This Afternoon's Headlines / Wed, May 27, 2009
Constitutional convention resolution gets out of committee
A bill that would advise on the feasibility of changing the Louisiana Constitution has made it out of a House committee and could go up for a vote next week. The House & Governmental Affairs committee today passed with no objection the resolution by Rep. Franklin Foil, R-Baton Rouge, who says he's pleased the measure will go before the full House. Foil's bill would establish an 11-member Constitutional Convention Study Commission, which would advise on the feasibility of changing the document. The commission would be made up of legislators and representatives from LSU's Paul M. Hebert Law Center, the Southern University Law Center, the Public Affairs Research Council and the Louisiana State Law Institute. The group would come back with a recommendation on a constitutional convention by Jan. 15, 2010.
State posts drop, but Capital Region still adding jobs
The total number of nonfarm jobs in Louisiana was down by 8,300 in April when compared with the year before, the first time there has been a year-to-year decrease since Hurricane Katrina. At the same time, the Capital Region had 800 more jobs last month than in April 2008. There were 1.936 million jobs in the state last month, according to figures from the Louisiana Workforce Commission, compared with 1.943 million in April 2008. The state posted decreases in the number of manufacturing and service jobs, but there were 6,100 more construction jobs than in April 2008. Metro Baton Rouge had almost 3,000 more construction jobs than a year earlier. Statewide, the unemployment rate hit 5.7%, while the metro Baton Rouge rate was 5.2%. Unemployment nationwide was 8.6%. The news of an increase in Baton Rouge jobs comes a week after announcements of layoffs at three major local employers: Capital One, Trinity Marine Products and The Advocate. LSU economist Loren Scott says the recession was catching up with Louisiana. "We've come to the end of the road where we haven't felt all of the effects of the national recession," Scott says. The employment picture likely would grow darker over the coming months, Scott says, because of an impending six-week shutdown at the Shreveport GM plant and the murky future for the facility and a cut in contract construction workers in the petrochemical sector.
State offers tax break on storm supply purchases
The state's annual sales tax holiday for purchases of hurricane preparedness supplies is set for Saturday and Sunday. Hurricane season starts Monday. The 4% state sales tax is waived for hurricane-preparedness purchases made from 12:01 a.m. Saturday through 11:59 p.m. Sunday. Local and municipal sales taxes must still be paid, according to the state Department of Revenue. The sales tax exemption applies to the first $1,500 worth of items sold. Eligible items include:
—Portable generators
—Flashlights and candles
—Portable self-powered radios, two-way radios and weather band radios
—Tarpaulins or other flexible waterproof sheeting
—Ground anchor systems and tie-down kits
—Gas or diesel fuel tanks
—Batteries of various sizes (auto and boat batteries are excluded)
—Cellular phone batteries and chargers
—Non-electric food storage coolers
—Storm shutter devices specifically rated for preventing wind-blown damage from storms
—Carbon monoxide detectors
The tax holiday does not extend to items purchased at airports, hotels, convenience stores or entertainment complexes. For more information, go to the Department of Revenue Web site here.
Entergy grant to help with Old South Baton Rouge project
A $75,000 grant from the Entergy Foundation will help with the development of a mixed-use project in Old South Baton Rouge. The developments at Nicholson Drive near Terrace Avenue will include a mix of residential and retail, and will serve as a gateway to the community. The project is a collaboration between the Baton Rouge Area Foundation, the Center for Planning Excellence and Gulf Coast Housing Partnership. This fall, the partners will begin cleaning up the property by removing underground storage tanks. The development is still under design review, and no date for construction has been set.
Health care industry reps to educate legislators
The horror stories will continue at the State Capitol, as representatives from the Louisiana Hospital Association, the Metropolitan Hospital Council of New Orleans, Acadian Ambulance and the Louisiana Ambulance Alliance meet in Senate Committee Room C at 11 a.m. Thursday to describe in graphic detail the negative impact on jobs and services that heavy budget cuts to Louisiana's health care sector would entail. Speakers will include John Matessino, LHA's president and CEO; Paul Salles, CEO of the MHCNO; and Dionne Viator, senior vice president and CFO of Baton Rouge General Medical Center. The state is facing $400 million in cuts to health care, with more than $200 million of those cuts affecting hospitals specifically.—Steve Clark
House committee revives welfare drug testing bill
A proposal to mandate drug testing for certain welfare recipients was revived today and approved by the same House committee that narrowly rejected the idea two weeks earlier. This time, after little discussion, the House Health and Welfare Committee agreed without objection to advance the measure by Rep. John LaBruzzo, R-Metairie. The panel previously voted 8-7 against the proposal. Opponents had argued the bill unfairly singled out poor women. But one of the most outspoken opponents, Rep. Walker Hines, D-New Orleans, said he removed his objection because the bill will have to head next to the House Appropriations Committee for analysis of its cost, estimated to be $1.8 million over five years. The Appropriations Committee has been tough on proposals that would create new programs and cost the state more money, rejecting many of the ideas because the state faces a deep budget shortfall next year. LaBruzzo's bill targets poor mothers in the Family Independence Temporary Assistance Program, known as FITAP. He said he singled out FITAP recipients who receive cash payments from the state because they have children depending on them. The bill would require any savings and additional money to go to increased drug treatment programs. Those who test positive for drugs would have to receive treatment or lose their welfare check, LaBruzzo says.
Average credit score decreases
The average TransUnion credit score dropped six points from the end of 2008 to the first quarter of this year, according to a new report. USA Today says the average credit score is now 651. The average Louisiana score is 619, no change from the fourth quarter to the first quarter. Credit scores are expected to fall through the second quarter of 2010 as more Americans struggle to pay bills in the wake of rising unemployment.
Pushing the 'lake' in Lake Charles
Hammers start swinging Monday in Lake Charles on projects meant to transform the city’s lakefront into a thriving, visitor-friendly complex. After Hurricane Rita hit the area in 2005, the Louisiana Recovery Authority funded a master plan to help the city bounce back. Voters passed a subsequent local bond issue to fund part of the plan’s projects. Two of them get off the ground next week. One is a $3.7 million lakefront promenade that brings new lighting, seating, walkways, landscaping and interpretative signage, and provides better connectivity from the lake to the adjacent downtown. A $1.75 million marina also gets under way, meant to draw recreational boaters. “This is significant because it’s a direct result of the Rita recovery and planning that took place,” Downtown Development Authority Executive Director Lori Marinovich says. Both projects should be finished by next summer, and officials are banking on their ability to attract private investment. The Lakefront Promenade groundbreaking ceremony takes place Monday. To read the rest of 10/12 Weekly, click here.—Maggie Heyn Richardson