[StBernard] Hopefuls debate $1 billion's fate

Westley Annis westley at da-parish.com
Thu Sep 20 21:49:00 EDT 2007


Hopefuls debate $1 billion's fate

By MICHELLE MILLHOLLON
Advocate Capitol News Bureau
Published: Sep 20, 2007 - Page: 1A

One candidate for governor wants to build roads with newly found state
money. Another wants to pay down debt and a third wants to study the
markets.

The better-funded candidates for governor began Wednesday to formulate their
spending plans for the $1 billion in extra funds anticipated by state
economists on Tuesday.

There are limits to how the money can be spent. The extra funds can be used
primarily on one-time expenses such as construction, paying down debt,
coastal restoration and road projects.

Unless a special session is called before the end of the year, the next
governor and the next Legislature will determine how the extra money is
spent.

U.S. Rep. Bobby Jindal is taking a cautious approach, saying he wants to see
what kind of financial condition the state is in by December.

"I'm certainly glad (legislators) didn't know they had the money six months
ago because they would have spent it if they had," he said.

Jindal, R-Kenner, said he also wants to watch Wall Street to evaluate the
amount of return the state could get from leveraging the offshore revenue
stream to restore the coast.

Public Service Commissioner Foster Campbell, a Bossier Parish Democrat,
wants to tackle the state's retirement debt.

The state's retirement systems are about $12 billion short of the money
needed to pay all the promised benefits at one time.

"If we've got that kind of money, we ought to get it rock solid," Campbell
said of the anticipated surplus.

He said he wants to make the state financially sound.

State Sen. Walter Boasso, D-Arabi, said he wants to put half of the surplus
toward road projects.

The state's backlog of road and bridge needs is $14 billion.

Boasso said he wants to spend $400 million of the surplus on "practical
solutions" to coastal restoration.

Like Campbell, he also wants to pay down debt.

Another candidate for governor, New Orleans businessman John Georges, who
has no party affiliation, did not respond to a request for comment.

State economists said Monday they expect $1 billion will be left over from
the spending year that ended on June 30. Most of the extra money comes from
strong corporate and personal income tax collections.

The surplus would give state government two back-to-back years of having
nearly $1 billion left over once the books are closed.

Besides surging income tax collections, oil prices are soaring, creating
record revenue for state government.

The surplus for the fiscal year that ended June 30, 2006, topped $800
million.

Jindal has been critical of Gov. Kathleen Blanco's spending practices,
especially her $30 billion state budget for the current fiscal year.

Blanco administration officials touted the $1 billion surplus as vindication
of complaints they were financially reckless.

Jindal said Tuesday that he expects the state to continue to see large
amounts of revenue for the next few years.

His concern, he said, is spending the money without developing a set of
priorities.

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