Our shame (Posted 01/31/05)

In America (even in LA) every citizen 18 or older has the RIGHT to vote. With that right comes the RESPONSIBILITY to exercise that right.

On Saturday, in a special election to fill a vacancy in House District 96 in New Orleans, EIGHTY-NINE PERCENT (89%) did not fulfill their responsibility. Only 11% of the registered voters bothered to walk a few blocks to vote.

Consider this:

— The day before (Friday), 3 American soldiers from LA lost their lives in Iraq in an effort, not only so that Iraqis could go to vote today, but that the voters of HD 96 could freely exercise their right to vote.

—That same day (Saturday), Iraqi ex pats here in New Orleans drove to Nashville, Tennessee to cast their votes.

— That same day (Saturday), American men and women, black, white, brown, yellow, etc. stood guard in LA, elsewhere in the country and abroad to insure that the voters of HD 96 could freely exercise their right to vote.

— Sunday, thousands of American soldiers put their lives on the line to insure that Iraqis could freely exercise their right to vote.

— Sunday, millions of Iraqis (estimates as high as 60% of the voters) at great risk of life (an estimated 44 have already died), fulfilled their RESPONSIBILITY to vote.

Finally, the registered voters of HD 96 are an overwhelming majority (77%) black, for whom much blood was shed right here in America so that they could not only have, but could freely exercise their right to vote.

It’s a damn shame.

C.B.

Mullet Scribe

Perry’s pipe dream blows up! (Posted 01/28/05)

A newspaper story earlier this week discussed the shortfall of $3 Million in Superdome naming rights that could have been used to pay the state’s obligation to the Saints.

There’s one problem with this $3 Million “shortfall.” It was NEVER a possibility. It was a fiction created by then-F Troop Commandant Steve Perry. Perry was cutting deal (regardless of whether it was a good deal to the taxpayers) to get the monkey off the back of his boss, Big Daddy and onto the back of the next governor.

Here’s reality for naming rights (all the areas have a much larger population and media markets):

Ford Field (Detroit Lions): $40M over 40 years

RCA Dome (Indianapolis Colts): $7.5M over 5 years

Edward Jones Dome (St. Louis Rams): $2.65M a year

FedEx Field (Washington Redskins): $200M over 27 years

Source: News-Star January 24, 2005

The irony of Perry’s pipe dream is that, unlike Mr. Magoo, the roof has fallen in on Perry. Perry subsequently took a lucrative, quasi-public job in New Orleans, of which is one responsibilities is to generate funds to pay for the deal he made.

The sad thing about Perry’s fiction is that the people of LA will suffer for it one way or the other. We will either lose the Saints or pay more taxes.

Kudos to Mike Hasten for finding the above numbers for comparison.

C.B.

Mullet Scribe

Kudos to Governor Blanco!!! (Posted 01/27/05)

Shintech will build a BILLION DOLLAR manufacturing facility in LA that will create 150 permanent jobs earning an average of $55,000 per year each.

Blanco vs. Big Daddy

This latest economic development project is more proof that Governor Blanco has done more in one year than Big Daddy did in eight years. That is, more GOOD. Big Daddy did a great job (better than Blanco) of expanding the size of state government.

The Shintech Lesson

There’s a lot to be learned from the Shintech and Union Tank Car projects about the age-old “chicken or egg” question when it comes to economic development.

LA still has a poor public school system, political corruption, coastal erosion, bad roads and bridges, an untrained workforce, etc. etc. However, the plants are going to be built in LA. Why?

The reason these plants are being built here is simple. They are being given tax breaks and regulatory red tape is being expedited.

Now, we need to extend this lesson to ALL businesses in LA: reduce business taxes and regulation. It is as simple as a riding tide raises all boats. As existing businesses grown and new businesses come into the state, additional revenues will be generated to address the educational and other problems.

Kudos and thanks to Governor Kathleen Blanco. YOU DA MAN!!!!!

C.B.

