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Today at the Legislature

Community College Bill Heads to House Floor

Fall Election Bill Shelved

They Said It

“It’s like saying I voted to hang an innocent man, but I didn’t do anything wrong because I didn’t slap the rear of the horse.”

--Treasurer John Kennedy on legislators voting for community college bill that would exceed the debt limit when Bond Commission authorizes the bonds

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Today in LaPolitics

House Turns Down Medicaid Expansion

MFP Rejected Again

Challenges to Federal Law Turned Aside

Group Wants to Set Up State Tax Institute

House Keeps Two-Thirds Requirement to Raise Tuition

New Day Dawning for Seafood Board

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Today in LaPolitics

Bill Protecting Hospital Funding Heads to Senate

Flubbed Vote Puts Medicaid Expansion Before House

Senate Panel Advances Bill to Collect Debts

New Money Timely for Jindal and Senate

"The sky always opens up a little on the Senate side," said a lobbyist with a wink after the Revenue Estimating Conference recognized $155 million more for the next budget and $129 million for the current one.

The new money marks a welcome break from the bad fiscal news that has preceded budget debates since the 2008 onset of the national recession. The REC meeting's timing, which the administration can control, gives the Senate, in consultation with Gov. Bobby Jindal, first crack on deciding where the money goes.

Potential Money Move to Fund Vouchers

The burning question in the Capitol is where will the administration find the estimated $40 million to fund 8,000 voucher slots, after the Supreme Court ruled the money cannot come from the Minimum Foundation Program. One theory is that a new student count, minus the voucher students, would allow BESE to back that funding out of the MFP and enable the Legislature to insert the same amount of money into a supplemental appropriations bill, resulting in a wash.

To do so not only would invite opposition from the usual pack of legislators but, if the budget passed with the funding, would likely prompt another lawsuit from parish school boards and teacher unions, according to Louisiana Federation of Teachers president Steve Monaghan.

They Said It

"I respect the Senate. Sometimes."

--Rep. Kevin Pearson, sending his bill to the other chamber

ALSO THIS WEEK:

Raises Possible for Sheriffs, Some Parish Presidents

Funding End Rn Has Higher Ed Up in Arms

Keenest Politician in Higher Ed

Jindal Working Senators on Fourth Floor

Morrish to Challenge Ethics Attorney Opinion

Constitutional Elections Could Be Held This Year

Assessors Raise Opposed by Potential Governor Candidate

House Passes Bill to Create Agency for Seniors

Legislators Seeking Fixes to Course Choice

Year of the Cajun

More They Said It

Today in LaPolitics

New Money Gives Senate Room to Maneuver

Capital Outlay Passes House

Senate Panel Asks BESE to Take New Look at MFP

Bill Would Charge Hotel Guests More, But It’s Not a Tax

They Said It

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Today in LaPolitics

Community College Projects Move Toward Final Passage

Morrish Won’t Get Citizens Insurance Job

Voucher Funding Addressed Tomorrow

Legislators Seeking Fixes to Course Choice

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Today from the Legislature

Contract Cutting Bill Advances to House

Committee Backs Raise for Assessors

Paranoia Persists on Reef Fund

Odd Couple Smiles for Cameras

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House Funds Budget Its Own Way

With Gov. Bobby Jindal headed to New Hampshire for a GOP fundraiser, the House pressed on into late Friday afternoon debating HB 1, the general appropriations bill. Lawmakers agreed to remove the budget's one-time money, dedicate some of it to allowable uses like coastal restoration, retirement debt and roads, and then replace the resulting hole in the budget with the revenues they created through other bills earlier in the day.

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House Salvages Budget Deal

It took two tries in four days, but House members have approved a fiscal plan different from the governor's, and now are ready to debate the budget bill this morning.

With the scaled-back plan that across-the-board reduction of business tax breaks, LABI lifted its objection to advancing the revenue bills so that they can be heard on the same day as the appropriations bill.

Still, some conservative Republicans considered the plan only a minor improvement. "They are doing exactly what they accused the governor of doing," said Rep. Alan Seabaugh, R-Shreveport.

House Funds Budget Its Own Way

With Gov. Bobby Jindal headed to New Hampshire for a GOP fundraiser, the House pressed on into late Friday afternoon debating HB 1, the general appropriations bill. Lawmakers agreed to remove the budget's one-time money, dedicate some of it to allowable uses like coastal restoration, retirement debt and roads, and then replace the resulting hole in the budget with the revenues they created through other bills earlier in the day. . . .

