The Louisiana Supreme Court heard arguments last week on whether Lafayette Utilities Systems will get the green light to fund its fiber-to-the-home plan. Lafayette resident Elizabeth Naquin sued LUS to stop the fiber initiative, and her attorneys are arguing that LUS' bond-payment plan violates the Fair Competition Act. But according to Advocate reporter Kevin Blanchard, Supreme Court Justice Jeanette Theriot Knoll appeared surprised by that interpretation of the law, as start-up communications businesses often lose money in early years before attracting enough subscribers to bring in revenue.
"Would they ever be successful then?" Knoll asked Naquin attorney Stan Baudin, who was making the argument supported by the 3rd Circuit Court of Appeal ruling in Naquin's favor. Knoll said the "scheme" laid out in Baudin's interpretation of the Fair Competition Act is "self-defeating."
Blanchard also reported that Chief Judge Pascal Calogero Jr. asked about a provision of the law that prevents LUS from cross-subsidizing its communications business with tax revenue or "below market-rate" loans.
"Doesn't that mean it's OK?" Calogero asked Baudin. "If they're not below market rate?"
Sounds like a good day in court for LUS. The Supreme Court could render its decision within two to three months. ' Scott Jordan
Don't expect to see lavish Christmas decorations at the Lafayette Airport this year. Amid intense public scrutiny of its spending policies, the Lafayette Airport Commission has decided to pull the plug on its traditional year-end Christmas party. "Basically we decided it'd be best to just cancel it," says newly-elected commission Chairman Carroll Robichaux. "We don't think it's a problem but we're going to wait for the attorney general's opinion on the things that were questioned by the public."
Since taking over as chairman last month, Robichaux has been trying to rein in airport spending. Last week he ordered that all non-essential staff expenses must first be approved by the commission's finance committee. Meanwhile, the attorney general and state legislative auditor are reviewing receipts and other financial data of the airport commission to determine whether it has misused public funds. An investigation by a coalition of concerned residents brought to light questionable spending practices on parties, meals and travel for commissioners and potential airport clients.
Last year, the airport commission spent approximately $7,800 on its Christmas Party, which is held at the airport restaurant each year. The bill for the party, catered by The Townhouse, included a $4,375 bar tab along with $2,987 for a buffet spread and $500 worth of door prizes.
Robichaux notes that the event has customarily been an important networking function. "It's more of a publicity event," he says. "We're thanking our clients, the travel agents, our tenants, the airport staff, and the public." ' Nathan Stubbs
DRY HOLE DOLLARS
It took the state more than a year to draft the rules and regulations, but a new program has finally been launched to help oil companies recoup their losses from so-called dry holes. The law, which technically went into effect last summer, aims to assist oil-and-gas companies after an expensive drilling operation turns up nothing but silt and sand. Formally, it's called the Developed Resources in Louisiana Act, or DRIL, and it allows companies that hit a dry hole to deduct 50 percent of the royalties they owe on the next good well they drill. Financial forecasts originally attached to the legislation estimated a return from the program of more than $1 billion over the next 26 years. State officials hope the program will help bring back old oil towns like Venice and continue strengthening hot spots like Port Fourchon.
As an environmental side note, the law also requires oil companies to mitigate 1.25 acres of land for every one acre of wetland impacted. Dave Meloy, a geologist supervisor with the Louisiana Department of Natural Resources, says the law could bolster drilling activity, as it helps companies to continue investing in the state ' and it's an incentive not found in neighboring regions. "As far as I know other states don't offer this," he says. Eligible wells must be drilled in offshore waters at a depth greater than 19,999 feet. On average, such an undertaking can cost companies upwards to $30 million, Meloy says, which explains why such a tax credit is needed to encourage more exploration of its kind. "Right now 20,000-foot wells are expensive, and they'll always be expensive to drill," he says. "That's not going to change." ' Jeremy Alford
THE SHARKS ARE CIRCLING
The smell of money is wafting through the political waters, and legislators are eyeing the special session that kicks off this week. There's an $825 million surplus to be spent, and everyone seems to have an opinion on it ' and there could possibly be another $800 million up for grabs from this year's budget. Some lawmakers want to spend it on roads, Gov. Kathleen Blanco wants to cut thousands of insurance rebate checks for Louisiana residents, and others want to wait to spend the money. Even the Louisiana Association of Nonprofit Organizations ' a traditionally quiet presence around the Capitol ' has tossed in its two cents. "This is a great opportunity for the state to think differently about our future," says Melissa Flournoy, LANO's president. "Reforming the capital outlay system, investing the housing trust fund and supporting the child care quality rating system are vital to rebuilding systems to meet the needs of the state." Further details on the group's proposed priorities are included in its new report, "Louisiana Budget Basics: Guide to the Louisiana Budget." Meanwhile, political heavies like the Louisiana Association of Business and Industry, the largest lobby in the state, are leaning in on their points of interest. Specifically, the statewide business association has called for using the extra revenue to pay down debt, advance priority highway improvements, initiate coastal restoration projects, bolster flood control, improve health care delivery, reduce taxes and create a state-supported reinsurance fund. With an election year around the corner, everyone will be watching what's doled out. "The choices they make on how that money is used will be the biggest issue in the elections coming up next year," says Dan Juneau, president of LABI. ' JA
FARMERS TAKEN BY SURPRISE
Farmers and ranchers in Louisiana are still bristling at the recent news that the popular guaranteed loan program many are eligible for could expire at the end of the year. There has been no official warning from the federal government and it now appears up to Congress to save the day. However, drumming up support for a simple extension of a Farm Bill provision has proven difficult during this lame-duck session. The larger bill is considered somewhat controversial, while the smaller loan provision isn't as volatile ' still, they're connected. The entire congressional delegation sent a letter to the chairman of the House Agriculture Committee, but there hasn't been any movement yet. The Farm Service Agency loan program provides operating money to "several hundred" farms in Louisiana, according to U.S. Rep. Charles Boustany, a Lafayette Republican. "A temporary extension will allow these family farms to stay operational until the current Farm Bill is reauthorized," he says. For now, the clock is ticking louder each day, but December is expected to be a busy month as countless measures are rushed through this Congress' final days. ' JA
PETROLEUM HELICOPTERS INC. AND KRIS KRISTOFFERSON
PHI has been in the news for the bitter strike showdown between PHI management and its pilots, but last week's Times-Picayune story on legendary songwriter Kris Kristofferson details a brighter, little-known chapter in PHI history:
Kristofferson, writer of classics such as "Me and Bobby McGee," "Why Me" and "Help Me Make It Through the Night," told the T-P how his 1960s work with PHI in the Louisiana oil fields yielded some of his biggest hits. "That was about the last three years before I started performing, before people started cutting my songs," he said. "I would work a week down here for PHI, sitting on an oil platform and flying helicopters. Then I'd go back to Nashville at the end of the week and spend a week up there trying to pitch the songs, then come back down and write songs for another week." â?¦ "I can remember 'Help Me Make It Through The Night' I wrote sitting on top of an oil platform. I wrote 'Bobby McGee' down here, and a lot of them." ' SJ
The legal challenge is part of a continuing struggle over Common Core, which has become controversial since the Board of Elementary and Secondary Education adopted the standards in 2010.