Mullet Scribe

The most powerful is…. (Posted 01/26/05)

Yesterday, Governor Blanco showed exactly who is the most powerful in LA politics when she squashed Ag Commish Bob Odom’s sugar mill boondoggle like a bug.

Blanco’s followed Teddy Roosevelt’s advice: “Speak softly and carry a big stick.” She didn’t shoot her mouth off like Odom, who made a fatal mistake of publicly challenging her when he said: “I don’t care what she wants.”

We still don’t know who is the most powerful man in LA, but we damn sure know who is the most powerful person — Kathleen Blanco.

C.B.

Mullet Scribe

Now, I understand (Posted 01/25/05)

I almost dropped my coffee yesterday morning when I read in the Alexandria Town Talk on the opinion page the following:

Talk of the town: sugar cane, safe zones

Beads: Many people in the sugar cane-growing area of Central Louisiana can remember when the old mill at Meeker was still in operation. The shell of its distinctive architecture remains in place amid the modern Zeolite facility. It’s encouraging, therefore, to learn that a new sugar-processing plant to be called the Bunkie Syrup Plant is in the planning stage. This home-grown project, if funded, will provide jobs and an economic boost where it is needed. Town Talk, January 24, 2005

This “applause” is from the same paper that has been hammering New Orleans over its desire to keep the Saints with the help of the state’s taxpayers.

The sugar mill will be underwritten by the taxpayers of LA via a dedication of slot machine taxes that would otherwise be available to the State General Fund to be used for medical and other necessary services throughout the state.

This sugar mill, by the way, has no real feasibility study showing that it can even be successful. In fact, sugar mills are closing around the state.

Apparently, if state money is used in Central LA, it’s good regardless of its frivolity. However, if the money is used in the New Orleans area, its bad.

Now, I finally understand. Isn’t really about on WHAT our tax dollars are spent, but WHERE they are spent.

C.B.

Mullet Scribe

P.S. The Piney Woods Oracle splains the sweet deal.

The most powerful man in LA! (Posted 01/24/05)

When he was our ruler, Big Daddy, told us that the “most powerful man in LA” would be “Coach” Blanco.

That was just another gross over-statement by Big Daddy who didn’t know what was going on outside of his duck blind.

The MOST POWERFUL MAN IN LA is Ag. Commish Bob Odom.

Odom, thanks to a total collapse of the system of “checks and balances” and the abdication of responsibility by the leges, has more unbridled power than does the governor.

“Watchcat” report

The situation is outlined, last week,by “Watchcat” Robert Scott, Capitol Bureau Chief for the Times Picayune in two stories: here and here.

NOTE: “Watchcat” is a compliment. The so-called paid “watchdogs” in LA remain asleep under the porch while the statehouse is being pillaged by the politicians. Thankfully, we have a couple of “watchcats” who are much more aggressive.

$12 Million Slush Fund

Among other things,Odom has a $12 Million per year SLUSH FUND compliments of the LA Lege. Instead of using the $12 Million per year to support the constitutionally-mandated operations of his office, he continues to drain the State General Fund as well as constantly raising fees (thanks to the leges) for services that he is already required to provide.

Remember the Slush Funds do not come from agricultural interests in LA, but from gambling operations. They are state revenues that had they not been given, by the leges, to the Dept. of Agriculture could be used for any public purpose.

If the Slush Fund was used to attract Federal matching dollars, it would go a long ways towards helping with the shortfall of medical services for the poor and elderly. It could be used to match highway funds to provide better transportation infrastructure for the farmers and others.

Questionable fees

During the last round of fee increases, the amount of the charges were left blank for Odom or the boards over which he exercises almost total control to fill in. It appears to be an unconstitutional grant of authority under LA Const. Article VII, Section 1(A).

This does not even address the question of whether the fees bring in more than the cost of the services provided.

Where are the state’s legal beagles?

Kudos to “Watchcat” Scott for doing some old-fashioned investigative journalism.

C.B.

Mullet Scribe

P.S. The Piney Woods Oracle weighs in with some additional commentary on the Commish.

