Jindal touts higher ed relief

Gov. Bobby Jindal revealed five revenue-producing ideas to offset cuts to education in the state’s 2012 fiscal year budget after he reiterated his commitment to not raise taxes during a speech at the Larose Civic Center on Thursday.

Jindal said his office is meeting with lawmakers and higher education leaders to discuss the ideas, which could generate $800 million in additional revenue if each one is implemented. However, the governor insisted the proposals are a long way from being finalized.

“We’re not saying all these ideas make sense or that we should do all these ideas,” Jindal said. “But we’re looking at these and other creative ideas because we think it’s absolutely important to help protect higher education and health care.”

The selling of surplus state properties and buildings, estimated to generate about $13 million, is the most likely idea to come to fruition; it’s followed by privatizing jail facilities in various parishes, estimated to generate $30 million per jail, and privatizing the state employee health care plan, estimated to generate more than $100 million, in decreasing order of likelihood.

“[State employees’] PPO (Preferred Provider Organization) is run by the state,” Jindal said. “When you look at that, we’ve got over 100 state employees. Other states in the south don’t have that many employees. We’re looking at potentially selling that plan to the private sector as well.”

Private corporations currently oversee the jails in Allen and Winn parishes.

The final two options, more lucrative and less likely, are bonding future lottery proceeds for an estimated $250 million, and selling “routine” state office buildings, estimated to generate more than $400 million.

The governor said his office is also considering a second version of the Grad Act. The original, LA GRAD Act was signed into effect last June and gives universities the ability to raise tuition if they meet performance thresholds and their governing boards approve.

Jindal’s comments came after a 40-minute speech to community members and elected officials at the Larose Civic Center hosted by the Lafourche Chamber of Commerce and Thibodaux Chamber of Commerce. The appearance in Lafourche was part of the governor’s “Building a Better LA for our Children” parish tour.

The governor touched on how bureaucracy hampered the state’s cleanup efforts in the wake of the BP oil spill, but the crux of his address was economic development and keeping Louisiana people from leaving the state after college by not increasing taxes and focusing on education.

“For 25 years we have been the only state in the south that has been exporting our people n our sons and daughters,” the governor said. “We are the only state in the South that consistently has more people moving out of our state than into our state. We have to stop that.”

The governor said it’s time to “level the playing field,” and rehashed tax breaks on debt, new equipment and utilities for businesses in the second session of the state legislature to put the state on an even tax keel with neighboring states to improve the opportunity of luring corporations to Louisiana.

Among the tax cuts was the elimination of sales tax on manufacturing machinery and equipment, the elimination of sales tax on natural gas and business utilities and the elimination of a franchise tax on corporate debt.

“If Mississippi can do it, if Alabama can do it, we should be able to figure it out as well,” he said.

Gov. Bobby Jindal speaks at the Larose Civic Center Thursday. Of chief concern at the luncheon was increasing economic development and fully financing higher education across Louisiana. ERIC BESSON