Dear colleague,
Just before Thanksgiving, delegates to the LFT’s annual convention heard news that offered some hope in a year that thus far had been dominated by gloomy reports about budget cuts that threaten our colleges, universities and K-12 schools.
Presentations from two experts gave us a new outlook on Louisiana’s budget crisis. They explained the root causes of the mess we are in, and offered suggestions for restoring fiscal sanity to the state.
The first to speak, Eddie Ashworth of the Louisiana Budget Project, explained the ways that bad choices by a succession of elected officials contributed to the crisis.
You see, it’s not just the national recession that’s responsible for our predicament. Back when times were good in Louisiana, our leaders created so many tax breaks that we were left vulnerable to the effects of a downturn.
In fact, there are so many tax breaks on the books that we give back almost as much—$7.1 billion—as the $7.7 billion that our general fund collects. At least part of the solution to our budget crisis lies in a frank examination of all tax exemptions, credits, and deductions, and reining in those tax expenditures that serve no legitimate purpose.
Each of these tax incentives was adopted for a reason. But incredibly, we don’t have accurate records showing whether or not all of them are accomplishing their purpose. Some were designed to encourage job creation, for example, but there is little evidence that any jobs were actually created.
Faced with facts like that, our governor still says he is against any revenue measures, and too many legislators seem afraid to challenge the "no revenue" mantra.
That’s true even though more cuts are ahead for vital services like higher education and health care. Even public education's Minimum Foundation Program, which has been frozen for two years, is at risk. As Board of Elementary and Secondary Education President Penny Dastugue said, “If at all possible, it will be fully funded. But it is clear no one is making any commitments.”
At the start of this letter, I said there is some cause for hope, and so far it may not seem that way. So let’s get on a more positive track.
We do know from Eddie Ashworth’s presentation that there are some changes that, with little effort, could increase state revenues. Our second convention speaker gave us reason to believe the public would support these changes.
LSU Professor Kirby Goidel spoke about a recent scientific survey showing that the vast majority of Louisianans oppose further cuts to health care or to education.
What’s more, Goidel said, a majority of the people support a balanced approach to fixing our budget that includes new revenues as well as spending cuts.
In addition, the survey revealed that most people do not believe that Louisiana’s income and sales taxes are too high.
Our challenge is to use these facts to build a case that lawmakers can support. And that leads us to the best news of all.
Delegates to the convention unanimously pledged to support a new coalition of organizations called Better Choices for a Better Louisiana. This group is dedicated to finding a balanced, transparent approach to solving our budget crisis. One that includes responsible revenue measures, spending measures and responsible, common-sense savings.
BCBL comprises a growing number of business, faith, labor, health, education, community, and consumer groups throughout the state. Nearly 30 groups have already joined, including the influential AARP, the Louisiana Association of Nonprofit Organizations, the NAACP and more.
In the weeks ahead, the Better Choices coalition will meet with lawmakers and people and organizations that can help us make a difference when the legislature convenes in April. We have a real opportunity to put better choices before our leaders, backed with the clout of a unified voice. We have a rare opportunity to build a better Louisiana.
If your local Federation chapter, PTA or other organization would like to have a presentation about the Better Choices for a Better Louisiana coalition, please notify our office at 800-634-5089.