Shakedown limits need to be raised (Posted 01/21/05)

In what has to be one of the most outrageous examples of how out of touch with reality are our leges is the story in the Baton Rouge newspaper. See story here. You won’t believe it!

The leges want to raise the limits on how much they can be given by lobbyists and other people doing business with them.

The comments by Charlie Lancaster, R-Metairie, are some of the most arrogant and condescending that I have ever heard uttered in public by a LA politician. Where in the hell does he think we mullets sit. How does he think WE pay for them.

Remember there are no limits on gifts from anyone UNLESS THEY HAVE AN INTEREST BEFORE THE LEGES.

What an OUTRAGE!!!

C.B.

Mullet Scribe

P.S. See The Piney Woods Oracle’s page for more on the topic.

LA’s ANTI-”cluster” tax structure (Posted 01/20/05)

We’ve heard a lot about the economic concept of “clusters.” That is where we get a primary business (usually a manufacturing or other production operation) and vendors open businesses nearby to supply the primary business.

Clusters are not developing as promised. Here’s a classic case of why they aren’t.

A home-grown business in Crowley that makes a new health product is forced to buy a primary ingredient (rice bran) from another state rather than right in their hometown (home of the “International Rice Festival”).

“We want to be using local rice production, but I’m forced to get rice bran from Arkansas because the business climate here is tough right now,” she said. “We’re hoping that changes soon.” Light Heart CEO Diane Wright Hoffpauer of Crowley, AP January 15, 2005.

Until the tax structure is made more business-friendly (for existing businesses as well as new ones) in LA, we can forget about “clusters” working as we have been promised. In fact, we can forget real economic development.

What’s next; importing gumbo ingredients from Wisconsin?

C.B.

Mullet Scribe

A warning (Posted 01/19/05)

This is a heads-up for those who are expecting a respite from substantive law-making by the LA leges this year.

There has been a lot of public/media discussion about the fact that the 2005 Regular Session (convenes Monday, April 25, 2005) of the LA Lege will be one dealing with fiscal matters (taxes, budget, etc.) ONLY.

Law changed

The idea of a “fiscal-only” (no substantive law changes) session changed when the public voted in favor of a constitutional amendment on November 5, 2002. The amendment only became effective on January 1, 2004. This year will be the first time the public will have to deal with what it authorized.

Unlike in previous “fiscal-only” sessions, this time an UNLIMITED number of substantive laws are allowed to deal with “local or special” matters. (LA Const. Article III, Section 2(4)(b)(ii)

Though these matters have been defined by the constitution, in 1993 the LA Supremes, in their zeal to legalize gambling in LA greatly changed the jurisprudence about what is considered “local and special.”

Bottom-line: The presiding officers of each body of the lege great latitude in what may be considered this spring under the heading of “local and special”.

Wide-open session

Most importantly is a provision in the 2002 amendment that allows each lege to introduce up to 5 substantive, non-fiscal, bills during a Regular Session in an odd-numbered year. (LA Const. Article III, Section 2(4)(b)(i)

In other words, up to SEVEN HUNDRED TWENTY (720) bills may be introduced dealing with anything that a lege wants to address.

As Mark Twain said: “No man’s life, liberty or property are safe while the Legislature is in session.”

You have been warned.

C.B.

Mullet Scribe

Re-inventing government in Louisiana (Posted 01/17/05)

I recently read about a small town in New England that had decided to abolish its municipal government. The town was no longer financially self-sufficient without taxing its citizens to the point of literally running them out of town. The citizens voted to dissolve the town into the county which would provide all the basic services to the citizens.

The story reminded me about a conversation that I had a year or so ago with a prominent LA mayor. The mayor reminded me about why we have cities, towns, villages and parish governments. We had an agrarian economy with poor modes of transportation and communication. As such, people tended to live in isolation in various parts of the state. As society evolved it was necessary to band together to provide for the basic necessities of a civilized society like police and fire protection, sanitary water, sewerage, etc. Thus were formed villages, towns and then cities.

