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Article Written on: Wednesday-March-24-2010 BuzzBoards Calendar Contact Advertise About
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Gov. Jindal Fate Sealed With Louisiana New Budget Woes


Written by: John Maginnis


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    You would not get much argument that February was a blessed month for Louisiana. The Saints' great Super Bowl victory created an air of pride and confidence statewide. New Orleans decisively chose the new mayor it needs in Lt. Gov. Mitch Landrieu. Mardi Gras was spectacular. The stock market was up. Louisiana's slowed economy still outpaced the rest of the nation. Gov. Bobby Jindal presented a budget that wasn't pretty, but spared higher education any more cuts.

   Though some hard times for state government lay ahead in the next two years, brief February seemed a sweet oasis.

   Of course, it was a mirage. According to the state's leading revenue indicators released last week, February sucked. Collections for the two big workhorse taxes, sales and personal income, which were running below forecasts all year, fell off more. Much more.

   February historically is a big month for income tax receipts. Instead, for the first time in 27 years, more money went out in refunds than came in from payments. Also, the fans who bought anything with the Saints or Who Dat on it apparently spent little on anything else, as sales tax receipts fell to 20 percent below last year.

   The sucking sound set off alarm bells in the halls of government, with the prospect of $250 million to $400 million in cuts having to be made in the last three months of the fiscal year.

   College officials who thought their budgets were intact for now were told to submit plans for whacking another $84 million from their campuses during this semester. Department heads looking to reduce their workforces by attrition were told to plan for layoffs. Under pressure from the governor, the Civil Service Commission did the previously unthinkable by suspending the annual 4 percent pay raise for 60,000 classified workers for next year, which Jindal followed up with a salary freeze for all unclassified workers.

   The March numbers might brighten the picture some and forestall the worst case for now. Either way, this is not the springtime of 2010 that Bobby Jindal envisioned two years ago when he signed the repeal of the so-called Stelly income tax plan. The February refunds that freaked out state analysts are the first bulk of money returned to taxpayers from the big income tax break for the middle class.

   The governor at first opposed reversing the Stelly plan, out of well-placed caution, but he got behind it when legislators rushed to pass the bill. Once it became law, Jindal, looking forward to this tax time, might have seen himself traveling the state handing out poster-sized refund checks to the people, thousands at a time. Instead, he dare not celebrate the $354 million tax cut now because the public would link it to the current plight of colleges, hospitals and people in need.

   There are more causes to the state's current financial travails than the Stelly repeal. Yet imagine enacting the biggest personal tax break in state history and not wanting to talk about it when residents start getting their money.

   Instead, the fiscal policy that Jindal is better known for these days is the recently and suddenly announced $15 increase in the four-year driver's license fee. What did he think would be the reaction when he slapped a 70 percent surcharge on about 3 million motorists? Double damage was done. It made many residents hopping mad, and they expressed their fury in irate calls to their legislators, who, just as surprised, blamed the governor for blindsiding them.

   Had he given lawmakers a heads up and made his case for the fee, they might have given him some cover, or persuaded him to phase in the increase over three years. It's called communication.

   This is going to cost Team Jindal more trouble than making up the $13 million lost when legislators inevitably repeal the $15 fee increase. At the very worst time, the governor has further strained the thinning reservoir of good will he needs to maintain with the Legislature for the tough times ahead--times for which, regardless of his backspin, the Jindal years will be remembered. 












 

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Comments from BayouBuzz readers

