Roemer Touts the Gulf South Region

Former Gov. Buddy Roemer said the Gulf South has the best economic outlook in the nation over the next 25 years. He added, Southwest Louisiana is “at the center of the best part of the country.”

Roemer, 65, voiced this optimism before an audience, Feb. 13, at the Republican Roundtable Meeting in Lake Charles.

First, he cited a number of disturbing facts, including:

• Of 26,000 homes, all but five were completely flooded after Hurricane Katrina ripped through Louisiana;
• The country is experiencing the longest recession since the Great Depression;
• More Americans lost their jobs in the last two months than in the preceding seven years;
• And, 3 million Americans got mortgages from Fannie Mae and Freddie Mac, but  didn't make their first month's mortgage payment.

“Despite all of these facts, I am optimistic about Louisiana,” he said.

In a wide-ranging speech at Reeves Uptown Catering, Roemer discussed banking, politics and the need for optimistic leadership.

Banking

Roemer, who is the president and chief executive officer of Business First, announced the opening of his business in Lake Charles – Business First Bank.

He said the Business First Southwest Louisiana banking center will open Feb. 26, at 728 Ryan St.

It will be the fifth location in the state for his business-oriented bank. Business First Bank, part of the Shaw Group Inc., has locations also in Baton Rouge, Shreveport, Mandeville and Lafayette.

“I'm so happy to be in Lake Charles,” he said. “Calcasieu Parish overwhelmingly for me in every election.”

Roemer was elected governor serving from 1988 to 1992. Prior to becoming governor, he served in the U.S. Congress – elected in 1980 and re-elected three times without opposition.

He described himself as “an economist by trade” with a bachelor's degree in government and economics from Harvard University and a master's degree in business and finance from Harvard Business School.

In Congress, Roemer spoke about serving on the House Banking Committee with Barney Frank, the Massachusetts Democrat tied to the Fannie Mae and Freddie Mac fiasco.

Roemer said it was Frank who kept insisting that Fannie Mae and Freddie Mac were in good shape even when the Bush administration proposed tighter regulation of the two companies.

“Every night I'd see on the television, Barney Frank talking about banking,” he said. “George W. Bush should have put a lasso on him.”

As an economist, Roemer said the country can be divided into five major economic regions: The West Coast, Midwest, Northeast, Atlantic Coast and Gulf South.

“Louisiana is located in the heart of the best region of America,” he said.

He said Louisiana's at the heart of the Gulf South Region, which is abundant in water and energy – especially natural gas.

Other regions are not as fortunate, according to Roemer.

He said the economic outlook on both the West Coast isn't good with its large population and lack of water. The Midwest isn't doing any better, he added.

“Have you been to Detroit, lately?” he asked. “It's empty.”

Also, manufacturing jobs in the Northeast have disappeared. As a result, people in that region of the country have given up even looking for jobs.

“The Atlantic Coast has one advantage – they are better educated,” Roemer said. “The region is clearly superior to ours in that way.”

He said this is an area where Louisiana can improve and come out ahead.

“The region is undervalued and that translates into opportunity,” Roemer said.

Housing prices have remained steady and unemployment in Louisiana is the lowest in the nation, he noted.

Politics

“Leadership in Louisiana is going forward,” Roemer said. “The last three governors – Foster, Blanco, and Jindal – have brought something new and unique to Louisiana.”

During the Q and A portion of the program, he was asked if California Gov. Arnold Schwarzenegger had called seeking advice.

“No, thank God,” Roemer said. “Louisiana's current $2 billion deficit is not far off from what I faced when I became governor.”

Roemer entered the governor's office facing a $1.3 billion deficit in the state budget.

After winning the governorship, he balanced the state budget for three years, increased teacher pay, strengthened the department of environmental quality to enforce environmental laws, and toughened the laws on campaign finance.

Despite his accomplishments, Roemer finished behind former Gov. Edwin Edwards and former Ku Klux Klansman David Duke in the 1991 gubernatorial primary.

“Let me tell you what kind of politician I am - I lost to two convicts,” he joked.

Roemer admitted Gov. Bobby Jindal “called twice this past year.” However, the former governor declined to discuss what was said. He said it “was a private conversation.”

