With the Legislature’s 6 p.m. adjournment deadline inching closer and closer, Gov. Bobby Jindal personally met with lawmakers in the Senate today—while his staff worked House members—to whip up support for the administration’s higher education funding plan.
As the close of the session loomed, the legislative leadership was working on a deal to increase the cigarette tax to 86 cents overall, lower than what the Senate proposed but higher than what the House was pushing. The agreement also would increase funding for K-12 public education using unclaimed lottery proceeds while not increasing the partial suspension of the exemption on business utilities that has already won initial approval from both chambers.
The sticking point in negotiations has been the controversial Student Assessment for Valuable Education tax credit plan, known as SAVE. The Jindal administration says the plan is needed to avoid a net increase in taxes, and key vetoes, but lawmakers in the House have resisted the scheme as a ploy to save Jindal’s pledge not to raise taxes without corresponding offsets.
Even in the session’s final hours, there was no clear compromise on these issues. At stake is a possible special session or even a rare veto override.
House Speaker Chuck Kleckley, R-Lake Charles, kicked off the final day of proceedings with an emotional plea to members to pass a budget despite the political ramifications and “get that ball across the goal line.”
“We’ve got the ball almost to the goal line,” Kleckley said. “We’re about ready to cross that goal line, and we can adjourn at the end of the day solving our budget crisis.”
—The House started voting on key revenue bills mid-afternoon today, passing first the cigarette tax in House Bill 119 by Rep. Harold Ritchie, D-Bogalusa, by a 75-29 vote. It would go from 36 cents per pack to 86 cents, with a new 5 cent per milliliter tax on cigarettes. It would generate $108 million.
Lawmakers in the House also approved HB 805 by Rep. Bryan Adams, R-Gretna, to allow businesses to retain 25% of the state inventory tax credit and to use the remaining 75% as a carry-forward to be used against future tax liabilities. It also exempts businesses that pay $10,000 or less in local inventory taxes. The compromise reports on both bills must now be approved by the Senate and then signed into law by the governor before being enacted.
Jeremy Alford and Jeremy Harper wrap up their daily update on the legislative session today. Alford reports on Louisiana politics at LaPolitics.com. Follow him on Twitter or on Facebook. He can be reached at JJA@LaPolitics.com.