Today, there are few communities in our state without adequate means of transportation and communication. Many parish governments now provide basic public services to the unincorporated areas. As a result there over-lapping and redundant services (and more taxes) including the multitude of government bureaucracies with which the public must deal.

Recently, the business community passed legislation to reduce the number of local Sales Tax collectors from hundreds to 64. Isn’t it time to consider having only 64 local governments? Then perhaps we can consider merging some parishes rather than have the citizens of our state live with less than equal services.

Mine is not a new or novel idea. The municipalities within Orleans Parish did this years ago. Lafayette and East Baton Rouge Parishes already have consolidated city-parish forms of government.

In LA we have grown comfortable with the status quo. Unfortunately, the status quo means that we are in last place in all the positive categories and first place in all the negative categories when compared with the other states. We have a stagnant population and a dismal economy neither of which will change with more government and more taxes.

The above is another way to deal with the high local property taxes discussed in Friday’s commentary (in archives).

It’s time to start looking at new ways to do the same old things.

C.B.

Mullet Scribe

Amendment protects existing tax inequities (Posted 01/14/05)

I dislike paying taxes as much, if not more, than anyone in the state because I understand exactly how the money is wasted. However, some otherwise, well-meaning (and not well-meaning) leges, in what they think is an effort to fix a problem, will only make it worse.

A bad idea

There is story in yesterday’s Baton Rouge newspaper about the proposed constitutional amendment is a good example the solution being worse than the problem. Rep. Mike Strain’s, R-Covington, proposal would limit any future property tax bills from growing aster than the Consumer Price Index, or cost of inflation, since the last reassessment.

Tax fairness

Public opinion polls indicate that citizens of LA believe that worse than having to pay taxes is having to pay taxes that are inequitably imposed. It is one of the reasons, that despite their regressive nature, sales taxes remain among the most popular means of extracting our hard-earn money for government purposes.

Even the poorest of tax-payers believe that there is something equitable the millionaire paying the same tax on a hamburger as they pay. And vice versa.

Historically, one of the most inequitably imposed taxes in LA has been the ad valorem property tax on residences. The inequity is, mostly, as a result of politics (”LA Way”) as a result of the fact that LA is one of the few states that elect our property tax assessors. That is exacerbated by the fact that we have 70 autonomous Assessors.

Gov. Kathleen Blanco, to her credit, has appointed some new blood to the LA Tax Commission whose job it is to make sure that the Assessors do their jobs correctly. Because the new Tax Commissioners are actually doing their job (making sure properties are equitably assessed), homeowners are being faced with large increases in their property tax bills on their homes.

Fairness = lower taxes

Had the Assessors been doing their jobs as required, these increases would not be as large as they are. Had the Assessors done their jobs properly it would likely mean fewer millages on all of us, including business property. Why?

With proper assessments more money would be available to pay the local governments’ bonded debt (millages automatically “roll-back” as more revenues are generated). Also, with more people (85% of homes have been exempted from parish taxes) paying taxes, it is less likely that local governments could get the voters to increase the millages.

On the other hand, how hard is it to vote for a tax that one doesn’t pay.

Unintended consequences

Despite Rep. Strain’s efforts to ease the tax burden on homeowners, it simply isn’t going to happen. By slowing the natural growth of ad valorem property taxes it will only put pressure on the locals to pass more regressive Sales Taxes and nuisance fees.

What we currently face should be a one-time problem if the Assessors continue to do their jobs correctly. We don’t fix one-time problems with constitutional amendments. Or we shouldn’t.

Small dog - big tick

Bottom-line, until government stops growing faster than our economy, nothing is going to prevent more of our paychecks being taken by government. Like my friend and statewide talk show host, Moon Griffon, likes to describe it: The taxpayers of LA are like a 50 pound dog walking around with a 100 pound tick on its back.

The more equitable taxation becomes in LA, the more taxpayers (dogs) we’ll have to share the burden of carrying the cost of government (ticks).

