Economics expert calls for tax changes

Jim Richardson, chairman of LSU's Public Administration Institute and professor of economics, says there's no reason to believe oil and gas will lift Louisiana out of its economic problems and that, in fact, the state should make sure it doesn't depend on high oil prices to fund ongoing programs. That overdependence on the oil and gas market is largely to blame for the state's current fiscal troubles. What Louisiana should do, Richardson says, is put all oil revenues that exceed $1.25 billion into a "permanent endowment budget stabilization fund" or rainy day fund to serve as a buffer against inevitable reductions in revenue.

"Alaska does that. Texas does that. We can do it, too. If we'd been wise, we would have done it about 30 years ago," he told the Baton Rouge Press Club today.

However, the "payback period" for replenishing the fund needs to be reevaluated. Unlike current law, which demands the rainy fund be replenished immediately and thus makes the fund difficult to use, the state ought to allow a three-year window, Richardson says.

He says the state also should reconsider tax cuts already approved by the Legislature and suggests changes to the state's personal income tax rates to reduce fluctuation in tax collections. Richardson proposes a 1.75% tax on the first $25,000 of earnings instead of the current 2%; 3.5% on the next $75,000 instead of the current 4%; and 4.5% on income above $100,000 instead of the current 6%. Richardson calls for the elimination of deductions for excess itemized deductions and federal tax liability.—Steve Clark

Louisiana slips a spot, but ranks high for happiness

Louisiana was ranked as the sixth happiest state in the nation, based on its economic well being. That's a step down from where the state finished in the first "happiness index," compiled by the financial media Web site MainStreet.com. Nebraska was once again ranked as the happiest state, based on factors such as unemployment and number of foreclosures. California plunged two spots to the bottom and was ranked as the unhappiest state because if its increasing unemployment and high foreclosure rate. To see the full report, click here.

La. lawmakers OK $29M in college tuition increases

Public colleges across Louisiana will increase their tuition costs for students by as much as 5% next year, raising $29 million to help offset some planned state budget cuts to the schools. The Legislature's joint budget committee approved the tuition increases for the state's four university systems today, the final approval needed before they could take effect for the 2009-10 school year. The largest increase at four-year schools will be $254 annually for students at LSU's main campus in Baton Rouge. At the state's two-year colleges, the largest annual increase is $93 at Baton Rouge Community College and at Nunez Community College in Chalmette. The smallest is a $40 yearly tuition hike at the campuses of the Louisiana Technical College, which provides vocational and technical training for students.

Students at some campuses will face other new charges besides tuition increases, including planned boosts in housing, energy, food and health care fees at various campuses. Leaders for the LSU and University of Louisiana systems said more fee hikes could be proposed, depending on the size of next year's budget cuts. "Basically, everybody's waiting to see how bad the budget is," LSU System President John Lombardi says.

11 more H1N1 cases confirmed in La.

Louisiana's health department reports 11 more cases of the H1N1 virus -- or swine flu -- have been confirmed in the state. That brought to 20 the total number of swine flu cases in Louisiana confirmed by the Centers for Disease Control. There also were 29 "probable" cases in Louisiana.

The Louisiana Department of Health and Hospitals says everyone with a confirmed or suspected case had recovered or was recovering at home. None were considered at high risk of complications. Of the 11 newly confirmed cases, there were seven from Lafayette Parish, three from Lafourche Parish and one from St. Landry Parish.

"CDC and DHH recommend testing and treatment be prioritized for patients whose symptoms indicate the need for hospitalization or for hospitalized patients with influenza-like illness, including those at high risk for complications from the flu," the DHH says.

Those at "high risk" from the flu are children under five years old, adults 65 years of age and older, pregnant women and people with existing respiratory, pulmonary and certain other conditions.

As of today, Lafayette Parish had 14 confirmed case and 16 probable cases; Lafourche, three confirmed cases; Ascension, one confirmed and one probable case; Orleans, one confirmed and one probable; St. Landry, one confirmed and one probable. Other parishes with probable cases were Plaquemines, three; St. Charles, two; Livingston, Beauregard, Iberia, Jefferson and Vermilion with one each.

Surplus spending plans sail through La. committee

Plans to spend $783 million in state surplus cash on road work, hurricane protection, a new deal with the New Orleans Saints and legislative pet projects received quick passage today from a House committee.