Admittedly, Roemer worked with U.S. Senator John McCain from Arizona as a key advisor. Like McCain, Roemer voiced opposition to the recent stimulus bill.

“If the president keeps this up, there will be a Republican president in the White House in the next four years,” Roemer said to thunderous applause.

The bank Roemer started in Louisiana represents a $50 million investment in the economy. He said they were the first to say no thanks to the government's bank bail out money.
Optimistic leadership
Roemer said political leadership has improved in the state because there is now real competition between Republicans and Democrats.

“We're a better state than we were 20 years ago – the reason is the Republican Party,” he said. “Competition is the thing – the exchange of ideas. With the exchange of ideas, we get better, and better and better.”

Roemer said when he was growing up, Louisiana was a one party state. He said that created an environment which lead to corruption in government.

In 1991, Roemer switched to the Republican Party – the only sitting governor to switch parties while in office.

He praised President Abraham Lincoln's stance on “majority rules” saying “that's how you build a nation.” Because of this, he urged everyone to respect the office of president.

“You do not have the option to opt out,” he said.

Roemer – a gifted orator – praised President Barack Obama's ability to communicate and inspire young people. He said the country needs optimistic leadership.

He said he wants to see the president succeed, because he wants America to succeed.

“I'm hoping Obama can do it,” he said. “My prayer is that the president's leadership stands up. We need it now.”

Roemer was widely mocked after a story appeared in the press explaining that he had staffers wear rubber bands on their wrists to snap whenever they had negative thoughts. Nevertheless, the former governor continues to promote optimism.

“I believe in the psychology of success,” he said. “Of course at the end of the day, you've got to do something. But, we've got to start talking and acting successfully if we're going to bring our children home to Louisiana.”

Sheriff Mancuso's Blueprint for a Successful Political Campaign

By Lisa Yates
Editor, The Times of SWLA

 


Calcasieu Parish Sheriff Tony Mancuso outlined the ins and outs of campaigning before a packed League of WoMen Voters meeting, Jan. 30, saying that a key to running a successful campaign is commitment.

Members, guests and even a few candidates were present at the noon luncheon, held at Reeves Uptown Catering, 1639 Ryan Street, in Lake Charles.

The sheriff drew from his experience of running successfully against an incumbent in 2003, before winning, in 2007, in an unopposed race. Prior to that, he was elected Ward 3 Marshal, serving two consecutive terms.

“I've been asked to share my views about what's helped me get through three full campaigns and one unopposed campaign – that's the best kind,” Mancuso joked.

He said campaigning is a “tough job.”

“Being a sheriff is easier than running a campaign – and being a sheriff is tough,” Mancuso said. “Running a campaign is tough, tough work.”

Community service

Mancuso explained the first step is community service.

“The person running for office has to be involved in the community,” he said. “Whether that be coaching or participating in organizations like the League of WoMen Voters, the  person has to have a history of community involvement.”

It isn't just something you start doing because you've decided to run for office, he said.

By working in law enforcement, Mancuso has amassed years of service to the community.

Prior to being elected sheriff, he worked 13 years for the Calcasieu Parish Sheriff's Office in the Corrections Division, Patrol Division and the Youth Division.

Mancuso began teaching DARE in 1992, and even as sheriff, continues to teach a DARE class. He was appointed by Gov. Blanco to serve on the Domestic Violence Law Enforcement Task Force. He was also appointed to serve on the Governor's Advisory Board of Juvenile Justice and Delinquency Prevention.

In addition, he participates in many local civic organizations, including Lake Charles Optimist Club, and the Sons of the American Legion.

Currently, Mancuso is serving as SWLA's United Way 2009 campaign chairman.

“You have to have a real passion for your community,” he said.

Promote yourself

Mancuso said you must define yourself well, otherwise your opponent will do it for you. Simply put, candidates must learn how to promote themselves.

“You have to brag on yourself,” he said. “Not only do you have to do your job, but you have to be good at promoting yourself. It sounds conceited, but it's one of the most important things you have to do. You have to be able to say 'I am good at this job' and 'I can excel at this.'”

To do this, a candidate must meet with voters, according to Mancuso.

Whether it be large crowds, small groups, or even one-on-one, it is important to meet the voters and ask for their support.

