Some senators criticize plan to sell state land

Gov. Bobby Jindal’s idea to sell state property to offset budget gaps drew complaints Friday from state senators who said it doesn’t make sense to generate short-term cash relief for long-term money woes.

Members of the Senate Finance Committee discussed the sale proposals as they combed through spending plans for the Department of Corrections. A day earlier, Jindal floated the idea of selling two state prisons, along with other office buildings and future lottery proceeds, to partially fill in the $1.6 billion shortfall in the 2011-12 budget that begins July 1.

Selling state-owned prisons in Allen and Winn parishes, which already are operated by private companies, would generate an estimated $64 million, Corrections Secretary Jimmy LeBlanc said.

Senators said the proposal could increase state costs over time because the state would be at the whim of private operators who would own the facilities. When pressed, LeBlanc acknowledged he wouldn’t recommend selling the prisons if the state wasn’t in a tough budget situation.

“What happens after the $64 million is used one time and then goes away?” asked Sen. Karen Carter Peterson, D-New Orleans.

“Hopefully, it’ll buy enough time to get us through a difficult time,” LeBlanc said.

Peterson called the suggestion of selling state assets irresponsible. Sen. Dan Claitor, R-Baton Rouge, said while “sometimes you have to have a garage sale to raise a little bit of money,” he doesn’t think the sale of prisons and other state buildings makes sense.

Jindal said Friday that he’d only support the prisons sale if it wouldn’t raise costs and would save the state ongoing maintenance expenses.

“We would only do this if it makes sense for the state financially,” he said.

The Jindal administration is looking for ways to close budget gaps next year without raising taxes, which the governor has refused to support.

When he announced the sale proposals Thursday, Jindal stressed that he’s only considering them to possibly lessen cuts. He hasn’t yet committed to recommending any of the ideas to state lawmakers as part of his budget proposal, to be presented to the Legislature in March, but he said the dollars raised could help reduce slashing to health care and public colleges.

“We’re still going to have to shrink the size of government, so I think it can make sense to use one-time money to continue to restructure government,” Jindal said.

Resistance is expected in the state House, where lawmakers have repeatedly bristled at recommendations to use one-time sources of revenue to pay for continuing programs. Senators also raised similar concerns Friday.

“I think it provides some short-term cash flow relief,” said Sen. Mike Michot, chairman of the Finance Committee. “The concern is that there’s no long-term recurring source of revenue for the state.”

Michot, R-Lafayette, said the idea of selling state buildings and then leasing them back runs contrary to the path state officials and lawmakers took a decade ago under Gov. Mike Foster. Then, new state buildings were constructed, with arguments that it made more sense for the state to own its own offices, rather than leasing space.