Coalition in House continues to fine-tune plan for state budget

Published 8:17 pm Wednesday, May 8, 2013

BATON ROUGE — A coalition of House Republicans and Democrats continues to fine-tune a plan they believe will bring more stability to the state’s $24.7 billion budget for the fiscal year beginning July 1.

Efforts to shape a spending plan that can get the necessary two-thirds vote (70) have delayed the House’s consideration of the budget until Friday.

House Speaker Chuck Kleckley, R-Lake Charles, said Wednesday that companion budget bills will be considered today, except for House Bill 1, the spending plan.

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Before the budget can be taken up Friday, however, other legislation has to be created that is designed to replace nearly $500 million that Gov. Bobby Jindal used in his budget. The governor gave the House a budget plan, but it contained revenues that depend on actions that haven’t happened or on funds that will only be around for a year.

The House Ways and Means Committee on Monday sent eight bills to the House floor that can be used to raise revenues to replace temporary sources the governor has been using since he took office. The hang-up for the coalition is getting some conservative Republicans to go along with raising new revenues.

Rep. Brett Geymann, R-Moss Bluff, is a leader of the Republican conservatives. He believes a budget agreement can be reached that will stop annual midyear and year-end budget cuts.

“The plan hasn’t changed, but there are some ideas that are being looked at to try and bring some more (members) on board,” Geymann said. “I am still confident because, clearly, the Republicans don’t want to vote for the Jindal plan.

“So we have challenged those in opposition to come up with some better solutions. It could get ugly before it gets better, but I am still hopeful that we can come up with a solution that has strong support.”

The coalition, as it has done all week, was working Wednesday night to fine-tune its plan.

Geymann said he spoke to Blueprint Louisiana, an organization that focuses on the state’s long-standing issues and challenges. It has board members in nine regions of the state.

While they don’t like the coalition plan as is, Geymann said they are happy there is work being done to improve the budgeting process. He said he left the meeting encouraged that the coalition’s efforts are worthwhile.

Reductions would take place in three areas under the coalition plan. Cuts to department budgets would produce $106 million, other anticipated reductions total $27 million, and changes in a number of tax break areas would bring in $329 million.

The coalition is also counting on $20 million from refinancing of the state’s tobacco settlement and $45 million in excess revenues expected to be announced by the Revenue Estimating Conference.

One of the major sticking points is a temporary reduction in sales tax exemptions for nonresidential utilities and manufacturing machinery and equipment from 4 percent to 2 percent. That would raise $15 million, a major hit to chemical plants that use large amounts of energy.

Geymann said there are efforts underway to try to come up with something else to replace that revenue source. “Progress made,” he said late Wednesday afternoon.

Jindal was quick to call the plan a “threat on the horizon,” and a $1.3 billion tax increase over the next four years. He has marshaled all of his resources to try to shoot down the coalition proposal.””

Louisiana State Capital