forgotston.com

Bobby Jindal promised that taxpayers in Louisiana would get larger pay checks starting January 1, 2009, as a result of the passage of Senate Bill No. 87 of the 2008 Regular Session which returned the tax brackets to pre-Stelly Plan.

On May 14, 2008, Governor Bobby Jindal said the following:

“This is real tax relief that working Louisianans will notice in their paychecks starting January 2009. The elimination of the Stelly Tax increase means over three hundred million dollars in lower taxes next year – more than a billion dollars in tax relief over the next five years - and more money in the hands of families who will do a better job spending their money than the government would. This is another example of just how much you can get done if you don’t care who gets the credit.” Emphasis mine.

The amendment

During the House Floor debate on SB 87, House Speaker Jim Tucker offered an amendment to prevent the Department of Revenue from promulgating new tax withholding tables before July 1, 2009.

At the time Tucker was questioned about the impact of his amendment:

Tucker insisted the amendment still would allow taxpayers to start collecting fatter paychecks in six months.

The amendment, he said, would give taxpayers the choice of asking their employer to change their withholdings or of waiting until they file their income tax return in 2010 to glean the savings.

State Rep. Cameron Henry, R-Jefferson, accused Tucker of bait and switch.

He noted that the governor publicly announced the savings would begin Jan. 1.

Henry said the Legislature should not burden taxpayers with the responsibility of changing their withholdings.

“We’re sending a terrible signal,” Henry said. “We promised them Jan. 1, 2009.”

Tucker told Henry he was “absolutely incorrect.” The (Baton Rouge) Advocate June 5, 2008.

Calls to Speaker

Wednesday, after receiving inquiries from listeners (employers and employees) about getting the tax reduction in their paychecks beginning January 1, statewide radio talk show host Moon Griffon suggested to his listeners that they call Speaker Tucker to learn how. According to Tucker (statement above), taxpayers could ask their employer to change their withholdings to reflect the tax reduction.

The initial response from the Speakers Office was that they didn’t know how to get the reduction in their withholding. Later, after being bombarded by callers, the Speakers’ Office began sending out copies of Form 4-L from the LA Department of Revenue.

Bad idea

Griffon consulted with tax experts who told him that the form sent by the Speakers Office would not resolve the problem. The form only allows an employee to increase the number of dependents.

According to the experts, to increase one’s dependents above the number of actual dependents, in order to get extra money in their paychecks, would require them to lie.

Additionally, there is no relation between the number of dependents and the reduction in taxes as a result of the rollback of the Stelly Plan. As such, an increase in dependents may subject taxpayers to penalties for failing to withhold enough money on their state and federal tax returns.

Therefore, despite the promises of Jindal and Tucker, most taxpayers will get no State Personal Income Tax relief until they file for their state tax returns in 2010.

According to the experts, the only way for taxpayers to receive the tax relief they were promised is if the Department of Revenue promulgates new withholding tables prior to January 1, 2009.

Solution

The problem can remedied, but only if the leges come into a special session before the end of this year. Then SB 87 can be amended to delete the prohibition against the Revenue Department from promulgating new State Withholding Tables.

If you want to get the tax break you were promised, contact your lege and demand that they change the law before December 31, 2008.

Finally, Griffon will have tax experts on his radio show at 10:00 AM today to discuss further how we were misled. Listen live at: www.moongriffon.com

C.B.

1 CB 9:58 am

We heard a lot about Bobby Jindal vetoing some of the funding for NGOs (Non Governmental Organizations). Despite the vetoes Jindal approved more funding for NGOs in the State Operating Budget than any previous governor.

What you haven’t heard anything about (At least, I haven’t.) is the money the state is BORROWING to fund “bricks and mortar” projects for NGOs.

HB 2 of the 2008 Regular Session is the State Capital Outlay Budget. Most of the expenditures in that budget is from money BORROWED via State General Obligation Bonds.

Thus, not only are we giving NGOs state cash, but now the state is borrowing money to fund NGOs. This, despite record budget surpluses.

I went through HB 2 and selected a few examples of money being borrowed for NGOs. I only listed those which are in Priority One, meaning they will get funded this year from the proceeds of bond sale(s).

The sample alone totals over $24 MILLION. This may help explain why, despite Jindal’s veto of $16 Million in NGOs in the Operating Budget the leges overwhelmingly voted against having a veto session to attempt to override the vetoes.

Despite the “standards” that Jindal set forth for the funding of NGOs, I have a hard time seeing how those on the sample list meet the standards. In fact, many of these projects aren’t even listed on the lege website as required by House Rule for all appropriations to NGOs.

The list, if you care to look over it, is posted below.

The parish in which each project is located is listed in parentheses.