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Fiscal Hawks Get Clipped

Even before the business community began mobilizing, Republicans began distancing themselves from the proposal that reduced a wide range of business tax exemptions and credits by 15 percent.

A good number of Republicans, some of whom have voted with the fiscal hawks, thought they over-reached in trying to remove all $490 million in one-time money from recurring expenditures.

House Plans to Cut Spending and Exemptions

The bipartisan budget proposal in the works in the House is said by sources to include spending cuts and the suspension of some tax credits and exemptions. Members are considering either targeted suspensions or an across-the-board reduction of 15 percent of exemptions. The governor can veto the repeal or reduction of an exemption or credit, but not a one-year suspension.

Also, House members look to use up to $100 million more in projected revenues that are expected to be recognized when the Revenue Estimating Committee meets next week, but new revenue from a cigarette tax or other mechanism still isn't on the table, lawmakers say.

Jindal on Medicaid Expansion: “I’ll Take the Heat”

In a luncheon meeting with Republican senators today, Gov. Bobby Jindal told them he would not sign off on the expansion of Medicaid even if a bill that calls for the increased coverage passes the Legislature. He further told them to let him take the blame with their constituents who want the expansion. “I’ll take the heat,” he said, according to three senators.

They Said It

“The Legislature ought to be independent. I subscribed to that philosophy for all but 16 years of my life.”

--Former four-term governor Edwin Edwin, addressing the state Senate on old-timers day

ALSO THIS WEEK:

Speaker Urges Resistance to Budget Pressure

Suspending Exemptions Would Avoid Veto

Party Urges GOP Legislators Not to Negotiate

Jindal on Medicaid Expansion: “I’ll Take the Heat”

Medicaid Could Be Wedge Issue in Senate Race

Session Shifts Gears

Reef Fund Sweep Raises Questions

Unique Framework Behind Land Sale

Court Justice Facing Challenger in Shreveport

Paul Dietzel’s Grandson Is Running for Congress

New Video Poker Group to Back Candidates

Smoking Ban Bills on the Move

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Budget Cuts Emerge

The House Appropriations Committee will take up the budget bill next week, but its first move will prove unsettling to higher education officials and health care providers.

Speaker Pro Tem Walt Leger, D-New Orleans, confirmed that he is working with Appropriations Chairman Rep. Jim Fannin, D-Jonesboro, on an amendment to remove all non-recurring revenues, about $500 million, from the governor’s proposed budget. The result will be to get a bill to the House floor next week that would be under the threshold for one-time money that, under House rule, would allow the appropriations bill to be heard without first getting a two-thirds vote.

Once the bill gets to the Senate, the cuts could be restored.

Special Session Chatter Persists

Should the leadership's surprise amendment to the budget run into challenges, some members of the Appropriations Committee believe a special session on the budget is not out of the question. "There's more talk in the hallways about coming back for a special session on the budget than anything else," said Rep. Geymann.

Of course, there's also the possibility of a special session on education, if you believe Gov. Jindal's pre-session threat to call one if lawmakers refuse or are unable to pass fixes to his voucher and tenure laws, which are under fire in ongoing lawsuits.

They Said It

"The answer is money. Now what is the question?"

--Wildlife & Fisheries Secretary Robert Barham to Senate and Governmental Affairs Committee

ALSO THIS WEEK:

--Potential Budget Revenue Could Grease Budget Wheels

--Tax Bills Wither Away

--Jefferson Officials Eye Statewide Races

--Counteroffensive Causes Optometrists to Blink

--Jindal Flies Over Hawks’ Nest

--Who Wants the Seafood Marketing Board?

--Snakes in Committee

--Talking Direct Mail Wins Award

--More They Said It

Proposed Tobacco Tax Hike Burned by Failed Repeal

Proposed cigarette tax increases—-just a question of by how much a week ago—-stand to be snuffed out in committee on Monday, where income tax repeal bills were buried earlier this week. By themselves, they face opposition from GOP legislators and a guaranteed veto by Gov. Bobby Jindal, which he confirmed Thursday.

The House Ways and Means Committee has scheduled for debate three bills to increase the tax on a pack of cigarettes by 24 cents, 36 cents and $1.05.

House Passes Tax Despite Jindal Opposition

Cell phone users would pay two cents per month to maintain support for hearing impaired citizens in a bill that passed the House despite opposition from Gov. Jindal.

