forgotston.com

Anyone who follows the state’s economy knows that all is not well. Between the oil spill in the Gulf and moratorium on deep water exploration our economy is only going to get worse.

At Friday’s meeting of the state’s Revenue Estimating Conference (”REC”) meeting House Speaker Jim Tucker refused to acknowledge the obvious; the current year’s deficit has grown.

The economists addressing the REC meeting acknowledged that while their gloomy figures are not firm, the deficit will only get larger.

At the last REC meeting prior to Friday’s, Senate President Joel Chaisson also refused to recognize the obvious.  He was in a snit over when the Budget Stabilization Fund (a.k.a. Rainy Day Fund) had to be refilled.

Chaisson’s preference is to disregard the constitutional mandate. He wants an “easy-pay” plan so that state spending does not have to be curtailed.

Also disturbing is the REC’s failure to address the revenue estimates for the fiscal year that begins on July 1.  Clearly, if the revenues for the current fiscal are coming in less than was estimated less than two months ago, revenues for the fiscal year beginning in about three weeks also must be declining.

Regardless, neither meeting produced the necessary guidance for fiscal stability for which the REC was created.

Other than playing a high stakes game of political brinksmanship, what’s to be gained?

The end game

Some folks a lot smarter than me think the goings on (or the lack thereof) at the Capitol is part of a plan.

I’m not yet ready to give the leges credit for a plan. Planning requires a level of thinking not previously exhibited by these leges.

The Jindal Administration and the Leges are unwilling to set real budgetary priorities and properly fund them.  As such, everything in the state budget is an equal priority and none is funded properly.  The “wants” are over-funded and the “needs” are under-funded.

The results of failing to properly manage our government is mediocrity and higher taxes.  For proof, one only has to look at what is being done this session with Higher Education.

Funding all the universities and colleges at a reduced level has resulted in mediocrity for all and a substantial tax increase.

Higher tuition (”Tax” or “fee” costs the payers the same amount.) for the college students and their parents is just one Conference Committee away from making it through the process.

The leges continue to spend, spend, spend, using unrealistic revenue estimates and side-stepping the constitutional mandates for fiscal responsibility.

When running for governor in 2007, Bobby Jindal promised: No more reckless spending habits from the State Capitol that will bankrupt our state in the years to come.

Meanwhile he sits on the sideline and watches the reckless spending.

Planned or not, it is clear that continued mediocrity and higher state taxes are our future. Historically, when the leges are faced with dramatically reducing the budget or raising taxes, we get higher taxes.

The new taxes could come as soon as a Special Session this fall or as late as the Regular Session next spring. The mediocrity is on-going.

C.B.

1 CB 8:00 am

Leges as they view themselves

There are media reports about a reduction in the appropriation for the leges’ expenses for next year. According to the reports, HB 1417 reduced the lege expenses by $1.3 Million.

It makes it sound like the leges, like us, are making do with less.

Now, here’s the rest of the story.

Next year the Regular Session is shorter.  The session can only extend over a maximum of 60 days as opposed to 85 days this year.

Because of the shorter session, the per diem payments (for the maximum days in the session) for the leges alone is reduced by $572,400.

Additional savings result because of the shorter session. There is a tremendous savings in staff overtime, extra staff and other daily session overhead costs.

Most likely every agency in the state would have their budget problems solved if they only had to operate for 10 months instead of 12 months.

The lege budget reduction is “smoke and mirrors” as is the “per diem freeze” contained in HB 1417.

The leges really do think we are stupid.

C.B.

1 CB 8:00 am

Quiet please; lawmakers at work!

We keep hearing that state government is facing a fiscal crisis.

Apparently, that message hasn’t reached the LA House of Representatives.

On Friday the House approved the state’s $25 Billion Operating Budget and sent it to the Senate.

Perhaps because the $25 Billion is OUR money some of the reps don’t take their job seriously.

Not paying attention?

An amendment was adopted to add $198 Million to the budget without a single objection. When the leges awoke from their slumber there was a second vote and the money was stripped from the budget.

[Rep. Jim] Fannin [Chairman of the Appropriations Committee] and House Speaker Jim Tucker, R-Terrytown, later admitted they were not paying attention at the time [of the $198 Million amendment's adoption]. (Baton Rouge) Advocate, June 5, 2010.

It makes one wonder how much money it takes to get their attention.

No shows

When the debate ended and the final vote was taken on the $25 BILLION budget 8 Reps weren’t present to vote.  Later 3 of the absentees showed up and voted after-the-fact. Apparently, 5 Reps didn’t think the state budget was important enough to even attend the session. (See Final Passage vote here.)

Other than simply not taking their jobs seriously, vote changing and after-the-fact voting only encourages members of the House to be absent from the session and to not pay attention when they are present.

Comparing the lege process in the LA House to watching sausage being made is an insult to sausage makers.

C.B.

1 CB 8:00 am