are far shakier after this year's pay raise fiasco and his line-item vetoes of lawmakers' local projects.

—Several businessmen without political experience are gaining support over state representatives for the special election to fill the Senate seat of Congressman-elect Bill Cassidy. Much of the attention surrounds software entrepreneur Lee Domingue, who is raising money in the business community to run in the April 4 special election. Gary Graphia, executive vice president of the Shaw Group, said he is "strongly considering" the run. Rep. Erich Ponti declared for the office two weeks ago, along with James M. Riley. Rep. Steve Carter said he would make a decision early next year. Rep. Hunter Greene also has been mentioned. All of the above are Republicans. A Democrat looking at the race is Ben Landry, public affairs director for Omega Proteins.

—The three-month standoff over choosing the next leader of the LSU Board of Supervisors has been quietly resolved and will result in Blake Chatelain's election as chairman-elect at the Dec. 4 meeting. The CEO of Red River Bank in Alexandria was the compromise choice after the board deadlocked between Alvin Kimble and Dr. John George, who was Jindal’s choice. Chatelain, a Jindal appointee, was on the faction for George. Chatelain would take the gavel this summer after Chairman Jim Roy's term ends.

John Maginnis publishes LaPolitics Weekly at Lapolitics.com

Editor: Divided we fall

The defeat of the nearly $989 million capital improvement tax and bond issue shows that East Baton Rouge is a seriously divided parish, Business Report Executive Editor JR Ball says. "This fact is hardly a revelation," Ball says. "East Baton Rouge has long been united by its factional parochialism." What is new, and disturbing, is that young professionals who live in Baton Rouge are frustrated and disgusted about the outcome of the bond election. "Baton Rouge already lost one generation of young people when an economic collapse in the mid-1980s prompted a mass exodus of families. We’re now, it seems, facing another wave of departures," Ball says. Read his column here. Send comments to editors@businessreport.com.

Two Cents: Darryl Robertson should resign from School Board

In The Advocate this morning, I read the most outrageous letter to the editor of all time. It was written by none other than one of our school board members, Darryl Robertson. It is scary to think this man is in charge of educating our children. The audacity for him to turn the state's rescue of Baton Rouge children trapped in his failed system for the past five years into a convoluted race-based "conspiracy theory”—in which he compares state takeover of failing public schools to the atrocities at Tuskegee, Ala., in 1932—is delusional and is the act of a desperate elected official, fearing both his loss of power—and money. To read the letter, click here. Send comments to editors@businessreport.com.—Rolfe McCollister

Steve & Barry's files for bankruptcy again, will close Cortana store

Discount retailer Steve & Barry's has filed for bankruptcy for the second time in four months, but this time the company plans to close its 173 stores, including one in the Mall at Cortana. According to court filings, the company plans to finish liquidating its stores by early 2009. "For various reasons, including the general health of the American economy and the state of the retail market in particular, sales at all stores have been disappointing," the company says in documents filed with the Bankruptcy Court in the Southern District of New York. The shutdown will leave another major vacancy at Cortana; a space that was leased by Mervyn's has been empty since early 2006. Howard Struletz, senior vice president of leasing for Mall Properties, Cortana's parent company, says in a statement that it’s no surprise stores are closing because of bankruptcy. "We'll do what we always do and find new tenants, hopefully better tenants, that will benefit Cortana and our shoppers even more," he says. Steve & Barry's has been in Cortana since September 2004, when it moved into the empty Service Merchandise space.

Rehab hospital files for bankruptcy

Integra Hospital, a 43-bed rehab facility, has filed for bankruptcy. According to The Dallas Business Journal, the hospital's parent company, Integra Hospital Plano, blamed the financial problems on delays in getting certified as a Medicare provider. Texas-based Integra bought the hospital on Summa Avenue in February 2007, with plans to make it part of a chain of rehab facilities.

Consumers expect steep unemployment rise, survey says

U.S. consumers expect the unemployment rate to rise steeply in a prolonged recession, and as a result have slashed spending plans, according to a survey released today. Consumers expect the unemployment rate to top 8.5% by the end of 2009, which is consistent with a dip in total personal consumption expenditures of 1% next year, the Reuters/University of Michigan Surveys of Consumers said. Only one prior such survey, in mid-1980, showed a marginally larger proportion of consumers expected a rising unemployment rate, the Reuters/University of Michigan Surveys of Consumers said. A Labor Department report released earlier this month showed national unemployment shot up to 6.5% in October, marking the highest since March 1994.

Poll: Debit cards, cash most popular ways to play Santa

Daily Report readers say they're more inclined to pay for their holiday shopping with a debit card or cash, instead of a credit card. Thirty-three percent of the people who responded to an online poll say they anticipate paying for most of their Christmas-related purchases with a debit card, while 31% plan to use cash for most of their spending. Twenty-eight percent plan on putting their presents and decorations on a credit card and 3% plan to write checks. Five percent are unsure how they will pay for the holidays. More than 1,650 people participated in the survey.

Today's question: Should Darryl Robertson resign from the East Baton Rouge Parish School Board?

News roundup: Middle-class families don't feel financially secure … Families spending less on the holidays … Jindal off to Iowa

Hurting households: The median financial assets held by middle-class families dropped by 22% from 2000 to 2006, according to a new report. This means for every $1 a family had in 2000, they had 78 cents in 2006, according to report by the policy group Demos and the Institute for Assets and Social Policy (IASP) at Brandeis University. The actual loss of assets experienced by middle class households might be worse. Because the figures don't include home equity, so the steep drop in home prices that's happened in many parts of the country aren't included. The report says 76% of middle-class households are not financially secure.

Not so merry: Families plan to cut back the amount of money they spend on Christmas presents by 11%, according to a Conference Board survey. The average household plans to spend $418 on holiday gifts this year, compared with $471 in 2007. The report, which surveyed 5,000 households, says that the west central region of Louisiana, Arkansas, Oklahoma and Texas, plans to spend the least amount on gifts, $330. Households in Illinois, Indiana, Michigan and Ohio plan to spend the most on presents, $550.

Travelin' man: Gov. Bobby Jindal is heading to Iowa for a weekend trip that has heightened speculation he's planning a presidential bid in 2012. Jindal says the speculation is misplaced, insisting he will run for re-election and has no plans to seek the White House. He also says anyone who's considering such a candidacy before a new president even takes office is making a mistake. Political watchers say it's a bit too much of a coincidence, however, that Jindal's traveling to the state that is the launching pad for presidential contenders. On Saturday, Jindal will keynote a fundraising dinner for the Iowa Family Policy Center's "Celebrating the Family" banquet, a high-profile Christian conservative event. The governor also will make a stop in the Cedar Rapids area to see some of the recent flood damage there.

Are you the fittest exec in the Capital Region?

Business Report launches its 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. The deadline to enter is Monday, Dec. 15. Click here to register or for more information.