Legislators preview session for local business leaders

Published 12:00 am Monday, March 11, 2002

By CHRISTOPHER LENOIS

NORCO – A panel of state representatives addressed the New Orleans Regional Chamber of Commerce during a luncheon this week.

Addressing their priorities and answering questions as they head into the legislative session for 2002. Because it is an even numbered year, the session will focus exclusively on fiscal matters, and that was paramount on the minds of Sens. Joel Chaisson and Gary Smith, and Rep. Roy Quezaire as they addressed the audience.

Rep. Robert Faucheaux had to cancel his appearance at the last moment, citing a scheduling conflict.

The first to speak was Chaisson, who said Gov. Mike Foster had not yet said if he will call a special session. If he does it is tentatively scheduled for March 25.

No agenda has been set. Chaisson said he supported the governor’s objectives for economic development and placed emphasis on keeping the New Orleans Saints football team in the region as well as attracting the National Basketball Association franchise, Charlotte Hornets, to New Orleans. He closed by endorsing Foster’s position on not supporting any new taxes or tax increases.

“I will be seeking to reduce or eliminate taxes wherever I can,” said Chaisson.

Smith’s remarks focused on economic development issues. The two biggest projects on the horizon for Louisiana were the decision whether to build a regional airport – which he said would create “a tremendous amount of jobs and economic development throughout the river parishes” – and the Millennium port, for which he expressed disappointment in the slow progress being made in even choosing a site.

Smith then turned to the issue of Bayou Steel’s $2.5 million outstanding tax credit earned under the Recycling Tax Credit program. Smith said that he and Chaisson will be introducing a bill that will propose awarding Bayou Steel the $2.5 million in cash to reinvest into the company rather than as a credit. Smith said this could save the jobs of the 350 employees during the nation’s current economic slump.

“Hopefully they (Bayou Steel) will see the daylight 10 to 18 months down the road,” said Smith.

Smith closed by reminding the audience that the state is facing a $900 million budget deficit for the fiscal year. Even the renewal of the four “penny taxes” would cover only a little more than half of their spending needs, he said.

Quezaire picked up on that thread in his remarks with an appeal to the audience. “You are the experts. The hands-on folks out in the field that make it all happen,” he said while expressing his excitement over the new concept of Economic Development “clusters” recently implemented under Foster. “Please give us your thoughts and guidance for the betterment of the state of Louisiana.”

Quezaire emphasized the need to assess the tax exemptions on the books in Louisiana, and complimented the Department of Transportation for doing a fine job on limited resources. He said the DOTD may be able to introduce $2.3 billion in bonds, which will help complete 30 years worth of project in 10 years. He quickly cautioned that the all the data had yet to be gathered and presented. Each legislator was then presented with a separate question to answer. Chaisson was asked about the $24.5 million in funding for the Louisiana Port Construction program. Chaisson responded that he is in favor of the program and will oppose any cuts. He said he believes Foster has committed the necessary money in the proposed budget.

Smith was asked about a proposal from the Chamber that would grant tax credits to port facilities who ship from Louisiana. Smith admitted that he had not heard of the proposal previously but felt it sounded like a good issue. “We have so many great products in this region. It would help us to look at something like this.”

Quezaire was asked about creating a 10-year ad valorem tax exemption to companies who build dock and cargo facilities. Quezaire turned the question around by wondering how such an initiative would stimulate the economy.

“We’ve jumped on board trains that create jobs, but kept people in the category of the working poor,” said Quezaire. “That doesn’t fit into the definition of economic development. If it promoted upward mobility for the state of Louisiana, I’d be for it.”

The next questions focused on the possibility of the budget shortfall and what affect that would have on legislative priorities. Each legislator said their hands were partly tied since so much of the budget money is constitutionally guaranteed, and that any cuts would invariably come from education and health care programs which aren’t protected. Quezaire felt that there was funding for these programs if the government spent wisely, calling last year’s choice to spend $5.8 million on the purchasing of an antebellum home while closing down 26 health units in the state “a blunder.”

“Poverty will bite each and every one of us, no matter how insulated we think we are,” said Quezaire. “We need to defend, protect and preserve education and health care.”