Louisiana: Louisiana Budget, Governor Jindal, Jobs Bill, Race To Top, New Orleans Mayor Testifies

by Sherry Patterson and Bayoubuzz staff

Louisiana Budget

How will Louisiana deal with a budget crisis that could result in 3 billion dollar deficit over the next two years? That is the issue facing the Jindal administration and the Louisiana Legislature as they brace for the upcoming legislative session.

Included in the debate is the Medicaid shortfall that some believe could amount to 500 million dollars per year for the next five years. That issue has been hotly debated since Senator Mary Landrieu has attempted to obtain $300 million dollars for the Medicaid shortage from the Health Care legislation being debated in the US Congress.

One possible solution being discussed is comes from Senate President Joel Chaisson II. Chaisson wants the legislature to use the state’s rainy day fund. However, since the state law prevents the use of the money when federal funds are short, a constitutional amendment would be required to change the law. It is uncertain whether Governor Bobby Jindal agrees with the approach being offered by Louisiana Senator Chaisson.
Chaisson bill would tap state savings

Nagin, Stafford Act and Congress

Yesterday, Mayor C. Ray Nagin, Chair of the US Conference of Mayors (USCM) national Stafford Act Reform Task Force testified before the Congressional Subcommittee on Economic Development, Public Buildings, and Emergency Management of the Committee on Transportation and Infrastructure.

The two-hour hearing addressed funding limitations and policy considerations to improve the speed of completing hazard mitigation projects. Mayor Nagin and Mayor Robert Duffy (Rochester) urged the Congressional panel to consider changing the current law to allow the rebuilding of homes with hazard mitigation dollars. Current law says property demolished with mitigation funding must be maintained as green space, which according to Nagin is not a practical solution in urban cities. The task force report suggests that the Stafford Act be amended to make a pilot hazard mitigation program of demolition-rebuild permanent.

Other critical discussion points included the designation of "catastrophic" disasters and what language should be included to allow for such a designation. The mayors also recommended the removal of the $5 million cap on Community Disaster Loan funding to heavily devastated cities; funding for host cities that provide support for displaced citizens; creation of a comprehensive Case Management Program and improved individual and housing assistance.

Race To Top

In a press conference on Thursday, Senator Mary Landrieu was elated with the news that

Louisiana was one of the finalists for the Race to the Top program. Here is some of the information provided by Senator Landrieu via a press release:

Louisiana is one of 16 states to advance to the final round in the competition for education funding through the Race to the Top program. Forty states and the District of Columbia applied to compete for $4.35 billion in federal education grants. Louisiana requested $314 million in its application.

The program is funded by the American Recovery and Reinvestment Act.
If Louisiana emerges as a winner, the state could receive up to $314 million over the next four years, the amount state leaders requested in their application to the Department of Education. Race to the Top awards could help the 325,000 public school students in participating Louisiana schools.

Louisiana’s application moved to the final round because of the state’s achievements in education and clear commitment in the following four core areas:

Investing in “human capital”-highly qualified and effective teachers with continuing improvement in skills for every student and strong and able principals with the ability to lead;

Intervening in low-performing schools to change their course;

Adoption and use of quality standards and assessment tools;

Strong use of data down to the classroom level.
First Round winners will be announced in April.

During the press conference Landrieu said, “We have set forth a profound and clear concept in Louisiana that just spending money on schools without expecting results is not going to be accepted. We expect the money spent on schools to get to the classroom and support educational excellence. Louisiana has been leading the effort to bring accountability to schools and we deserve to be in the finals. If we are selected as a winner, the money will be a great help to supplement the federal, state and local funding our schools are receiving now.”

Job Bill Passes House

The House on Thursday approved a $15 billion job bill which is intended to create jobs.

The legislation passed the chamber by a 217 to 201 vote. Six Republicans and 211 Democrats supported the legislation while 166 Republicans and 35 Democrats opposed it.

Meanwhile, the Senate moves forward on a $150 billion bill consisting of business tax breaks and safety net programs which is designed to help small businesses and provide aid to states.

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