A Radical Budget Solution

I have a partial solution for the budget crisis facing our state, and in particular our public universities and colleges.   After reading article after article about the deplorable conditions that exist at our public universities and colleges caused by their inability to maintain their infrastructures, and their continual worry about whether they will received decreased funding forcing additional faculty layoffs and program elimination, a radical change seems necessary.

Let’s eliminate state funding of colleges and universities completely and let them all play by the rules of free enterprise.  The only state money schools would receive is TOPS.  And that program would include only students with an ACT score of 22 or higher and a 2.7 GPA in core subjects.  It would only pay 90% of tuition costs with no more additional cash bonuses for higher scores.  If students lose TOPS eligibility while in college or don’t complete their college education, the money has to be paid back to the state by the students’ parents or legal guardians.  Might make some think twice before accepting the money.

Tuition at these newly formulated schools would be set by each school.  No more approvals required by the state legislature.  They would compete for students by offering the best bang for the buck as in the free enterprise business model.  This would force them to become more efficient at what they do so they could offer the lowest costs for attracting students to their campuses.

It is obvious that Huey Long’s idea that Louisiana should have a system of state funded universities and colleges has made these institutions indolent in terms of cost efficiency.  This becomes more and more evident with each budget cut they are forced to absorb as we learn how it will affect their operation.

 

Presently, for the most part, if the state doesn’t fund a project, it doesn’t get done, as is the case with infrastructure maintenance.   Our public 2 year and 4 year colleges and universities have neglected over $2 billion in required maintenance. Their excuse, “We requested the funding and didn’t get it, so we didn’t do it”, no alternative plans.  Wish I could use that excuse when my spouse wants me to fix something.

The other advantage this proposal might have is that those schools that can’t compete will simply fade away thus eliminating one of the biggest complaints our legislators have about our present system, duplication of services by colleges in close proximity.  Additionally, it will force schools to eliminate the unprofitable programs hemorrhaging their operating budgets such as athletic programs at several small colleges.  It may also impact the amount of alumni contributions.  If their alma mater needs financial help, they better pony up or risk its closing.

What a radical idea!  No more public colleges and universities.  Although my suggestion may be tongue-in-cheek, take a deep breath and think about it.

At the crossroads in Baton Rouge

Last Thursday Governor Edwards spoke to the public about the financial crisis destroying Louisiana. During his speech he asked our legislators to put aside party ideological differences and come together to produce sensible constructive solutions to solve the short-term and long-term budgetary problems our state faces.   This would be an easy task if we had a machine that could erase everyone’s memory about the events of the last eight years, but sadly none exists.

However, early indicators suggest that the coming together may be more difficult than one would suppose.  First, there was the rejection of Edward’s selection for Speaker of the House. 

Second, after the governor concluded his state of the state speech, John Kennedy, State Treasurer, had been anointed by his cohorts with the honor of presenting the official rebuttal speech.  During Jindal’s reign, our legislators considered Kennedy a malcontent and ignored his suggestions; 400 according to Kennedy’s latest count.  If they truly felt he had viable solutions it seems reasonable to assume they would have implemented some during the last eight years.  Now they are portraying him as a fiscal expert, and want Governor Edwards to pay him allegiance.

Next there is the problem that many of the powerful leaders in the legislature signed the same Norquist anti-tax pledge that Jindal did.  Allegiance to this pledge resulted in their blocking of several revenue raising bills and created such voodoo legislation as the SAVE Offset Bill, which imposed a phantom fee on college students which they never had to pay.

Finally, there are our legislators’ past refusals to deal with the problem of the tax credits and entity rebates that exist in this state.  According to a recent state auditor’s report in 2012 there existed over 85 tax credits.  These tax credits can be claimed on individual income, corporation income, or corporation franchise tax returns. Of the 85 tax credits, eight (9%) have a rebate component. These credits and rebates are authorized by state law.  Many are not new, they have existed for years.  Forty-four (52%) of Louisiana’s 85 tax credits each resulted in at least $1 million or more in revenue loss to the state for at least one year during calendar years 2006 through 2011. Six (14%) of the 44 tax credits also have a rebate component that resulted in additional revenue loss.

