The Young and the Restlessly Misguided - Defending L.A. SB 335 against the Louisiana Young Republicans

Today the Louisiana Young Republicans Federation sent out a press release that was picked up by the Dead Pelican praising opposition to SB 335 and spinning the bill as a Democrat-authored tax increase. Oh, young ones:

"The Louisiana Young Republican Federation thanks Governor Jindal and the Young Republican members of the Louisiana Legislature who stood tall and publicly opposed raising the income taxes of working families in Louisiana."
Source: http://www.thedeadpelican.com/2009/YR335.HTM

They're not the only ones speaking out against SB 335 as a "tax increase." All sorts of Republican opposition, including LA Party Chairman Roger Villere, is coming out of the woodwork to do their due diligence in demonizing Democratic legislation by spinning emotion-laced claims of tax increases and foulcry for Louisiana families. You can read Villere's misleading pleas for action here:
Source: http://www.lanewslink.com/archives.php?id=11291

Firstly, if you're not caught up on the legislation, check out the news links to the right side of this post and brush up on it. SB 335 is legislation aiming to delay income tax-break increases from 65% to 100% on certain items.

Let's be real. This isn't a tax increase, no matter how much the Republicans and "fiscal conservatives" want to label it as. SB 335 merely delays a scheduled tax break. It is not levying a new tax. It is postponing a tax break.

As for those like Forgotston who want to claim the bill is unconstitutional because the Senate, not the House, is raising revenue, get real again! This is a postponement of a payout, not authorization to raise revenue. It's saving money that already exists, not generating more.

I consider myself, for the most part, a fiscal conservative and an overall moderate with no partisan ties (affiliations that I feel can blind people, but that's for another post). And yet, these attacks on SB 335 don't seem to be in favor of fiscal conservation, but in favor of partisan warfare.

If you want to talk fiscal conservation, let's talk about fiscal responsibility. How about saving all that money that is going to go into the pockets of people and provide a short-lived blip for the economy, and putting it toward a long-term economic development investment for the state in, I don't know, higher education? And let's not forget health care either. I'd rather the state's residents have adequate health care from adequately-educated LSU-Shreveport medical graduates than make sure everyone can afford to spring for their second iPhone.

It's certainly not a Republican consensus, Audra Shay. You might get Ellen Carmichael's approval, but there are other Republican contributors to this cause and this blog that will disagree with you.

I think I can't say it any better than the Times-Picayune editorial staff. Read their latest output, and before you pin it as liberal dribble, read the whole thing. Everything is in there.
Source: http://blog.nola.com/editorials/2009/05/louisiana_legislature_and_gov.html

Senate Finance Committee - Knights in Shining Armor?

As we posted previously, the Senate Finance Committee has been doing diligent work to help preserve as best they can Louisiana's higher education by finding alternatives to a massive $219 million budget cut for this upcoming year.

The Committee has not only called for use of Louisiana's "Rainy Day" fund - a combination of surplus and other funds for use during, you guessed it, economic crises - but they have also passed SB 335, which will stall tax breaks and put a freeze on deductables from state income tax at 65%. This bill is contentious in both the House and the governor's office, but the Senate seems confident in its passage.

With SB 335 alone, the proposed cuts will drop more than half to $100 million - still a hefty cut but relatively much more manageable for Louisiana's higher-ed institutions. At these levels a cut to LSU would certainly be less drastic than previously expected. And if a portion of the rainy day funds go to education, the effects would be even less. Understandably, many areas of the state's economy need attention, and those most important areas should receive rainy day consideration.

SOS - Save Our Schools thinks education should be right there at the top of the list.

Source: http://www.2theadvocate.com/news/46871232.html?index=14&c=y

Butch Gautreaux's Proposed TOPS Cap Defeated

A big victory in the Louisiana legislature today for higher education as the Senate Education Committee almost unanimously killed Gautreaux's proposed TOPS cap. Read the article in the Advocate:

http://www.2theadvocate.com/news/46426507.html?index=1&c=y

Big props to LSU's student representation at the capitol, with J Hudson and Martina Scheuermann getting pub in the Advocate.

I found this particular quote of Gautreaux's to be quite funny:

"Gautreaux said the change would help stabilize TOPS without imposing undue burdens on students and their parents.

