Jindal administration intensifying debt collection efforts

Gov. Bobby Jindal’s administration unveiled a proposal today to intensify efforts to collect millions of dollars in debt owed to state government agencies, after complaints that the state has been too lax in seeking payment for delinquent accounts. “Any revenue that’s out there, we want to capture,” says Commissioner of Administration Paul Rainwater, the governor’s top budget adviser. Rainwater says the state will standardize its collection policies across agencies and centralize some efforts, either through one agency or with a private company. The administration also plans to toughen enforcement by increasing penalties, withholding tax refunds for those with delinquent accounts, and improving online payment options so people can pay their back-owed debts more easily. “What we really need is an aggressive, comprehensive approach,” Rainwater today told the Cash Management Review Board, a state panel that has been considering ways to improve collection efforts. In the most recent tally, more than $1.4 billion was owed to the state in past due accounts. Rainwater’s office is looking for an outside adviser to review the state’s outstanding debts and help devise the new strategy, which comes as lawmakers and Treasurer John Kennedy have pushed for more aggressive collection efforts, given that Louisiana faces continuing budget shortfalls. Kennedy praised the administration’s plan yet acknowledged the effort won’t solve all the state’s ongoing financial woes. More details are available in the full story here.