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Blanco spending plans stall in state House (Lousiana)
KATC.com ^ | 12/10/06

Posted on 12/10/2006 7:04:55 PM PST by LdSentinal

BATON ROUGE, La. -- Gov. Kathleen Blanco's push to spend $2 billion on tax breaks, pay raises and other budget proposals stalled in the state House on Sunday as the governor's allies ran into problems getting the votes to raise a constitutional spending cap.

The Blanco administration tried to work out a compromise with lawmakers behind the scenes, to determine which proposals could gain passage in a 10-day pre-holiday special session called by the governor despite cries from critics for postponement.

The House was expected to take up some of the Blanco spending proposals Sunday but adjourned when it was clear the governor didn't have the votes she needed for passage.

The critical debate involves legislation that would let the state change a spending cap and dole out the dollars. The state can spend another $194 million this budget year before hitting the cap. To raise the limit or spend dollars above it requires a two-thirds vote, 70 votes in the House, where the legislation now sits.

But Republican lawmakers and some Democrats are balking at raising the cap, saying the governor is trying to spend too much money too fast, with too many questions about the state's finances after hurricanes Katrina and Rita. They say the cap was put in place more than a decade ago by lawmakers to constrain the growth of government.

"We don't have the 70 votes for the whole package," said House Speaker Joe Salter, D-Florien, a strong Blanco ally.

The House legislative caucuses _ the Republican, Democratic and black caucuses _ gathered in closed-door meetings to see which of Blanco's proposals were palatable for the session that must end by Dec. 17 and how much they would agree to raise the spending limit.

Rep. Steve Scalise, however, said he wouldn't agree to any increase in the cap.

"It's right before Christmas, and some people want to be Santa Claus. I've never been a proponent of that," said Scalise, R-Metairie.

Salter said the two Blanco items with the strongest support involved setting aside $300 million in an economic development fund to attract a German steel mill and its 3,000 jobs to south Louisiana and giving insurance relief for homeowners.

"Those seem to be the two major items that people are worried about," Salter said before the caucus meetings.

Blanco initially pressed for spending $238 million to give refund checks to homeowners who paid more in insurance costs because of the Louisiana Citizens Property Insurance Corp. The state-run insurance company borrowed millions to pay claims, and those costs are being passed along to insured homeowners statewide.

However, on Sunday, the administration also suggested they would support giving homeowners a tax credit for the Citizens costs, rather than a rebate check from the state. Passing the tax break would be easier because it wouldn't require a two-thirds vote.

Meanwhile, the question was which other Blanco budget proposals could get the needed support.

"Hopefully, we'll have a meeting of the minds to see if we can accomplish something," Salter said.

Whatever gets out of the House also is expected to face a tough time in the Senate. Before the session began, Senate President Don Hines, once a Blanco ally, asked the governor to cancel the session because he said lawmakers hadn't had enough time to debate the Blanco initiatives.

As much as $2.4 billion in new money became available after revenue estimates were revised for last year and this year to reflect boosts in state taxes in the post-hurricane recovery and with a continuing rise in oil and gas prices. Blanco wants lawmakers to agree to ways to spend much of that new cash in the special session.

Among the many plans, the governor was seeking more than $360 million in pay raises for public school teachers; college professors; school support staff like cafeteria workers and janitors; police, firefighters and other local law enforcement; state troopers; prison, probation and parole officers; and state employees.

She also wanted lawmakers to divvy up a pool of surplus cash from last year, though the money has yet to be recognized for spending. Blanco wants the dollars spent on road repair and construction projects, retirement debt payment, repairs on college campuses and the construction and planning of a cancer research facility in New Orleans.


TOPICS: News/Current Events; Politics/Elections; US: Louisiana
KEYWORDS: blanco; lousiana; spend
Lousiana has over a $1 billion in surplus and this, this thing wants to speand it all.
1 posted on 12/10/2006 7:04:57 PM PST by LdSentinal
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To: LdSentinal

In Louisiana the politicians will just line their own pockets with the surplus.


2 posted on 12/10/2006 7:37:14 PM PST by dandiegirl
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To: dandiegirl

Brother, thats the truth.


3 posted on 12/10/2006 8:31:15 PM PST by A Strict Constructionist
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To: A Strict Constructionist
Voters don't seem to care. They just reelected Willam "Cold Cash" Jefferson to Congress.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

4 posted on 12/10/2006 8:34:47 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: LdSentinal

She's up for election dude, can't have a dime unspent; especially here. IT IS AGAINST THE RULES!!!!


5 posted on 12/10/2006 9:31:24 PM PST by Atchafalaya (When you are there thats the best)
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To: Atchafalaya
The rednecks will forgive her Katrina because she's a Cajun. Unless the Republicans can come with one fast.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

6 posted on 12/10/2006 9:35:12 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: goldstategop

Jeff ran conservative and won; I do think he will go down. His win is better than the wacko b.... he defeated. Time will tell.


7 posted on 12/10/2006 9:36:06 PM PST by Atchafalaya (When you are there thats the best)
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To: goldstategop

Nah, Kat'leen is "defeated gov. walking"; that is why she is trying to spend the last dime...to get reelected. She can't control the Agriculture Commissioner (Bob Odom) who is causing her current grief. Our state is like our signiture dish GUMBO; we have always managed to make the product worth a second serving. Now chili powder and masa...how the hell can that fit in the gumbo???


8 posted on 12/10/2006 9:47:39 PM PST by Atchafalaya (When you are there thats the best)
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To: goldstategop

You could say that about your state as well, but I'm not sure that is completely the case in either state. In both states the Republican's act like Democrats and look out for themselves. The voters accuse each other of betraying conservative ideals and get into the your a Libertarian shouting match if you suggest someone staid home for the wrong reason. I don't know. In Louisiana we have two very strong Conservatives, Jindal and Vitter. Jindal has a very good chance of being our next Govenor. My son predicts that he will be Pres. one day. If Jindal is elected I think that he will have a very difficult time as both Dems and Repubs are corrupt in this state. Just the fight over reopening the LSU teaching hospital is unbelievable.

Most people are still in depression from Katrina, and the last elections and just stayed home. The spirit is willing but the flesh is tired. Many people say let them have Jefferson and then pray that the US Atty. will give the Demons a very hard time fighting the bad PR from criminal charges.

I know that this is no excuse and believe me it will not prevent me from fighting to keep any RINO's like Rudy and John M. from being the candidate. The border and guns are what keeps me going.

Just a few rambling thoughts.


9 posted on 12/11/2006 8:34:03 AM PST by A Strict Constructionist
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