Lt. govenor believes La. should use all of stimulus

If Lt. Gov. Mitch Landrieu had his way, Louisiana would take every penny of the stimulus package offered by President Barack Obama.

Speaking before the St. Mary Parish Industrial Group Monday, Landrieu said refusing the funds would mean Louisiana taxpayers are, in essence, subsidizing work in Arkansas, Iowa, California and other parts of the nation.

Landrieu struck a familiar nerve during Monday’s address when he said budget cuts to higher education – including at Nicholls State University – will “decimate economic development.”

“If the budget is cut at Nicholls and at LSU, ULL and UNO, things would be compromised to the point that you won’t have higher education pushing economic development where it needs to be,” he said.

The lieutenant governor’s address at the Morgan City Auditorium came three days after a press conference at the same location by Gov. Bobby Jindal, who said legislators need to give him the authority to screen the state’s entire budget so that he can make wise decisions in slicing $2 billion from the package. State lawmakers will be faced with the task when they convene for a fiscal session later this month.

“Let me be clear about this, the governor and I are good friends. And we’re partners,” Landrieu said. “But if we cut this budget fast and not the right way, years from now we could be really sorry that we were not prudent administrators.”

Landrieu blamed the state’s financial situation on two factors: about $800 million in tax breaks paid to taxpayers and businesses during former Gov. Kathleen Blanco’s tenure and last year’s state budget, which was about $1 billion higher than Jindal’s first year in office.

“Our laws fix our budget so that it must be balanced, and therefore, we cannot spend more than we take in – that’s a good thing,” Landrieu said.

However, he said if the state opts not to roll back millages, even temporarily, and if Jindal continues to refuse to spend the state’s “rainy day fund,” the choices will be difficult. “Wise cuts need to be made so that when the economy bounces back, the state can grow wisely,” he said. “It’s really unfortunate that Gov. Jindal has taken the position he has in not touching any of these other funding sources.”

Landrieu said decisions made during Blanco’s administration coupled with the moves Jindal made after he was elected were intended to propel the state’s economy. “But a funny thing happened on the way to the forum – no one saw what was coming down the road on a national scope,” he said.

Landrieu said the state’s Appropriations Committee is now faced with the job of trimming the budget. “It’s going to be unfair to criticize these ladies and gentlemen on the cuts they make without giving them resources to fund them,” he said.

“It’s simple. We’re playing between the 40-yard lines right now, and If we don’t give those legislators and our Governor the room to use every tool available so that the budget cuts will not decimate education and health care, we will downsize too fast,” he said. “And health care is the only industry in the state that is growing. Yes, health care needs reform, but the wrong cuts could compromise the health and welfare of the citizens of Louisiana for many years to come.”

Unlike Jindal, who has argued that accepting some stimulus money could cost Louisiana later, Landrieu favors taking the funds.

“I think we should take every penny we can as long as we spend it wisely,” he told the crowd. “If we don’t take that money, Gov. (Arnold) Schwarzenegger is going to take it or Gov. (Charlie) Crist is going to take it. This money is not going to be put back into the Federal budget to be spun around again. This is competitive money, and it can position Louisiana to compete on national levels.”

In short, Landrieu said the state “should not be ashamed to take stimulus money. It is our money. We’ve been sending it Washington for years now, straight from the Gulf of Mexico.”