forgotston.com

In today’s news media are found the following statements:

“We do seem to have a revenue problem developing that could be quite material,” said Greg Albrecht, an economist with the Legislative Fiscal Office. “People just aren’t spending.”  Times Picayune, December 18, 2009.

By percentage, Louisiana’s personal income fell more than any other state in the third quarter, a federal agency reported Thursday. The (Baton Rouge) Advocate, December 18, 2009.

Not being a Rhodes Scholar let me see if I understand this: People in LA have less money to spend; people in LA are spending less.  DUH!

Perhaps in order to boost our state’s economy, we should spend money we don’t have.

C.B.

1 CB 9:15 am

Thanks to the initiative of Rep. Brett Geymann, R-Lake Charles, the state’s Streamlining Commission has produced its first real savings to the taxpayers of Louisiana.

Geymann resigned from the commission as of December 10.   He has been joined by Rep. Jim Morris, R-Oil City, who has also submitted his resignation from the commission effective December 10.

Their resignations will save the taxpayers having to pay them per diem and expenses for attending the meetings.

If the rest of the leges on the commission would follow the examples of Geymann and Morris the taxpayers will save more money.   It is likely the only real savings we will see.

It’s not enough to offset the costs of the commission to date, but it will slightly slow the drain on the state’s finances.   Bigger savings to the taxpayers would have resulted from the commission never being formed and our public officials simply doing their jobs.

Kudos to Reps. Geymann and Morris!

C.B.

1 CB 9:32 am

Our state’s “Roads Scholar” has proposed one major, substantive, initiative since he took office in January, 2008. It was changes to our “Heh, Heh, Heh, Ethics Code. It was supposed to open the door for economic development in our state.

Now, almost two years later we see the result of that initiative.

The new code which is unenforceable, has become the “Hah, Hah, Hah, Ho, Ho, Ho,” Ethics Code.

LA’s Economic scorecard

“Watchcat” (a complimentary term) Robert Travis Scott provides us with the scorecard of our state’s economy. See story here.

A few excerpts:

—For the first time in 22 years, state personal income tax collections declined on an annual basis in fiscal year 2009.

—The rolls of people receiving jobless benefits is double the number a year ago.

—The number of households on food stamps has risen 24 percent in two years — 10 percent just since June.

—Sales taxes that flowed into the state general fund from July through October were down 17 percent compared with the same period last year.

—Personal income tax revenue was down nearly 10 percent,[only partially attributable to a recent tax cut] and corporate income tax revenue fell 25 percent.…

The article notes that “Sales tax and corporate tax collections [are] key measures of business health.”

The money used by “The Roads Scholar” to bribe businesses to come to our state is running dry.

It’s just as well because the ethically-challenged, head of economic development, Stephen Moret can’t even bribe an existing business to remain there.  We just learned that the headquarters of substantial business is moving from Baton Rouge to North Carolina. ( See story here.)

Where’s the plan?

Moret’s response to all the above is: “Our announcement trend is very good….”

Announcements don’t improve the economy.   Specific initiatives, such as business tax and regulation reductions do.

Where’s the plan?

C.B.

1 CB 9:38 am