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re: Question about LA budget crisis
Posted on 4/30/15 at 3:18 pm to samson73103
Posted on 4/30/15 at 3:18 pm to samson73103
quote:
Can someone explain why, with LA being one of the largest producers of oil, natural gas, and refining facilities, the state is seemingly broke and Jindal is gutting education to cover the shortfall? I mean, the energy section has been booming for over a decade until the last year when oil prices began to drop sharply. Where did all the money go that LA should have been raking in at least thru Jindal's two terms as governor? I'll hang up and listen.
Many factors:
1. The state nix'd the Stelly Tax plan early on in Jindal's first term. That significantly reduced the state's tax revenue.
2. Louisiana has way too many 4 year universities per capita and not enough 2 year schools.
3. Louisiana has more state employees per capita than most states. In fact, they have about the same number as Pennsylvania, which has far more people and is much greater in land area. For example, Alabama (similar in land size and population size) has about 36,000 public employees outside of higher ed and public schools. Louisiana has about 80,000.
4. The state government gives away $300 million in subsidies to the film industry and much more than that to manufacturing plants.
5. The state subsidizes local governments to the tune of $400 million via the inventory tax credit which creates a revolving door of money. Businesses pay taxes to local government and the state gives that amount back to the businesses.
6. Louisiana has just about more miles of state maintained highways per capita per square mile as compared to nearly every other state
7. Teachers got a big pay raise at the end of Blanco's term. State police just got a big pay raise. Fire fighters have gotten pay raises as have members of the legislature.
8. The legislature spent like drunken sailors while they still had all of that FEMA money.
9. dropping oil prices reduced state revenues by $400 million
10. Louisiana's nautical boundaries are far less encompassing than neighbor Texas, meaning that there is less area from which the state is getting oil revenue from leases instead of the federal government.
11. There's no toll roads here, for the most part.
12. Louisiana's tax burden on even upper-middle class people on down is really low.
There's more, but that will get you started.
3
Posted on 4/30/15 at 3:52 pm to kingbob
kingbob--I agree with just about everything you've said except relative to the repeal of the Stelly Plan. Again, Louisiana has sufficient revenue to take care of the proper needs of government. We spend more per capita than the average U.S. state and that includes lots of places richer than we are.
Proof we've done nothing to tackle our spending problem, a group called ballotpedia shows state spending b/w 2013 and 2014 increased by 6.8%. Imagine, while we've had recent annual budget crises, we raised state spending 5% over inflation (1.8% last year). Rather than reducing spending against inflation--which is what an actual budget cut looks like--we've been giving more away. Stelly Plan repeal is not a problem unless you agree we should be spending more, not less.
Proof we've done nothing to tackle our spending problem, a group called ballotpedia shows state spending b/w 2013 and 2014 increased by 6.8%. Imagine, while we've had recent annual budget crises, we raised state spending 5% over inflation (1.8% last year). Rather than reducing spending against inflation--which is what an actual budget cut looks like--we've been giving more away. Stelly Plan repeal is not a problem unless you agree we should be spending more, not less.
Posted on 4/30/15 at 3:55 pm to stout
quote:
We get fricked on our oil & gas royalties compared to other states.
Posted on 4/30/15 at 4:02 pm to kingbob
quote:
3. Louisiana has more state employees per capita than most states. In fact, they have about the same number as Pennsylvania, which has far more people and is much greater in land area. For example, Alabama (similar in land size and population size) has about 36,000 public employees outside of higher ed and public schools. Louisiana has about 80,000.
quote:
2. Louisiana has way too many 4 year universities per capita and not enough 2 year schools.
quote:
10. Louisiana's nautical boundaries are far less encompassing than neighbor Texas, meaning that there is less area from which the state is getting oil revenue from leases instead of the federal government.
quote:-Yeah LA residents don't pay jack shite in taxes compared to other states.
12. Louisiana's tax burden on even upper-middle class people on down is really low.
Posted on 4/30/15 at 4:19 pm to sheek
[quote]12. Louisiana's tax burden on even upper-middle class people on down is really low.
We should be trumpeting this across the country. Low taxes are one of the best sales pitches we have. Texas has been robbing high tax states forever. Time we do the same.
We should be trumpeting this across the country. Low taxes are one of the best sales pitches we have. Texas has been robbing high tax states forever. Time we do the same.
Posted on 4/30/15 at 4:26 pm to Topcat
quote:
The state is not broke. Louisiana has a deficit because it spends too much. We spend more per capita than the U.S. average. In 2013, per the Kaiser Family Foundation, we spent over $500 per Louisianian more than the U.S. Average. If state spending per capita equaled the U.S. average, we'd have a $1B surplus. If spending equaled the southern state average, we'd have about a $3B surplus. Our legislature is not fiscally prudent. And LSU is losing funding because our legislators (and governor) will not get the budget under control. Ultimately, however, since the people elected these representatives, we only have ourselves to blame.
thank you Topcat!!
Posted on 4/30/15 at 10:35 pm to tigerinthebueche
I'm also guessing, not enough people putting money in the pot and more taking out. Also happening on the national level too.
Posted on 4/30/15 at 10:42 pm to undrafted
quote:
LA gets plenty of cash off of the 12.5% severance tax though which is much higher than other states
Correct. Also, the Federal government sends more extra money back into the state budget than it would ever get from oil royalties. The Feds will simply send less money to Louisiana for coastal activities when Louisiana starts getting more shares of the royalties. It'll be a wash.
