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Wednesday, November 23rd, 2011

On November 17th, The Advocate published “Group Raps La. Tax On Poor,” a front page article highlighting a report by the Center on Budget and Policy Priorities.

The article gives statements from Gov. Bobby Jindal’s spokeman, Kyle Plotkin, and director of the Louisiana Budget Project, Jan Moller regarding their views on the state-level Earned Income Tax Credit, a tax credit that benefits families with low incomes.

Here is an excerpt:

A new study directs criticism at Louisiana for being among states taxing the incomes of families living below the federal poverty line. . .

. . . The study found that:

Louisiana was one of 11 states in which a single-parent family of three living at the poverty line still owed state income taxes. The poverty line for a family of three in 2010 was $17,374.
Louisiana was also one of 15 states in which a two-parent family of four living at the poverty line still owed income taxes. The poverty line for a family of four in 2010 was $22,314.
Louisiana is among 22 states where a family of three living just above the poverty line (125 percent of poverty, or $21,718 per year) pays income taxes, and one of 23 states that tax families of four earning 125 percent of the poverty line ($27,893). . .

Read the full article here.

For more information on Louisiana taxing its working poor, read “Louisiana Among Few States That Tax Incomes of Poor Working.”

Throughout last week, the Louisiana Budget Project was also cited in several media outlets throughout the state including The Town Talk, Times-Picayune, Shreveport Times, WBRZ, Baton Rouge Business Report and The Advocate.

Posted in News/Updates, Press Release, Revenue and Taxes | No Responses »

Commentary: Constitutional Amendment No. 1 Is the Wrong Prescription for Louisiana

Friday, November 11th, 2011

A proposed constitutional amendment on Louisiana’s November 19 statewide ballot to prohibit taxes on the sale of homes or businesses would damage the ability of state and local governments to provide revenue needed to support health care, education, and other essential services.

Here is an excerpt:

Real estate transfer taxes (RETTs) are charged on the sale of immovable property, such as homes or businesses, and are generally paid by buyers. Louisiana is among 37 states and Washington, D.C. with some form of real estate transfer tax, either at the state or local level. . .

. . . While there is currently no movement to establish RETTs outside Orleans Parish, a Constitutional prohibition against all such taxes would unnecessarily tie the hands of future policymakers at the state and local level as they grapple with budget challenges. . .

. . . As state government continues to retrench, it has been asking parishes and municipalities to shoulder an ever-increasing share of the cost for public education, transportation and other critical services. Parishes need more flexibility, not less, as they cope with these challenges. Amendment 1 is a step in the wrong direction.

To read the full commentary, go to www.labudget.org and read “Constitutional Amendment No. 1 Would Make It Harder To Provide Essential Public Services.”

Posted in Budget, Education, Health Care, News/Updates, Outreach/Advocacy, Press Release, Report, Revenue and Taxes | 1 Response »

Amendment No. 4: A Sensible Solution to Stabilize the Rainy Day Fund

Thursday, October 13th, 2011

A recent commentary by the Louisiana Budget Project urges voters to approve Amendment No. 4 on the October 22nd primary ballot. The measure is sound fiscal policy that will both strengthen the Rainy Day Fund and allow for greater flexibility in future budget shortfalls.

Amendment No. 4 institutes a more specific repayment schedule for Louisiana’s Rainy Day Fund, a savings account that can be used to fill in temporary budget shortfalls in tough economic times. The proposed amendment solves an unintended flaw in how the fund is replenished. Currently, when the Legislature withdrawals money from the Rainy Day Fund, the Fund is automatically replenished with oil and gas revenues during the same fiscal year. This requirement worsens the fiscal situation it was meant to solve.

The proposed amendment would prevent money from automatically flowing into the Fund for two years after money is taken out. After that, the money taken out of the Fund would be paid back over the next three years.

“Amendment No. 4 is a prudent solution that strikes a balance between fiscal flexibility and fiscal responsibility,” says Edward Ashworth, Director of the Louisiana Budget Project. “This amendment will make it easier for the Legislature to use the Rainy Day Fund for its intended purpose to prevent cuts to critical services such as education and health care.”

