Tri-City area takes a hit from state capital cuts

BATON ROUGE — More than a quarter of a billion dollars in eliminations and reductions to Louisiana’s capital outlay projects for the fiscal year beginning July 1 were dispatched to the full House on a unanimous vote Monday in the Ways and Means Committee following the introduction of 375 amendments to House Bill 2.
The measure axes approximately $330 million in state funded projects around the state as a result of the dwindling funds for those projects, and prioritizes projects that have already started.
Ways and Means chairman Rep. Neil Abramson, D-New Orleans, said in past years the Louisiana Bond Commission approved cash lines of credit for capital outlay that the state would not be able to repay.
“If we were going to build a $1.5 billion house, what we have in our checking account to pay for that house is $300 million and we can only borrow $435 million from the bank every two years,” Abramson said. “So we have to prioritize in a way that is fair, transparent and ultimately affordable.”
If HB2’s cuts are not approved, the state would have a $735 million shortfall for construction projects and would not be able to pay for incoming invoices as state and local outlay ventures get underway.
Abramson explained to the committee that once a line of credit is approved by the bond commission, the project can begin and an invoice can be sent to the state, despite the possibility that the state cannot pay for it.
“People are going to ask, ‘Why did you leave a golf course in?’ ‘Why’d you leave something in it rather than a road or bridge?’ It’s because we are halfway through the project and it makes economic sense for us to finish it.”
Members of the Senate Revenue and Fiscal Affairs Committee complained Monday afternoon of a complete lack of communication between the House and Senate on Abramson’s bill.
Abramson attributed the communication issues to a lack of time, stating he only had since last Thursday to work on the bill.
Sen J.P. Morrell, D-New Orleans, said he’s been fielding phone calls from local governments that have worked for years to come up with matching funds for projects in HB2, only to have those projects axed when amendments were offered up by Abramson.
“To say I’m troubled by the way this whole thing went down is an understatement,” Morrell said. “The amount of communication that does not take place between these two chambers is chilling.”
Democratic Sen. Karen Carter Peterson, also from New Orleans, suggested different Reps should carry those bills, instead of the committee chairs.
“[The bill’s introduction] is not leadership and is certainly not in the cooperative spirit that is necessary in this fiscal crisis,” Peterson said.
Morrell said the way the House handled HB 2 will have no impact on what the senate will do with those amendments, and changes are expected once the bill reaches the upper chamber.

St. Mary projects
eliminated from
capital budget
—Morgan City: La. 70 drainage improvements
—Morgan City: Water plant improvements
—Patterson: Replacement of water and gas meters
—St. Mary Parish: Kemper Williams Park recreational improvements and acquisitions
—St. Mary Parish: Construction of DeGravelle Access Road to Duhon Bypass Road in Amelia
—St. Mary Parish: Centerville Park recreation and infrastructure improvements
—St. Mary Parish: Charenton Beach Road reconstruction
—St. Mary Parish: Flattown Road reconstruction
—St. Mary Parish: Construction of New Hospital in Franklin for Hospital Service District 1