[StBernard] Blanco expects special session

[Westley Annis]

NEW ORLEANS -- Gov. Kathleen Blanco said she expects a special legislative
session, perhaps this year. But she urged lawmakers Saturday to not call one
until she can bring them a "total package" _ one with proposals for an
insurance bailout and, possibly, tax incentives to bring one or more "mega
projects" she's been courting to hurricane-ravaged Louisiana.


In exchange, the governor told members of the Louisiana Legislative Women's
Caucus that she would work with lawmakers to address insurance relief: "We
will honor any of your ideas, and hope that we can put a package together
that actually works for the long haul."

Earlier this week, Blanco proposed a relief plan for the cash-strapped,
state-run property insurance company and for policyholders. It calls for
using money from an expected budget surplus and a state emergency fund and
for selling what's left of the state share of a national tobacco settlement
to bailout the Louisiana Citizens Property Insurance Corp. The plan also
calls for sending policyholders refunds for a one-time insurance surcharge.

The firm has been financially strapped since last year's hurricanes, and
many lawmakers have expressed interest in some sort of relief package. The
debate lies in how best to fashion one.

Rep. Nita Hutter, R-Chalmette, and chairwoman of the 25-member caucus, said
she believes it's incumbent on legislators to address the insurance issue,
but that lawmakers will need to look at all possible funding sources.

Blanco also told the lawmakers that the state is working to attract dozens
of new businesses to Louisiana, parts of which are still recovering from
hurricanes Katrina and Rita last year; four or five of those prospects are
"mega projects," which she said could cost billions to set up or result in
thousands of workers getting jobs.

The courting is "very, very close" to paying off with one or two firms, she
said. She wouldn't name names but said the state hopes to take advantage of
rebuilding efforts in the region by attracting manufacturers.

She expects, however, that the state would have to come up with a proposal
to ensure the companies come to Louisiana. Such a proposal, she said, could
include tax incentives or promises for a trained work force.

"We're out there fishing and hoping to land a big one, or two or three,"
Blanco said in an interview.

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