Rep. Patrick Williams, D-Shreveport, presented HB 238 as a tax swap to make up for declining revenues from the tax on land lines that goes into the Telecommunications for the Deaf Fund. The bill would decrease the tax on land lines from 5 cents per month to 3 cents. As the bill was debated, governor's staffers sent texts to Republican members warning them that a vote for the bill would be counted as a tax increase by Americans for Tax Reform.

The bill passed, 73-16, just three votes over the two-thirds threshold. All no votes came from Republicans, but more of them voted yea, including Speaker Chuck Kleckley, R-Lake Charles.

They Said It

"I couldn't handle his laundry bill."

--Sen. Bob Kostelka on Education Superintendent John White's $275,000 salary, in the Advocate

ALSO THIS WEEK

Senator Eyes Citizens Insurance Job

House Passes Tax Despite Jindal Opposition

Likelihood Increases for Reef Lawsuit

CNSI, DHH to Meet Over Cancelled Contract

Colleges Clash Over Cash

Eye War Moves to the House Floor

Eye Bill Could Cost Heitmeier DHH Post

Breakaway School District Bill Heads to Senate

Local Governments Oppose Tax Collector Bill

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Jindal, Speaker Disagree on Tax Repeal

Gov. Bobby Jindal restated that he would not let the lack of revenue neutrality get in the way of backing an income tax repeal bill this session. "We are open to any and all ideas,” he told reporters on Thursday. “We're not putting any barriers in the way of getting rid of the income tax."

House Speaker Chuck Kleckley, R-Lake Charles, is not so open. He told LaPolitics that he doubted the House would pass a bill phasing out the income tax without including a way to replace lost revenues. "If we eliminate income taxes, we're going to have to replace it with something," he said.

Landry a PAC Man for Now, Candidate Later?

Former U.S. Rep. Jeff Landry is focusing on the formation of his new conservative super PAC, Restore Our Republic, to give conservatives the financial backing to compete with well-funded establishment candidates.

The new endeavor would seem to take him out of the 2014 Senate race, though he has said he is not ruling out anything. The Baton Rouge-based 6th District seat, to be vacated by Rep. Cassidy, is a likely target race for his PAC, and possibly for himself. Because the reapportioned 6th District added coastal parishes from Landry's old 3rd District, he would have an easy access point to enter the race.

They Said It

"It's a monumental thing for any politician to realize that what they're trying to promote the public isn't behind yet."

--Senate President John Alario on Gov. Jindal’s shelving his tax swap plan, in New York Times

ALSO THIS WEEK:

Governor Keeps Up Public Pressure

Black Caucus Brings Tax Cut Alternative

Budget Problems Rival Tax Repeal

Corporate Tax Repeal in the Trunk

Cassidy's Good Poll Numbers, Landrieu's Dollar Signs

Caldwell Willing to Fight for Collections

Resolutions Reveal Lawmakers' Pet Projects

EWE to Keynote Political Hall of Fame Reunion

Legislators Seek Tax Alternatives

While Gov. Bobby Jindal continues calling for the repeal of income taxes at Rotary luncheons around the state, back at the Capitol his tax swap plan continues sinking. Speaker Chuck Kleckley has pushed back consideration of the administration package for two weeks, but some legislators see that as cover for retreat. They predict the governor’s bills, as currently introduced, will not be heard in committee.

The situation leaves lawmakers looking for alternative tax reform plans so that, if for no other reason, they can say they did something. Some want to phase out personal and corporate income taxes over time. Others want to reduce but not eliminate the taxes, while cutting some exemptions and raising tobacco taxes. Mostly, they want to avoid raising the sales tax and making more services taxable.

Cassidy In, Fleming Out, Roemer Defiant

Under the heavy thumbprint of Sen. David Vitter, the Republican side of the U.S. Senate race appeared to be taking shape this week.

U.S. Rep. Bill Cassidy’s announcement this week was sent out by his new campaign manager, Joel DiGrado, a top aide to Vitter. U.S. Rep. John Fleming kept his option open for about 24 hours before releasing a statement saying he was stepping aside so as not to endanger GOP efforts to defeat Sen. Mary Landrieu.

Though he has yet to officially endorse Cassidy, Vitter released a statement that blessed both congressmen and all but declared the Republican field to be set.

But Chas Roemer doesn’t like the smell of it all. “I would say a deal was struck and I have not made a decision,” said the BESE chairman. He said he would decide after the legislative session ends.

