The ‘Louisiana Way’ Forward

The news coming out of Washington, D.C., these days paints a clear picture of the “Washington Way” to address our current national economic challenges.

Of course, there is no disputing that the national economic recession is affecting every state in the country. The Center on Budget and Policy Priorities reports that a total of 48 states are facing budget shortfalls. Sales taxes, which are the largest source of state tax revenue, are declining due to the fall in both personal consumption and business purchases.

The U.S. Census Bureau reported that state tax collections fell 17 percent in the second quarter of 2009, marking the worst decline ever. Now, 42 states are projecting deficits for 2011, and while we hear folks in D.C. talk about “jobs, jobs, jobs,” all we see them do is “spend, spend, spend.”

Washington has shown us that the “Washington Way” to deal with these national economic challenges is to spend more money, print more money, borrow more money, and raise taxes to get more money from Americans. As a result of all this spending, our level of national debt is now beyond description and the numbers don’t even seem real. The new proposed budget from the White House projects the national debt will double to $26 TRILLION, and their budget also includes $1 TRILLION in more taxes.

This year, the federal debt totals more than $40,000 for every American, or more than $100,000 per household. Yet, the federal government continues to spend our children’s money by borrowing from China.

Here in Louisiana, we have taken the opposite approach of Washington D.C. When revenue is down, we only have two choices: we can raise taxes on people or businesses to keep government spending the same, or we can tighten the belt on government and find savings. The most important thing I have to say on this point is that we absolutely will NOT raise taxes on our people or our businesses. Period.

Instead, we have presented a FY 10-11 budget that forces government to live within its means, reducing spending by 18 percent, and makes the hard decisions to reduce spending and cut costs, all without raising taxes. This is the Louisiana Way forward. We will not follow Washington’s lead and spend money we don’t have or borrow money we can’t pay back. In Washington they believe we can spend our way to prosperity. In Louisiana we know that is absurd.

The Louisiana Way forward means protecting our priorities while working to make government smaller and more sustainable.

In fact, the FY 10-11 budget we presented makes no cuts to higher education schools or the MFP formula that funds our K-12 education system. It also protects critical services in health care and has no eliminations of Medicaid services or changes to eligibility requirements.

The budget includes reforms and efficiencies in every area of state government. Some reforms eliminate non-vital services or property, while others merge the operations of agencies with similar functions in other areas of government. We must make government smaller and more sustainable so that even when state revenues grow again we can build onto a smarter and more efficient foundation.

We made no cuts to higher education schools in this budget not only because our colleges and universities are a top priority, but because we want to give schools time to reform their systems and improve their outcomes. Today, Louisiana has the second lowest college graduation rate in the South. We wouldn’t accept that kind of performance on the football field and we shouldn’t accept it for our students. In the months ahead, we will work with higher education leaders to give them the autonomy and flexibility needed to drive improved graduation rates for students.

I can predict right now that there will be critics of the Louisiana Way forward. There will be those who do not want government to be smaller, those who do not want to reduce government spending or make the hard choices to live within our means.

They will cry out for the Washington Way. They will say we should raise taxes on our people and our businesses and just wait until state revenues rise again.

I will tell these opponents plainly that the Washington Way does not work, and we will not try the Washington Way in Louisiana. We will not send the government’s spending bill on to the Louisiana taxpayers who are already working to make ends meet in this challenging economy.

We will not raise taxes.

Since taking office in 2008, we have made economic announcements that create more than 35,000 new direct and indirect jobs, and generate more than $4.6 billion in new capital investment.

The facts are clear that the Louisiana Way of keeping taxes low and cutting government bureaucracy means a growing economy and more jobs for our people. We will not go backward.

There is no doubt that the Louisiana Way forward is bold. It will require change and it will require reform.

But, the outcome will be the New Louisiana we have been working toward since day one – a place where each and every one of our children has the opportunity to pursue their dreams right here at home because Louisiana will be the best place in the world to raise a family, get a great education and pursue a rewarding career.