The lone Democrat to announce he's running for governor, state Rep. John Bel Edwards, criticized Republican Gov. Bobby Jindal's budgeting tactics as "running the state like a big Ponzi scheme."
State police have arrested a 42-year-old Kaplan man in the July 7 hit and run fatality crash that killed a bicyclist on Louisiana Highway 92 near Milton.
Republican U.S. Rep. Bill Cassidy has picked up support for his U.S. Senate campaign from a former GOP competitor.
Lisa Hargis Smith lived a mysterious life as seen with her death earlier this month and its impact on the community of those who knew her, whether as a star student in Lafayette High’s class of ‘69, or later as a woman struggling with homelessness and mental illness.
Great White surges bring tourists; Florida cops' ties to KKK probed; McIlroy wins British Open and more national and international news for Monday, July 21, 2014.
Monday's Blogs from the Bog!
Attorney Valerie Gotch Garrett will announce on Tuesday that she plans to run for the Division E seat of the 15th Judicial District Court.
Back in 2012, three Baton Rouge attorneys came to the aid of several disgruntled police officers with a high-profile lawsuit against the Lafayette Police chief and a number of higher-ups in city-parish government, but in a federal courtroom Thursday, their claims of conspiracy coupled with a lack of evidence backfired and the case was dismissed.
Gov. Bobby Jindal's administration intends to rework how it pays the private managed care networks that provide health services to two-thirds of Louisiana's Medicaid patients.
Gov. Bobby Jindal's administration is raising health insurance rates and cutting benefits for state employees and retirees, to keep their insurance program solvent.
Local, state and federal law enforcement officials spent much of Thursday reviewing their reaction to this week’s bomb threat, which led to the closure and evacuation of UL Lafayette and Girard Park, and a massive search Wednesday for two alleged explosive devices.
"We're not in a better place from the policy perspective than we were two weeks ago," says Education Superintendent John White, commenting on Thursday's face-to-face meeting with Gov. Bobby Jindal to discuss their dispute over Common Core.
Gov. Bobby Jindal appears to remain unmoved by offers of a compromise on procuring testing materials tied to the Common Core based on a terse statement his office released following a meeting Thursday with Superintendent John White.
Wednesday's Senate vote on contraception legislation is the latest example of Democrats' win-by-losing strategy, which forces Republicans to vote on sensitive matters that might rile women this fall.
A benefit will be held tonight at Romacelli Bistro in Youngsville to raise money for the family of fallen cyclist Lon Lomas.
After weeks of public disagreement, Gov. Bobby Jindal and Education Superintendent John White are sitting down to talk about standardized testing for the upcoming school year.
Two members of the Lafayette Parish law enforcement community who also serve on the Lafayette Parish Communications District will not be allowed to apply for the paid position of director of the agency.
After determining that the two reported bomb-like devices at Girard Park and UL Lafayette this morning were non-explosive, authorities have lifted the barricades, and an investigation into who was responsible is now under way.
Anti-abortion advocates are getting “smarter” in their ongoing attack against Roe v. Wade, and in recent years have effectively been employing one of two new tactics, as witnessed in Louisiana during this year’s legislative session.
Incumbency hasn't helped U.S. Rep. Vance McAllister boost his campaign coffers.
Police blockades went up early Wednesday morning around a sizeable chunk of Lafayette — including the areas surrounding Girard Park and the UL campus — after the discovery of two suspicious, bomb-like, devices.
The Lafayette City-Parish Council Tuesday delayed a finalization vote on amending the zoning ordinance for political signs, deferring the matter to give consolidated government’s legal and zoning departments time to further study the issue and offer a solution that won’t gut the current ordinance.
R. Jarvis Fortier Sr. was a longtime fixture among Acadiana’s automotive community, spending 69 years with Hub City Ford, where he made a name for himself with catchy advertising and by helping make the dealership one of the most successful in the region.
So far the two lead contenders have deposited more than $21.5 million into their accounts, with more certainly to come.