re: LA State budget $340M in the hole - Special Session Incoming

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Like removing the exemption which makes state pensions income tax free for retired state workers? I agree.

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Honestly what do you expect this to accomplish? It's a calculated benefit people consider as part of the package. If it is removed, you can anticipate the expectation of increased salaries as an offset ...It's cheaper to entice an employee with a aleatory benefit that may never materialize.

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Honestly what do you expect this to accomplish?

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Honestly, so that state workers pay income tax on their pension just like private industry retirees have to do.

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It's a calculated benefit people consider as part of the package

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bullshite. It's a political gift politicians bestow to get state government workers to vote for them.

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If it is removed, you can anticipate the expectation of increased salaries as an offset

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No, where are they going to go if they don't get a raise? State government workers already have higher average salaries than the average private employer worker in Louisiana.

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Aren't most of the generous tax breaks still in place? Did they tighten up on the need to prove the tax credits were bringing jobs?

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That article is from 2014.

Most of the tax breaks are still there BUT got a haircut. Plus business got hit on some sales tax exemptions (most notably for utilities.) And an expanded franchise tax.

So the inventory tax credit exists, but isn't worth as much.

The industrial tax exemption still exists, but has a lot of uncertainty since it is undergoing changes (most notably it now requires local review).

This plus but a bunch of other changes has sent a "screw you" message to business. So for at least 3 more years businesses will keep their powder dry and hold off on any possible expansions into LA unless necessary. (Not counting retail; that is more based on demographics, but that sector is hurting too).

So we have a screwed up budget and a screwed up economy.

Not a good place to be.

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State government workers already have higher average salaries than the average private employer worker in Louisiana.

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And have you ever worked with state government? They hire 3 or 4 people to do the job of one private employee workload.

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This plus but a bunch of other changes has sent a "screw you" message to business. So for at least 3 more years businesses will keep their powder dry and hold off on any possible expansions into LA unless necessary. (Not counting retail; that is more based on demographics, but that sector is hurting too).

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This is probably the most concise explanation of the issues that I have seen.

Budget and tax issues don't occur in a vaccum. When you push one button, three or four other levers get moved as well, often in uncontrollable ways.

This type of situation we find ourselves in is why we have rainy day funds. However, under Bobby J, we had so many "fake" budget problems (I say fake because they were easily solveable but they decided to just BS their way through it) the rainy day fund isn't so flooded anymore. It can be tapped to help, but it's not going to solve the issue.

And worse, mid-year budget cuts are even worse because a lot of the money has already been spent.

It's probably furlough time.

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It's a calculated benefit people consider as part of the package.

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You can't offer a policy position that is legislatively-determined and subject to change at any time as a contractually-obligated condition of employment. That's ridiculous.

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This year's 180 million was completely usedo n the first day of the fiscal year, and rejected claims after the first day have already consumed 135 million of the fiscal 2018 cap. There are no savings to be had from the film credit for several years.

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And therein lies a lot of the problem, These film people are running up IOUs that the state is going to have to pay down the road. Sure we capped them, but that doesn't mean we aren't obligated to pay the tax credits later on.

Consequently the film people are tapping the 2017/2018 budget already and when they max it out, they'll start on the next fiscal year.

Meanwhile they tell us movies are dodging La. because its not lucrative for them anymore; yet they are almost two years ahead of us.

Do we see a movie "boom". Are we seeing our people hired in larger numbers? Do we see a flourishing industry surrounding the movie people?

No

LA is one of the last pockets of REAL culture.

There's a strong effort to remove original culture around the world.

Katrina was a gov't directed hit on New Orleans.

This economic situation is designed.

They want to disperse and flush out culture to make a more homogenous population which will accept global authority.

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Meanwhile they tell us movies are dodging La. because its not lucrative for them anymore; yet they are almost two years ahead of us.

Do we see a movie "boom". Are we seeing our people hired in larger numbers? Do we see a flourishing industry surrounding the movie people?

No

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I have some connections / clients in the film business. 2013, 2014, 2015 they made unbelieveable, insane, disgusting amounts of money. 2016 they basically had little to no income.

There was a movie boom and there were people hired in large numbers. When the caps hit, that went away in large numbers in 2016.

Now, 2017. It's starting to come back, a little. We will never get back to where we were, but films and tv series are lining up to shoot here in 2017.

Even with our 180 cap, we are still a pretty lucrative place to shoot movies, with our amazing scenery, and talented help who don't require california-type wages.

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I have some connections / clients in the film business. 2013, 2014, 2015 they made unbelieveable, insane, disgusting amounts of money.

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Most businesses would if the state paid 30% of their costs, and more if they hire La. residents.
And many of these people are in Dardenne and Edwards' ear so the program will never be discontinued. It's one of the new entitlements created to skim money out of our treasury.