The plot thickens (Posted 08/26/05)

Yesterday we found a letter to the editor in the Baton Rouge paper wherein Economic Guru Mike Olivier attacks Associated Press reporter, Alan Sayre. Is this the beginning of the implementation of the plot to discredit critics of the administration? Did Olivier actually write the letter or is it the product of some clandestine writers using others as “fronts”?

In the letter is written:

We agree with Mr. Sayre that for the state to remain competitive, we must focus on economically sound approaches to taxation and public spending while building education infrastructure.

That’s nice that Olivier or whoever wrote the letter agrees with Sayre. The problem is that Sayre never wrote any such thing. See Sayre column here.

Kudos to Sayre for obvious skepticism about reports from state agencies, especially in light of the secret memo outlining a plot to “shoot messengers” and disseminate propaganda.

Thus far, instead of killing the messenger it appears that the new clandestine spin machine has only managed to shoot itself in the foot. Some free advice to the conspirators: When shooting messengers, be sure to take the gun out of the holster before commencing fire.

“Oh what a tangled web we weave, When first we practise to deceive!” Sir Walter Scott

C.B.

Lemme “splain” it (Posted 08/24/05)

For fear that the LA media is on the verge of becoming apoplectic over the dearth of lobbyists who have registered to lobby the Executive Branch, I think I’d better “splain” why. The media is looking at the wrong people.

1. As I read the law, one acting in a representative capacity only must register if lobbying is one of their duties OR if one spends over $500 per year wining and dining civil servants while functioning in a representative capacity. (LA R.S. 49:72(7)) Further unless one expends over a threshold amount no expenditure disclosures are required. Many people likely simply represent themselves because dealing with civil servants does not require the same relationships as are required to deal with leges.

2. Unlike leges, most civil servants have offices with office hours where one seeking to talk with them can easily be found. If wining and dining a civil servant is necessary to influence them, then I have to question the integrity of such a person.

3. Legislators don’t all have regular offices nor do they keep regular office hours. It’s not uncommon to have to track one down say at Chris’s Steakhouse, the Fair Grounds or their fund-raisers in order to converse with them.

4. The law is administered by the Heh, Heh, Heh, LA Ethics Board. Who’s afraid of an old, toothless, chained-up “watchdog.” Even if one gets caught the sanctions are minimal. Big Daddy failed to file a important and necessary disclosure. Yet, after being caught, he was given a slap on the wrist, allowed to pay his fine with other people’s money (campaign account) and the LA media has stamped his administration “SCANDAL-FREE.” No sanctions — no deterrent.

Finally, the media should be asking why it is necessary to expend the money that has been expended in oder to communicate with civil servants. That’s where the media should be focused. Shouldn’t all citizens of LA, regardless of our means, have access to the state’s civil servants without cost?

C.B.

Reality “under the rock”? (Posted 08/23/05)

We always are told about the direct jobs created when some new business locates in our state. Then we hear about the “ripple effect” and how many additional jobs are gained (usually more than the direct jobs) are created by the primary jobs.

Some of us have raised the question of how many “spin-down” jobs are lost when there are layoffs. We never see those reports. Until now. Below is a first person account from Northeast LA of how the job losses are affecting seemingly unrelated businesses:

My office is a very good snapshot of the middleclass economic situation. Let me explain. I employee 28 ladies seven of whom are college part time students. I would say the average household combined income of the 21 married (21 of 21) full time employees ranges from $60,000 to $100,000.

In the last year, I lost my office manager as her husband was transferred to Tulsa with State Farm, I am about to lose another 10-year plus employee whose husband lost his long term position with KOCH - IMC. Thanks to the State of La., he went through a re-training program in high tech welding and is now going to Miss. to work in a car plant, taking Susan with him.

I have two employees and a college student employee, whose husbands and father are on the bubble at IP.

Today I received notice that another employee’s husband received a lay-off notice at Graphic Packaging aka Riverwood with two more on the bubble.