Mancuso asked voters what persuaded them to vote for him. He received a different answer than the one he expected.

“I expected to hear something about being the best candidate,” he said. “Instead, I got 'Why did I vote for you? You came and asked me – that is important to me.'”

Be committed

Mancuso stressed that commitment is key to running a successful campaign.

“You've got to be dedicated, committed – you've got to want to do the job,” he said. “You've got to give 110 percent to the campaign and not give up until it's over with. On election day I'm done campaigning – I'm mentally and physically exhausted. I save my energy that day – hopefully – for the victory party that night.”

He warned potential candidates: Campaigning starts early and ends much later than most day jobs.

“If you decide to run for office, you better be committed,” he said. “You better be prepared to work 12 to 16 hours a day. You've got to be committed and you've got to promote yourself.”

For Mancuso, that meant direct contact with voters. He said he attended every event possible - from baseball games to turkey runs.

A list of local events is available at Lake Charles/Southwest Louisiana Convention and Visitors Bureau, he said. He recommended candidates get the list and do as he did.

Mancuso stressed, a face-to-face visit with a candidate gives voters a better picture of who a candidate is than that which they see on television or read about in a newspaper.

“They can see you, smell you and touch you,” he joked.

In each of his campaigns, Mancuso said he worked long hours in order to get his message out into the community.

“When the day was done, I knew I did everything I could possible to do – I didn't leave any stone unturned,” he said.

Mancuso said successful candidates will spread themselves thin.

“You should go home and not have any trouble going to sleep,” he said.

Volunteers

Mancuso said volunteers were very important to his campaign.

“You can do all of these things I suggested, but if you don't have volunteers it's going to be tough,” he said. “You can't be everywhere.”

He said volunteers are needed to go out into the community to meet with voters and persuade people to support the candidate. They are also instrumental for identifying supporters, recruiting them as volunteers or registering them to vote if they are not already registered.

Mancuso said his wife Mickey, and children – Trey, Mary, and Morgan, were instrumental to the success of his campaigns. He said beginning with his first campaign, Mickey participated pushing a stroller down the street, as she visited with voters.

“I'm fortunate to have the support of my family,” he said. “I love being sheriff, but remember, your family is going to be around you a lot longer. It's important to have your family support you.”

Campaign manager

Successful campaigns usually require a campaign manager to coordinate the campaign's operations. Mancuso's campaign manager was Kim Myers, who serves as Community/Media Relations Director for the Calcasieu Parish Sheriff's Office.

“You need a Kim, but you can't have her,” he said jokingly.

Mancuso said his campaign manager was essential in executing a strategy to run against an incumbent.

“Going up against an incumbent can be very difficult,” he said. “Kim determined how many votes we needed to win.”

He said candidates must have a plan and know the voters, including their expectations.

“In 1997, I ran a very grassroots campaign,” Mancuso said. “Kim and I targeted where we could deliver our message. Obviously, you don't want to spend all of your time in an area where your opponents signs are all over the neighborhood.”

Fundraising

One of the most important aspects of a successful campaign is the ability to raise money, according to Mancuso.

“One of the most important pieces of advice was from someone who told me 'Look, don't go broke doing this,'” he said.

He said that meant going out and asking folks to contribute to the campaign.

“It's very humbling,” Mancuso said. “You see what people think of you. After all, you're asking people to be giving you money they're not going to get back. The only thing they get is a good elected official.”

He said he spent between $45,000 and $50,000 running for the Ward 3 Marshal's Office.

“The next race, I spent $120,000, against four opponents,” Mancuso said.

In a parish-wide campaign, he said be prepared to spend anywhere from $250,000 to $450,000.  Mancuso said to be successful against an incumbent, be prepared to spend twice as much.

“There's the primary and possible run-offs,” he said.

Campaign advertising

“The majority of the money you raise will be spent on advertising,” Mancuso said.

He said campaigning for the marshal's office was “very grassroots” compared to running for sheriff.

The first campaigns were lower-budgeted, more focused on low-cost advertising and direct voter contact.

“There were a lot of red beans and rice fundraisers, and jambalaya fundraisers,” Mancuso said. “It was very grassroots at the beginning.”

Running for sheriff was more expensive, heavily reliant on broadcast media and direct mail designed and purchased through a consultant.

