Gov. Jeff Landry’s special session to rewrite Louisiana’s tax code and state constitution gavels in on Wednesday afternoon, and state legislators are privately anxious about the work ahead. The Times-Picayune | Baton Rouge Advocate’s Tyler Bridges reports that the uncertainty cuts across party lines, as lawmakers prepare for decisions that could make it harder to finance basic state government services in future years:
“Can you restructure Louisiana’s tax system in two weeks? There’s the potential for unintended consequences,” said Rep. Mike Bayham, R-Chalmette. “We’re trying to address a fiscal problem and tax reform at the same time.” One of the complicating factors is that legislators have not introduced all of the bills that will be heard in the special session.
The House Ways and Means Committee could meet as early as Thursday to begin hearing bills, but no meeting has been scheduled yet. Bridges explains how lawmakers are still trying to determine how this effort will affect the state budget and taxpayers:
A preliminary analysis by [Richard] Nelson’s Revenue Department shows it would produce a surplus in future years, while a preliminary review by Legislative Fiscal Office indicates a looming budget deficit. Another key question is who would pay more and who would pay less under the proposals. A preliminary analysis by Greg Albrecht, formerly the legislature’s chief economist, found that it would shift the tax burden slightly more onto the wealthy. That doesn’t go far enough for Jan Moller, director of Invest in Louisiana, a Baton Rouge-based group. He notes that the current regressive system forces the poor to pay a higher percentage of their income in taxes.
Melissa Flournoy, former state legislator and board chair of 10,000 Women, in a letter to the Times Picayune | Baton Rouge Advocate, explains why the rushed session is ripe for bad policymaking:
Today’s rush is to push through a complete overhaul of the Louisiana tax system as a Christmas present for out-of-state corporations and the top 1% of taxpayers. We have a regular session of the Legislature focused on fiscal affairs and taxes already scheduled for early next year. What’s the rush? Apparently, Landry wants to jam a constitutional amendment through in March in an election that no one votes in.
Wind energy revenue for coastal restoration
Louisiana voters overwhelmingly approved a constitutional amendment that requires revenue from offshore wind energy development to be put toward coastal restoration efforts. The Louisiana Illuminator’s Greg LaRose breaks down the proposal and explains why state coffers won’t see a windfall anytime soon:
The biggest obstacle to offshore wind growth in Louisiana is the lack of transmission infrastructure. Without lines to connect turbines to an onshore power distribution grid, the coastal projects are literally dead in the water. The hangup has been whether wind farm developers or utilities that want to expand their alternative energy portfolios will provide the resources needed to link the power supply with end users.
Supreme Court to weigh in on congressional map
The U.S. Supreme Court announced earlier this week that it will hear a case involving Louisiana’s congressional map that includes two Black-majority districts. The Louisiana Legislature approved the map in question last January, but a federal appeals court panel later overturned those boundaries for being unconstitutional by focusing solely on race. The AP’s Mark Sherman reports on the the state’s long redistricting saga:
A lower court had invalidated the map, but the justices allowed it to be used in 2024 after an emergency appeal from the state and civil rights groups. The issue in front of the justices is whether the state relied too heavily on race in drawing a second majority Black district. The court’s order Monday is the latest step in federal court battles over Louisiana congressional districts that have lasted more than two years. Louisiana has had two congressional maps blocked by lower courts and the Supreme Court has intervened twice.
Making EBT cards more secure
The lack of ‘chips’ in EBT cards make them vulnerable to digital theft. While the federal government is taking steps to enhance security, there isn’t a timeline for improved cards. Route Fifty’s Natalie Alms explains how states can adopt new technologies to protect beneficiaries:
Even as SNAP is trying to catch up on chip cards, the private sector is already moving on to tap-to-pay and mobile pay, adding cards to digital wallets. The new technical standards do have information for enabling mobile pay and tap-to-pay in addition to chip cards, but it’s not clear when states will pick up the technology. Illinois, Louisiana, Massachusetts, Missouri and Oklahoma have been piloting mobile pay after Congress authorized the testing in the 2018 Farm Bill. “The standards are available, and so states can start planning towards moving towards adoption of chip cards and mobile pay technologies,” said [United States Department of Agriculture’s Rebecca] Piazza.
Number of the Day
65.9% – Louisiana’s unofficial turnout rate for the Nov. 5 presidential election. (Source: Louisiana Secretary of State)