The 2nd Special Legislative Session began last Sunday, March 9th and is scheduled to end no later than March 29th. Governor Bobby Jindal’s agenda is anchored by business tax breaks and spending the state's $1.1 billion surplus left from fiscal year 2006-07. The governor is also proposing a personal income-tax deduction for private-school tuition and dedication of certain revenues for transportation expenditures.
HB 46 is the surplus spending proposal that will dedicate $515 million in onetime aid for roads, bridges and other infrastructure, $300 million for coastal improvements and hurricane protection, and $185 million for Pennington Biomedical Research Center, for repair of college buildings and to pay down Louisiana’s public retirement debt. The committee made one change to the bill adding $30 million to aid 6,000 roads that do not qualify for federal funding. This measure now moves to the house floor for debate.
SB 11 and HB 4 dedicate a percentage of vehicle sales tax to the Transportation Trust Fund (TTF) to be used for building and maintaining our state’s transportation system. Currently, that money is deposited into the State General Fund to spend on various state services. Under this new legislation, these funds would gradually be moved into the TTF for transportation expenses only. SB 11 and HB 4 will be heard on the floor this Wednesday afternoon.
The biggest tax relief measures, HB 1 and SB 13, would eliminate one cent of the sales tax that businesses pay for electricity and natural gas. This permanent penny is the portion of the tax that would remain after the phase out under the current law. The House Ways and Means Committee and the Senate Revenue and Fiscal Affairs Committee approved their version of the bill. Both measures will be debated on the house and senate floors later this week.