Solution

I recommend a more equitable solution. Work with the mortgage companies to provide some way for those folks who didn’t have enough in their mortgage escrow accounts to be given a grace period to pay into the account.

That way, rather than a sudden lump sum payment for the extra taxes, payments would be spaced out over 12 or 24 months.

The simplest solution: Lower the millages in the parishes that taxpayers are experiencing problems.

Protecting the LA Way

The net effect, if successful, of the Strain proposal is to “grandfather in” all of the current inequities of the property tax system.

C.B.

Mullet Scribe

50 jobs lost; how many “spin-down” jobs? (Posted 01/13/05)

Earlier this week the news broke about the FIRST 50 (2,500 anticipated) LA jobs lost at Avondale Shipyards. (See story here.)

There is no information about how many “spin-down” jobs will be lost, but according to the RIMSII formula we can expect to lose another at least another 125 jobs.

I only wish that the people in this area were even half as passionate about the loss of these good-paying as they are about possibly losing the Saints NFL franchise.

Meanwhile we continue to react like the proverbial frog in a pot of water on the stove burner. The heat is only gradually turned higher and we are getting boiled without even so much as a peep.

C.B.

Mullet Scribe

More out-migration (Posted 01/11/05)

Here is yet another story of out-migration in LA:

After losing last year’s U.S. Senate race, former Rep. Chris John, D-Crowley, has decided to become a Washington lobbyist. He has joined the law/lobbying firm of Arent Fox Kintner Plotkin & Kahn, according to someone close to the former four-term congressman. John is not a lawyer, but is expected to capitalize on his contacts in the House, especially those on the influential Energy and Commerce Committee. John opted not to run for re-election last year in hopes of succeeding his political mentor, Sen. John Breaux, D-La., who was stepping down after three decades in Congress and also is planning to lobby his former colleagues. John has declined all interviews since finishing second in the Nov. 2 Senate race. . . . . . . . Times Picayune, January 9, 2005

Unfortunately our Congressional Delegation has never been held accountable for our dismal economy and lack of good-paying jobs. It’s as if they have no responsibility.

Interesting how none of our Congressional delegation ever return to LA to live and work. In addition to getting a decent jobs, not working in LA avoids the hit from the “Stelly Plan” on salaries from good-paying jobs.

I don’t know about these folks being the “best and brightest”, but they certainly are a lot “brighter” than those of us who continue to live and work here.

C.B.

Mullet Scribe

The economic solutions are no mystery (Posted 01/10/05)

A recent editorial pondered the age old question of: which came first, the chicken or egg, when it comes to how to improve LA’s economy.

Acknowledging the problems

The editorial takes a first step for LA. It acknowledges our stagnant economy. It further acknowledges our lack of good-paying jobs which leads to our “best and brightest” leaving the state. That, in turn, deters existing business expansion and new businesses moving in.

The editorial further acknowledges that business taxes are a deterrent to having good jobs in our state. It seems to indicate that the only reason not to remove this obvious impediment is that it may cause a hardship on state government.

Removing business taxes will only mean, in the short-run, that state government will have to grow slower than it has for the last 10 years. In the long run, a healthy economy will grow the state revenues and reduce the number of our citizens dependent on government services.

A simple solution

Repeal business taxes and reduce the over-regulation of businesses. Without the over-regulation and high taxes, political corruption (acknowledged by the editorial) is less likely to exist. What’s the mystery?

Another task force?

For the life of me, I don’t understand the quandary that seems to confound our political leadership — especially our leges. I can only blame it on their lack education as a result of being products of the LA Public Schools.

It’s a new year. Let’s get with the program!

C.B.

Mullet Scribe

Existing businesses importance quantified (Posted 01/07/05)

Yesterday, I raised the question of if the RIMS II* formula, used to calculate “spin-off” jobs as a result of the creation of new jobs, also worked to calculate the impact of lost jobs. A member of the “Crack Mullet Research Team” responded.

