Let the budget battles begin

Published 7:00 pm Monday, February 19, 2018

Seven bills that make changes in Louisiana’s Medicaid program highlight the 28 measures that have been pre-filed for the special legislative session beginning at 4 p.m. Monday. Other proposed legislation deals with improved government transparency, income and sales taxes and a state spending limit.

Republicans who control the House insisted that reforms be made in Medicaid, the federal-state health care program for poor and low-income citizens, before they would consider tax changes. They want able-bodies recipients to work, improved government transparency and a state spending limit.

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The House GOP leadership has endorsed no specific tax proposals, but Republicans are reported to be opposed to making any major income tax changes. They favor keeping all or part of a 1 percent sales tax increase that was approved in 2016 and that goes off the books on July 1. However, the House Democratic Caucus opposes renewing any of the 1 percent tax.

Rep. Stephen Dwight, R-Moss Bluff, has filed HB 23 that proposes to make half of the 1 percent sales tax permanent. HB 17 by Dwight limits exemptions to the state sales tax to 100 listed in the proposed legislation. Food used for home consumption, utilities and prescription drugs are among those exemptions.

Rep. Kenny Havard, R-Jackson, has filed HB 18 that limits those sales tax exemptions to 34 items. HB 20 by Havard limits the exemptions to 91 items.

Rep. Barry Ivey, R-Central, filed House Bill 1, the measure that establishes a state transparency website called “Louisiana Checkbook.” The idea comes from a similar Ohio website rated the best in the country. The goal is to put government spending at the fingertips of citizens.

Rep. Tony Bacala, R-Prairieville, is author of HB 2 dealing with integrity in determining Medicaid eligibility and Medicaid fraud detection and prevention and the sharing of interagency data. Rep. Beryl Amedee, R-Houma has filed a similar measure (HB 5).

Rep. Frank Hoffmann, R-West Monroe, is sponsoring HB 3 that sets up work and volunteer requirements for able-bodied Medicaid recipients 19 to 64 years of age who are not exempted in six different categories. Sen. Sharon Hewitt, R-Baton Rouge, has Senate Bill 5 that requires the state Department of Health to apply for a Medicaid work waiver with the Centers for Medicare and Medicaid Services.

Rep. Jack McFarland, R-Baton Rouge, is author of HB 4 that establishes a monthly premium payment in the Medicaid program. The payments would go into personal wellness and responsibility health savings accounts. The savings accounts in HB 6 by McFarland are called LaHIPP (the Louisiana Health Insurance Premium Payment) program.

Rep. Ted James, D-Baton Rouge, is author of HB 7 that reduces the amount of the individual income tax deduction for excess federal itemized personal deductions from 100 to 50 percent beginning after Jan. 1, 2018. Rep. Walt Leger, D-New Orleans, has a similar bill (HB 8).

HB 9 by Leger changes the middle and upper state income tax brackets. Individual taxpayers currently pay 2 percent on the first $12,500 of net income, 4 percent on the next $37,500 of net income and 6 percent on net income in excess of $50,000.

Leger’s bill levies 2 percent on the first $12,500, 4 percent on the next $12,500 and 6 percent on net income in excess of $25,000. Rep. Rob Shadoin, R-Ruston, is author of HB 13, which is identical to Leger’s measure. Both bills also reduce the excess federal itemized deductions taxpayers can claim from 100 to 50 percent.

HB 19 by Leger adds additional services to state and local sales taxes. They include personal services like massage and escort activities, credit reporting, debt collection, insurance, immovable property, date processing and storage, repair and remodeling, security, telephone answering, audio and video and information services.

Speaker of the House Taylor Barras, R-New Iberia, is sponsoring HB 12 that establishes a formula for a state spending limit. It would have to be presented at the same time the executive budget is submitted to the Joint Legislative Committee on the Budget. In addition to average growth in personal income, the limit would be based on official revenue forecasts, population and consumer prices.

Sen. J.P. Morrell, D-New Orleans, is author of SB 1 that eliminates sunset provisions on credit for taxes paid to other states and SB 3 that makes permanent a 20 percent reduction of rebates to certain tax incentive programs. Those are the Louisiana Mega-Project Energy Assistance Rebate, Louisiana Quality Jobs, Corporate Headquarters Relocation Program and Competitive Projects Payroll Incentive Program.

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In this Jan. 22, 2018 photo, House Republicans leader Lance Harris, R-Alexandria, left, and Rep. Charles “Bubba” Chaney, R-Rayville, read through Gov. John Bel Edwards’ budget proposal in Baton Rouge, La. Lawmakers return Monday, Feb. 19, for a special session to consider taxes to fill a $1 billion budget gap, the fifth special session on finances they’ve had since their term began two years ago. (AP Photo/Melinda Deslatte, File)