Posted on 4/30/15 at 10:43 pm to stout
quote:
We get fricked on our oil & gas royalties compared to other states.
Didn't you guys build them too far offshore or something?
Posted on 4/30/15 at 10:48 pm to samson73103
Government never saves money only spends it. It will never spend as efficiently as the private sector. If it were to spend more efficiently and save money for rainy day funds people would ask why they are being taxed more than they need to be.
All those contsitutional amendments we've voted on the past 20 years, those have been to protect certain areas of the state budget. Education was one of the few left unprotected.
Jindal chose to work on his national image rather than make true reforms to our state.
All those contsitutional amendments we've voted on the past 20 years, those have been to protect certain areas of the state budget. Education was one of the few left unprotected.
Jindal chose to work on his national image rather than make true reforms to our state.
This post was edited on 4/30/15 at 10:50 pm
Posted on 4/30/15 at 10:55 pm to stout
quote:
We get fricked on our oil & gas royalties compared to other states.
Exactly. And any fool that thinks Jindal has anything to do with this is a fool. It's been that way since he was I diapers.
Posted on 4/30/15 at 11:01 pm to PurpleandGold Motown
quote:
Didn't you guys build them too far offshore or something?
Yea. It's called geography.
Posted on 4/30/15 at 11:07 pm to PurpleandGold Motown
Yeah, we decided to make it harder on ourselves and put oil fields further than most states
Posted on 4/30/15 at 11:52 pm to USMCTiger03
quote:Correct! It is ridiculous for a Governor to only have these two options as cuts. The Legislature needs to feel the heat for this, not the Governor. Any Governor, not just Jindal, is screwed by this.
by USMCTiger03 The only sources of cuts are higher ed and healthcare. We need a constitutional convention to change the way this process is set.
Also, the low gas prices feel good, but hurts this state horribly.
Posted on 5/1/15 at 12:00 am to Carville
quote:
. The Legislature needs to feel the heat for this, not the Governor. Any Governor, not just Jindal, is screwed by this.
Don't give Jindal a pass on this. he doesn't deserve one. The "woe is me, my hands are tied" excuse won't fly. He came into office with more political capital and goodwill than any governor in LA history. He could have used it to make systemic improvements like a new constitution. Instead, he made a few cosmetic changes. issued a lot of press releases, and played the good ole boy spoils system in a way that would have made Huey P Long envious-that is, when he's not off in Iowa and New Hampshire pandering to anybody who will give him a microphone.
Posted on 5/1/15 at 12:05 am to Carville
quote:
Correct! It is ridiculous for a Governor to only have these two options as cuts. The Legislature needs to feel the heat for this, not the Governor. Any Governor, not just Jindal, is screwed by this.
Also, the low gas prices feel good, but hurts this state horribly.
A couple of errors there. 1. The House Appropriations Committee creates the budget. Jindal only recommends one. That's why Jim Fannin the Appropriations Chair spends more time in Baton Rouge than Jonesboro. 2. Gas Prices don't make up as much of the budget as legislators want us to believe. Our budget takes in more dollars from Insurance Premiums and Gambling Revenue (14%) than oil revenues. (12%)
We have too many constitutional protections and a broken budget process. Our current legislators have failed to address the issues and kicked the can down the road far enough and now there is no way to fix the problem in this session without cutting higher education and raising taxes.
Posted on 5/1/15 at 5:27 am to samson73103
Jindal (because of presidential aspirations) rejected Obama care, which has cost the state a lot of money.
It's true that health care and education are the biggest expenditures. I haven't heard one politician recommend that TOPS be suspended or cancelled. Why? because it will cost them votes next election, not because it's the right thing to do. We have too many nutless people in politics.
It's true that health care and education are the biggest expenditures. I haven't heard one politician recommend that TOPS be suspended or cancelled. Why? because it will cost them votes next election, not because it's the right thing to do. We have too many nutless people in politics.
This post was edited on 5/1/15 at 5:30 am
Posted on 5/1/15 at 6:02 am to Jim Rockford
quote:
Don't give Jindal a pass on this. he doesn't deserve one. The "woe is me, my hands are tied" excuse won't fly.
Good lord man, he's not giving anyone a pass. Just correctly pointing out that the legislature has responsibility for this as well. I have no problem criticizing the Gov. But incessantly bitching about one politician when the entire group is culpable is stupid. Everyone bitched about the governor, when there is a whole legislative body that could and should be held accountable. It's a lot easier to influence your local rep than it is the governor. Start putting the focus on that bunch for a change.
Posted on 5/1/15 at 7:23 am to CrazyTigerFan
quote:
There was a constitutional convention and a new state constitution established at the end of the 1970s. In less than 50 years time, the voters in our state put into place the system of protected funds that exists today because we voted in ammendments to the constituton. The blame lies with the citizens. If we want a new constitution, the convention is our responsibility as well.
This - I don't understand why people don't get this and continue to blame Jindal and the legis. WE keep voting in constitutional amendments that designate funds for particular things - did it last year even. Once that is done, the legis. cant reduce that money, it has to go there. about all that is left to cut now is higher education (last year's amendment effectively restricted health care.
Jindal tried to get the legis to make a change a couple of years ago and was shut down.
Posted on 5/1/15 at 7:33 am to Placebeaux
quote:
by Placebeaux
The people should demand an audit of the state budget during Bobby's two term
Every dollar is audited every year and it's all public information if you feel like reading it
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