Budget poised for Senate floor vote

Not to be outdone by its House Appropriations committee colleagues, the Senate Finance committee appears to be ready to report the Budget to the Senate floor later next week.  Significant questions abound with regard to restoration of cuts made by the House and sources of revenue to fill those gaps.  Governor Jindal may be willing to release portions of the Rainy Day Fund to ease certain cuts, but the extent of his willingness to tap the fund remains uncertain.  Lawmakers also have $863 million in excess revenues from the 2008-2009 Budget that may be spent.  However most of those have been previously set aside for coastal restoration, the New Orleans Saints, and highway construction.  Lawmakers are searching hungrily for excess dollars in other funds and all appear to be competing for the same dollars.  If the Senate moves the Budget bill as anticipated, the process will be completed in the fastest time in modern Louisiana history creating a confrontation with the Governor over priorities that will allow lawmakers to review his gubernatorial actions while still in the current session.

Tax versus Fee?

House Bill 569 by Representative Bodi White (R-Denham Springs) emerged unscathed from the House Appropriations committee.  This bill would establish a special fund in the State Treasury fueled by a 15 cent per month charge on all internet consumers.  According to estimates, it would generate at least 2.3 million dollars for Attorney General Buddy Caldwell’s office.  These dollars would assuage budget cuts from last year and this year and create additional jobs in the Attorney General’s office to prosecute internet child pornography perpetrators, identity theft matters, and bank fraud complaints.  Questions persist as to whether or not the Internet Tax Freedom Act prohibits such a revenue raising requirement.  The Attorney General’s own experts successfully convinced committee members that the measure would be a fee of a type permitted under federal law.  This subject matter which strikes the emotional heart in all lawmakers, even those who are opposed to new taxes and fees, could ultimately present a showdown between the Attorney General, lawmakers and the Governor, as Governor Jindal has adopted protection of Louisiana children as a major part of his legislative package this session.  The Attorney General appears to have this measure as his last means to completely fund his office; as his attorney contingency fee bill (HB 895by Representative Herbert Dixon (D-Alexandria)) was voluntarily deferred for the third time and is now dead for the session.  If any revenue measure has the chance to pass the fiscally conservative House of Representatives with the two-thirds majority required, this may be the one.

Keep ‘Em Smoking?

The Louisiana Senate voted 22 to10 to pass SB 186 by Senator Rob Marionneaux (D-Livonia) which bans smoking in Louisiana bars and gambling facilities.  Proponents beat back an attempt by the gaming interests to create a limited exemption for their establishments and warned that a similar ban had produced a substantial downturn in gaming handles and therefore reduced tax revenues.  The matter heads for the House where it likely stands a good chance of passage.

Campus Gun Bill Dies on House Floor

Former Sheriff, Representative Ernest Wooton (R-Belle Chasse) tried again to allow the possession of concealed firearms on campuses of institutions of higher learning.  Despite impassioned pleas from proponents and a strong lobbying effort by the NRA, the proposals garnered only 18 votes.  Not to abandon the field, the irrepressible Representative Wooton vowed that he would gather his militia for another run, perhaps even this year.

Final adjournment can be no later than 6:00 pm on Thursday, June 25, 2009.  As always, if we can assist you further with anything please contact us.

Adams and Reese LLP Louisiana Governmental Relations Team

E. L. Henry                      E.L.Henry@arlaw.com

Robert L. Rieger, Jr.       Robert.Rieger@arlaw.com

J. Robert Wooley           James.Wooley@arlaw.com

Richard B. Easterling     Richard.Easterling@arlaw.com

V. Thomas Clark, Jr.       Tom.Clark@arlaw.com

Lee C. Reid                      Lee.Reid@arlaw.com

Christopher P. Coulon  Chris.Coulon@arlaw.com

Alisha M. Duhon          Alisha.Duhon@arlaw.com

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