Tuesday, April 19, 2016

Let’s return TOPS to its original intent





The panic has hit.  Louisiana legislators have decided to tinker with the beloved TOPS program.  While some refer to it as the largest middle-class welfare program operating in this state, others vehemently defend its merits.

Mr. Patrick F. Taylor initiated the TOPS program in 1989.  It was originally titled the Taylor Plan and was implemented for low and moderate-income students.  It incorporated family income caps and awarded qualified students, based on their academic achievements, with tuition and fees at any 4-year public college or university in Louisiana.  Students of low and moderate-income families had to earn a specified GPA, and score at a designated achievement level on the nationally given ACT to qualify.  It was basically a monetary trophy for academic success.

However, the plan was radically modified by Governor Mike Foster’s administration.  The name was changed to TOPS along with adding paid tuition at two year colleges.  The income caps were also removed which changed the focus of those benefiting from TOPS to primarily the middle and upper income groups. Every student in Louisiana became eligible for TOPS and was rewarded if they met the GPA and ACT test requirements.

The original Taylor Plan was never intended to be a free ride for every student in this state.  Mr. Taylor wanted to assist high performing students in families with extremely limited financial means.  He felt that high achieving students shouldn’t be deprived of a college education simply because of financial constraints.

If one researches the history of the original Taylor Plan it is obvious that TOPS no longer reflects its intended mission.  Additionally, the ACT requirements of the present plan are set so low that tuition for average performing students is now being paid for by the taxpayers.  TOPS requires students to get a 20 composite score on the ACT in addition to a specified GPA to qualify for paid tuition.  This score corresponds to the 48th percentile.  A student achieving this performed better than 48% of the students taking the ACT nationwide.  Conversely, 52% of the test-takers outperformed this student.   In reality, a score of 20 on the ACT is below average performance nationwide, and sadly, while noteworthy in this state given our dismal national academic ranking, not really deserving of a scholarship funded by the taxpayers.

Our legislators need to return TOPS to its affordable, original intent and make it a needs-based, legitimate high-achieving academic rewards program.  Hopefully the latest budget crunch will force them to accomplish this.

Friday, April 15, 2016

Jindal lapdogs morph into LABI lackeys



The mission of the Louisiana Association of Business and Industry (LABI) is “to foster a climate for economic growth by championing the principles of the free enterprise system and representing the general interests of the business community through active involvement in the political, legislative, judicial and regulatory processes. “   The president of this association, Mr. Stephen Waguespack, often pens editorials extolling his organization’s desire to assist our state leaders in creating a successful, fiscally responsible, stable, budgetary funding system that will benefit the residents of our state.

However, while Louisiana residents might think that the governor of this state and our Republican representatives are in charge, nothing could be further from the actual truth.  It was in fact the non-profit, tax exempt, LABI calling the shots throughout the recently held special session.  They did more than just “assist” the legislators.  LABI manipulated the agenda and “dictatorially” ran the session.

Do you dislike the increased sales tax passed by our esteemed legislators and signed into law by our governor?  Well you can thank the LABI for that because not only did they help push that plan as long as businesses were protected from  having to pay the full increase, but also wanted to raise the rate an additional penny beyond the one penny already requested by Edwards when he proposed  eliminating a few business tax exemptions.

Sadly, many of our legislators actually considered this LABI proposal, but fortunately, didn’t have the support of the House Democrats.  Apparently, now many of our legislators have “morphed from lapdogs of Bobby Jindal to LABI's lackeys.”  As one lobbyist put it "You're underestimating the influence LABI has exerted during this (special) session.   Nothing happens, especially in the House, without their blessing."  A political insider, with zero ties to the governor's agenda also added, "If the special session is a train, then LABI is the engineer. They're running the show, no question."
To be fair, regarding the special session’s tax changes, there is a symbolic financial hit or two being temporarily absorbed by business.

However, for the most part the LABI was quite successful in protecting its members by pressuring our legislators to have the residents of this state, through an increased sales tax, pay the largest portion of cleaning up the financial mess they helped create.

The next time Stephen Waguespack talks about the “shared sacrifices we must all make” to turn our state around, just consider the source.   There will be no “sharing of sacrifices" as is evidenced by the residents who are now paying the increased sales tax, and the entity now in charge in Baton Rouge, namely, the LABI.

In reality the LABI is just doing what a lobbyist group is supposed to do, protecting its members’ interests, but Mr. Waguespack needs to stop insulting the intelligence of the Louisiana residents by proclaiming that the LABI is some kind of benevolent association that serves the best interests of the residents of this state.

Additionally, the legislators need to remember who they were elected to serve.  Forgive me for my momentary lapse into idealism rather than acknowledging the stark political reality.

Equal taxation for all



As we learn more and more about the financial confusion created by the last minute rush of the passage of bills to plug Louisiana’s budget gap, it becomes more and more clear why we have a budget problem.

Apparently our state lawmakers have contributed heavily to Mr. Tom Benson’s bank account.  Not only does he have a lucrative agreement requiring  the state  to lease office space at Benson Towers, adjacent to the Mercedes Benz Superdome,  at approximately 20% higher than the going rate, but he also had a pass on sales tax being collected at the Dome and Smoothie King Center.  I have always wondered why there was no sales tax collected at either arena.   However, the recent grab for monies to plug the budget deficit removes the veil of secrecy surrounding this entire situation.

Due to a legislative blunder by our esteemed representatives all of us are now enlightened to the fact that in the negotiated 2009 agreement with the Saints and Pelicans, a clause was included that if state sales tax were ever imposed at the Dome or Smoothie King Center on Saints’ or Pelicans’ sporting events, Benson would receive full reimbursement of those collected taxes from the state. 

Additionally, if such reimbursement to Benson did not occur, the 2009 agreement to keep both teams in New Orleans would be voided.

To help deal with the present budget gap the legislators passed a bill to impose sales tax on all events held at both arenas.  However, the reimbursement clause for Mr. Benson regarding the Saints and Pelicans games was omitted due to confusion among our legislators.  Consequently, the 2009 agreement is voided and the teams are now free to leave the city.   Our legislators have agreed to immediately address the problem and put a tax exemption back in just for Mr. Benson’s teams.

My question is, “Why fix it?”  Again why not treat everyone equally.  Why should non-sporting event attendees such as concert goers have to bail out the state’s fiscal mismanagement, while Saints and Pelicans games attendees don’t?

While Saints sports fans might applaud the sales tax exemption clause because ticket prices are already sky high, the real issue is the legislators’ continuing bias in implementing the new sales tax regulations.  Additionally, why the a sales tax reimburse clause was even included in the original 2009 Saints/ Pelicans deal  remains a mystery and shows the frivolity of the state representatives in spending the publics’ money.

Regrettably, the recent legislation doesn’t fix anything in terms of equality in taxation.   We still have some paying sales tax, and others not, which just further indicates the fallacies of using a sales tax to serve as a major funding source for a state budget.  It is obvious that the entities with the most financial control over our legislators are still getting a free ride.   I guess now we can add Mr. Benson to that list which already includes the LABI members, chemical, gas and petroleum industries.    Sadly this list seems to grow bigger daily along with the deficit.