I have another whose husband’s BellSouth position was eliminated in La. and he took a different position with demotion in Shreveport for two years to get to retirement and lives thank God in his trailer and did not take Lucy with him.

I have another whose 50+ year old husband was down-sized out of a hospital executive position and now sells cars in Ruston.

Lastly the first lady I hired 18 years ago husband works at a Tyco plastics plant here and supposedly it is for sale. They all were hit by Stelly Tax for being the rich.

As a Riverwood wife said this afternoon, when is Blanco going to do something other than keep telling us everything is going to be alright.

A blog from Rock City, La.

Whether the business person/writer above “lives under a rock” as Economic Development guru Mike Olivier describes people who don’t think LA’s economy is going gang-busters or is a realist actually dealing on a daily basis with the state’s economy, I’ll leave to your determination.

When are the leges going to reduce taxes to save the existing businesses and jobs?

C.B.

An intolerable tolerance for corruption (Posted 08/22/05)

The following are excerpts from a recent column by John Hill in The Times of Shreveport:

“Corruption, and our willingness sometimes to smile and wink at it, has cost us dearly,” said [U.S. Attorney Jim] Letten, a New Orleans native. “It has gutted the economy of this state. It has kept businesses from coming here and has denied citizens jobs.”

Letten hastens to say most public officials are honest and trying to change that corruption reputation.

“We’ve made great strides. But the fact is we still have that reputation.”

Letten said it will take “an unending, sustained effort to reverse a culture that is rooted in generations.”

Letten knows of what he speaks. We used to laugh and joke about the corruption in our state; many still do. Unfortunately, corruption is now not merely ripping-off our tax dollars, it is making it more difficult to earn those dollars that are ripped off. Tolerance may be a virtue, but when it comes to wrong-doing, it is a sin.

The fact that “most” of our public officials are honest is not encouraging nor acceptable. Public office is a position of trust bestowed on the holder by the citizens of this state. We should tolerate nothing less ALL public officials being honest.

Unfortunately, things appear to be getting worse in LA, not better. The efforts of the Federal government to root out and prosecute corruption in LA is expanding. For the first time, the FBI has a public corruption branch office in Baton Rouge. This begs the question of where are the state and local law enforcement officials and prosecutors? With the lone exception of East Baton Rouge Parish District Attorney Doug Moreau, they have been AWOL in the battle against corruption. It speaks volume for our intolerable tolerance for corruption.

C.B.

A tangled web (Posted 08/19/05)

“Oh what a tangled web we weave, When first we practise to deceive!” Sir Walter Scott

Last week, statewide radio talk show host, Moon Griffon exposed a secret and confidential memo prepared for the Director of Communications for the governor of our state The memo suggests a website to counter the information being provided by Griffon and the “Internet Kooks.” At whom the website was aim is immaterial. Several things are troubling about the memo and the subsequent reaction to it:

First, it appears that the office of the governor of my state is plotting to deceive the public. Then the denial. Despite the attempt by spokespersons for the governor to give one the impression that the memo was unsolicited, the memo on its face says otherwise. More deception.

Second, that anyone in the governor’s office would even entertain such a clandestine operation whereby “front groups” masquerading as independent good government groups would be used to conceal the identify of the source of the material on the website is chilling.

Third, there were discussions with the governor’s office of circumventing Federal and state laws. The late U.S. Supreme Court Justice Louis Brandeis said: “If the government becomes a lawbreaker, it breeds contempt for law: it invites every man to become a law unto himself: it invites anarchy.”

Finally, was the reaction by the president of the Council for a Better LA (”CABL”) that (I’m paraphrasing) is no big deal. How can an organization that pushes for “transparency in government” and all type of financial disclosure of public officials take such a flippant attitude. It is proof positive that the plot not only will work, but is working.

When LA is trying to project the image of a non-corrupt, non-ethically challenged, open for business, state such efforts are self-defeating.

