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."
If all 44 projects are approved, about $300 million would remain in the fund set up as a down payment to help the Gulf.
Last week, the Saints gave up 429 yards to Seattle, second most in a game this season.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, December 06, 2013
Since Anthony Jennings and Brooks Haack were not expected to contribute until next year at the earliest, it seemed like a sneak peek at hidden Christmas gifts.
Louisiana National Guard personnel seeking benefits for same-sex spouses will have an easier time filing the requests, despite a state refusal to let its workers process the paperwork.
Panthers coach Ron Rivera sees one potential flaw with his team's stellar defensive play so far this season. "Apparently we like to bite on the double moves," Rivera said.
Computer hackers may have gained access to the personal information of thousands of Louisiana residents who use debit cards issued by JPMorgan Chase for three state agencies, authorities said Wednesday.
Jim Purcell, who has been in the job since February 2011, notified the Board of Regents about his decision at its monthly meeting.
Hushed plans for a commercial development along the Louisiana Avenue portion of the Holy Rosary campus put the future of longtime tenant EarthShare Gardens in jeopardy.
If a recent advertisement in The Daily Advertiser is any indication, speculation the local daily will be implementing the “Butterfly Project” could be more of a reality than the Gannett-owned paper’s top execs are willing to admit.
Mettenberger injured his left knee while unloading a 32-yard completion in the fourth quarter of No. 14 LSU's 31-27 victory over Arkansas last Friday, and LSU coach Les Miles confirmed the severity of the injury on Wednesday.
An ordinance to phase out a 2 percent rebate to Lafayette merchants for collecting and remitting on time sales taxes cleared the City-Parish Council by a 6-3 vote.
Louisianans are the fourth most likely to use profanity yet also the fourth most likely to be courteous. So, please, just kiss my a** ... if it’s not too much trouble.
The state Coastal Protection and Restoration Authority voted Tuesday to authorize two lawsuits against the U.S. Army Corps of Engineers.
A long night on the field in Seattle got even worse off of it, and now the Saints are operating on a compressed time-frame as they brace for surging Carolina with first place in the NFC South at stake.
Public school letter grades, teacher evaluations and student promotion won't be affected by Louisiana's shift to more rigorous educational standards for two years, the state's top school board decided Tuesday.
Vitter told The Associated Press that he is sending an email to supporters Wednesday and is in discussions with his family about the possibility.
The Ragin' Cajuns go for New Orleans Bowl three-peat, this time against the Tulane Green Wave, which is making its first postseason appearance since the Hawaii Bowl in 2002.
Louisiana has joined four other states in filing a so-called “friend of the court” brief in support of Mississippi’s lawsuit against the federal government over new flood insurance rates set to go into effect.
Kerry Wayne Bertrand was charged Monday for the alleged killing of his stepdaughter, Skylar Lee Credeur, a UL Lafayette chemistry major found dead in the bathtub of her family home in August.
Louisiana's state school board is considering a two-year delay for some consequences tied to the phase-in of more rigorous educational standards, called Common Core, at public schools.
The most anticipated game in the NFC this season was a laugher.
The attorneys for Busted in Acadiana administrator Chris Hebert got an extra 2.5 months Monday to prepare for their client’s felony trial, marking the third time the case has been delayed this year.
In an effort to ease tensions, Lafayette Parish Superintendent of Schools Dr. Pat Cooper is calling for board approval of two day-long workshops: one to address lingering questions caused by Act 1 of the 2012 Legislature, and a session focused on mending the tattered relationship between the board and administration.
Lafayette has so much going for it, and so much yet to do.