House delays consideration of $25M retirement hike

Gov. Bobby Jindal’s proposal to raise state employee retirement costs to fill budget gaps has stalled in the House amid questions about whether the bill should be considered a payroll tax hike on workers. Rep. Kirk Talbot, R-River Ridge, the sponsor of the measure, scrapped a House debate planned on the proposal today. He didn’t set a date for rescheduling that debate. “There’s some controversy over whether it’s a tax, and we’re trying to straighten that out. I don’t believe it is,” says Talbot. The bill would increase the percentage of pay that workers in the Louisiana State Employees’ Retirement System contribute to retirement by 3%. It wouldn’t apply to employees in hazardous lines of duty, such as prison guards. Included in Jindal’s 2011-12 budget proposal, the bill would lower employees’ take-home pay and give state coffers an extra $25 million a year. Jindal, who has railed against tax increases, has steadfastly argued that a boost in state employee retirement costs isn’t a tax, even though workers would be required to give more of their paychecks to retirement. House Speaker Jim Tucker has disagreed with the governor, calling the proposal a payroll tax.