“We still did the same types of things we did when running for marshal, we just hired a consultant,” Mancuso said.

His campaign advertising included push cards, yards signs and trinkets like fingernail files. More expensive paid media included, newspapers, radio, television, billboards and Internet advertising.

To save money, Mancuso recommended intensifying media advertising late in the campaign – advice he said he got from his media consultant, Peter O'Carroll.

“You learn and you hire a good person,” he said. “Get good advice.”

Ethics laws

Mancuso said it's the candidate's responsibility to learn and follow ethics laws.

For example, he said campaign finance reporting must be done in a timely manner. He told candidates that this information and available on the Internet for everyone to see – including the opponent.

He said there are classes to attend to learn about campaign reporting.

“You can do it yourself or hire a CPA experienced in campaign reporting,” Mancuso said. “I am fortunate to a have a sister-in-law in Sulphur with these qualifications. She also goes to the classes to stay current.”

Also, there are some prohibited actions when it comes to campaigning. Mancuso said it's important to find out what candidates can and cannot do when it comes to reaching voters.

“If they allow it, you should be doing it,” Mancuso said.

###
Fontenot announces candidacy for city council

By Lisa Yates

Getting city sewage service to south Lake Charles and widening streets to improve traffic flow are top priorities of John Fontenot, who announced his candidacy for the District G Lake Charles City Council Seat.

“Many people in south Lake Charles live within the city, but don't have city sewage – me, included,” Fontenot said. “In talking to the people of south Lake Charles, I understand that many want to see a widening of the streets to improve the traffic flow. I want to help make that happen.”

Fontenot made the announcement, Jan. 30, following Sheriff Tony Mancuso's presentation at the League of WoMen Voters noon meeting at Reeves Uptown Catering in Lake Charles.

He said the presentation provided some great tips, such as hiring a consultant. Fontenot hired FocalPoint Media & Marketing, saying the firm was instrumental in managing successful campaigns in the last election.

Fontenot said he entered the race because he believes the district needs strong leadership to represent the community.

“I want to serve my community and to help Lake Charles grow and improve,” he said.

He is a member of the board of directors of the Sowella Foundation, and the Calcasieu Women's Shelter. He serves the Greater Lake Charles Rotary Club as its sergeant-at-arms. He and his wife Jodi are members of St. Martin de Porres Catholic Church.

The District G council seat is now held by Mike Huber.

State's Top Priority: Develop and Retain Businesses

By Lisa Yates
Editor, Times of SWLA
 


Louisiana Secretary of Economic Development Stephen Moret said the state's top priority is to develop and retain businesses.

Moret delivered the keynote address at the Greater Beauregard Chamber of Commerce's Business and Community Leader's Luncheon, Jan. 16, in DeRidder, talking about economic highlights of 2008, and what's ahead for 2009.

More than 50 businessmen and women were present at the event, held at the Wooten Theatre.

One of the ways Moret suggested making the state better for business is to move up in national rankings.

“We're not where we want to be, but clearly we're headed in the right direction,” he said.

Moret said Louisiana's has perennially been listed at the bottom of many significant national rankings. However, with policy changes implemented by Gov. Bobby Jindal and the Legislature, the state is reversing decades of negative trends.

Moving up in the national rankings

He cited several improved rankings, including:

• La. is ranked fifth, up from 46th, in the country in the Better Government Association’s 2008 Integrity Index, which is the most comprehensive national ranking of state governmental ethics and transparency laws.
• La. is ranked 22 (2008), from not being ranked in the top 25 (2007), in Site Selection magazine's Top State Business Climate Rankings.
• Forbes magazine increased La.'s growth prospects to 17th (in 2008) from 45th (in 2007) among the 50 states.
• La. improved to No. 43 (2008) from No. 47 (2007) in CNBC's rankings of America's Top States for business.
• Industrial Info Resources ranked the state second, behind Texas, for the number of significant industrial projects expected to begin in 2009.

Attracting new jobs and capital investment

In spite of a lingering national recession, Moret told the audience Louisiana is well-positioned to secure new business in the year ahead.

He praised George Swift, SWLA Economic Development Alliance President and CEO, for his help attracting 1,400 new jobs to the state.