'This bill does not prevent anyone from attending college,' he told the committee. 'Let’s be honest.'"

Your bill would not have prevented Louisiana high school students who are TOPS eligible from attending college, Sen. Gautreaux. You're right about that. But it would have prevented them from attending college in Louisiana. The top students would not stay in Louisiana to receive a college education if they weren't eligible for such a great financial assistance package - they'd head elsewhere.

Stall Tax Break = Save Higher Education

State senator: fund higher ed, stall tax break

A Louisiana lawmaker has won early approval for her plan to ease budget cuts in higher education. Sen. Lydia Jackson, a Shreveport Democrat, won approval from the Senate's tax committee on Thursday to postpone a tax break involving charitable deductions that was to take effect next year, for the 2009 tax year. Jackson's plan would delay by three years a partial rollback of the so-called "Stelly plan." Jackson said her intent is to use the resulting $118 million to reduce planned spending cuts at higher education institutions. Jackson has support of the Senate leadership, but opposition from Gov. Bobby Jindal. Her bill next moves to the Senate floor.
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I think this might be the solution we need to put money back into higher education. Governor Jindal needs to understand that everyone does not have to comply with what he thinks is best! That is why we have three branches of government. I think his opposition to this bill is disappointing. Unless he has another plan that will put money back into higher education then he needs to sign the bill and smile.

C.B. Forgotston: Flaw in "Rainy Day Fund"?

http://forgotston.com/

I just read where Commissioner of Administration Angele Davis said there was a “design flaw” in the Budget Stabilization Fund (a.k.a. the rainy day fund). (See story here.) As a result there would be little to no net revenues for the upcoming state budget if the leges used $250 Million of the fund.

There is no "design flaw." The fund was intentionally crafted to limit the flow of oil and gas revenues into the State General Fund ("SGF") in hopes that the state would reduce it's dependency on oil and gas revenues.

Alternative solution

If there is no desire to reduce the dependency on oil and gas revenues, there is alternative to refilling the fund.

The $250 Million taken out of the fund could be immediately replaced with $250 Million of the $860 Million 2007-08 surplus (per Const. Article VII, Section 10(D)(2)(d)) and thus all oil and gas revenues would continue to flow into the SGF and would be available for expenditure in the fiscal year that begins July 1.

This process has been used in the recent past to force more oil and gas revenues to flow into the SGF.

This scenario would increase revenues for the Operating Budget by $250 Million. There would, however, be less surplus money to spend on local and NGO capital projects.

If the goal is to forestall cuts to the Higher Education and Heathcare operating budgets this process accomplishes it.

Poor priorities not a flaw

Seems to me the only “design flaw” in the fund is the flaw that has always been in the state budget process -- poor priorities.

The comments from the commissioner begs the question of why are we just now learning of the "design flaw" in a fund that was originally put into the constitution in 1990 and was actually used in 2002? This is not her first time to work for a governor in the Division of Administration.

What am I missing?

C.B.

SOS TO APPEAR ON JIM ENGSTER SHOW!

Two members of the "SOS-Save Our Schools Campaign" will appear on the Jim Engster Show, broadcast on 89.3 WRKF, the NPR affiliate here in Baton Rouge, tomorrow (Wednesday) from 9 a.m. to 10 a.m. If you're outside of the listening range, listen live here! The guests will discuss the implications of higher education cuts, as well as practical solutions to make these institutions sustainable in tough economic times. 

If you want to chime in, please call (225) 297-5633. We hope to hear from you!

As the Advocate says... LET THE SUN SHINE IN.

In the March 18, 2009 edition of The Advocate, the editorial board echoed the sentiments of SOS: it's time for Louisiana government to get transparent. In "Our View" piece, entitled "Let the Sun Shine In," the board explains that this is National Sunshine Week (annually March 15 to March 21), where leading transparency advocates tout the benefits of a completely transparent government. In our state, leaders like the Pelican Institute for Public Policy and Public Affairs Research Council of Louisiana have long championed the need for this sort of government reform. And finally, these voices in the wilderness are getting the credit they deserve.

The article calls for President Obama to live up to his promises of making his entire administration transparent, especially with a Google-style searchability of federal budgets and legislation. In Louisiana, Governor Jindal promised, through one of his first executive orders, complete transparency.

