During last November's hurricane-recovery session, special interests were also able to force through a small tax cut on electricity and natural gas, but the momentum came to a noticeable halt in this year's regular session when lawmakers turned their attention to other matters having little or nothing to do with economic growth.
But the political landscape is shifting again, and the next several months could be ripe with opportunities. Budget surpluses for 2006 and 2007 could potentially top $1 billion, and revenue forecasts remain somewhat bolstered by oil prices and recovery spending. To top it off, 2007 will be an election year complemented by term limits, which could make for a generous Legislature.
Business advocates are already eyeing the situation and crafting a strategy that focuses on furthering tax reforms. Still, the rosy fiscal situation could flip at any moment; state Treasurer John Kennedy has repeatedly warned that the "recovery bubble" will eventually burst, leaving Louisiana in a less-than-desirable financial position.
Special interest groups realize the likelihood of that scenario, but they argue their respective memberships will be there to support the economy when the fizzle starts ' and policy makers should make every effort to strengthen business and industry now.
Donna Landry, chairwoman of the Greater Lafayette Chamber of Commerce, says the push for tax reform could be successful next year if business interests take a united front and state revenues don't take a dramatic fall. She also says business leaders need to consider progressive issues for regional development.
"Our focus in recent months has been on transportation and infrastructure issues," Landry says. "The current model for financing our priorities is under-funded, and we need to make sure we're getting our fair share so we can manage our population and traffic growth."
Specifically, the chamber is interested in finding alternative funding methods for the Lafayette Metropolitan Expressway project, a transportation plan expected to cost upwards of $740 million, depending on the route selected. Tolls and tax collections have been explored in the past ' City-Parish President Joey Durel's proposed sales tax for road infrastructure is on the November ballot ' but Landry says more opportunities must be pursued.
Dan Juneau, president of the Louisiana Association of Business and Industry, one of the largest lobbies in the state, says readdressing the current phase-out of business taxes on equipment and debt are among his groups' top priorities for next year. "It would be nice if those taxes were accelerated, or even eliminated outright, but largely we just need to make sure they eventually come off the books," he says.
The state sales tax on manufacturing equipment has been evaporating slowly over the past two years, with 35 percent coming off in July. More will be deducted each year until 2010, when all of the tax will be eliminated. Even though it is in the process of being abolished, the tax still places Louisiana at a disadvantage against other southern states that don't apply anything, according to Juneau.
R. Charles Hodson Jr., state director of the National Federal of Independent Business, a nonprofit advocacy group with 6,000 members statewide, is pushing an effort to apply the equipment tax break to small businesses that rely on desktop computers and other common machinery. Doing so would send a symbolic message to an underrepresented constituency, argues Hodson.
"It's a fairly narrow band of equipment that can be used, and unless you're a huge manufacturer, you're really not getting any benefit," Hodson says. "I understand we need to be looking for that silver bullet, like landing a Mercedes plant, but let's not forget about our small businesses and those that are already here."
The groups being led by Juneau and Hodson are also considering asking lawmakers to accelerate the phase-out of the state's tax on corporate debt. The mechanism, which collects upwards of $120 million annually for the state, is being eliminated over a seven-year schedule beginning this year.
Dan S. BornÃ©, president of the Louisiana Chemical Association, says his membership's No. 1 issue for the coming year is eliminating the remaining 3.3 percent sales tax on the use of natural gas and electricity, the only levy of its kind in the nation. It was originally reduced from 3.8 percent during last November's special session, but BornÃ© says the job needs to be finished in 2007. "That impacts every business in the state that receives a utility bill," he says. "It also protects the petrochemical industry because we buy so much natural gas to keep generating power and electricity. We use natural gas the way a bakery shop uses flour, and that tax is eventually passed on to consumers."
Aside from the state's fiscal concerns, the biggest unknown next year will be how term limits ' during an election year ' will play out with all these issues. BornÃ© says the lure of early retirement, coupled with the need to get re-elected, might make for a perfect situation for business and industry.
"It's an election year like none other and the first of its kind," BornÃ© says. "We'll be cruising uncharted waters because there's no telling what an election year layered with term limits will have on public policy issues and whether they gain traction. But I don't think it'll be a year where lawmakers are looking to tax anybody, so we're safe from that for now."
Thursday's Blogs from the Bog!
Women sue over sperm mix-up; Romney on campaign trail; Ebola patient was released from hospital and more national and international news for Thursday, October 02, 2014.
State Rep. Joel Robideaux, R-Lafayette, surprised few in the Hub City Wednesday afternoon when he made (semi) official what most of us have known for months: He is running to replace Joey Durel as city-parish president.
Louisiana's first black Republican state senator since Reconstruction — who was a Republican before he was a Democrat before he was a Republican again — is accusing Democratic U.S. Sen. Mary Landrieu of using the black community for votes and providing nothing in return.
LSU's governing board has backed new hospital privatization contracts that give hospital managers greater ease to leave the deal and fewer restrictions about must-have services.
U.S. Sen. Mary Landrieu is courting young voters in several appearances across Louisiana this week, talking about her support for legislation that could lower students' college costs.
Stage 4 vet takes on cancer and reminds us all what it really means to get involved.
Is Mary fading as Vitter solidifies his lock on the fourth floor?
Gov. Bobby Jindal's administration has renegotiated contracts for six LSU hospital privatization deals, hoping to reach a compromise with federal health officials that will keep Medicaid dollars flowing to the privatized patient services.
Democratic Sen. Mary Landrieu is defending her record on gun rights, seeking to rebut sharp criticism from the NRA in a state where the right to bear arms is given special constitutional protection.
Citizens, you have less than a week to register to vote in the Nov. 4 election. Remember, if you don’t vote you can’t complain about the outcome. Well, you can but it’s kind of hypocritical.
After being forced out by its former landlords last year, the community garden has a new location and a 10-year lease.
The party says it has hit a milestone, reaching 10,000 registered voters in the state.
Defensive captain Junior Galette is disgusted by the Saints' sluggish start.
The use of $60 million in Louisiana's public school financing formula to pay for nearly three dozen charter schools violates the state constitution, a statewide teachers' union claimed Monday in a lawsuit.
February trial date indicates parties were unable to negotiate a settlement.
There was a time when United Ballot had a political stranglehold so tight on Lafayette’s black community it was nearly unbreakable, but that grip might be loosening.
The race for Lafayette city marshal may not be the most exciting of this year’s local political contests, but it could prove the most historic.
With the DA’s race too close to call and negative media coverage of Mike Harson on the ebb, will challenger Keith Stutes take the gloves off?
Gov. Bobby Jindal has been viewed as a health care policy wonk, and he's tried to build on that image ahead of a likely 2016 presidential campaign, positioning himself as the candidate with substantive ideas.
Jerry Jones watched what he called the best effort he's seen in 25 years as owner of the Dallas Cowboys in the first half, and that was before Tony Romo had the longest scramble of his career and DeMarco Murray finished off yet another 100-yard game.
Two of the most recognizable women in Republican politics, Sarah Palin and Mary Matalin, have been heavily involved in Louisiana’s current election cycle.
Even though the Louisiana Democratic Party has thrown its support behind former Gov. Edwin Edwards’ congressional bid, national Democrats are not expected to follow suit.
“[Mike] is no longer the energetic ADA that his recent ad is trying to portray. I just think Mike needs to get the hell out.” — Kermit Harson, DA Mike Harson’s brother
The New Orleans Saints have listed Jonathan Goodwin as questionable for Sunday night's game in Dallas, raising the prospect that second-year pro Tim Lelito will start at center for the first time.