“Louisiana is the first state in the country to attract a nuclear fabrication and assembly facility,” Moret said. “The facility in Lake Charles – a joint venture between Westinghouse and The Shaw Group – will generate $100 million in capital investment and create 1,400 new jobs in the region.”

Working with local and regional partners, Moret said the state secured 34 major project wins in 2008, including 24 company expansions and 10 new organizations.

He said included were projects in the state's traditional industries like agriculture, shipbuilding and petrochemicals, as well as projects in newer growth industries like nuclear energy, digital media and alternative energy.

The secretary said several companies decided to move headquarters to Louisiana and others committed to expand in the state, including:

• Albemarle Corporation, a Fortune 1,000 company, moved its corporate headquarters from Richmond, Va.
• Bercen, Inc., a specialty chemicals manufacturer, relocated its corporate headquarters, as well as its research and development and technical service laboratories, from Cranston, R.I.
• The Shaw Group announced plans to keep its Fortune 500 corporate headquarters in the state for at least 15 more years, and to grow its professional, non-craft headcount by 1,500 new jobs – an increase of roughly 75 percent.

Moret added Louisiana's film industry is the largest in the country outside of California and New York. He said, in 2008, the state set a record with more than 80 major film and television project, which represent more than $800 million in production budgets with $500 million spent in state.

Major advances in economic competitiveness

Moret gave an overview of initiatives in 2008, that have improved Louisiana's economic competitiveness.

Besides ethics reform, the state's government launched additional initiatives making Louisiana more attractive for business development, including:

• Eliminating several business taxes, including the sales tax on manufacturing machinery and equipment, the franchise tax on corporate debt and the sales tax on natural gas and business utilities. They also implemented the largest personal income tax cut in state history.
• Passing a comprehensive workforce development reform plan.
• Launching the Louisiana FastStart program, a turnkey workforce solution for relocating and expanding businesses that will provide customized employee recruitment, screening and training services. Jeff Lynn, a top leader in Georgia's No. 1-ranked Quick Start program, was recruited to lead Louisiana's program.
• Establishing a new Business Retention and Expansion (BRE) Group to focus special attention on retaining and growing Louisiana's existing business and industry.

Launching a first-in-the-nation, Web-based suite of community education modules – LouisianaCommunityNetwork.com. The program has already won a major national award.

Moret concluded his presentation with a promise.

“My goal is to deliver the best state agencies in the country,” he said.

Kay Fox, Beauregard Electric Vice President of Marketing and Member Services, praised the secretary's presentation.

“I know working at Beauregard Electric, I was very encouraged to hear Secretary Moret's positive announcements about Louisiana,” she said. “And, I look forward to attracting new businesses to the area.”

Parish's Building Purchase is Staunchly Defended

By Lisa Yates
Times Editor




Officials respond to criticism levied by taxpayers

Responding to taxpayers' pointed criticism of spending $4.9 million for the Sprint U.S. Unwired building, parish leaders staunchly defended the purchase and praised it as a good deal for taxpayers.

Taxpayers, including Charles “Sharkey” Cox, a Lake Charles businessman, questioned why parish leaders paid this amount, when the same building sold for $3.4 million just a few weeks prior.

“I don't begrudge anyone making money,” he said. “There's just not enough information about it.”

Like many taxpayers in the parish, Cox is asking some tough questions. Why does the government need a new skyscraper? Also, who stands to gain from this purchase?

Parish leaders agreed to an interview with The Times in an attempt to answer these questions, and more.

Calcasieu Parish Administrator Mark McMurry said once all of the facts are known, the public will understand why the jurors voted unanimously in favor of the purchase.

Why not buy directly from Sprint?

McMurry said one of the misconceptions people have is that the police jury did not approach Sprint directly to purchase the building directly.

“We did try to buy the building from Sprint knowing full well that the property beneath it was owned by the investors,” he said. “We made an offer that was slightly higher than the investor's.”

McMurry said Sprint wanted to sell the building, but said the company expressed concerns about a potential lawsuit from the investment group.

In a separate interview, Rick Norman, a spokesman for White Building LLC, confirmed the investment group had grounds for a lawsuit.

“We have had the Sprint building tied up with contracts and/or litigation since February, 2008,” he said.

