Louisiana OKs Fiscal Powers for Governor

Faced with a fiscal crisis that threatens to bankrupt state government, Louisiana’s Legislature finished work Saturday on a package giving Gov. Buddy Roemer unprecedented budget authority.

“It was not my personal influence. It was the circumstances we found ourselves in,” Roemer said when the special session ended after a little more than five days.

Roemer received bills that will give his Administration temporary authority to slash spending and impose emergency fee-increases for state services.

The governor plans to sign the bills Monday, press aide Jeff Cowart said.

Lawmakers also approved a bill that would create a statewide taxing district with the authority to impose a 1-cent sales tax to pay off the state’s long-term debt of $1.3 billion, which has been accumulating since 1982.

State Recovery Commission

That bill would create a proposed Louisiana Recovery Commission to administer the tax. But it could not issue bonds or impose the tax until the Legislature revokes a penny of the current 4-cent sales tax.

The statewide taxing district was proposed as a method of getting around a constitutional prohibition of dedicating existing taxes to pay off deficits. The Administration plans to ask the Louisiana Supreme Court to rule on its legality.

After he signs the budget-cutting bill, Roemer will have the authority until June 30 to cut up to 20% from department budgets, eliminate entire programs and close institutions to keep the state from running out of cash.