Read the full commentary and press release.

Posted in Budget, Education, Health Care, News/Updates, Press Release, Report, Revenue and Taxes | 1 Response »

Leadership Transition at LBP Advances Mission, Builds Momentum

Tuesday, October 4th, 2011

FOR IMMEDIATE RELEASE
Tuesday, October 4, 2011
Contact:
KAREN MILLER
225.929.5266, x220
EDWARD ASHWORTH
225.929.5266 x224
225.907.3035 (cell)

LEADERSHIP TRANSITION AT LOUISIANA BUDGET PROJECT ADVANCES MISSION, BUILDS ON MOMENTUM

(Baton Rouge – October 4, 2011) Edward Ashworth, Director of the Louisiana Budget Project since 2009, announced his planned retirement in November and the appointment of his successor, Times-Picayune Capitol Bureau reporter, Jan Moller.

“The timing is perfect,” said Ashworth of the pending LBP leadership transition. “The Louisiana Budget Project has earned its place among the advocates for our state’s least-advantaged citizens. I’m proud of our vigorous work to encourage fair tax policy and of the very fine staff our new director will inherit.”

Begun in 2006 by the Louisiana Association of Nonprofit Organizations, with guidance from the DC-based Center on Budget and Policy Priorities, LBP is one of more than 40 State Fiscal Analysis Initiatives that together provide research and analysis of budget issues and how they affect low- and moderate-income residents.

“Eddie’s contribution over the past two years has been transformative,” said Ann Silverberg Williamson, President and CEO of the Louisiana Association of Nonprofit Organizations. “As a direct result of his leadership, LBP has become a ‘go-to’ source for independent and intelligent analysis of state fiscal issues. His work has consistently pointed our elected leaders toward economic policies that promote prosperity for all Louisianans.”

Jan Moller, who will replace Ashworth as Director in November, is an award-winning journalist with the New Orleans Times-Picayune Capitol Bureau, where he covered the state budget, health-care, higher education and races for Louisiana Governor and U.S. Senate seats.

Moller’s resume includes influential reporting and editorial posts across the country, including co-authoring with Jack Anderson the syndicated “Washington Merry-Go-Round” column that appeared in more than 300 newspapers nationwide, and Assistant Washington Bureau Chief for Parade Magazine, a weekly publication with a circulation of 20 million. As an investigative reporter, Moller’s work led to reforms in Louisiana’s nursing home regulation and to ethics violations for city officials in Nevada.

“We are fortunate to engage someone of Jan’s caliber and considerable talents,” said Ashworth. “His in-depth knowledge of state budget issues and the often opaque process of government will prove immediately beneficial. Jan has the ideal experience, professional expertise and vision to lead the Louisiana Budget Project.”

Prior to heading the Louisiana Budget Project, Ashworth was Undersecretary of the Louisiana Department of Social Services, President and CEO of the Louisiana Technology Park, and Executive Director of the Southern Poverty Law Center.

The Baton Rouge-based Louisiana Budget Project provides independent research and analysis of Louisiana fiscal issues and their impact on low- and moderate-income residents. For more information on LBP, visit www.labudget.org.

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Proposal to Raid Tobacco Settlement Fund Benefits the Well-to-Do

Thursday, September 29th, 2011

A new report by the Louisiana Budget Project urges Louisianans to vote against Amendment 1 in the upcoming October 22nd election. It analyzes the ill effects of using the constitutionally-protected Millennium Trust Fund to free additional dollars in the state general fund.

Should it pass, the proposed amendment to the state constitution would cap the amount of money in the Millennium Trust Fund at $1.38 billion, redirecting yearly payments Louisiana receives from tobacco companies to the Taylor Opportunity Program for Students (TOPS) that provides college scholarships primarily to students from families that can afford to send their children to college without state subsidies.

