Bank of America’s commitment to reducing greenhouse gas emissions to combat climate is a dealbreaker for Louisiana Treasurer John Fleming. But financial institutions with similar environmental, social and corporate governance (ESG) policies currently serve as fiscal agents for the state. The Times Picayune | Baton Rouge Advocate’s Alyse Pfeil explains:
Fleming last week did not mention JPMorgan Chase … Nor did he mention US Bank, which in a 2023 report said it intends to “partner with our clients on their transition to a lower carbon economy” and called itself “one of the most active renewable energy investors in the nation.” Bank of New York Mellon also considers climate in its investments, and Capital One and Hancock Whitney have taken steps in that direction.
Shunning banks because of ESG policies goes against common sense, especially for a state like Louisiana that is on the front lines of climate change, and could end up costing the state money:
Meanwhile, [Invest in Louisiana’s Jan] Moller said he commends public companies that consider problems associated with climate change. Because Louisiana is particularly susceptible to the negative impacts of climate change, “if anything, we should be trying to do more business with companies that take this threat seriously,” he said.
Contract for state’s private school voucher program
Louisiana will pay a New York corporation $11 million over the next three years to run its new private school voucher program. Much of the demand for “education savings accounts” in other states have come from families, many affluent, who already had children in private schools. This has led to ballooning costs and increases in private school tuition. The Times Picayune | Baton Rouge Advocate’s Patrick Wall reports:
According to Odyssey’s bid, the company will charge $350,000 to launch the program by March 2025 and $143.50 for every student who participates. … Once the program begins giving parents grants ranging from about $5,200 to more than $15,000, it will cost taxpayers tens of millions of dollars more each year. However, the program is subject to funding by the state Legislature, so its ultimate cost will depend on how much lawmakers are willing to spend.
Members of the Board of Elementary and Secondary Education asked about problems other states have experienced with Odyssey:
(I)n Missouri, parents have complained about delays in receiving grants and problems purchasing items through the company’s platform, according to the St. Louis Post-Dispatch. In Idaho, a state review found that Odyssey approved about $180,000 in ineligible purchases by families, according to Idaho Education News. And in Iowa, the state auditor found that the education department had improperly amended Odyssey’s contract to increase payments to the company.
Medical debt relief for New Orleanians
New Orleans announced a plan in 2022 to partner with New York-based nonprofit Undue Medical Debt to use American Rescue Plan Act funds to erase medical debt for city residents. But two two major regional hospitals, Ochsner Health and LCMC Health, remained key hurdles to the effort. Verite News’ Katie Jane Fernelius reports that New Orleans has reached an agreement with Ochsner to eliminate $59 million in debt.
The new debt forgiveness deal will impact an estimated 66,000 qualifying patients living in New Orleans. Those residents will receive a letter in the coming weeks letting them know that some or all of their medical debts with the Ochsner Health System have been forgiven. “This will provide financial reset for families and is a tremendous way to spend one-time federal dollars. I appreciate Ochsner’s leadership and partnership on this important initiative.” [said City Councilmember Helena Moreno]
Negotiations with LCMC Health remain ongoing.
Ban on noncompete agreements struck down
A federal judge in Texas has struck down the Federal Trade Commission’s recent ban of noncompete agreements. Research has shown that these types of agreements, which forbid workers from taking jobs with their employers’ competitors for a specific period of time, reduce wages and mobility across various industries. The Washington Post’s Julian Mark reports:
An estimated 30 million U.S. workers in a wide range of fields are subject to noncompete agreements. The FTC in April voted 3-2 to issue the rule, with commissioners in the majority pointing to evidence that the agreements suppress wages, stifle entrepreneurship and gum up labor markets. If it had gone into effect, the rule would have made it illegal for employers to include the agreements in employment contracts and would have invalidated existing clauses for most workers subject to them.
SUN Bucks application period opens
Parents and guardians can still receive summer grocery money through the Louisiana SUN Bucks program. The Louisiana SUN Bucks program will provide eligible families with an extra $120 per child, to buy food. Families will receive a SUN Bucks EBT card in the mail that can be used to buy food at retailers that accept SNAP benefits. The deadline to apply is September 20. Families can learn more and apply here.
Number of the Day
0.51% – Effective property tax rate in Louisiana in 2022, which was among the lowest in the nation. Louisiana had six parishes with median property taxes of less than $250 a year (Allen, Avoyelles, Bienville, East Carroll, Madison, and West Carroll Parishes). The average level of property taxes paid in the United States in 2022 was $1,815. (Source: Tax Foundation)