News -> INDReporter THU, MAY 5 9:43AM by Walter Pierce

Robideaux’s UL bill under fire

[Editor's Note: Late last week Rep. Robideaux pulled the bill. It will not be considered during the 2011 legislative session.]

A bill by state Rep. Joel Robideaux, no party-Lafayette, that would create an “improvement district” for UL Lafayette, is facing opposition from some well-placed conservatives. The bill would create what amounts to a tax increment finance district for UL and allow the university, through a board that comprises university brass and boosters, to levy additional sales, ad valorem and hotel occupancy taxes in accordance with state law. House Bill 566 is currently assigned to the House Municipal & Parochial Affairs Committee.

It’s Section F of the bill — Taxing Authority — that is raising the hackles of opponents:

 

In order to provide funds for the purposes of the district, subject to limitations and prohibitions of the Constitution of Louisiana, the district shall have the power to levy ad valorem taxes, sales taxes, and hotel occupancy taxes within the district up to five mills of ad valorem taxes, up to two percent of sales taxes, and up to two percent of hotel occupancy taxes, or any combination of such taxes above which may aggregate the full amount so authorized of each and in addition to any other ad valorem taxes, sales taxes, or hotel occupancy taxes, or combination of such taxes, then in existence or permitted to be in existence within the district. All taxes so authorized shall be imposed by ordinance adopted by the district, acting by and through its board of directors subject to approval of a majority of the qualified electors residing within the boundaries of the district voting on the proposition at an election called for such purpose. However, if there are no qualified electors residing within the boundaries of the district, no election, proceeding, notice, or approval shall be required for the levy of such taxes.

In an email to Robideaux — members of the media including The Independent along with some Tea Party of Lafayette members were copied on the epistle — Carol Ross, a frequent guest on Moon Griffon’s radio show and wife of tea party sympathizer and Acadiana Gazette publisher Ron Gomez, lays out her concerns:

Rep. Robideaux:  I am asking that you withdraw the above captioned legislation from consideration and further requesting that your fellow legislators speak, work and vote against it, for the following reasons:

• It establishes an autonomous taxing district, governed by an un-elected board of directors to pursue  “cooperative economic development among the parish of Lafayette, the city of Lafayette, the state of Louisiana, the district, and any other entity, public or private...”

• This autonomous, un-elected board shall “have the power to levy ad valorem taxes, sales taxes, and hotel occupancy taxes within the district up to five mills of ad valorem taxes, up to two percent of sales taxes, and up to two percent of hotel occupancy taxes, or any combination of such taxes above which may aggregate the full amount so authorized of each and in addition to any other ad valorem taxes, sales taxes, or hotel occupancy.”   And “In addition to the other authority provided to the district, the district shall have all the authority provided to an economic development district” -- to establish a Tax Increment Financing -TIF- district.  Further, the board has the power to “dispose of or lease its property or assets by public bid or private negotiation.”  

• This autonomous un-elected board shall have the power to establish the boundaries of the district and if there are no qualified electors in the district, there does not have to be a vote of the people to set up this district and/or levy taxes.   Further, to my knowledge, the boundaries of the district have not been set forth and according to HB 566,  may be expanded by a simple majority vote of the un-elected board.

• Furthermore, this district is set up as a local governmental subdivision, in perpetuity.

• The governing board shall consist of the following:
(a) The president of the University of Louisiana at Lafayette or his designee.
(b) The administrative and finance vice-president of the UL Lafayette or his designee.
(c) One member appointed by the Board of Directors of the UL Lafayette Foundation.
(d) One member appointed by the Board of Directors of Ragin’ Cajun Facilities, Inc. (??????)
(e) Three members appointed by the president of the University of Louisiana Lafayette.

• Worst of all, and in my mind possibly illegal and/or unconstitutional (which has never stopped the Leg in the past, unfortunately), the make up of the board presents a clear conflict of interest.  The very people who will be levying the taxes are the very ones who will benefit.   Furthermore, since the University is a subdivision of the state, the president and vice president of finance are employees of the state.   So, in effect, any department head or group of employees in any other department of state government should have the power to do the same?   See where this is headed?   And if this passes, every other university in the state will do the same, without any input or vote of the people.

I just hit the highlights, there’s a lot more to dislike in this ill-conceived legislation.  And yes, we’re strong supporters of the university, but this is the wrong way to do it and it’s going to cause a backlash against the university, and I know we don’t want that.

So, please, Rep. Robideaux, withdraw this legislation and save us all from a damaging and pointless battle.

Carol Ross

Walter Pierce
About the author:


Comments (6)add
...
written by I agree , May 05, 2011 - 04:59 pm
very well put Ms Ross.
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written by delcam , May 05, 2011 - 10:33 pm
Mr. Pierce has it wrong; it is about much more than Section F. It is about a state university getting the power, in perpetuity, to tax citizens to fund itself, to enlarge the taxing district whenever the Board of UL appointees chooses.
This is a really really bad idea. As Carol Ross observes, it is likely unconstitutional. Mr. Robideaux has been made a sucker by the folks at UL.
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written by jazzpop , May 06, 2011 - 12:05 am
A blatant cash grab by an institution that has been less than responsible in the way it handles it's money. Get rid of Professor Dead-Head (Chris Williams), get ALL of the money back that was embezzled by the former head of Petroleum Engineering (he was allowed to retire with full benefits after repaying less than a third of the nearly one hundred grand he stole), locate the couple of hundred missing lap tops, then maybe we'll see.
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written by James Melancon , May 06, 2011 - 01:02 pm
Carol Ross is correct. Robideaux needs to remember he was not elected by the UL administration.
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written by Joyce Linde/ Coordinator of TEA Party of Lafayette , May 06, 2011 - 05:58 pm
Many thanks to Carol Ross and the Members of the TEA Party of Lafayette. The response to our newsletter and action alerts about House Bill 566 was overwhelming! The citizens of Lafayette, of Louisiana and of this great nation are TAXED ENOUGH ALREADY! It is time for those elected by the people to serve the people. House Bill 566 was a blatent power grab and an attempt at Taxation without representation. My appreciation to the many members of TEA Party who called, emailed and wrote to stop this bad piece of legislation.
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written by Jason D. Faulk , May 07, 2011 - 12:52 pm
Can we have an update please? I'm reading that UL is asking Robideaux to pull the bill for now, but that the Development District would be akin to the downtown Development District.

As to the reasons for the district, the piece posted on UL Today sheds light on Dr. Savoie's intent. http://ultoday.com/node/3675

I think some solution can be created which addresses the governance concerns Ms. Ross raised. We have other districts which are subordinate to the City of Lafayette, and there's no reason why the City couldn't be in charge of appointing a board of governors with fealty to if not employment with the University.

Since university lands are already not subject to property taxes if my understanding is correct, there would be no potential to have a Tax Increment on property to finance any development on its lands. Now if that district includes non-university lands, then that's another story. In fact that would slightly mirror the DDA in that its revenue is based on a 10 or so mills property tax, but not one which leveraged tax increments on existing property taxes. Had we done that, DDA would have even more resources to work with today (though other funds to city and parish would be less.)

So really all we have in these parts are sales tax districts popping up. Maybe there is another solution than these two tax types. Still, a sales tax worked for the Stirling at I-10 district, and one form or another could work for UL. Having a local tax to support UL would not be inconsistent with this community's support for our university. I've read at least one account that indicated that Lafayette Parish passed a property tax in early years to help fund the Southwestern Louisiana Industrial Institute, UL's original name. Hopefully they'll come back and build support and a broad acceptance for their plans. It's not about shorting anyone, it's about enhancing Lafayette's position and our university's development.
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