Boehner to visit B.R. to meet with Cassidy

U.S. Rep. John Boehner, the top-ranking Republican in the House, will be in Baton Rouge on Saturday to meet with local business leaders and appear at a fundraiser for U.S. Rep. Bill Cassidy. Boehner, R-Ohio, will participate in a discussion about the economy Saturday afternoon at Cassidy's district office. Also taking part in the event will be James Riley, a local commercial Realtor with NAI/Latter & Blum, and Lester McLin, a Livingston Parish developer. Boehner will then attend a fundraiser for Cassidy at a private residence.

Consumer spending up for second straight month

Consumers increased spending for a second straight month in February, even though their incomes slipped due to continuing massive layoffs. The Commerce Department reported today that consumer spending edged up 0.2% in February, in line with expectations. That follows a huge 1% jump in January that was even better than the 0.6% rise originally reported.

But the report says incomes fell by 0.2% in February, the fourth drop in the past five months, declines that reflected the sizable number of job layoffs that have been occurring because of the recession. After-tax incomes also fell in February, edging down by 0.1%. With incomes down while spending rose, the personal savings rate dipped slightly to 4.2% in February, compared to 4.4% in January. Still, the recent performance marks the first time that the savings rate has been above 4% in more than a decade. Economists believe that the deep recession, already the longest in a quarter-century, will continue prompting consumers to do more to trim spending and boost their savings.

La. ranks third for corruption

Louisiana ranked third in an analysis of the most corrupt states in the United States by the Chicago Tribune. The ranking was based on federal corruption convictions from 1998 to 2007 per capita. The state had 332 convictions during that period, or 7.7 per 100,000 residents. Only Washington, D.C., with 380 convictions or a per capita or 64.6 per 100,000 residents and North Dakota, with 53 convictions and a per capita rate of 8.3, ranked higher. The newspaper notes that North Dakota's small population skews its per capita rate. "But lately we have noticed a shift in the public's attitude toward corruption. It's no longer a spectator sport. People don't want to tolerate it anymore," says Rafael Goyeneche, president of the Metropolitan Crime Commission, a corruption watchdog group. Read the story here.

Editor: Hooked on sin taxes

State Rep. Karen Carter Peterson wants to curb smoking while bringing in millions in additional revenue by raising cigarette taxes by $1 a pack. But Business Report Executive Editor JR Ball says why confine sin taxes only to cigarettes? "Let’s slap hefty taxes on artery-clogging fast-food restaurants, anyone selling liver-rotting alcohol products and, as long as Les Miles is head coach, LSU football games," he says. Read the full column here. Send comments to editors@businessreport.com.

LaPolitics by John Maginnis: Senator wants to make TOPS a flat grant

Bills to rein in TOPS scholarships have been filed before but rarely get out of committee. But with higher education facing steep cuts, Sen. Butch Gautreaux, D-Morgan City, thinks the time could be right to change the award from a full tuition scholarship to a flat grant. Gautreaux hasn't settled on a figure, but says it will be less than the $2,500 tuition and fees per semester at LSU but more than what some other state colleges charge. Gautreaux thinks that with the bleaker budget picture his bill will get a better reception this time. The measure will meet strong opposition from the Taylor Foundation, named for late oilman Pat Taylor, who pushed the Legislature to pass the forerunner of TOPS.

—The governor wants to form a commission to recommend structural changes in state government, but some legislators aren't waiting for the report. Rep. Mike Danahay, D-Sulphur, and Rep. John Schroder, R-Covington, have gained Gov. Bobby Jindal's support of a plan to overhaul State Civil Service. Rep. Joe Harrison, R-Napoleonville, says he will file a proposed constitutional amendment today to abolish the Board of Elementary and Secondary Education and to move its policy-making functions into the Department of Education.

—Two Alexandria names have been added to the list of potential Supreme Court candidates for the fall's special election to succeed retiring Justice Chet Traylor. The governor's executive counsel, Jimmy Faircloth and District Judge Harry Randow have been mentioned. Monroe-area candidates mentioned include Court of Appeal Judges Milton Moore and Larry Lolley, District Judge Marcus Clark and former Supreme Court Justice Joe Bleich.

(John Maginnis publishes LaPolitics Weekly, a newsletter on Louisiana politics, at LaPolitics.com.)

Varnedoe's in the Bluffs closing its doors

225 Dine recently reported that Varnedoe’s opened to the public after Bluffs owner Jim Tanner closed the golf course and other facilities. But now the fine dining restaurant has been forced to close. Owners Doughty and Scott Varnedoe e-mailed patrons earlier this week, saying the “rug was ripped from under us,” and that the electricity and phones, which are not in their name, will be turned off Friday. The Varnedoes say they owe many bills now, for which they are not responsible. “Scott and I have not taken a paycheck in a month and a half in order to try to ease things for the business,” wrote Doughty Varnedoe, who had to lay off most of her employees.

Click here to read this week’s 225 Dine to find out the scoop on the old Perkins Road Hardware store, which Chinese restaurant made the national top 100 list this year, and which local chef is working at Cannes Film Festival.

Poll: Most against local hotel tax for Saints

Daily Report readers are overwhelmingly against an East Baton Rouge Parish hotel tax to aid the New Orleans Saints. Sixty-four percent of people who responded to an online poll say they are against the measure. Eighteen percent say they back a local hotel tax, because the pro football team benefits the whole state, while 16% says they might support the new tax if it keeps the Saints from leaving Louisiana. Two percent were undecided. More than 1,600 people participated in the survey. Rep. Patrick Connick, R-Harvey, has suggested possibly adding a new hotel/motel tax of one eighth of a cent to subsidize the Saints. The tax would be levied in areas across the state. Connick told The Advocate he isn't sure if he will introduce a bill for the new tax during the upcoming legislative session.

Today's question: Did your business or neighborhood sustain damage during severe storms Wednesday or Thursday?

News roundup: Entergy customers will see rate cuts … L.A. mansion on the market for $150 million

Less money for power: Entergy Corp. customers across Louisiana, Mississippi and Texas are in for something of a double hit this summer and fall—in their favor. Entergy Louisiana, Entergy Gulf States Louisiana, Entergy Mississippi and Entergy Texas will be cutting rates for the third straight year, likely between June and December—at the expense of Entergy Arkansas.

That's the result of a decision by the Federal Energy Regulatory Commission in 2005 dealing with New Orleans-based Entergy's system agreement between its regulated power units in the four states. FERC ruled that Entergy Arkansas customers did not pay a fair share of the cost of generating power.

According to preliminary estimates, Entergy Louisiana's 658,000 customers will see rate cuts totaling $156 million, while Entergy Gulf States Louisiana's 374,000 customers will get $67 million in reductions. Entergy spokesman Philip Allison said a translation into how much that will affect individual bills will not be known until May when regulators approve the estimates and divide the money between residential, commercial and industrial customers.

What housing downturn? The 100-plus-room Los Angeles mansion that belonged to late TV producer Aaron Spelling is on the market for $150 million. The French chateau-style mansion has 56,500 square feet of space on more than 4.6 acres and is the largest home in Los Angeles County. "Everything there is glamorous, and is luxurious and it's really great scale," says Sally Forster Jones, an agent with Coldwell Banker Previews International in Los Angeles, which is co-listing the property. Spelling, who produced such hit shows as Charlie's Angels and Beverly Hills 90210 died in 2006.