The RIMS multiplier for the ship-building industry is approximately 3.5-4.0. The number means the 1 direct job creates 2.5 to 3 jobs other jobs. Thus if the New Orleans Metro area loses 100 direct jobs at the Avondale Shipyards, 250 to 300 other jobs will also be lost. (Obviously, different types of businesses produce different multipliers.)

Yesterday, it was reported that we could lose upwards of 2,000 jobs at Avondale. You do the math.

This is why it is as important, if not more important, to retain existing businesses and their jobs as it is to seek new businesses. To do so will require lower taxes and less regulation. Unfortunately, everything we are hearing from the leges in Baton Rouge is going in the opposite direction.

C.B.

Mullet Scribe

*An economic forecasting model, which is used to predict the number of jobs a company creates based on production figures and total annual revenue.

P.S. For more on the topic see the Piney Woods Oracle and Foreign Correspondence on this site.

2500 job loss raises a question (Posted 01/06/05)

The headlines on the front page, above the fold, in today’s Times Picayune scream: “NORTHROP MAY SLASH 2,500 JOBS”. See full story here.

My question is how many other jobs (”spin-down”) will be lost in the Metro area as a result of the lost of these direct jobs? In other words, what is the true economic impact of the loss of these good-paying jobs.

The politicians are allowed to exaggerated the claims of their job creation efforts by using RIMS II which is an “economic forecasting model, which helps [the experts] to predict the number of jobs a company creates based on production figures and total annual revenue.” New Orleans CityBusiness, December 27, 2004.

Failing to have these “spin-down” figures when jobs are lost serves only to deceive ourselves about the reality of our economy. It only serves to delay addressing the problems of high business taxes, business over-regulation and political corruption that continue to plague our economy.

C.B.

Mullet Scribe

LA sending our tax dollars to Texas (Posted 01/05/05)

Thanks to the alert eye of Chad Rogers of TheDeadPelican .com another case of out-migration comes to light. This time, it’s our TAX DOLLARS flowing to Texas.

This press release raises some serious questions:

1. Will the call center be located in Texas while LA cities are begging for these operations and their jobs.

2. If the call center is located in LA, why is it that nobody in our state is capable of setting up the center?

3. If nobody in LA is capable of setting up such a center, why has not any of our economic development operations worked with existing companies in LA to provide them with the expertise.

4. What the loss to LA of $9.6 Million of our tax dollars in addition to the revenues in terms of “spin-offs” in jobs and economic impact?

We desperately need a call center in LA where we can express our outrage to our elected officials and government bureaucrats.

C.B.

Mullet Scribe

Reflecting on a corruption fighter (Posted 01/04/05)

As I read about the continuing efforts by the FBI to weed out political corruption in our state, I couldn’t help, but reflect on a good friend.

Bill Lynch was LA’s first and only Inspector General. However, it will soon a year since Bill died and yet we still don’t have another Inspector General.

Perhaps, as many of us believe, Bill is simply irreplaceable. Unfortunately, it may be viewed by others as simply a lessening of the commitment to fighting corruption from within by the state government itself.

Frankly, at the time of Bill’s appointment, had I know that investigative reporting, in LA, was on its way to the morgue, I would have preferred that he remained a journalist.

That said, as effective as Bill may have been in offering citizens an opportunity to report, anonymously, corruption within state government, he never really had the tools to make the office what is should be. Until the leges decide to give the office statutory authority (as opposed to merely an Executive Order) with real independence and the authority to impose sanctions, our commitment to fighting corruption from within, despite the rhetoric, will remain questionable.

Perhaps this can become a campaign issue in 2007. It’s something to think about in 2005.

C.B.

Mullet Scribe

Political corruption is not merely perception (Posted 01/03/05)

Being the SAIC of New Orleans FBI office, must be akin to hunting in a baited field, but legally. (Story here). Becoming the next SAIC in New Orleans within the FBI, must be as sought after as the head football coaching job at LSU.

Political corruption in LA is more than just some lingering, antiquated, perception held by acknowledgeable people in others states.

C.B.

Mullet Scribe

P.S. For more on the topic read the Piney Woods Oracle’s commentary.

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