Legislative Update
April 2, 2010
State Legislative Session Gets Underway -
Northshore Business Community Gets Ready
The Louisiana Legislature kicked off the 2010 Session this week that will run through June 21. This year’s Session is a general session, where tax and tax incentive measures generally cannot be considered, only in odd-numbered years. Much of the focus this Session seems to be centered on particular themes that are emerging: state budget flexibility, higher education reforms, and government streamlining proposals.
These topics were reinforced during a Legislative Briefing held by the St. Tammany Joint Public Policy Committee, ahead of the Session. The Northshore legislative delegation expressed a collective desire to tackle these tough issues for long term reforms and betterment of the state. Below is further explanation of the core issues to be addressed this Session.
The state budget looms large with a projected deficit of $1B in revenues vs. spending.
The shortfall is attributed mostly to the declining economy, and strained more so by recent tax relief measures (excess itemized deductions), lower oil prices, and less federal funding due to one-time recovery dollars no longer available. The deficit trend started last year and is expected to continue through 2011/12.
The silver lining may be that tough times require innovative solutions.
During cost cutting times, the state budget axe falls mostly on healthcare and higher education, two major spending areas that are not protected by statute or the constitution.
Given the ongoing strains in these two critical service areas, there appears to be more attention and support this year for policy changes that would allow the state additional budget flexibility in future years to spread cuts more evenly.
These legislative measures have been embraced by the Governor’s Office and individual legislators, led by Senate President Joel Chaisson.
Higher Education is another area of high interest, following on the 2008 ethics reforms and workforce reforms. A higher education platform was developed by a coalition of 40 business and policy organization across the state, supported by St. Tammany Chambers, the Business Council and the Economic Development Foundation. The essence of the BILD platform is to raise performance standards among colleges, while allowing more tuition authority to increase resources for education programs and research.
The higher education reforms are embodied in multiple bills filed, with the lead item being the LA Grad Act, proposed by the Governor’s Office and authored by Speaker Jim Tucker.
On the streamlining front, dozens of bills have been introduced, with many championed by Senator Jack Donahue who Chaired the Streamlining Commission that met tirelessly since 2009, ultimately approving 238 recommendations for consideration. Several of the proposals are sure to be controversial like changes to Civil Service and the state retirement system called LASERS. Expect to hear much more on these topics as the Session unfolds.
Please know that the St. Tammany JPP is getting organized for the Session in order to identify and track major bills of interest. A full review is underway of the 1900 bills filed to identify those bills of high priority, where the JPP will be taking a position. As such bills move through the process, the JPP and its extended memberships stand ready to advocate on particular issues as appropriate. All business members are encouraged to stay active as the legislative Session progresses. To help this effort, the JPP plans to release regular alerts during the Session.
In the interim, those interested can research particular legislation and Capitol activities on the state website at www.legis.state.la.us. Please let us know if you have additional questions and input.
Sincerely,
Dino Paternostro
Legislative Advocate
St. Tammany Joint Public Policy
dino@legislinkllc.com
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PLEASE JOIN US AS WE WELCOME MAYOR DON VILLERE
APRIL 20 | 4-9 PM
RIPS ON THE LAKE
1917 Lakeshore Dr., Mandeville
- Boiled crawfish, hamburgers, hotdogs
- Music by Big Daddy “O”
$100 per couple.
Make checks payable to Donald Villere Campaign
Contacts:
Will Griffin 985-264-3695
Bill Dobson 985-626-9537
See the attached invitation, and come out and welcome the new Mayor Don Villere!
flyer
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St. Tammany doesn’t ask a whole lot from state government, mainly help with its infrastructure to keep up with its growing population that adds jobs to the economy and revenues to the state. We are not the home of many state offices.
Serving in the legislature, I fully understand and appreciate the financial difficulties facing state government. Like ordinary citizens, government needs to also tighten its belt and make due with the money it has. Citizens cannot bear any additional tax increases. And, unfortunately, that means cuts to government services.
However, the last area that should be cut are the areas that directly serve citizens like the Mandeville Motor Vehicle office. These facilities raise revenues and provide direct assistance to those people obtaining and renewing their licenses. How much bureaucracy has little or no citizen interface or involvement? Cut those areas first.
If you want to comment on the closing please email deanna.albert@dps.la.gov We will be having a town hall meeting at the Mandeville Community Center next Wednesday evening at 6:30pm. The Community Center is located at 3101 East causeway Approach, Mandeville, LA, 70448.
February 3rd, 2010 in
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Lost Coverage
The proposed bills include a new government health plan – the “public option.” A public plan will lead many employers to drop private health coverage for their workers and push many of them toward the public plan, just as many employers in the 1990s pushed their workers into cheaper managed care plans. The result? Individuals will lose their existing coverage and private insurance would be crowded out of the market by the government.
According to independent analysis of the House bill by the Lewin Group, as many as 103 million Americans would end up in a public plan (assuming eligibility to the new exchange is open to all employers). The Lewin study also found:
48 percent–almost half–of privately insured Americans would transition out of private insurance.