C.B.

Stop rationalizing bad news (Posted 08/18/05)

“Louisiana is on the move. If you haven’t noticed, you’ve been living under a rock.” Economic Development Secretary MICHAEL OLIVIER, Times Picayune, July 17, 2005.

Yesterday we get another dose of very bad news from the major employer in the New Orleans area. One thousand more jobs (in addition to Tuesday’s announced 900) are to be lost at Northrop Grumman. (Story here.) It’s one thing to have a positive attitude it is quite another to keep one’s head in the sand. Apparently the view from under the rock is clearer than the hole in the sand. The only thing moving is LA citizens looking for good-paying jobs in Texas.

Speaking of economic development; International Paper just announced that it was moving its headquarters from Connecticut to Memphis Tennessee. Were we even seriously considered? Did we even know about the move? Story here.

It’s time to stop “shooting messengers,” rationalizing and puffery. It’s time for action! We will never recruit enough businesses to replace the jobs that are being lost every day. Call a special session and start slashing business taxes and red tape for the sake of the jobs that we already have.

Got to get back under my rock so that I can see what’s going on.

C.B.

Another rock dweller (Posted 08/17/05)

“Louisiana is on the move. If you haven’t noticed, you’ve been living under a rock.” Economic Development Secretary MICHAEL OLIVIER, Times Picayune, July 17, 2005.

On Friday there was a story earlier this week in Times Picayune wherein is found the following:

Elliott Stonecipher, a political pollster and demographer based in Shreveport, said: state officials should be trying to find out why people are leaving the state, and they should reshape state economic and taxation policies both to reduce out-migration and to entice people to move in.

Stonecipher goes on to say:

“As they approach retirement, they look either immediately west to Texas or a bit farther to Florida, and say, ‘What am I getting in Louisiana for this state income tax?’ ”

Then he says:

“I can’t prove that’s what’s happening,” he said. “But the state should be doing research to see if that’s true. There’s an elephant in the room, and nobody wants to acknowledge it.”

The consequences of such an exodus could be grave, he said, because it’s exactly that combination of young wage earners and mobile retirees that make up the backbone of state and local tax bases.

He goes on:

He said if Louisiana matched other states’ tax breaks, the state could be enticing for Northeastern and Midwest urban residents planning a move to the Sunbelt.

“People who are moving to Texas are increasingly not moving into urban centers,” he said. “It’s inconceivable that they wouldn’t consider Louisiana.”

I don’t recall whether I’ve heard something like this before, but nuff said. Let’s “git er done!”

As to Mike Olivier, please stop insulting the intelligence of the citizens of LA and start producing something more than sound bites.

C.B.

Lest we forget…. (Posted 08/16/05)

Today there is a column in the Baton Rouge paper headlined: “Energy prices drive businesses out of Louisiana.”

One element of that cost not mentioned in the column is the state’s 3.8% Sales Tax on business (not residential) utilities. During the 2004 Special Session, the leges extended the 2.8% “temporary” portion (1% is permanent) of that tax for another 5 years. Remember all the comments about “nobody from business was complaining.” At the time, this “temporary” tax alone amounted to $160 Million annually. A minimum of $200 Million would be saved by simply treating residences and businesses alike.

To see how your lege voted on the “temporary tax” go here.

It’s long past time to have a lege session to repeal business taxes. A good place to start is this “business-only” utility tax. That would provide an across the board immediate 3.8% reduction in the cost of energy to HELP SAVE JOBS.

C.B.

So, what are you going to do? (Posted 08/15/05)

In a story in the Monroe paper, Congressman Rodney Alexander, R-LA, talking about the problem attracting business to LA, said:

“There’s over-litigation and taxation,” he said. “We’re just not a business-friendly state.”

That statement begs some questions: 1) Did the Congressman know that when he was in the LA lege (elected 1988)? 2) If so, why did he vote for billions in taxes? 3) If not, when did he learn. 4) Now that you know, what are you doing to “hep” us?

