[StBernard] An Update from Bobby

[Westley Annis]

Dear friends,

I have spent a lot of time on both the north and south shores over the
past weeks.  I know many of you are looking forward to returning home,
even if only briefly, to see what damage has been done before leaving
again.  Though the situation is improving slowly, much work remains to
be done.  The waters are receding and the recovery efforts are beginning
in earnest.

These past weeks, I hosted town hall style meetings in which small
business owners, pastors and faith-based groups, and health care
professionals could speak with both federal and state representatives.
These meetings were an opportunity to try to cut through the red tape
and get people connected to the help they need, as well as to provide a
chance for representatives of the government to see just what is working
and what is not.  As we rebuild our homes and infrastructure, we need to
make sure we are helping businesses rebuild as well, so that there are
jobs for people when they come home.  Efforts like this, as well as
legislation we are working on to support local businesses with
rebuilding contracts and to cut through burdensome regulations holding
businesses back, will be a major step in bringing business back to the
region.

Rebuilding the gulf needs to be about more than government spending.  We
need to make sure that as people return home and restart their lives,
they have jobs waiting for them. The tax package that I recently
introduced calls for the elimination of the capital gains tax within the
"Gulf Opportunity Zone," i.e. those areas impacted by Hurricanes Katrina
and Rita.  This will spur investors to take business risks in these
uncertain times, stimulating additional investment and capital in the
region.  The bill additionally calls for a temporary tax deduction for
new business equipment and infrastructure purchases within the "Gulf
Opportunity Zone," further stimulating business investment, as well as
an expansion of New Market Tax Credits (NMTCs), with the additional tax
credits directed at community investment projects. I have also called
for a temporary lifting of income taxes, and for the state to eliminate
the tax on debt, new equipment, and utilities.

I have also introduced legislation requiring Louisiana businesses,
particularly small businesses, be given a chance to participate in
rebuilding the region.  The legislation will declare the disaster area
for both Hurricanes Katrina and Hurricane Rita a HUBZone, under which
local businesses are provided certain assistance in financing.  The bill
specifically focuses on small businesses, which otherwise would not be
able to compete for rebuilding contracts, encouraging that 30 percent of
all contracts be awarded to local small businesses. As of October 10,
only 3.44 percent of all the rebuilding contracts had gone to Louisiana
firms. Local businesses that have tried to help with everything from
debris removal to providing trailers for evacuees, only to find they are
not given the chance to bid and that those contracts have been given to
out of state companies.  This is completely unacceptable.

There is more that should be done to spur the economic recovery of the
region.  I am working on legislation to set up a presidential appointed
board to examine all federal rules and regulations that will impact the
recovery effort, as well as to help remove regulations that may hinder
the recovery effort.  We need to break through the red tape and
bureaucracy that is holding us back.

Too many of our companies cannot last the standard federal waiting
period for help.  They need it now.  This business support needs to
happen immediately and the federal government can lead by example,
bringing their offices and infrastructure back to the region.
Operations like the National Finance Center can return, bringing jobs
and opportunity with them, and demonstrating the federal government's
commitment to the recovery.

In addition to those economic development bills, we have introduced
legislation to help colleges and universities, as well as their
students, that have been so affected by this tragedy.  A bill that I
introduced a few weeks ago, to prevent students who have received
federal financial aid from being penalized for having their studies
interrupted, has been signed into law by President Bush.  The bill
allows the Department of Education to waive regulations that would have
required these students to begin paying back their loans due to the
interruption Hurricanes Katrina and Rita have caused.  Additionally, a
second bill I introduced has been signed into law just this last week.
This bill supports local colleges and universities by providing them
with additional federal money, and extra time to allocate it, in order
to allow those same institutions to pass that money along to their
affected students.  This bill secures $36 million for the universities
impacted by the hurricanes.

Furthermore, as the House has begun debating America's energy needs
again, I worked to include another provision that will allow Louisiana
to share in royalties generated by drilling off our shores - money that
will be directed to coastal restoration.  Some of you may remember I was
able to get a similar provision included in the first energy bill, only
to have it stripped from the final bill by the Senate.  That provision
would bring Louisiana just 18 percent of royalties; this new provision
will let Louisiana share in 50 percent royalties generated off our coast
immediately.  That will result in as much as $2 to $4 billion yearly for
coastal restoration, and hopefully some concrete action to reduce the
effects of future hurricanes headed in our direction.  The bill will now
go to the full House and the Senate.

Finally, my last email contained a link to an op-ed I wrote that
appeared in the _Wall Street Journal_ discussing the bureaucratic red
tape that hampered the hurricane relief efforts.  Unfortunately, the
link directed you to a subscription only site.  I apologize for the
confusion.  Here is a link to the text of the op-ed if you are
interested in reading it

<http://www.bobbyjindal.com/reelect/weekly_updates/09.28.05%20-%20wsj_editorial.htm>. 


Additionally, here is a link to the text of my second op-ed, regarding
the rebuilding of Louisiana, which appeared in the _Washington Times_
  (http://washingtontimes.com/op-ed/20050920-100500-8951r.htm), and a
third, about improving our nation's health care system, starting with
Louisiana, which appeared on _National Review Online_

<http://www.bobbyjindal.com/reelect/weekly_updates/10.04.05%20-%20nr_editorial.htm>).

As always, please contact my office if you have any questions or there
is anything we can do for you.

Bobby Jindal