With the state’s higher education institutions in the crosshairs of Gov. Bobby Jindal’s administration—which has threatened to cut as much as $300 million from their budgets in order to help plug an estimated $1.4 billion shortfall—LSU President and Chancellor F. King Alexander told Daily Report this week that he’s “working behind the scenes to mitigate this as much as possible.”
As a practical matter, Alexander says a $300 million cut could mean the loss of an estimated 300 faculty members across the state, as well as the loss of $130 million in research dollars and nearly 50% fewer science, technology, engineering and mathematics—or STEM—graduates. For LSU’s flagship campus in Baton Rouge alone, such cuts would amount to some $60 million, according to Alexander.
“If this comes to fruition it will be devastating for all higher ed in the state,” Alexander says.
On a brighter note, Alexander says the recent authority LSU received from the Joint Legislative Budget Committee to do its own procurement when making bulk purchases will save LSU more than $5 million this year.
“This is big,” he says. “We’ve been working on this for three years, and it’s more important now than ever with the financial situation the state is facing.”
Also this week, the Greater Baton Rouge Association of Realtors released year-end figures for 2014 home sales. While East Baton Rouge Parish sales were flat, total home sales in the eight-parish Capital Region for 2014 finished 3.2% higher than in 2013, aided by a strong December in which area sales jumped by 6.4% compared to the same month the previous year.
“There’s no reason to think that 2015 isn’t going to be another really strong year,” says GBRAR President Donna Wolff. “Our economy is really strong, our job market is extremely healthy and if interest rates stay low like they have been—and the predictions are that they may not really climb until the end of the year—I don’t see why 2015 won’t be even better than this year.”
Here’s a rundown of other top local stories making headlines in Daily Report this week:
— With concern growing over the Louisiana’s projected $1.4 billion budget shortfall for the coming year and the catastrophic cuts that could result for higher education, many lawmakers are eyeing some of the tax breaks the state awards annually to businesses as economic development incentives. But Louisiana Association of Business and Industry President Stephen Waguespack says his organization will challenge efforts to roll back tax incentives and will focus instead on trying to reform the way the state spends its dollars.
— Baton Rouge’s three riverboat casinos collectively won about $278.7 million from gamblers in 2014, about $7.2 million less—or 2.5%—than the $285.9 million they won in 2013. The annual decline comes despite the casinos’ collectively posting a 1.3% increase in December winnings, according to the latest monthly report from the Louisiana Gaming Control Board. The three casinos won a combined $22.8 million last month, up from $22.5 million in December 2013.
— Sales tax collections across East Baton Rouge Parish rose 0.5% in November to $14.2 million, compared to the same month in 2013, putting year-to-date 2014 collections on pace to surpass the 2013 total. Of the $14.2 million total in November, $7.9 million was collected on sales made inside Baton Rouge city limits, while $6.3 million came from sales in the unincorporated portions of the parish, according to the latest monthly report from the city-parish Finance Department.
— In his new role as president of the Baton Rouge Growth Coalition, attorney and developer Russell Mosely says he will focus on two key areas of city-parish government that directly affect the local development community: pending changes to the local zoning ordinance, and the ongoing reorganization of the Department of Public Works.
— Though an exact date has yet to be nailed down, a groundbreaking is imminent for the long-planned Knock Knock Children’s Museum in City Park, says Staci Duhé, chairman of the museum’s board of directors. The board recently submitted a plan review application to the city-parish Department of Public Works for the roughly 26,500-square-foot museum, which will be located on Dalrymple Drive across from the City Park golf course, near Interstate 10.
— Taylor, Porter, Brooks & Phillips is getting some new office space in downtown Baton Rouge—sort of. For decades the law firm has leased space on two floors in each the Chase North and Chase South towers at 450 Laurel St. Now it’s getting ready to begin a $3.87 million buildout in the north tower that will include a complete renovation of the building’s vacant eighth floor, as well as updating the ninth and 10th floors that the law firm currently occupies.
— Zoe’s Kitchen is planning its third Baton Rouge location in the burgeoning Highland Park Marketplace retail center at the corner of Highland and Old Perkins roads. The Texas-based chain filed for a building permit earlier this month with the city-parish Department of Public Works to develop a 2,748-square-foot restaurant in the center, which is anchored by Alexander’s Highland Market.
— One of two long-delayed restaurants planning a move into the LSU North Gates neighborhood is on track to open in the next two weeks. Barcadia, which originally hoped to be open for the beginning of the fall semester last year, is planning to open in early February. Another new restaurant, Newk’s Eatery, remains several months behind schedule, however.
— The first Louisiana location of Hilton Hotels & Resorts’ contemporary, extended-stay brand, called Home2 Suites, is set to open in Baton Rouge in the first quarter of next year. According to a plan review application recently filed with the city-parish Department of Public Works, Supreme Construction plans to build the 56,000-square-foot hotel at 10800 Siegen Holiday Circle, located just off Siegen Lane between Interstate 10 and U.S. 61.
— Dudley DeBosier Injury Lawyers has purchased an office building near its Baton Rouge headquarters at 1075 Government St. after experiencing rapid growth over the past six months, according partner Chad Dudley. But the purchase is only a short-term solution, Dudley says, and the firm hopes to begin building an addition to its current space before the end of the year.
— Chauvin businessman and former state senator Marty Chabert is planning to open a meat and seafood market in Baton Rouge in about six weeks. Chabert says he’s hoping to have Marty J’s Specialty Meats, Seafood & Po-boys open by March 1 in the former City Café location at 13434 Perkins Road, between Siegen and Pecue Lane.
— Further evidencing Louisiana’s rapid ascent as a top state for filmmaking in recent years, Baton Rouge has been named the No. 1 small city to live and work as a filmmaker in 2015. At No. 2 on the list by industry magazine MovieMaker is New Orleans.
— The Planning Commission signed off Tuesday night on three proposed apartment complexes, underscoring the continued building boom in the local multifamily market. Collectively, the projects will add nearly 400 units to the market, which is expected to experience an increase of more than 2,700 units over the next 12 months. The commission deferred action, however, on two other multi-family projects.
— For any business looking to put big data to work, the first challenge is finding the right people who know how to wield the right tools, according to a panel of data experts participating Tuesday afternoon in the LSU E. J. Ourso College of Business’ kickoff event in this year’s Analytic Speaker Series.
—Following the recent completion of its $6.2 billion cash and stock acquisition of New Jersey-based competitor Rockwood Holdings Inc., Baton Rouge-based specialty chemical maker Albemarle announced it’s making moves to realign its global business units by the end of the first quarter.
— Business Report and Junior Achievement announced the individuals and companies to be honored at the 2015 Business Awards and Hall of Fame gala in March.