How does this correlate with our ongoing budget crisis affecting our school? Now, more than ever, students and taxpayers should monitor the spending of both educational institutions and the state. When each penny matters more than it did ever before (which could be the root of the problem), transparency allows for all of us to scrutinize spending. We must be responsible voters and examine the causes for the problems we face. And transparency is just the tool to do so.

New York Times: State Colleges Also Face Cuts in Ambitions

March 17, 2009

By TAMAR LEWIN

TEMPE, Ariz. — When Michael Crow became president of Arizona State University seven years ago, he promised to make it “The New American University,” with 100,000 students by 2020. It would break down the musty old boundaries between disciplines, encourage advanced research and entrepreneurship to drive the new economy, and draw in students from underserved sectors of the state.

He quickly made a name for himself, increasing enrollment by nearly a third to 67,000 students, luring big-name professors and starting interdisciplinary schools in areas like sustainability, projects with partners like the Mayo Clinic and Sichuan University in China, and dozens of new degree programs.

Read the whole story here (NY Times registration required)

GUESS WHAT! NOW YOU CAN TAKE A BUS... TO AN UNACCREDITED SCHOOL??

Today's front page of The Daily Reveille included a quote from University Chancellor Michael Martin explaining that a $45.4 million budget cut would be "like the Flagship Agenda never happened... it's very disheartening." 

Strangely enough, this article appears on top of another piece, entitled "University sends bid invitations for new bus system." While I will give credit to the University for utilizing privatization to save some money, as opposed to the highly inefficient government-run CATS (Capital Area Transit System) bus program, there is one glaring issue. 

Why, if the University fears substantial budget cuts that will cause the whole system to collapse and ruin all of our lives, are they still going forward with a plan to expand and upgrade bus services? This will surely cost LSU boatloads of money... no, excuse me, taxpayer dollars.

As a former member of the current Student Government's Executive and Senior Staffs, I understand that it was an important initiative for them to get a new bus system in place. Certainly, there have been tons of complaints about surly and downright reckless drivers, inadequate service and inaccessibility of buses. There is no denying that there should be improvements to the bus system. But at what cost?

Is it worth purchasing a new fleet of buses that include GPS devices when they are threatening us with our school losing accreditation and, as Chancellor Martin woefully explained, the school "fall[ing] back to where we were eight or 10 years ago"? 

This is just another example of the mismanaged priorities of our school. Even though our bus system needs improvement, is now a time to worry about TomTom directing us to the Bell Tower?

I hope that this attempt at privatization will result in saving money. But, I fear that won't be the case. You see, what I expect to happen is that the money saved by using a private service will not be put in a lock-box, but instead, spent to purchase more buses or heaven only knows what else, for fear of not being allotted that money in future budgets. 

Please, LSU... prove me wrong. I beg you. I'd love to be wrong in exchange for the safeguarding of the interests of taxpayers and students. 

2/4/09- Washington Times- Steven Pearlstein- Stumbling on Their Sense of Entitlement

Steven Pearlstein, a commentator for the Washington Times, examines the role of many political groups within the public and private sectors and their participation in our "economic crisis." The article, found here, includes this excerpt about how the mismanagement of higher education funds across our country drains our budget:

"Is it too much to ask those college presidents who are about to be the beneficiaries of big increases in student aid and tuition tax credits to finally embrace the productivity revolution and find a way to use technology and new teaching techniques to lower the cost of education?"

This deals very intimately with the issues we face here in Louisiana. Everyone knows that a solid higher education system is necessary for keeping young professionals in Louisiana and stopping our growing out-migration of graduates. A strong flagship university, like LSU, represents a strong commitment to higher education.

 The real issue is "chicken-or-egg" in nature. Should the schools be financially rewarded for achievement or should the schools be expected to succeed only if they are given substantial budgets? Should taxpayers fund higher education simply because it exists, or should they demand productivity and the rights to oversee the process?

Proposed Budget Cuts Offer Transparency Incentive for Higher Education

With threats of 30 percent budget cuts looming large for the higher education systems of our state, universities are uniquely poised to garner substantial political leverage by proving to taxpayers that they effectively manage their current finances.