“We have no idea when the Police Jury became interested in the building and were surprised to hear that the Police Jury approached Sprint about buying the building after Sprint had agreed to sell the building to us. Had Sprint reneged on its agreement to sell to us, it certainly would have resulted in more litigation.”

McMurry explained that this was “an unusual situation” because the Sprint building was sitting on leased property owned by the investors.

Prior to White Building LLC ownership, the property was held by two separate land owners – each with a lease/purchase agreement with Sprint.

One of these landowners held property underneath the 11-story office building, while the other owned property under the parking garage, plus an adjacent piece of land. After more than a year of negotiations, the investment group purchased these, and other, tracts of land, before attempting to purchase the building.

During negotiations, however, McMurry believed there was a short “window of opportunity” to deal directly with Sprint for the building.

An offer was made “in writing” directly to Sprint. The administration provided The Times a copy of this offer, which is dated Nov. 7, 2008.

McMurry said this information is available to the public. Also, he insisted there was no collaboration with White Building, LLC to deceive the public.

“We didn't talk to the investors until Sprint turned down our offer,” he said. “We knew that if Sprint had accepted our offer, we would still have to get the land from the investors. We were willing to do that, even though it was not preferable.”

The spokesman for White Building LLC, also denied any wrongdoing during the transaction.

“Our first knowledge of the police jury's interest in the building came after we bought the building,” he said. “Our dealings with the police jury were always at arm's length. Our decision to sell to the police jury was a difficult one weighing smaller, immediate profits against larger long-term profits that might be adversely affected by the weakening economy.”

Why pay more than the investors?

McMurry said the $4.9 million price tag paid by the parish included more than just a new building. It included the following:

* The 11-story Sprint building, plus the land underneath it;
* A multi-level parking garage, the land underneath it;
* An additional tract of land, held by one of the original owners; and,
* Four separate, but adjoining tracts of land downtown.

In all, McMurry said this transaction resulted in the acquisition of more than 101,000 square feet of downtown property near the courthouse and administration offices.

Along with ownership, the parish was given the option to lease four additional tracts of land in the area, with an option to buy once the lease runs out. Cost of the lease is $96,700 a year for the four leases.

Calcasieu Parish Police Jury President Hal McMillin said an independent appraisal came in at $5.1 million, meaning the parish paid less than the appraised value of the property.

He said this appraisal is public record and available for public inspection.

The parish also provided The Times a copy of the 150-page document, which was prepared by Jack Bass, II, licensed real estate appraiser with Integra Realty Resources of Houston.

“This is a national firm,” he said. “They are extremely familiar dealing with property this big and they were able to work within a short time frame.”

He stated firmly that no impropriety was involved in preparing the appraisal.

“I've been an elected official for the past 14 years,” McMillin said. “I would not cut a deal on the side to jeopardize the integrity of myself or the jury. We're here to be public servants; and we're trying to do the right thing for Calcasieu Parish.”

He said the property was a great value for the price paid by the parish.

“To get  more than 101,000 square feet of contiguous property downtown near the courthouse and administration offices is great deal for the parish,” McMillin said. “They're not making any more downtown property.”

He added, the value of this property is likely to increase, given plans for future downtown development.

What about the timing of this purchase?

Echoing the concerns of some local citizens, Cox questioned whether this was the right time to be spending taxpayers' money.

“The timing of this was so poor,” he said. “I don't think our tax dollars should be used this way when many people in town are being laid off from their jobs.”

Cox added his property tax bill this year was significantly higher than the previous year.

Officials said they have taken action to roll back property taxes in the parish, but they understand the worsening national economy is affecting many people in this area.

“We have sensitivity to people's problem,” McMurry said.

At the same time, he said the parish's administration must do the job it is hired to do.

“Under state law, the police jury is obligated to house parish officials,” McMurry said. “This includes the staff and offices of the sheriff, district attorney, coroner, registrar of voters, district court, family and juvenile court, the clerk of court and tax assessor.”

McMurry feared by not acting now, taxpayers would pay more in the long run.

“This opportunity could have been lost for decades,” he said.

The purchase and leasing option enabled the parish to add much needed additional parking near the courthouse and parish administration building, according to McMurry.

He said prior to the purchase, the parish was working with an architect to build an additional parking lot on a much smaller piece of property.