Jindal's budget is simply fiscal insanity. There were significant budget cuts last year. Now they have to cut $319 million more. Next year there will have to be even bigger spending cuts. You need a balanced approach of revenue increases to go along with budget cuts. Jindal's policy will cause serious damage to education and health care and stunt Louisiana's future growth.
Written by David Quidd on 4/16/2010
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So let me get this straight... You are lamenting the fact that tax cuts have now led to a major budget shortfall in government and then blasting Jindal for the 15 dollar increase in licenses? Correct? Ok, good, now lets look at this... Yes Louisiana's economy is sliding down the financial slippery slope just like every other state in the Union. Happily, on this down note, we are sliding slower than most. Thank God we had these tax cuts, as personal income dwindles and unemployment rises, or there would be more people Bankruptcy court. We are able to keep a larger majority of tax dollars to put towards our own financial concerns instead of the states. Why is it when a Republican cuts taxes and the government suffers the liberal media/writers wring their hands and cry foul. Yet when a Democrat raises taxes and causes the taxpayer to suffer, this is seen as Utopia. I don't get the disconnect. Government produces nothing, sucks in my personal finances like a drunk sailor on leave in Singapore with about the same result. So what if the government has to cut back or if LSU has to cut a few classes and staff, when I'm in a financial bind (such as I'm in now) I cut back. I do away with unnecessary and frivolous items and activities. Its times like these when Government should do the same. Have you ever researched some of the classes and curriculumns that colleges offer that have virtually no enrollment yet they pay professors and staff to teach these classes for either politically correct or grant reasons? Its appalling. I believe the Government cutting back and instituting the new pay raise legislation a cause for celebration. A 4% across the board pay raise for the dead beats as well as the dedicated employees is inexcuseable. Everyone should be on a performance based pay scale... Legislators included! If I have to do with less, so should my Government.
Written by A.B. Crain on 3/27/2010
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In today's world we have machines that are capable of allowing 1 man to accomplish the work in one day that a century or two ago required 10, 20, 50, 100, 1000 or more to do in the same time period.... We are indeed living in the most enlightened age man has ever been capable of experiencing... Rather we should move onward and forward than to lapse into a dark age....... { Changes - - David Bowie} - - - I still don't know what I was waiting for - And my time was running wild - A million dead-end streets - Every time I thought I'd got it made.... It seemed the taste was not so sweet - So I turned myself to face me... But I've never caught a glimpse - Of how the others must see the faker.... I'm much too fast - to take that test..... Ch-ch-ch-ch-Changes - (Turn and face the strain)- Ch-ch-Changes... Don't want to be a richer man . . . Ch-ch-ch-ch-Changes - (Turn and face the strain)..... Ch-ch-Changes... Just gonna have to be a different man... Time may change me - But I can't trace time... I watch the ripples change their size - But never leave the stream - Of warm impermanence - and So the days float through my eyes... But still the days seem the same... And these children that you spit on - As they try to change their worlds - Are immune - to your consultations... They're quite aware of what they're going through - Ch-ch-ch-ch-Changes... (Turn and face the strain)... Ch-ch-Changes.... Don't tell them to grow up and out of it... Ch-ch-ch-ch-Changes... (Turn and face the strain).... Ch-ch-Changes... Where's your shame -0 -- You've left us up to our necks in it.... Time may change me... But you can't trace time...... . . Strange fascination, - fascinating me - Changes are taking the pace I'm going through... Ch-ch-ch-ch-Changes.. (Turn and face the strain)... . Ch-ch-Changes - Oh, look out - you rock 'n rollers.... Ch-ch-ch-ch-Changes.... (Turn and face the strain) - Ch-ch-Changes. . . Pretty soon you're gonna get a little older...... Time may change me - But I can't trace time . . I said that time may change me - But I can't trace time . .. . ...... .. ........
Written by   on 3/25/2010
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Yes, Jindal is a fool playing to a fools overture.................. - Sir. - - - {General Maximus Decimus Meridius} …. Sir - - Lean and hungry.- Still nothing? - Not a sign...... - How long has he been gone?....- Nearly two hours..... - Will they fight, sir?... - We shall know soon enough.... Soldier, I ordered you to move those catapults forward....... - They're out of range..... - Range is good........ - The danger to the cavalry--- Is acceptable.. . . Agreed? - - They say no......... Steady! Steady! - - - People should know when they're conquered.... Would you, Quintus? - Would I?......... - Strength and honor - Strength and honor...... At my signal,unleash hell..... Load the catapults.... Infantry form up for advance..... - Archers ready.....- Archers!.... - Nock!..... - Nock! - - Fratres!............ Maximus!............ Three weeks from now,I will be harvesting my crops... Imagine where you will be, and it will be so. - - - Hold the line! - - Stay with me!................. If you find yourself alone...riding in green fields with the sun on your face...do not be troubled. - For you are in Elysium, and you're already dead!...... Brothers... what we do in life... echoes in eternity......... Pull! - - Pull! - - Pull!........ Catapults ready, sir!... Archers - - ignite!...... - Ignite!....... - Ignite! Archers - - draw!....... Loose! - Loose!..... All right, men, ready! - Hold the line!.... Draw!............ Loose! - - - Loose! - Loose! - - - - - Reload! - - Hold the line! - Draw!............ Loose! - - Stay with me! - - Stay with me! - - - - - - - - - - - - Roma victor! - Roma victor!
Written by   on 3/25/2010
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Government spending always look great to those on the dole and those who don't pay the bill for it. And of course to Marxists like the ol teabagger, because it takes a lot of money for the government to run people's lives for them.
Written by   on 3/25/2010
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Should cut another amount of taxes equal to the Stelly Plan and shut down enough government spending to offset both. You criticize the intelligence of Jindal, but what about the geniuses that run higher education. They claim to be the think-tanks for our future on the planet, but they apparently cannot figure out a way to deal with any degree of budget constraint without screaming that the sky is falling. If higher ed wants to prove its importance and the value of its research, then figure out a way to become more efficient and to carry on effectively during times of reduced revenue. I can figure out how to deal with that kind of setback, but apparently university administrators cannot.
Written by   on 3/25/2010
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You can't spend like Jindal did in year one when you repeal taxes. He reduced taxes but didn't reduce spending to compensate for the loss of revenue -- in fact, he almost signed legislator pay raises into law before the public stopped him. Spineless and economics-knowledge challenged.
Written by CWM on 3/25/2010
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That would be funny there DQ... funnier still would be if he went back to work, only this time he was relegated to processing insurance forms for indigent people that need health care.... I think he is highly suited for that job...
Written by   on 3/24/2010
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Shouldn't have repealed the Stelly Plan. That may have been Jindal's ultimate undoing.
Written by David Quidd on 3/24/2010
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No, perhaps the public sector shrinks because of all the folks that in reality aren't really producing anything take too much of the publics money? And then they tie it up, hoarde it away, rat hole it, and it gets scarcer and scarcer and harder to come by.... So in other words, the pack ratts need to SPEND the money... Now to get the best of all worlds, 'Lever' notes, and of course our old standby 'Reserve' notes. clear the books, implement new policies and proceedures, stop the public dole, allow folks to realize they can work for a living and succeed... That is the problem... Lot's of folks understand the game, and the game being played right now is simply 'Musical Chairs' and they got tired of that in Kindergarten... Allow them to invest in their future and decide when they want to retire or how much they want..... Not someone else... You all just don't see the big picture, bunch of jackasses with blinders on or white elephants dragging around a log with a chain..... It's so easy, even a caveman could do it....
Written by   on 3/24/2010
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Perhaps when one looks at all the outlays government has, they are simply too big. Perhaps the private sector SHRINKS due to PUBLIC spending; compounding the problem the private sector has to support all that government "promises" it can do.
Written by just a thought on 3/24/2010
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