Leander Perez, the powerful boss of Plaquemines Parish who not only controlled people but also a wealth of mineral rights, refused to take the deal. Perez was a greedy man by all accounts '' he redrew entire city boundaries to move along personal business deals '' so it was no surprise when he held out for 100 percent of all royalties off Louisiana's shoreline.
"Give 'em Hell" Truman, as he was called for his tenacious political style, told both of the Bayou State politicos to stuff it, and other states snatched the deal. Today, Louisiana contributes more than $5 billion annually to the federal treasury from offshore oil and gas activity. As a result of those hardhead tactics 57 years ago, the state only gets back a measly $39 million each year.
Nearly three generations of congressmen and governors have tried to remedy the situation, but the issue hasn't budged a bit. Meanwhile, inland states like New Mexico get back upwards of 50 percent of the oil-and-gas revenue they send to the federal government ' but few deposit as much as Louisiana.
The most recent incarnation of this campaign came last month when Gov. Kathleen Blanco made national headlines for her comments about sticking it to the feds. "It's time to play hardball, as I believe that's the only game Washington understands," she told lawmakers at the beginning of the most recent special session.
What Blanco means by "hardball" is her refusal to sign off on future federal offshore oil and gas royalties from Louisiana's coastline. But Gary Strasburg, a spokesman for the Minerals Management Service, told The New York Times that Blanco's approval of the leases is only an "intergovernmental courtesy" and wouldn't stop the feds from getting their cash. If Blanco's refusal to cooperate ends up in court, there's no telling where her "hardball" tactics might lead.
Rep. Bobby Jindal, a Metairie Republican, and Sen. Mary Landrieu, a New Orleans Democrat, are taking a more practical approach in Congress. Seeing that block grants and one-time injections will only carry Louisiana so far during recovery, both have filed legislation that would raise all coastal states' shares of royalties to 75 percent for the area between three and 12 miles offshore, and eventually 50 percent further out.
Supporters from parish presidents and state representatives to congressmen from Virginia and special interest groups are backing the Jindal and Landrieu bills.
Another tactic is being pushed by Sen. Pete Domenici, a New Mexico Republican. He is talking with Gulf Coast lawmakers about adding a coastal restoration fund to his drilling bill, which would not exactly increase any royalty shares, but would provide a long-term funding mechanism.
Mark Davis, executive director of the Coalition to Restore Coastal Louisiana, is pleased to see the momentum building, but he has seen it before. Although the state has sympathy on its side and a governor willing to play "hardball," Davis says the concept of greater revenue sharing is still a long way off and the state should be exploring other alternatives for long-term funding.
"Louisiana can't afford to tie its wagon to a national revenue sharing campaign," he says. "It's just one option. â?¦ I don't think we should assume anything about the political environment right now. We're still a long way from success, and there are some huge roadblocks. We've come close before, and we've never actually crossed the goal line."
The stage was set three years ago when former Republican Rep. Billy Tauzin '' as chairman of the House Energy Committee '' passed an energy bill through the House with language granting Louisiana $1 billion over a number of years. It failed in the Senate by two votes. Again in 2001, Tauzin had brokered a deal for $600 million in another bill, but it too failed.
"We had done a great job of delivering the right message and making the case, but it got caught up in politics," Tauzin says. "The objections came from appropriators who wanted to keep controlling the money every year."
Rather than just handing a lump sum over to Louisiana, and possibly impacting programs in other states, Tauzin says lawmakers chose to maintain control over the purse strings. So while Louisiana might have the sympathy of the nation thanks to Katrina and Rita, that political reality remains.
Additionally, there's always the danger that Louisiana's efforts will be viewed as a money grab, especially when Blanco put such a positive spin on the state budget '' even though one of the nation's worst natural disasters hit about six months ago. When the governor proposed her $20.3 billion budget last week, it was not filled with cuts or cautionary verse, but rather pay raises for teachers and professors as well as status quo priorities.
Davis says Louisiana needs to figure out a way to leverage its needs and show Congress that more money is required to recover and strengthen the coast. He refers to it as the "free milk and the cow situation," which isn't working out.
"Why should [Congress] feel any pressure to help us?" he asks.