“Amendment 1 is an unsound fiscal policy that represents our legislators’ misplaced priorities during the 2011 Regular Session,” says Eddie Ashworth, Director of Louisiana Budget Project. “Louisiana needs a long-term solution to its fiscal crisis that includes well thought out revenue increases, not a quick fix that comes from raiding what are supposed to be protected funds.”

The proposed amendment would make it hard for the state to constrain the costs of the TOPS program that mainly benefits middle- and upper-income families. Redirecting the tobacco settlement money to TOPS means fewer dollars available for health care and public education, areas vital to the state’s economic future.

View the full report and press release.

Posted in Budget, Education, Health Care, News/Updates, Outreach/Advocacy, Press Release, Report, Revenue and Taxes | No Responses »

Tax Free Weekend: Popular But Not Prudent

Thursday, August 4th, 2011

Louisiana’s sales tax holiday, scheduled to occur on the first Friday and Saturday in August, is one of the most generous in the nation. According to a policy brief by the Institute on

Taxation and Economic Policy (ITEP), a non-partisan research organization, sales tax holidays put a strain on states’ budgets, and are too temporary to significantly change the regressive nature of a state’s tax structure. The exemption is projected to cost $3.7 million this year.

“A sales tax holiday is ill-timed and irresponsible at a time when our leaders are making significant cuts to critical services,” said Edward Ashworth, Director of Louisiana Budget Project (LBP). “This is just one more giveaway that contributes to Louisiana’s fiscal crisis, jeopardizing funding for education, health care, and infrastructure.”

Over the past decade, a growing number of states have been offering similar perks to families with children before the school year begins. Louisiana’s tax holiday exempts from state sales taxes the first $2,500 of consumer goods purchased for personal use. Proponents exaggerate the benefits of sales tax holidays for working families. Unlike wealthier families, low-income families do not have the luxury of shifting the timing of their purchases to coincide with a sales tax holiday.

The $3.7 million in revenue lost will ultimately have to be offset elsewhere in the budget, either through spending cuts or higher taxes. LBP recommends that Louisiana follow the example of Georgia and suspend the holiday. “Though not politically popular, this would be a prudent step in Louisiana’s fiscal future,” says Ashworth.

The Baton Rouge-based Louisiana Budget Project provides independent research and analysis of Louisiana fiscal issues and their impact on low and moderate income residents.

For a full report on sales tax holidays and more information on LBP, visit www.labudget.org and read ITEP’s brief “Sales Tax Holidays: A Boondoggle.”

For the full press release click here.

Photo credit: Louisiana Department of Revenue

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2011 Legislative Wrap-up: The No-No Session

Friday, July 1st, 2011

A new report by the Louisiana Budget Project reviews the state budget for the new FY2012 fiscal year, a budget that does little to address Louisiana’s standing as one of the unhealthiest, least educated, and poorest states in the nation.

The so-called “no-no-session” produced a budget that is balanced on the backs of the poor and continues to underfund our crumbling education system and cash-strapped hospitals.

By adopting this budget, the governor and legislature acquiesce to Louisiana’s status quo of poverty, poor health, and lack of education by continuing to reduce funding for human services, health care, and education.

We can do better. We SHOULD do better.

View the full report and press release.

Posted in Budget, Education, Health Care, News/Updates, Press Release, Report, Revenue and Taxes | No Responses »

The Real Numbers Behind Louisiana’s Public Employment Statistics

Thursday, June 16th, 2011

A new report by the Louisiana Budget Project analyzes comparable state-to-state data to inform the recent debate concerning whether Louisiana has too many public employees.

The report finds that, contrary to statements made by a number of public officials, overall staffing levels in Louisiana are on par with those in other states. Once Louisiana’s unique Charity Hospital System is accounted for, the number of public employees delivering state services is comparable to other states based on population (“per capita”) and on size of the state’s economy, as measured by Louisiana’s gross state product (“per GSP”).

Other significant findings include that Louisiana has far fewer Corrections officials guarding our large number of state prisoners than all but three other states and that we have fewer college and public school teachers per capita than most other states.

Click to view the full report and press release.

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