“The cost of that project totaled $10 million,” McMurry said. “That would have added less parking at a greater cost. Now, in addition to the parking, the parish has an 11-story building.”

Did the parish need an 11-story building?

“Buying the building gives us options,” McMillin said.

His parish administrator said the new building will enable the parish to save money on property, which it is now leasing to house staff with the District Attorney's Office.

McMurry said moving the D.A.'s staff will free some space allowing the parish to solve some overcrowding in the Family and Juvenile Court system.

“Plans were drawn for a new Family and Juvenile Court building,” he said. “Estimated cost of that project was between $12 million and $13 million.”

In addition, McMurry said $300,000 a year in revenue from tenants leasing the 11-story building offsets some of the parish's operating expenses. He said occupancy is projected to grow with additional revenue expected.

Both the parish administrator and the police jury president said they have been put on the defensive since an editorial critical of the purchase was aired on a local television station.

They said public information laws were followed – local media was notified a week in advance. Also, information was posted on the parish's Web site.

In addition, each meeting is filmed and aired on the government channel for public viewing.

McMurry said this transaction was handled properly, no differently than any other property and building acquisition.

“There is nothing in our history to lead the public to believe that anything sinister was going on,” he said.

McMillin said he has always had an “open door” policy, where constituents can call or visit with any questions they have. He said he received several calls from citizens asking about this issue.

“Some folks were unclear about the process we must go through as a governmental body and the needs we have as a parish,” he said. “Once I explained, they were overwhelmingly in support of this purchase.”

Louisiana's Financial Armageddon: A Look at Midyear Budget Cuts

By Lisa Yates



In California, Gov. Arnold Schwarzenegger warned the state faced “financial Armageddon” unless lawmakers take decisive action to shrink a budget deficit that has ballooned to nearly $40 billion for the next two years.

Gov. Bobby Jindal used less colorful language, but his message was the same – Louisiana's spending spree must come to a halt.

“Just like in families and small businesses, state government has to live within its means,” he said in a news release.

Fiscal analysts reported a $341 million revenue shortfall for the current-year state budget, with next year's budget shortfall projected at $2 billion – about $750 million more than earlier estimates.

The state's current 2008-09 budget is nearly $30 billion.

Developed by Jindal and state lawmakers, that budget boosted state spending by $1 billion. Their next budget for the 2009-2010 fiscal year that begins July 1, will have to be trimmed. If not, it will cost $2 billion more than the state has to spend next year to continue running all of the programs and keep up with the costs of inflation.

Declining revenue

Louisiana's income from personal and business taxes is expected to decline, sales taxes are flat and the severance taxes and royalties tied to oil and gas prices are shrinking as mineral prices fall.

With those economic realities, and a $360 million income tax break the Legislature recently approved for middle- and upper-income taxpayers, the state's income streams will fall below what came in last year.

Jindal did veto the legislative pay raise.

And, he recently put a partial hiring freeze in place to help cut cost – a move expected to save more than $25 this year and more next year.

He's also asked state agencies to look at reductions they could make now to help lessen costs next year.

“Everything is on the table,” he said.

Well, almost everything – except raising taxes.

No new taxes

“Raising taxes is not an option, and would be the worst thing we could do in an economic downturn,” Jindal said.

The governor has to submit his recommended budget to lawmakers before they return for a regular legislative session in April, and lawmakers will craft a final version.

This could prove to be a career-defining moment for the governor as for Gov. Buddy Roemer who faced similar financial woes. He tried to enact long-lasting reforms to restructure and clean-up state government 20 years ago, but the Legislature would not go along with it. As a result, Roemer's rising political star sputtered and died.

Former President George H. W. Bush, who once said: “Read my lips, no new taxes,” backed out of his promise in order to reduce the national deficit. With a Senate and House both controlled by Democrats – he had to negotiate and raise several taxes as part of the 1990 budget agreement.

Will Jindal be able to deliver on his promise of no new taxes?

Barry Erwin, President of the Council for a Better Louisiana, believes the governor will deliver on this promise.

“I think the governor will balance the budget without raising taxes because he has already said that was his intent,” Erwin said.

