Lawmakers: Businesses must sacrifice for higher ed

Legislators told business leaders Monday they must support the lawmakers when they begin eliminating tax credits and rebates that benefit their companies' bottom line if higher education cuts are to be mitigated.

About 50 business leaders from Ouachita, Lincoln and Natchitoches parishes met with 10 legislators — among them the House Appropriations and Senate Revenue and Fiscal Affairs committee chairmen — at the Monroe Civic Center.

"I don't want to throw a wet blanket on this, but I've heard today that higher ed is short $211 million or $111 million, which means (Gov. Bobby Jindal) did a good job in presenting his proposed budget Friday," said state Rep. Jim Fannin, R-Jonesboro, whose committee is charged with crafting the budget.

"But it's $565 million short for higher education," Fannin said. "Now, the governor said he's willing to support things that could raise $526 million to help, but that's not an easy thing to do."

Most of the revenue proposed to mitigate the cuts would come from the elimination of some business tax credits.

"Those tax credits benefit businesses, so I'm asking you if you're going to support that. It's about what you as the business community and chambers support. At the end of the day, y'all need to take a position."

"We have to start by looking at tax breaks," state Sen. Francis Thompson, D-Delhi said.

The meeting, which was convened by the Monroe, West Monroe-West Ouachita and Ruston-Lincoln chambers of commerce, began with testimonies from business people to the lawmakers about how important higher education was in providing graduates to their companies.

Representatives from CenturyLink, the largest public company headquartered in Louisiana, and statewide insurer Vantage Health Plan were among those who spoke to support higher education.

Mayors from Monroe, West Monroe, Ruston and Natchitoches also made a plea for lawmakers to save higher education while Louisiana Tech University President Les Guice and University of Louisiana at Monroe President Nick Bruno looked on.

But when it was the lawmakers' turn, they put the onus back on those in the audience.

"Everybody in this room is touched by one of the exclusions, credits or rebates," said state Sen. Neil Riser, chairman of Senate Revenue and Fiscal Affairs. "If anybody wants to forgo his credit, I'd like to see a show of hands."

"If we do all of things the governor (proposed) in his budget, just about all of the tax credits we're talking about benefit businesses," said state Sen. Mike Walsworth, R-West Monroe.

State Sen. Bob Kostelka, R-Monroe, said people and businesses "have to pay the taxes they owe."

"We've tried tax amnesty and tax incentives, and it hasn't worked," Kostelka said. "We're going to have to cut back on tax incentives and giveaways. This is going to mean some of you aren't going to like that, but we can't afford it anymore. You can't just come to us about what the universities don't have and expect us to flip a switch. You have to back us up."

Kostelka's final session will be this spring because he is term limited.

"I've got one more time and, dammit, I want to go out fighting," he said.

Monroe Chamber President Sue Nicholson told lawmakers she believed her board and the state business community will be willing to consider supporting some tax credit reform.

"We hear what you're saying, and we're looking for solutions," she said. "We know there will be some things we don't like but for the benefit of the state we're willing to do that."

But Monday afternoon the powerful Louisiana Association of Business and Industry was already pushing back.

LABI President Stephen Waguespack wrote in opposition to repealing the inventory tax credit.

"Repealing the inventory tax credit is bad policy and a tax increase we simply cannot afford," he wrote.

Instead, he advocated repealing the inventory tax itself.

"The solution is easy to see if you just read my lips: We can't afford this tax."

"It could be a tug of war between higher ed and business," Walsworth said.

Follow Greg Hilburn on Twitter @GregHilburn1