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Alan Sayre’s column and analysis of the release of a state-funded casino gambling study (revealed at Attorney General Charlie Foti’s secret meeting), raises some old issues and new questions. (See column here.)

Casinos are government-granted monopolies. Why did the Lege order a study of competition from other states for casino gambling in LA, but there was no similar study for REAL businesses in LA who deal with competition and make up the vast majority of LA’s economy and the state tax base? What about the rest of us who contribute to the $27 BILLION state budget?

Organized Gambling brought gambling to LA, wrote the law, regulations and agreed to the tax rate. Why don’t we allow businesses that must compete, not only with other states, but worldwide to write their own operating rules and set their own tax rates?

LA doesn’t need gambling revenues

The study actually shows that LA can get along just fine without legalized gambling.

ALL legalized gambling in LA accounts for only $700 Million of the $27 BILLION state budget. (This figure has remained static for years.)

Currently, there are projections of a state surplus for the fiscal year that ended June 30 of approximately $700 Million. For the current fiscal year estimates are already as high as $700 Million in additional revenues will come from higher tax collections from Sales, Severance and Income Taxes.

Thus, without the gambling revenues there would be NO LOSS OF REVENUES to the state budget.

More harm than good

Sayre writes:
In 2004, according to the attorney general’s study, 73 percent of Harrah’s New Orleans customers were local residents. Over 98 percent of the customers who went to New Orleans-area riverboats were locals. In Baton Rouge, 93 percent were locals.

But western Louisiana is a different matter: 74 percent of the clientele in Shreveport-Bossier City casinos came from out of state, while 63 percent of the Lake Charles customers were from outside Louisiana.

For years it has been known that when more than 40% of the customers come from within the state, then gambling is doing more harm to the LA economy than good. These figures for the Baton Rouge and New Orleans area have long been denied and covered-up. See the 1999 University of New Orleans study here.

The market in the Lakes Charles area already appears saturated because casinos are bailing out of the Lake Charles area and moving further into the interior of the state into East or West Baton Rouge or Jefferson Parishes. One of the New Orleans casinos is headed for St. Mary Parish. Once Texas legalizes casinos it won’t take a rocket scientist to realize what will happen to the casinos on our western border.

Finally, if all legalized gambling in LA evaporated overnight, it is very likely that much of the money currently be spent in the casinos would be spent in the retail economy of LA and thus returned to state government in the form of higher Sales and Income Taxes. Anecdotal evidence shows that is exactly what happened in the parishes that voted existing gambling out of their parishes.

If one wants gambling for the sake of gambling that is their decision. However, we need to quit fooling ourselves that gambling is “economic development” and start focusing on real EXISTING businesses in LA before it’s too late.

C.B.

Uncategorized CB 8:00 am

Last week it was reported that LA was once again last in an important category — Higher Education. Immediately, the “methodology” of the report was questioned by the head of LA’s Higher Ed system. Then, the Lafayette Daily Advertiser ( editorial here) weighs-in.

The Advertiser: “The “F’s” were in preparation and affordability. Both are depressing, but flunking “Preparation” is particularly alarming.”

No argument here.

The Advertiser: “The important thing is that improvement be a major priority.”

No argument here either. In fact, it’s just my opinion, but Higher Ed. should be a higher priority than $30 Million in local projects (”Pork” to some “essentials” to others.).

The Advertiser: “Provide adequate funding and don’t raid the higher-ed budgets every time fiscal problems arise.” “The state chose to lock in to the constitution the funding for most agencies and activities - but did not similarly protect health care and higher education.”

That is where the paper’s efforts at excusing the inexcusable break down.

“Preparation” deals with elementary and secondary education, not higher education or higher education funding. Funding for elementary and secondary education IS locked into the constitution and increases every year despite the every-declining pupil enrollment. Despite that we remain either last or next to the last in public elementary and secondary education in comparison to other states.

State spending has increased in 10 years from $10 BILLION to $27 BILLION yet we remain last in the good categories and first in the bad categories.

Thus, there appears to be no direct relationship between more state government spending and an improvement in our rankings in comparisons to the other states.

Let’s stop “shooting the messengers,” excusing the inexcusable, rationalizing the irrational and start admitting that we have problems and address them.

C.B.

Uncategorized CB 8:00 am

Status Quo

In today’s Hammond Daily Star, Rep. “Tank” Powell, R-Ponchatoula, says with respect to Constitutional Amendment No. 3 on the September 30 ballot, which streamlines the levee boards in Southeast LA:

“I’m still not for it…” Funny, he voted for it during the lege session. See vote here. Not only did Powell vote for the Amendment, he is a CO-AUTHOR. See bill here.

Then Powell goes on to spread false information:

The governing authority of that board could decide to levy taxes, for instance, to pay for a levee, he [Powell] said. “Tangipahoa may not need a levee,” he [Powell] said. “They may include us in taxes to build a levee somewhere else.”

If Powell was an honest politician (oxymoron in LA), he would explain that it would be IMPOSSIBLE for the new board to pass a tax on the people in Tangipahoa Parish unless an election was held in the parish and a majority of the voters approved it even if every other parish voted for it. See Page 4, Lines 13-22.

Hypocrisy

Not only is Rep. Powell seeking to mislead his constituents (I am one.), but is being hypocritical on the matter of taxes. Powell has voted to impose over a BILLION DOLLARS in taxes on us since 2000. None of which did we get a vote on. Powell even voted to inflict the “Stelly Plan” on his constituents.

This misleading of the public is exactly why I began posting a website in 2000. Politicians like Powell go to Baton Rouge and do one thing and tell their constituents another.

Maintaining the status quo

Powell suggests that he “fears the unknown.” The status quo in LA is to be last in everything good and first in everything that is bad. The “unknown” cannot be worse than the status quo. The status quo cost over a thousand lives and over a hundred thousand citizens their homes and their possessions.

FOR BETTER FLOOD PROTECTION, PLEASE VOTE YES FOR AMENDMENT NO. 3 ON THE SEPTEMBER 30 BALLOT.

C.B.

Uncategorized CB 8:00 am