They Said It

“His second honeymoon is officially over. Today he’s running as fast as he can to keep the kite off the ground.”

--Rep. Jeff Arnold, D-New Orleans, on Gov. Jindal, in The Lens

“I’ve never seen anything like it.”

ALSO THIS WEEK:

Will the “Company Man” Give Notice?

Republicans Look to Replace Cassidy

Pollster: Jindal Rating Is Likely Lower

Turf War Continues Over Collections

Film Folks Call Cut on Tax Plan

More They Said It

Administration Embattled

Feds investigate, LABI trashes tax plan, GOP legislators call interference

As surprising as freezing temperatures in early spring have been to Louisianians, Gov. Bobby Jindal could not have expected the trouble his administration is getting into at this critical juncture. In a week when he looked to be building broad public support for his tax plan in the run-up to the legislative session, he instead finds his administration embattled on three big fronts:

-- A federal investigation of the state's largest department threatens to mar the administration's near scandal-free record and image for ethics;

-- LABI, the state's largest business organization and past Jindal ally, dealt a crushing blow to his tax reform plan by promising to oppose it in its current form;

-- A group of Republican legislators, including the leader of the GOP Caucus, accused the governor's office of interfering with higher education by attempting to have the commissioner of higher education fired.

With his education laws passed last year under court challenge and with lawmakers raising early doubts about his proposed budget, Jindal's ambitious second term appears to be lurching toward crisis mode.

Potential Open Congressional Seats Eyed

With U.S. Reps. Bill Cassidy flirting with running for the U.S. Senate in 2014, who is flirting with running for his House seat should it become open? Legislators contacted were not shy about talking of running for Congress if the opportunity arises.

"Sure I would be," answered Sen. Dan Claitor, R-Baton Rouge, about his interest in the 6th District seat should Cassidy not run for re-election.

"Absolutely," chimed in Rep. Erich Ponti, R-Baton Rouge. "As a small business owner, who just ran in an overlapping district, I have been approached by people who want me to run." Ponti lost a PSC bid to Scott Angelle last year.

Rep. Hunter Greene, R-Baton Rouge, is said to be interested. Another name mentioned is BESE Chairman Chas Roemer, should he decide not to run for the Senate.

They Said It

"There are people that shouldn't have guns - angry liberals should not have guns."

-- Gun Owners of America executive director Larry Pratt, to the Shreveport Times

ALSO THIS WEEK:

Probe Offers Democrats a Target

LABI Opposition Would Cripple Tax Swap

Republicans "Condemn" Jindal Move on Regents Head

TOPS in Line to Be Toughened

Funding Sources for CCC Sought

Family Forum Focusing on Own Agenda

Pre-Session Fundraisers Headed for Record Year

More They Said It

Tax Plan's Numbers Questioned

The tax swap plan that Gov. Bobby Jindal is proposing is $500 million to $650 million short of replacing lost revenue from repealing income taxes, according to a Public Affairs Research Council report released Thursday.

It faults the administration for low-balling the cost of repealing income taxes by using revenue figures from 2010-11, during the national recession, but then using the latest forecast to project future sales tax collections. "The use of the lower figures of the past to count the costs of the proposal and the higher figures of the future to count the benefits will lead to problems in reconciling the numbers," read the report.

Tim Barfield, the head of the Department of Revenue and the point man on the tax plan, rejected the report's conclusions. He released a statement that said, "PAR's assumptions are erroneous. I have met with the members of PAR and shared with them the core data of this plan. PAR's analysis does not take into account all the data used by the Louisiana Department of Revenue. We have always maintained that we used 2011 Fiscal Year data as a starting point for our analysis, but we have not stopped there. A standard approach to estimate the future is to begin with the best data as of today. This we have done, but only as the starting point."

Poll Moves Fleming Closer to Senate Run

U.S. Rep. John Fleming is moving closer to running against Sen. Mary Landrieu, based on the results of a poll he commissioned. The Public Opinion Strategies poll showed Landrieu at 47 percent ahead of three Republicans: Fleming, 15 percent; U.S. Rep. Bill Cassidy, 14; and BESE Chairman Chas Roemer, 6.

That Landrieu is running under 50 percent against three lesser-known opponents indicates her vulnerability, says Fleming's consultant John Brabender. He added that Fleming separates more from Cassidy after poll respondents are told that Fleming has more support from conservative groups than Cassidy.

Jason Hebert, Cassidy's consultant, said of Fleming's poll, "It basically confirmed that Mary Landrieu is vulnerable. That's about where it stops."