Remember we taxpayers will be paying for these projects for the next 20 to 30 years. Also, remember this is just the “tip of the iceberg.”

C.B.

EFFORTS OF GRACE, INC.
Ashe Too, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 910,000
LIGHTHOUSE FOR BLIND IN NEW ORLEANS
Economic Development Project, Planning and Construction (Jefferson, Lafourche, Orleans, Plaquemines, St. Bernard, St. Charles, St. James, St. Tammany, Terrebonne, Washington)
Payable from General Obligation Bonds
Priority 1 $ 1,100,000
RENAISSANCE HOME FOR YOUTH
Renaissance Education Building, Planning and Construction (Rapides)
Payable from General Obligation Bonds
Priority 1 $ 1,320,000
YMCA OF THE CAPITAL AREA
North Baton Rouge YMCA, Planning and Construction (East Baton Rouge)
Payable from General Obligation Bonds
Priority 1 $ 350,000
DISTRICT 2 ENHANCEMENT CORPORATION
St. Claude Community Development and Beautification Project, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 300,000
Community Development and Beautification Project, Planning, Acquisitions and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 250,000
New Orleans East Walking and Bike Trail, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 400,000
TECHE ACTION BOARD, INC.
Franklin Expansion St. Mary Parish Location for the Purchase and Renovation of an Existing Building and to Renovate the Current Facility, Planning and Construction (St. Mary)
Payable from General Obligation Bonds
Priority 1 $ 1,450,000
ARC OF NORTH WEBSTER
New Roof Construction and Existing Building Modifications, Planning and Construction (Webster)
Payable from General Obligation Bonds
Priority 1 $ 150,000
RECONCILE NEW ORLEANS, INC.
Reconcile New Orleans, Renovation and Expansion Project, Central City New Orleans, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 625,000
LITTLE THEATRE OF SHREVEPORT
Little Theatre of Shreveport, Planning and Construction (Caddo)
Payable from General Obligation Bonds
Priority 1 $ 1,300,000
GREATER URBAN LEAGUE OF NEW ORLEANS
The Urban League of Greater New Orleans Building Renovations (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 200,000
TANGIPAHOA AFRICAN-AMERICAN HERITAGE MUSEUM AND BLACK VETERANS ARCHIVES
Tangipahoa African-American Heritage Museum and Black Veterans Archives (Tangipahoa)
Payable from General Obligation Bonds
Priority 1 $ 50,000
BATON ROUGE CASA
Baton Rouge CASA Facility, Acquisition, Design, Planning and Construction (East Baton Rouge)
Payable from General Obligation Bonds
Priority 1 $ 250,000
7TH DISTRICT BAPTIST ASSOCIATION
Roof Replacement and Repairs and Equipment to Christian Villa Nursing Home, Planning and construction (Acadia)
Payable from General Obligation Bonds
Priority 1 $ 260,000
OPTIONS, INC.
Safe Haven Multi-Purpose Vocational Center and Shelter, Planning and Construction (Tangipahoa)
Payable from General Obligation Bonds
Priority 1 $ 500,000
LOUISIANA MILITARY HALL OF FAME & MUSEUM, INC.
Museum (Vermilion)
Payable from General Obligation Bonds
Priority 1 $ 100,000
EAST CARROLL COUNCIL ON AGING
East Carroll Voluntary Council on Aging Renovation, Planning and Construction (East Carroll)
Payable from General Obligation Bonds
Priority 1 $ 50,000
MAGNAVILLE LOUISIANA, USA, INC.
Multipurpose Evacuation Shelter/Community Center in Simmesport, Acquisitions, Utilities, Planning and Construction (Avoyelles)
Payable from General Obligation Bonds
Priority 1 $ 400,000
LOUISIANA ALLIANCE OF BOYS & GIRLS CLUBS
Louisiana Alliance of Boys and Girls Club, Inc., Planning, Acquisitions, and Construction (Statewide)
Payable from General Obligation Bonds
Priority 1 $ 100,000
BOGALUSA YMCA
Bogalusa YMCA, Master Planning, Design, Construction, Renovations and Equipment Acquisitions (Washington)
Payable from General Obligation Bonds
Priority 1 $ 75,000
ST. MARY COMMUNITY ACTION AGENCY
Office Addition and Modifications for Community Action Agency, Planning and Construction (St. Mary)
Payable from General Obligation Bonds
Priority 1 $ 560,000
ST. TAMMANY PARISH EVENTS DISTRICT
East St. Tammany Events Center, Planning, Designing and Construction (St. Tammany)
Payable from General Obligation Bonds
Priority 1 $ 5,000
LOUISIANA BLACK HISTORY HALL OF FAME
Museum and Cultural Center, Planning and Construction (East Baton Rouge)
Payable from General Obligation Bonds
Priority 1 $ 350,000