An executive order signed early in Governor Jindal’s administration called for transparency in all financial dealings in each and every agency and department in state government. Unfortunately, these LaTrac reports neglect to completely disclose the transactions of one of the state’s largest entities- public higher education.They offer simple groupings and "summary data," but no individual expenditures.

LaTrac is an exhaustive examination of the intricacies of each department’s budgets and expenditures. Why should the university systems, also funded by those same tax dollars, enjoy exemption from public scrutiny? If anything, the universities should prove to the public that they are behaving as good stewards of public money and most importantly, keeping focused on educating.

If the university systems continue to claim that they have managed their funds correctly, why would they resist publishing their ledgers in a dynamic, searchable format? The technological infrastructure is already in place. All they need is the will.

Because the university systems in Louisiana will unlikely utilize such a good faith measure willingly, the legislature should demand a system of financial transparency initiatives to accompany funding legislation. This is not to say that those in favor of this transparency would fight for it and begrudgingly fund higher education as a trade off, but instead, let this serve as an indicator of the fiscal diet higher education system should employ.

This is necessary due to the fact that universities, with LSU leading the way, consistently spend money like drunken sailors at the ports of call of Office Depot and American Airlines. When the end of the year rolls around, departments send student workers to buy copious amounts of sticky notes or ship off tenured professors to a new exotic location for “research” or a “conference.”

And why does this happen? Simply, department heads worry that if they live within their means during the school year, as they should, they will sustain budget cuts. Students seem to get lost in the midst of the taxpayer-funded plethora of file folders and jet-setting to conferences all over the world. And then they wonder why students vote down a modest $2 fee increase to keep activity accounts afloat or become outraged at the mere mention of tuition increases.

The alarming issue posed by these proposed budget cuts is not that they might happen. It is the fact that higher education in Louisiana is either unable or, most likely, unwilling to trim the fat without spoiling the meat. And despite the public awareness of these nasty spending habits, legislators continually green-light higher education expansion projects with no oversight as to their efficiency or success.

If the universities believe that the governor should tap into our “rainy day” fund to save higher education from a short-term hurdle, they need to prove that they’ve changed their ways. Spending legislation to supplement higher education should be coupled with compulsory financial transparency for all systems in the state of Louisiana to confirm their days of fiscal mismanagement are over.

After all, if they’re as honest as they say they are, they have nothing to lose… and so much money to gain.

30 lose jobs at Tech; no layoffs announced yet for ULM, Grambling

By Stephen Largen • slargen@monroe.gannett.com • February 10, 2009

Louisiana Tech University laid off about 30 workers last week because of statewide mid-year budget cuts and concern about the looming budget cut for the next fiscal year.

President Dan Reneau said most of the workers laid off were still employed on a probational basis, meaning they had worked less than six months. The workers, who were spread across all departments, were mostly let go because of the budget cuts, not because of performance, Reneau said.

"It will help the mid-year cuts, and it's aimed at next year, also," Reneau said.

Reneau said such a mass layoff had not taken place since the late 1980s.

Tech's share of the $55 million mid-year cut for all the state's universities was $2.65 million.

The University of Louisiana at Monroe has not done employee layoffs in response to the mid-year cuts, though the school did freeze some open positions and other spending. ULM's share of the mid-year cut was $2.38 million.

A spokesman for Grambling State University was not aware of any layoffs at the school in response to the cuts. GSU's share of the mid-year cut was $1.33 million.

For the next fiscal year that starts July 1, the University of Louisiana System, the largest university system in the state with eight universities, could face a budget cut of 15 percent to 28 percent. The worst-case scenario would be a cut of $116.4 million.

According to a preliminary analysis of the impact of the cut, a $116.4 million reduction would result in the loss of approximately 60 academic programs, 1,500 jobs, 3,000 furloughed employees and a possible drop in enrollment of 12,000 students.

Reneau said more layoffs could follow at Tech if a deeper cut is made.

The projected cuts are part of a preliminary planning exercise by Gov. Bobby Jindal's administration and are contingent upon a final budget.

"The state is facing significant financial challenges, and higher education must do its share," UL System President Randy Moffett said in a prepared statement. "However, in these tough financial times, Louisiana must invest in its people, and higher education is the key to the state's long-term economic prosperity."