About 88.1 million workers would see their current private, employer-sponsored health plan go away.
Yearly premiums for the typical American with private coverage could go up by as much as $460 per privately insured person, as a result of increased cost-shifting stemming from a public plan modeled on Medicare.
Tax on the Rich and Small Businesses
The House bill includes a 5.4% surtax on over 2 million high-income Americans — about half of them small business owners. And that’s not all: President Obama would have the power to increase the surtax.
Go here to find out how many taxpayers will be affected in your state.
“The large tax increases proposed by House Ways and Means Chairman Charlie Rangel (D-NY) would harm over a million small businesses, making them less likely to expand and hire new workers,” Heritage senior policy analyst Rea S. Hederman Jr. writes. “Congress should not pass large tax increases on businesses that would hinder employment.”
Tax on the Poor
A tax hike is coming for low-income workers too, cleverly disguised in the form of employer health care mandates, which both the House and Senate drafts of health care reform include. Here is how it works:
These so-called “employer mandates” require employers to either pay a significant portion of their employee’s health care premiums or pay a new 8% payroll tax on top of existing taxes.
Employers will be forced to cut employee wages to make up for these new taxes.
This mandate will hit low-income employees the hardest, as employers may be forced to lay off employees at or near the minimum wage.
To find out more, visit www.fixhealthcarepolicy.com .
By U.S. Senator Roger F. Wicker
Preserve What Works and Fix What Is Broken
Congress is in the midst of a vigorous health care discussion covering a wide range of ideas. Our country needs health care reform, but it is important that any legislation approved have broad bipartisan support.
Congress must decide between two approaches – one that would reform our health care system by cutting costs, expanding coverage, and allowing patients to keep their current doctors, and a different concept involving a costly government takeover of health care and severely diminished quality of care. This is a pivotal debate that affects every American, and our decisions will have long-lasting consequences.
KEEP THE GOOD
Americans have always had a unique relationship with their physicians. In Mississippi, our doctors are also our neighbors, fellow church members, trusted friends, and family members. We call on them all hours of the day and night, and many generations of our families visit the same trusted source for medical advice.
President Obama recently acknowledged the importance of this relationship when he said, “If you like your doctor, you will be able to keep your doctor, period. If you like your health care plan, you’ll be able to keep your health care plan, period.”
The President appeared to be advocating reform that would preserve choice and the doctor-patient relationship. However, the proposals he is supporting on Capitol Hill do just the opposite. The plans advocated by the President and Congressional Democrats would transform our health care system into a European style government-run program. Americans do not need Washington deciding who their doctor is and what treatment they will receive. Any health reform must preserve existing doctor-patient relationships.
While estimates vary, there could be as many as 47 million uninsured people in America and well over 200 million who already have health insurance coverage. Rising costs threaten to push more people onto the rolls of the uninsured, and there are other threats that we must be careful to avoid as well. A government-run plan would undermine our current system by using tax revenues to distort the true cost of care.
I am gravely concerned that Americans will be pushed into this government plan, which appears cheaper, but would actually cost taxpayers more and erode quality. The latest report indicates the cost for a government run program would be $3.5 trillion, the equivalent of the entire annual budget of the United States.
Despite numerous town hall meetings and press conferences, the administration has not offered any concrete proposals on how they intend to pay for their expensive takeover of our health care system. With a price tag into the trillions the only plausible answer is to raise taxes.
FIX THE BAD
The good news is that it is possible to fix our health care without risking harm to the parts of our system that are working. We must provide coverage for all Americans. Workers should not be trapped in a job they do not like because they are afraid of losing their health care. People who are laid-off do not need the added stress of losing their health benefits. We must create a system that offers affordable coverage to everyone and helps the poorest Americans get the coverage they need.
Any reform to our system must place a stronger emphasis on prevention, wellness, and early detection. Poor diet and exercise habits have lead to an obesity epidemic in our country and brought unprecedented levels of chronic diseases. A robust system of preventive care is the key to saving countless lives and billions of dollars. I believe any legislation addressing health care reform must include a plan that focuses health care spending on preventive services.
GET IT RIGHT
Americans want our system reformed, but they want it done right. Six in ten individuals are concerned that the administration’s government-run health care proposal would require them to see a Washington-approved doctor. Americans also are concerned about our country’s deficit.
Just this year, the administration has spent over $1 trillion on a stimulus package that has yet to show results. Additionally in the past year, the federal government has purchased banks, an insurance company, and an auto company. All of these efforts were financed through borrowing. A takeover of the health care industry would involve additional deficit spending.
Our country desperately needs health care reform, but we cannot afford to get it wrong. Instead, we must work together to develop a plan that will preserve what works and fix what is broken. Congress has a unique opportunity to strengthen our health care system for every American, and I hope we take advantage of this chance to enact reforms that provide true benefits for every Mississippian.
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The Honorable Roger F. Wicker is a United States Senator from Mississippi.