They Said It

"I see Eric Holder is with us."

--Gov. Jindal, recycling a Gridiron joke at last week's CPAC gathering, which the attorney general obviously did not attend

ALSO THIS WEEK:

Governor's Office Blasts Higher Ed Commissioner

PAR Warns of Fraud in Rebate Program

Governor Targets "Powerful Special Interests"

Federal Probe Puts Administration in Damage Control

Democrat to File Alternate Tax Plan

Horsemen Ready for Budget Battle

Session Bills Beginning to Stack Up

John Smith Recovering from Heart Surgery

More They Said It

Dardenne Won't Run for Senate

Lt. Gov. Jay Dardenne has ended two weeks of speculation about his running for the U.S. Senate race in 2014 by saying that he won't.

"I'm not going to run for the U.S. Senate," he told LaPolitics. "This fell in my lap. I didn't go out looking for it. So I'm not going to prolong the question any longer. I love what I'm doing and I will continue to do that for the balance of my term."

State, Locals Close on Unified Collection

A major but elusive piece of the governor’s proposed tax plan has been striking an agreement with local governments to set up a unified tax collection system. Gov. Jindal told reporters that local governments would write their own bill to set up a sales tax commission to act as collector, auditor, interpreter and rule maker. Local governments would appoint five members and the governor would pick four.

"It seems like we are very close," said Louisiana Municipal Association president Tom Ed McHugh of ongoing negotiations involving municipalities, police juries, school boards and sheriffs.

They Said It

"The only person who was not surprised was my brother. He's always thought I was a smart aleck."

--Gov. Jindal on his Gridiron remarks

ALSO THIS WEEK:

New Sales Taxes Revealed in Jindal Plan

Sessions's Big Education Package Taking Shape

Governor's Appointees Considering Litigation

Freshman Profile: Newcomer Ivey starts early, outspends in upset

Bobby Jindal's Top 10 Zingers at Washington Gridiron

More They Said It

Senate Election Too Important for Divided GOP Field

The early developing U.S. Senate race took an unexpected turn last week with Lt. Gov. Jay Dardenne’s sudden interest in it, as he told Roll Call Magazine he was “pondering” running against Sen. Mary Landrieu next fall. But those who know him believe his heart is still set on running for governor in 2015.

It’s not something I went out looking for,” Dardenne told LaPolitics. “I said it was something I would think about. But obviously my focus has been on Louisiana and probably it will tend to stay that way.”

While Dardenne ponders, U.S. Rep. Bill Cassidy of Baton Rouge, who has been quiet since he fired his political consultant Timmy Teepell, resurfaced in campaign mode this week. He showed up at the Republican State Central Committee meeting with his two new advisors, Jason Hebert and Scott Hobbs of The Political Firm.

Meanwhile, U.S. Rep. John Fleming of Shreveport demonstrated this week why he is the favorite of social conservatives when he filed his “Health Care Conscience Rights Act,” which would allow businesses to opt out of parts of the Affordable Care Act for religious reasons, such as objecting to coverage for certain forms of contraception.

It’s almost inconceivable for both Dardenne and Cassidy to run from the south Baton Rouge base they share. GOP politicos are counting on the field shaking out by this summer.

Back to the Blackboard on Education Changes

Education stakeholders who supported the overturned voucher and tenure laws will meet Monday to determine a legislative strategy while the administration pursues appeals to the state Supreme Court. “Then we will talk to the governor” about what to do in the session, said Rep. Steve Carter, R-Baton Rouge, the lead author on Acts 1 and 2.

One difficulty in seeking a legislative re-do is that, in a fiscal session, many lawmakers have committed their five general bills. If the tenure law is separated into two or three new bills, said Carter, “I think those bills individually will pass.”

“He can pass them through his committee,” retorted Rep. John Bel Edwards, who led opposition to the bills last year. “The appetite on the floor will be different this year,” he said.

They Said It

"(It's) sucking the air out of the room."

--Jim Patterson, LABI vice president of governmental relations, on the Jindal administration's proposed tax swap plan, on KPLC

ALSO THIS WEEK:

Tax Swap Plan Release to Upstage Budget

Local Governments Not Yet Onboard

In Tax Hunt, Agriculture Wants a Hiding Spot

Early Budget Critics All to Jindal’s Right

Musical Chairs Played in Diverting Tobacco Money

New Election Swings Momentum to Toll Foes

Freshman Profile: Julie Stokes

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