Our legislators are well aware of these findings and even went so far as establishing a legislative committee to study these tax credit give-a-ways.  However, that committee’s’ only recommendation was that further study was necessary.  They have never taken the initiative to rein in some of these deficit-creating programs because of strong opposition from special interest lobby groups, like the LABI, which contribute heavily to their campaign funds. 

Can Governor Edwards get his wish of coming together?  The jury is still out on this one and early signs don’t look promising.  I hope I am wrong.  But there is something our legislators could do. There are two reports with which they need to be thoroughly familiar.  On is entitled Louisiana Tax Study, 2015, which was prepared by Dr. Jim Richardson, LSU, and Drs. Steven Sheffrin, and James Alm, Tulane University.  The other is The Tax Foundation’s Louisiana Fiscal Reform A Framework for the Future, by Liz Malm, Economist, Scott Drenkard, Director of State Projects, Jared Walczak, Policy Analyst, and Joseph Henchman, Vice President, Legal & State Projects.

The first study was actually commissioned by the legislature.  I wonder how many have read it?  These two documents can allow our legislators to rise above their political biases and guide them in truly solving the financial crisis we face.  Will they choose to put the state above party politics? Let’s hope so.  If not, we will see a replication the inaction that’s now crippling our federal government and continue the spiral of worsening the quality of life for Louisiana residents.

Desperation in Baton Rouge

Hypocrisy was in full view Thursday night following Governor Edwards’ address to Louisiana citizens.

After the governor finished his speech about the financial crisis facing Louisiana, John Kennedy, State Treasurer, the man once regarded by our Republican legislators as a non-entity, had been elevated by his cohorts to that of the savior of the state and anointed with the honor of presenting the official Republican rebuttal speech. The fact that it was designed to kick off his bid to run for David Vitter’s job is of little consequence.  What was amazing was, that for eight years during Jindal’s reign, Kennedy had preached the same thing and during that time our esteemed Republican legislators considered him a malcontent and ignored his suggestions; 400 according to Kennedy’s latest count. Even when he questioned the Jindal administration’s budgetary projections they religiously ignored him and accepted the Jindal voodoo.  In their eyes Kennedy had no viable solutions.

The legislators supported Jindal’s Republican conservative fiscal mismanagement for eight years and share equally in the present fiscal disaster.  However, by selecting  Kennedy as their rebuttal speaker they are now portraying him as a fiscal expert, someone to which Governor Edwards should pay allegiance.  What a group of hypocrites!  How dumb do they think we Louisianans are in not being able to see through this hypocritical veil. 

After Edwards’ speech, the social media ignited bashing Governor Edwards’ proposals to raise revenue, which include tax increases.  Tangipahoa Parish, in particular, was extremely vocal.

However, let’s step back and take a deep breath.  The governor of Louisiana can propose whatever he wishes; for they are just that, proposals.  It is the legislators in the Republican dominated House that create revenue generating bills and pass them on to the Senate Republicans for modification and/or approval. If the final bailout includes any tax increases, it will be the doing of the House and Senate Republicans, not Governor Edwards, for he can only approve or veto the legislation presented to him.

Eight years ago most Republican representatives elected by the voters in this state, including Tangipahoa Parish, boarded the Jindal train to fiscal destruction and rode it silently to where we are today. Yet, now these same Baton Rouge folks would like you to believe that the present disaster was all Bobby Jindal’s doing.  Not true, he only proposed the voodoo, they made it a reality.   Hypocrisy is alive and well among Republicans in the Capital.

A reality check for LSU fans

LSU football fans are once again jubilant over the recent influx of top notch players committing to LSU.  Coach Les Miles is also excited promising a college championship win for the Tigers.  Too bad these same fans don’t take as much interest in the academic conditions plaguing LSU, Louisiana’s flagship university.

