Louisiana Gov. John Bel Edwards says a second special session to address the state’s budget crisis won’t last more than two weeks and could focus on raising revenue by reducing lucrative tax breaks for business and shrinking individual itemized income tax deductions.
Gannett Louisiana reports Edwards says he will wait on advance recommendations from a tax study committee before making a final decision on what he will present to the Legislature.
“My hope and expectations are we’ll look at tax credits and rebates that benefit business and examine whether or not the state is getting a return on its investment,” the governor says. Â
Targeting existing business tax breaks and personal income tax deductions could only require a simple majority vote in the Legislature as opposed to raising new taxes, which needs two-thirds approval, although there have been challenges disputing whether a simple majority is legal.
“I’m asking (a tax reform task force) for early recommendations so we can start building support for a plan,” Edwards says. “While I don’t know what the exact recommendations will be, I can’t imagine they will be inconsistent with previous conclusions of those on the task force like (LSU economist) James Richardson. But I’m going to wait and see.”
Edwards reiterates his intention to call the special session June 7, the day after the regular session ends.
“I don’t know of any reason why we can’t get it done in a couple of weeks; we won’t need three weeks like the first one (in February and March),” he says.
The governor also says he plans to offer a minimal number of bills for the Legislature to consider.
“We don’t need and shouldn’t have a whole lot of bills presented,” he says. “It’ll be enough to keep us busy, but I hope we’ll be able to do it in two or three votes.”
The Legislature faces a $600 million budget shortfall for the 2016-17 fiscal year that begins July 1. The deficit will have to be closed with cuts or new revenue.
Though many lawmakers, especially Republicans in the House, are resistant to raising more taxes, Edwards says he believes they will ultimately be unable to stomach the cuts that would be required without additional revenue.
