The Republican wunderkind has failed Louisiana as a fiscal steward.
By JEREMY ALFORD
When Gov. Bobby Jindal took office in January 2008, he inherited a state budget that included a $1 billion surplus. During these tough economic times, that seems like a distant memory, almost a fairy tale, yet it was only four years ago.
What did Jindal do with all that money? In the hip-hop vernacular, he made it rain. He rolled back income taxes that voters approved under the so-called Stelly Plan in 2002, plowed $245 million into lawmakers’ pet projects and created a slew of tax breaks, including one with a price tag of $360 million. Jindal called it “terrific news.”
The good news didn’t last long.
Jindal’s first Christmas in the Governor’s Mansion brought news of a $341 million mid-year budget shortfall. The young governor, an avowed fiscal conservative, had somehow allowed the state to spend more money than it took in. Complicating matters, revenue forecasters warned of a possible $2 billion deficit for the 2009-2010 budget year.
From that point forward, Louisiana’s fiscal fortunes went into free-fall, even as the governor’s press office cranked out news releases crowing about Louisiana’s supposed good fortunes. During the summer of 2009, Jindal convinced lawmakers to establish the Streamlining Government Commission. He called for $802 million in recommended cuts. The commission made 238 recommendations toward that goal, but less than half of them were enacted.
In 2010, lawmakers faced a $580 million mid-year budget deficit amid reports of a $1.6 billion fiscal “cliff” the following year. The centerpiece of Jindal’s 2010 legislative package was a bill aimed at online sex predators. In essence, he told voters to pay no attention to that fiscal demon behind the curtain.
As the 2011 session neared, the $1.6 billion shortfall loomed large; some said it could approach $2 billion. Thanks to some clever accounting and some fiscal legerdemain that would make Enron blush, the $1.6 billion “shortfall” was covered. At least for one year — enough to get Jindal past his re-election campaign.
Or was it?
This past December, two months after his “landslide” re-election, Jindal had to make $251 million in mid-year cuts. Then, last month, the Revenue Estimating Conference announced another revenue gap exceeding $514 million — $211 million for the current fiscal year and an estimated $303 million for the year beginning July 1.
In every year since Jindal took office, the administration’s budget numbers have proved way off the mark. Jindal’s bad math has become a chronic problem for Louisiana.
How did this happen? The REC shares part of the blame — and rest assured Team Jindal will make sure that someone other than the governor gets blamed. As its name implies, the REC is charged with estimating state revenues — independently of the governor and lawmakers — and its estimates are binding. Since 2008, the REC, packed with Jindal backers, has overestimated revenues. That’s anything but a conservative approach.
According to the Center on Budget and Policy Priorities, 20 states have crafted current-year budgets without mid-year corrections. So it is possible to budget prudently, even in these difficult economic times. One of the reasons Louisiana does not rank among the prudent states is because it’s easier for Jindal to pretend there’s no real crisis — until after the annual legislative sessions. Then he can cut as he pleases without major legislative battles.
If he has a fiscal policy, it could be summed up in a question: Why deal with a budget crisis today when you can put it off ’til tomorrow?
So here we are. State government salaries are higher than ever, especially in the executive branch, while funding for health care and education has been cut significantly.
What would have happened if, back in 2008, Jindal had invested that $1 billion surplus and prodded lawmakers to temporarily suspend Stelly instead of repealing it?
The answer is speculative, but no guessing is required to conclude that Bobby Jindal has failed Louisiana as a fiscal steward.
Jeremy Alford can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
MAY 17 Here's a column from James Gill, this time in the Advocate. Gill, who has jumped ship from the Picayune, writes about the absurdity of dueling polls in this post. The numbers are so wildly different, it is obvious that both sides are "cooking the books," he writes. In particular, he looks at Sen. Mary Landrieu, and how her recent actions in DC have been received by those polled. Gill's acerbic, amusing prose is a welcome addition to a paper so conservative as to be occasionally lacking in personality.
MAY 17 Blogger Tom Aswell continues delivering bombshells about the state education department and Gov. Jindal's education "reform" efforts. In this post, he reports that students in the Shreveport area have been signed up for a charter school without their knowledge or consent. Most interesting to Aswell is how this Texas-based charter (with ties to GOP types) got the personal student information it has, if the students didn't give it.
MAY 17 This post by JR Ball in the Baton Rouge Business Report is an interesting tongue-in-cheek look at recent Baton Rouge economic development efforts. Among the items he examines is the idea that gaining a Costco makes BR a "world-class city." (Really? All you need is a different brand of Sam's? MK!) This effort, and other recent ones, are all built on the taxpayer's back, with tax zones, tax incentives and tax rebates, Ball writes.
MAY 17 Blogger CB Forgotston is critical of the legislature's reliance on a revenue-estimating committee's decision to include projected tax amnesty income in this year's forecast. That's a problem, CB posts, because the deadline for these people to pay their taxes is June 30, 2014. So when do you think these people who haven't paid taxes in years are going to pay their taxes? Surely not before June 30, and that means the money won't be there for this year's budget, he argues.
MAY 17 Here's an interesting blog out of California by a Hollywood writer, attorney and academic named Brian Alan Lane. He blogs about higher ed, and was a whistle-blower in a scandal over false credentials. In this post, he takes aim at LSU's new top dog, King Alexander. It's convoluted and a little confusing, but it sure makes Alexander a lot more interesting than he was yesterday.
MAY 17 Blogger Robert Mann writes about the LSU Board's refusal to allow Dr. Fred Cerise to testify before the legislature about Gov. Jindal's plan to close down all the state's charity hospitals and dump the poor on the private system. It's hard to imagine anyone more qualified than Cerise to testify about that, so why would anyone try to prevent him doing so? Mann thinks it is because the powers that be aren't interested in hearing any truth about the plan.
MAY 17 This post on the Louisiana Sinkhole Bugle, a blog that notes developments in the Bayou Corne and Jefferson Island salt domes, talks about a proposed expansion of the salt dome storage under Lake Peigneur in Iberia Parish. Residents are working against it for several reasons, including two biggies: the sinkhole disaster in Bayou Corne and the continuing, unexplained bubbling on the surface of the Lake.
MAY 17 NOLA police arrested more people Thursday accused of either being involved in the Mother's Day shooting or hiding the suspect afterward, this Gambit story reports. The NOLA police chief said he suspects the whole thing was gang-related and throws out a challenge to the gangs: he's got informants now, he says, and he knows a lot more than the gangs want him to know. The people who live in the neighborhoods terrorized by gangs are ready to talk, he says.
Most Read
in case you missed it
Subscribe to this comment's feed