Welcome to LA Congressman. You should visit more often.

C.B.

On second thought, he won’t….(Posted 08/12/05)

During his senate confirmation hearings in June, Mike Olivier, LA’s economic development guru, was reported by the media has having said:

“I just think it’s wrong to exempt business from school property taxes,” state Department of Economic Development Secretary Michael Olivier said.

“I would prefer not having school property taxes exempted … so school districts continue to get a revenue stream and not have to wait 10 years for the revenue stream to come in,” Olivier said.

In response to a question by Senator Cleo Fields, D-Baton Rouge, Olivier said that in a future lege session he would join the senator in supporting the senator’s legislation that would amend the state’s Industrial Tax Exemption law so that businesses receiving it would no longer be exempted from ad valorem property taxes for the local schools.

About face

On Wednesday, Olivier, in an appearance on the Moon Griffon statewide radio show, stood by the above statements, but backed down from his support of the Fields legislation. Olivier said that he would not support the bill (He didn’t say he would oppose it.), but would merely appear and answer questions, objectively. Apparently, since the hearing on his confirmation as Secretary of LED, Olivier has learned that in LA businesses pay over 85% of all local property taxes because, among other things, LA has the highest Homestead Exemption in the nation. As soon as he splains that to Sen. Fields everything should be fine.

If you’re leaving

Olivier noted that if you are planning on moving your business to another state, he can offer you a program to equalize your taxes with the other state. Unfortunately, he didn’t seem to have anything to offer to businesses that are merely closing because of the high costs of doing business in LA. Nor to those businesses that struggling to simply remain here and profitable.

C.B.

LA Boudin Plant No. 2 (Posted 08/11/05)

Previously, I provided you with a glance into the State Boudin Plant No. 1 (State Operating Budget). Today, for those with the stomach for it, I offer you a look into the State Boudin Plant No. 2 (State Capital Outlay Budget).

I have greatly edited the listing to include only those projects that one would traditionally consider the sole responsibility of either local governmental subdivisions or private organizations. I further eliminated all those projects that were for water, drainage, sewer and roads. I did this because it is assumed that everyone in the state would benefit somewhat from such expenditures.

Remember these are expenditures for “bricks and mortar” and equipment. As you read them you may recall that the $16 Million in Lege Slush Funds are touted to be to help local governments with things such as fire trucks, sidewalks, etc., etc. The expenditures listed are in addition to those.

NOTE: The list is long because in the actual bill itself it was almost 100 pages. It starts with allocations to the parishes, then to municipalities, then local districts and finally to private and quasi-private organizations.

The list is posted here.

If you want more details (including the parishes or cities wherein they are located) on the expenditures you can go to HB 2. Or contact your leges. Don’t ask me. I don’t know any more than you do.

C.B.

Media beginning to get it (Posted 08/10/05)

Two recent stories indicate that the media may be awakening to the reality of LA’s economy. First there was Alan Sayre’s column on Sunday headlined: “More employment storm clouds gather over Louisiana.” Then in yesterday’s Alexandria paper is an editorial entitled “Economy takes a step forward, then two back.”

Both pieces indicate that employment or unemployment rates are no measure of the health of our state’s economy. Imagine that!

Sayre column excerpts:

A considerable amount of spin is needed these days to make Louisiana’s economy look good.

The official statisticians on unemployment…said that more people had jobs in the state in June than at any other time in history.

That is likely little comfort for those who either used to work or are wondering when they will stop working for major businesses.

Town Talk excerpt:

Job losses in Louisiana — those under way and those potential job losses on the horizon — illustrate why the state must get a lot smarter about taxation, public spending and its education infrastructure.

Perhaps we need to start cutting business taxes and re-prioritize government spending (Hint: Cut the slush funds — $53 Million this year!). Of course, that might mean a slowing of the growth of government. Kudos to the Town Talk for coming up with this novel idea. I wish I’d thought of it.