Not only does LSU continue to slip in national academic rankings but now it’s being reported that many of its buildings are in such disrepair that plastic sheeting has to be deployed in several to prevent water damage to their contents.  Conditions in some of the buildings even resemble those that existed in many of the inner city schools in New Orleans before Katrina.

While LSU has recently added some  new facilities at its Baton Rouge campus, it has neglected over $510 million in improvement projects to bring its older buildings up to date.  Such projects include roof replacements, air conditioning and heating unit repairs, upgrades for accessibility for the disabled, repair of crumbling ceilings and floors, mold abatement, and termite damage repairs. 

I bet if the athletic training facilities suffered from these same conditions, the public outcry would be second only to the crowd noise during an Alabama game in Death Valley.  Yet the silence concerning the deplorable conditions of some of the academic training facilities is deafening among LSU rooters.  One might expect that the LSU alumni might be able to help with some of this, but a recent survey found that LSU alumni contributors, unlike the LSU football team’s performance on the field, are dead last among the SEC schools in opening their wallets. 

LSU is the largest and oldest public campus in the state, and it has the most expensive and longest list of necessary repairs.  The media reports that the Baton Rouge campus alone has a deferred maintenance list larger than for all 12 universities under the Southern University and University of Louisiana systems combined.

All this mess occurred under the watchful eye of our present Baton Rouge legislators, many of whom are LSU alumni, and I suspect, avid LSU Tiger football fans.  For the last 8 years the state has provided no adequate funding for deferred maintenance at LSU.  If this continues it will result in the closure of some buildings which will further impact the instructional programs as is already the case due to draconian funding cuts by the Baton Rouge folks.

It’s important that as LSU Tiger fans celebrate the prospects of yet another successful football season, they look beyond LSU football and grasp what is happening academically to Louisiana’s flagship university.  The future of America as a leader in the free world rests upon its ability to be technologically superior.  The central purpose of our trade schools, junior colleges, colleges, and universities is to provide the academic scaffolding to accomplish this.  This is the true worth of LSU.  It’s not just all about football.

To all those Tiger fans whose obsession centers only on LSU being ranked number one in football polls, just remember, without a premier LSU, premier Tiger football will cease to exist. 

Have our Baton Rouge politicians really cast off their bipartisan ways?

If Governor John Bel Edwards were a chicken farmer, he should be very worried.  Apparently the foxes are now in charge of protecting the hen house.

This mess began when Edwards was denied his request for Speaker of the House.  It had been customary in Louisiana, out of courtesy, to grant such a request for a new governor.  However the Republican legislators along with some influential outsiders chose to deny Edwards his choice. Their excuse was that they presently held a majority in the House and therefore needed a Republican leader.  When Bobby Jindal was elected the Democrats held the upper hand in the House, but out of courtesy granted him his wish for a Republican leader; maybe our present state Republicans just aren’t as courteous as those Democrats.

The House speaker is a very powerful position because not only does this individual guide bills through the House but also gets to appoint the various committee heads and members whose responsibilities include the screening of proposed legislation.  The committees control which bills are presented for possible consideration by the House legislators.  Additionally, committee heads can kill a bill in a committee and prevent it from ever getting to the House floor for a vote by its members.

For the present legislative year the dust has finally settled and the committee heads and members have been chosen.

If one examines the present landscape, it would appear that most of the same influential legislators that were loyal supporters of Jindal’s voodoo fiscal policies have been selected as committee heads and members.

I am confused by this.  How can the same individuals responsible over the last eight years for the demise of our state’s financial stability now be capable and willing to solve its budgetary woes?  Where did this sudden new insight come from?  Did we miss some apocalyptic intervention?

I wish Governor Edwards all the best in attempting to turn things around but I’m afraid he may not get too much assistance from those presently in charge of the chicken coops. If there isn’t some kind of bipartisan political attitude change in Baton Rouge, he may just face the possibility of a complete destruction of his brood.