TREME COMMUNITY EDUCATION PROGRAM
Leverette Senior House, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 420,000
Program Operations, Planning, Acquisitions, Renovations and/or Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 250,000
FAMILY CENTER OF LIFE, INC.
Family Center of Hope Community Center in New Orleans, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 100,000
ARC OF GREATER NEW ORLEANS
Restoration of the Fontana Center of the ARC of Greater New Orleans in Metairie, Planning and Construction (Jefferson)
Payable from General Obligation Bonds
Priority 1 $ 150,000
HOME AWAY FROM HOME, INC.
Purchase and Installation of Emergency Generators (Washington)
Payable from General Obligation Bonds
Priority 1 $ 90,000
WASHINGTON PARISH FAIR ASSOCIATION
Renovations to Historic Buildings, Planning and Construction (Washington)
Payable from General Obligation Bonds
Priority 1 $ 50,000
ARC OF OUACHITA
Emergency Shelter and Therapeutic Center for the Developmentally Disabled, Acquisition, Planning, Construction and Renovation (Ouachita)
Payable from General Obligation Bonds
Priority 1 $ 100,000
NEW ORLEANS NEIGHBORHOOD DEVELOPMENT
NDF Homeownership Center, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 350,000
TRINITY CHRISTIAN COMMUNITY
Carrollton Community Center Renovations, Land Acquisition, Site Work, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 1,075,000
NEW ORLEANS MUSIC HALL OF FAME
South Rampart Street Historic Development Project, Planning and Construction, (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 2,000,000
ASSUMPTION PARISH COUNCIL ON THE AGING, INC.
Council on Aging Building, Planning and Construction (Assumption)
Payable from General Obligation Bonds
Priority 1 $ 960,000
TRIUMPH OF SPECIAL PEOPLE, INC.
Housing for Disabled Recipients of Waiver Services, Acquisition, Planning and Construction (Jefferson)
Payable from General Obligation Bonds
Priority 1 $ 370,000
LOUISIANA 4-H FOUNDATION
Louisiana 4-H Foundation Youth Educational Development Center, Camp Windy Wood Property (Grant)
Payable from General Obligation Bonds
Priority 1 $ 250,000
YMCA OF GREATER NEW ORLEANS
New Westbank YMCA (Jefferson)
Payable from General Obligation Bonds
Priority 1 $ 700,000
DRYADES YMCA
Technical Training Center, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 1,000,000
Dryades YMCA Reconstruction, Planning and Construction (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 1,500,000
COMMUNITY OUTREACH PROGRAMS
Willow Glen River Road Senior Resource Center, Planning, Construction and Equipment (Rapides)
Payable from General Obligation Bonds
Priority 1 $ 1,270,000
LOUISIANA LEADERSHIP INSTITUTE
Multi-Purpose Education Enrichment Center Athletic Field, and Band Room, Planning and Construction (East Baton Rouge)
Payable from General Obligation Bonds
Priority 1 $ 1,000,000
NORTHEAST DELTA RC&D
Franklin Parish Activity Center, Planning and Construction (Franklin)
Payable from General Obligation Bonds
Priority 1 $ 325,000
ALLUME SOCIETY
Frank’s Theatre Restoration, Planning, Acquisition, Renovation, and Construction (Vermilion)
Payable from General Obligation Bonds
Priority 1 $ 100,000
SCHEPIS FOUNDATION, INC.
Schepis Building Renovations, Planning and Construction (Caldwell)
Payable from General Obligation Bonds
Priority 1 $ 450,000
LONGUE VUE HOUSE AND GARDENS
Restoration and Master Site Planning (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 100,000
MERCY ENDEAVORS
Irish Channel St. Andrew Street Elderly Resource Center (Orleans)
Payable from General Obligation Bonds
Priority 1 $ 205,000
RED RIVER REVEL ARTS FESTIVAL
Covered Pavilion #2 for Shreveport Festival Plaza, Planning and Construction (Caddo)
Payable from General Obligation Bonds
Priority 1 $ 250,000
MULTICULTURAL TOURISM COMMISSION
C.C. Antoine Museum and Arts Center, Planning and Construction (Caddo)
Payable from General Obligation Bonds
Priority 1 $ 305,000

1 CB 7:39 am

Another 240 souls will soon lose their jobs in Louisiana. (See story here.)

Apparently, Pilgrim’s Pride doesn’t know that Bobby Jindal passed some new ethics laws.

This latest job loss begs a question. Is LA is losing jobs faster than Bobby Jindal can hold “town hall” meetings?

Hopefully, Bobby will return to Baton Rouge soon and begin addressing the real problems that are facing our state.

C.B.

1 CB 7:56 am