C.B.

How about cutting taxes? (Posted 08/09/05)

The story in Monroe’s paper on Sunday was headlined: “Officials: Lower energy rates”

Governor Blanco and PSC Commissioner Foster Campbell are going to talk with Entergy about lowering the utility rates for some of the plants that are about to close in Northeast LA. One of the biggest costs used to calculate utility rates are taxes. If the state just lowered business taxes the PSC would be forced to immediately lower utility costs — not just for the plants, but for everyone (residences and businesses). Not only would the lower taxes reduce utility rates, but the other costs of doing business in LA for EVERYONE.

It’s a good idea to lower utility rates, but first look in the mirror as to why rates are high in the first place — TAXES AND GOVERNMENT RED TAPE.

Instead of just talking with Entergy, how about talking with the 144 leges and call a special session of the lege to lower taxes (majority vote only) on all businesses. I suspect that those who are about to lose their jobs would rather have income rather than a government hand-out from the ever-expanding state government.

C.B.

LA, we have a problem!! (Posted 08/05/05)

The story (here) was a sad commentary not just on Baton Rouge, but our entire state. It is reality! Questions need to be asked. Why do people not want to live in Baton Rouge/LA?

Our public officials continue to tell us that LA is “open for business.” However, as any business person will tell you, it’s one thing to open the doors, it’s an entirely different thing to get customers to come in and buy. Obviously, our “product” is not what people are willing to buy.

I’m sick of the political rhetoric. I’m sick of the “messenger shooting.” Many have offered real solutions. We’re told that they “aren’t politically feasible.” Most require that government shrink to save the private sector. We have a serious problem. It isn’t “politically feasible” to allow them to continue.

C.B.

LA loses another business to MS! (Posted 08/04/05)

Another existing LA business lost. Another 50 jobs lost! (Story here.) These are management and administrative jobs (middle class wages).

There must be something in Mississippi that makes it more attractive than LA. Obviously, it was not Mike Olivier as he works for LA and businesses continue to locate and re-locate to MS rather than LA. If it’s is not the cost of doing business, we need to know what is the reason. Then we need to address whatever it is.

C.B.

800 jobs in jeopardy!! (Posted 08/03/05)

Today we learn of another all-to-common occurrence in Northeast LA. (Story here) Unfortunately, like the International Paper Plant in Bastrop, the State Farm Offices in Monroe, etc., etc. these economic bombs were known years ago. It seems that the only people who didn’t know about them or more accurately didn’t bother to address the issues years ago are our elected officials who have the power to have prevented this.

Whenever one tries to warn about the state’s economic death spiral, they are called naysayers, pessimists and worse. Such ignorant reaction to reality is merely denial. Denial is the reason that we rank last in comparison to all the other states.

It’s time to focus on those businesses that exist in LA today. No, they don’t make the headlines like landing a new business, but they are the most important. Cut the taxes, red tape and political corruption that make LA non-competitive. We simply cannot afford to continue grow government at the expense of the private sector.

Time to change direction LA! We need a special session of the Lege to CUT TAXES!

C.B.

Official equates growth of government with businesses (Posted 08/02/05)

A letter to the Lafayette paper from the LA Secretary of Labor wherein he seems to be equating the growth of jobs in state government to that of business and industry. Mr. Smith’s rationale for the growth of state government jobs is as lame as I have ever seen. (See letter here.)

Businesses create more jobs by making more money. Government creates jobs by taxing the money that businesses make.

The latest figures from Mr. Smith’s office show that over 30% of all new jobs in LA for the latest 12-month period were created by state government. Over 40% were created by legalized gambling. Bottom-line is that all businesses, except gambling (if that is a business) only created a combined less than 30% of the news jobs in this state. That’s pathetic! The only thing more pathetic is Mr. Smith’s rationalization of the irrational.

C.B.

Uncategorized CB 3:17 pm