Tauzin says the federal government will learn '' if they haven't already '' that paying to protect Louisiana now will be cheaper than paying to put the pieces back together again later. Until then, Louisiana needs a solid strategy, one not based on "hardball" tactics that could possibly backfire, he adds.
"I don't think Louisiana needs to threaten," Tauzin says. "I think Louisiana has the support and the sympathy of the nation. If we squander it, it's our own fault. The nation is ready to rally behind rebuilding and revenue sharing. I just don't think we need to threaten to get there."
City-Parish President Joey Durel is asking the council to sign off on a resolution approving a pair of deals that would lead to razing the seedy Lesspay Motel at Four Corners to build a new police substation as well as transforming nearly a block Downtown where the old federal courthouse building now molders into a mixed-use development.
In 2013, the IRS — already the least popular governmental agency in the country — became the target of intense investigations after it was revealed that they had specifically and improperly scrutinized applications for tax-exempt status from organizations associated with the nascent Tea Party movement.
Improving the running game was "a point of emphasis" during the offseason and the results have manifested themselves in the form of substantially greater production.
Louisiana's health department said Wednesday that its evaluation of the state's Medicaid privatization was on target, despite criticism from the legislative auditor that it lacked key data and contained inconsistencies.
Artificial sweeteners eyed; Scottish independence vote begins; Ford has cancer and more national and international news for Thursday, September 18, 2014.
Thursday's Blogs from the Bog!
The feds converge on your office, seizing records on several employees as part of a pay-for-plea investigation. WWYD? If you’re Mike Harson, you give yourself a $12k raise.
It’s football season and after back-to-back winless weekends for the Saints and the Cajuns many citizens are finding it difficult to be civil much less happy. Well, chew on this.
Considering his repeated stays in the local penal system, David Narcisse Jr. should have known that having a semiautomatic shotgun, even one given to him by a friend, wasn’t the brightest of ideas.
A state district judge on Tuesday threw out a last-minute retirement hike lawmakers gave to the state police superintendent, ending a political firestorm over a pension boost passed without public scrutiny on the last day of the legislative session.
The House has passed a bill to increase oversight of veterans' hospitals under construction, following a report that some medical centers take three years longer to complete than estimated and cost an extra $366 million per project.
An obvious follow-up question for any Republican politician who accuses Democrats of being science deniers is one about science, to which Jindal bobbed and weaved like a welterweight champ.
The Lafayette City-Parish Council is expected to decide tonight (Tuesday) whether to go along with a proposal City-Parish President Joey Durel made in February’s State of the Parish Address and consolidate taxes for mosquito control and the parish health units into a broader tax program that would also cover animal control.
U.S. District Judge Richard Haik has dismissed Greg Davis’ lawsuit against the LPSB, yet in his ruling, the federal judge doesn’t bite his tongue in pointing out the "threat" being posed by certain board members.
Of all the political offices being contested throughout Lafayette Parish, the race for Broussard’s top police post has literally become one of the most heated.
A state district judge is deciding whether to issue an injunction against the enforcement of a last-minute retirement hike that lawmakers gave to the state police superintendent.
A new website is up for Louisiana's state government employees and retirees to choose their health insurance plans for next year, a choice they must make by October.
That fact that New Orleans led both games in the final 10 seconds of regulation, and lost each by a field goal or less, is of little solace.
The superintendent will make another go at getting a budget passed for the already commenced fiscal year as the LPSB is slated to meet tonight on the eve of the state’s budget adoption deadline.
A person familiar with the situation says New Orleans Saints running back Mark Ingram has a broken hand.
It seeks an investigation into a $100,000 fund transfer from Vitter's federal campaign account to an independent PAC supporting Vitter's 2015 candidacy for governor.
Landrieu has acknowledged that she improperly billed her Senate office for nearly $43,000 in charter costs that should have been paid from her campaign account.
House District 45 Rep. Joel Robideaux is term-limited and running for city-parish president next year, leaving his seat up for grabs come 2015 and at least three likely contenders so far, including ...
When the Browns explained their plans to Brian Hoyer about bringing rookie Johnny Manziel into the game, Cleveland's starting quarterback bit his lip and devised one of his own.
National debate over solitary confinement puts spotlight on Angola inmate’s 35 years in ‘the hole’