HB 70
by state Rep. Walt
Leger would increase the earned income tax credit. He told the House Ways and
Means Committee it would help poorer individuals with bills and small business,
as the money is spent by recipients. Roughly 30 percent of returns claimed
it. Witnesses said many recipient families have children, some are in the
military, and claimed it actually was an incentive to work and asserted it provided
a net positive contribution to economic development.
Rep. Lenar Whitney
pointed out that the EITC could be applied to illegal aliens courtesy of the
Pres. Barack
Obama executive order that would deemphasize enforcement. Leger said he
didn’t really know how that might apply. Whitney also asked whether this
was the right time to pursue this when the state faced budget difficulties;
Leger said it could be used as an offset to any tax increases that may
occur as a result. Rep. Julie Stokes
also expressed concern with the bill for that reason, and that it should be
viewed in terms of overall tax reform that might be better dealt with
comprehensively in the future.
The committee voted 8-6 in favor, with a number of
Republicans absent, all Democrats voting in favor, and Republican Reps. Chris Broadwater,
Frank Hoffman,
and Tom
Willmott also in favor.
DID YOU KNOW?
HB
30 by Rep. Dee
Richard would require Joint Legislative Committee on the Budget approval
of contracts above $40,000 from general fund money for the next three
fiscal years. For those contracts not improved, these would be put into a
fund that would be used to fund higher education, after obligatory unfunded
accrued liability payments. Certain contracts such as mandatory spending would
be exempt. He said to the House
Appropriations Committee that it would increase transparency.
Treasurer John
Kennedy pointed out that this bill could intercept contracting to
out-of-state entities like universities and divert it to in-state
institutions. It would work in tandem with HB 376
by Rep. Lance
Harris.
Rep. John Schroder
said he thought this a good idea, except that it made the fiscal process
even less flexible. Kennedy said a bill like this would not be needed if
executive orders were issued that do the same. Schroder said he would be
more comfortable with it if the dedication part were removed.
Gov. Bobby
Jindal Administration officials said it would have affected $29 million
in current contracts, and perhaps 10 percent might get rejected. It
concerned them that this would add time to the process, removed the ability
of agencies to budget by forcing them to forfeit money, would push the
money a year into the future for use, and created budgetary
unpredictability through lack of coordination. They said the Legislature
can mandate these things through the appropriations process, rather than by
micromanagement. Depending upon the frequency of rejection, the expenses of
following it might actually exceed savings. And, transparency of these
contracts already was possible, given the state’s tracking system.
Rep. Brett Geymann
said he didn’t see a problem with this. He said the Legislature ought to have
such review power, it would force better contracting knowing this step was
part of the process, and that it really didn’t interfere with executive
powers nor constituted micromanagement.
On closing, Kennedy claimed the number of contracts and
money involved was much higher. He also put forth alleged episodes of
violation of separation of powers, presumably to show that the point was
moot.
Without objection, the bill was reported favorably.
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