Before approving the measure without objection, the House Appropriations Committee added $30 million in surplus spending with little discussion of the new projects, which included money for the Bayou Segnette Festival Park in Jefferson Parish, the Audubon Park Commission and the Lafayette Regional Airport.

The surplus spending is included in a measure that outlines a multiyear, $5 billion list of state construction projects called the "capital outlay" bill.

Lawmakers presenting the bill didn't explain it contained plans for spending the state's 2007-08 surplus dollars until questioned by Rep. Karen Carter Peterson, D-New Orleans.

The bill moves next to the full House for debate.

The state has an $865 million surplus, which by constitutional mandate can only be spent on one-time items like debt payments and construction projects. A slice must go into the state's "rainy day" fund, leaving $798 million for spending. The plans for those dollars include $300 million for coastal restoration and hurricane protection projects, $246 million for road and bridge work, $98 million for college construction, $24 million for port projects and $7.5 million for state emergency sheltering.

La. House panel OKs tougher DWI proposal

A House committee has voted for a tougher penalty for suspected drunk drivers who refuse to take a breathalyzer test. Under current law, a suspect who refuses to take the test loses his driver's license for six months.

A bill by Rep. Damon Baldone, a Houma Democrat, would increase the suspension to two years. Supporters, including Gov. Bobby Jindal's administration, argue that the current penalty encourages suspects to refuse the test. The House Transportation Committee approved the bill today without objection, sending it to the House floor for debate.

Do you know a young entrepreneur?

Business Report is embarking on a search to find young entrepreneurs in the Capital Region, 25 years old or younger, for a future story. Perhaps they operate a Web site or IT service. Or have opened a restaurant or retail shop. Maybe you know someone who’s paying their way by selling lemonade or mowing lawns. If you know someone who's 25 and under and fits the bill, send an e-mail with the name, contact information of the young entrepreneur (or their parents, if under the age of 18) and a brief description of their business to editors@businessreport.com. The deadline is June 1.

‘Business Report’ weekly planner: Wicker to hold neighborhood association meeting ... Talking about job opportunities ... Landrieu to host small business conference ... Racial talk set

Tuesday -- Metro Councilwoman Tara Wicker, along with the Parish Attorney's office, the Planning Commission and the Office of Neighborhoods, will hold a seminar on how to organize neighborhood associations. The meeting will be at 6:30 p.m. in the Metro Council Chambers. For more information, go to council-dist10@brgov.com.

Wednesday -- A seminar on job opportunities with city-parish and state government will be at 11:30 a.m. at the Bluebonnet Branch Library. The event, presented by the Career Center, will feature information from human resource consultants. For more details, go to anowak@careercenterbr.com.

Friday -- The U.S. Senate Committee on Small Business and Entrepreneurship will hold an outreach conference at 10 a.m. at the Baton Rouge River Center. U.S. Sen. Mary Landrieu, who chairs the small business committee, is scheduled to attend, along with Donald Cravins Jr., who serves as her staff director, and officials from the U.S. Small Business Administration and Louisiana Economic Development. The event is designed to let entrepreneurs know about SBA lending programs, federal contracting opportunities and other programs designed to boost small businesses.

Friday -- The Leadership Greater Baton Rouge Alumni will hold a public forum on race starting at 11 a.m. in the Louisiana Board Room at Baton Rouge Community College. The dialogue on race is aimed at starting a conversation about race relations in the city. Panelists will include JR Ball, executive editor of Business Report; John Noland, chairman of the East Baton Rouge Redevelopment Authority; and John Smith, community affairs director for Hollywood Casino and a past president of 100 Black Men of Metro Baton Rouge. Admission is $15 and lunch is included. For more information, go to leadershipbr.org.

May 18 -- The Second Louisiana Health Care Quality Summit will be at 9 a.m. at the Hilton Capitol Center Hotel. James Carville, the well-known political pundit, will be the opening speaker. For more information, click here.

See the full list of upcoming events here.

Parts of Capital Region under severe thunderstorm watch

The Storm Prediction Center in Norman, Okla., has issued a severe thunderstorm watch for all parishes of the Capital Region except Ascension and Livingston until 8 p.m. today. Hail to 1 1/2 inches in diameter, thunderstorm wind gusts to 70 mph and dangerous lightning is possible in the watch area, which includes parts of central and southern Louisiana, a small part of southwest Mississippi and parts of southeast Texas. Click here for the Storm Prediction Center Web site and here for the National Weather Service’s New Orleans-Baton Rouge forecast office Web site.