It appears Gov. John Bel Edwards will get to join all LSU fans and watch star running back Leonard Fournette play football after all later this year, writes Business Report Publisher Rolfe McCollister in his latest column. In a televised speech delivered just before the start of the special session, Edwards had said the state’s budget problems threatened all of Louisiana, including LSU football.
But McCollister notes that the state’s short-term budget hole was nearly filled—thanks primarily to the Rainy Day Fund, BP money, state government cuts, the addition of another penny to the state sales tax and new “sin” taxes—it wasn’t a pretty affair and much work remains to be done. An estimated $750 million hole is projected for the next fiscal year budget and remains to be tackled by Edwards and lawmakers.
McCollister notes that Edwards told The Advocate it was “somewhat of a disaster” on the final day of the special session. Meanwhile, Sen. Jack Donahue said, “I’m not necessarily comfortable that I want [next year’s deficit] to be eliminated. We need to struggle some. That will force us to do the structural reform we need in the state. We need to struggle to solutions.”
McCollister says Donahue’s point is this: Is next year’s deficit a problem or an opportunity? “Does it keep the heat on for reform? Do we say, let’s hash it out since the decisions will be tough either way,” McCollister writes. “And I think most believe that if you are going to tackle Louisiana’s sacred cows, statutory dedications, exemptions and the populist past in order to do real tax reform, it was foolish to think it could be done in a special session with limited options in the call—and any long-term reform won’t be done right in a short second special session.”
The state can only expect to cut the size of government and some patchwork revenues for a year or two in order to buy time and come back next spring with many new—and old—ideas for comprehensive reform to be debated, McCollister says.
“The governor accuses Republican lawmakers of being obstructionists because they are more interested in private sector jobs than protecting government jobs, and also in deciding on priorities and shrinking government,” McCollister writes. “They believe in small government and that is how many got elected. If business pays more taxes and then has to lay off these lawmakers’ constituents back home, voters won’t be happy.”
When the budget is done, McCollister says, we should certainly protect the most vulnerable and make educating our children and adults a priority. But taxpayers and legislators also want to see priorities set in areas like higher education and institutions held accountable for results like graduation, he notes.
“Voters want return on investment for their tax dollars and tuition. And don’t tell us that health care and higher ed are our only options because everything else is dedicated. Excuses. FIX the problem,” he writes. “Locals should pay for their own services and stop depending on the state. The answers aren’t easy and the debate is far from over. But we can’t just keep trying the same old solutions and expecting different results.”
McCollister says he is sure legislators have lots of ideas and many have been presented—and rejected—in the past.
“Ideas like pension reform, merging SUNO with UNO, consolidation of the four higher education boards, consolidation or selling of prisons, removal of statutory dedications and exemptions, civil service reform, more privatization of services or departments, and others,” McCollister writes. “It’s time to reconsider them all as restructuring is debated and priorities are set. Change is inevitable and long overdue because our current populist system is unsustainable—so let’s seize this opportunity.”
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