“I don't get a sense from much of the Legislature that there is a desire to raise taxes at this time. That said, I think it is going to be extremely difficult. The amount that needs to be cut is huge and I don't think it can be done without impacting services of some variety.”

Erwin said there is always some level of cutting that can be done in state government without having a major impact, but with the level of cuts the state faces – he thinks the cuts will have to be much deeper.

“Again, there are certainly some 'easy' cuts that can be made, but after that we are going to have to start assessing our true priorities and make some hard decisions about how we can preserve the most important services in higher education and health care, while recognizing that some things we might like to keep will have to be scaled back or eliminated,” he said. “All of this is very hard.”

A surplus

Jindal has some options – for example, an $865 million surplus left over from last year.

However, the money can only be used for one-time items, like debt payments and construction spending – not to fill any budget holes. Some state leaders have suggested using $285 million from the “Rainy Day” fund to help cover the deficit, but the governor said he won't tap into the fund this year.

He has left open the option for next year, however.

Trimming the budget

Higher education and health care will be the first in the state to be impacted by budget cuts, according to the Jindal administration.

But, with a push for a better educated workforce, is it wise to shrink spending at the state's colleges?

“I think the jury is still out on the impact these cuts will have to education, but when you consider that we still have great needs, especially when it comes to educating and training our workforce, the scenario is not very encouraging,” Erwin said.

“The university presidents are trying now to look at their budgets and see where they can cut while trying to minimize the impact. But it is hard to see a scenario in what we know now where students, faculty and staff at our institutions are not all affected.”

Jindal notified UL schools recently, including McNeese, that higher education will face a budget cut of more than $109 million.

The governor's proposal amounts to an average 7.82 percent decrease in spending for all UL schools. They are McNeese, Nichols, the University of Louisiana at Lafayette, the University of Louisiana at Monroe, Grambling, Louisiana Tech, Northwestern and Southeastern.

The governor has asked each to submit a plan outlining how it will implement the cuts.

In Louisiana, Medicaid spending has grown from 8.5 percent of the state general fund, two years ago, to more than 16 percent today. Medicaid spending is expected consume nearly 22 percent of available discretionary dollars by 2011 – potentially eclipsing funding for schools, economic/job development, roads and law enforcement.

The Jindal administration has already announced plans to cut Medicaid spending.

But, which Medicaid services for the disabled will be cut?

Cutbacks in other states

According to a new report from the National Association of State Budget Officers and National Governors Association, 12 states, this year, have cut back on optional Medicaid benefits such as vision and dental coverage.

The report said for many states across the nation, everything is on the chopping block.

• New Hampshire decided to suspend jury trials for a month to save money.
• Michigan has closed two prisons.Idaho announced plans to lay off 63 part-time workers.

Even some politicians are tightening their belts.

• Kentucky Gov. Steve Beshar – D, and his lieutenant governor took a 10 percent pay cut, saving the state $100,000.
• Indiana Gov. Mitch Daniels – R, refused a $13,000 pay hike.Lawmakers in Georgia and Pennsylvania recently rejected cost-of-living raises for themselves.

Erwin said everyone is waiting to see what this level of budget cuts will look like in Louisiana.

“We tend to think of budget cuts in the abstract, because usually we find a way to minimize the damage,” he said. “But we have not been in a situation like we face now in decades and in many areas, higher education in particular, it took us decades to crawl out of the hole we dug to survive at that time.”

A Mess to Reassess: Homeowners have until Dec. 31 to challenge their property tax bills

By Lisa Yates
Editor, The Times



Homeowners have until Dec. 31 to challenge their tax bills, and many in Calcasieu Parish are doing just that.

Calcasieu Parish Tax Assessor Richard Cole said he has seen a slight increase in the number of property owners challenging their property tax assessments this year.

“This is a reassessment year, so a lot of people have been calling in,” he said, adding it was expected. “It's normal. I haven't seen anything out of the ordinary.”

He said in a reassessment year property tax amounts will likely be somewhat higher because property values are somewhat higher in most instances.

Despite what's happening on the national level, Cole said new properties are coming on the tax rolls, increasing the value of property in the parish.
“With the LNG plants moving in, the expansion of gaming and new projects like Westinghouse, gasification, and people moving in from Cameron Parish, our real estate market is at an all-time high,” he said.
While painting a picture of a rosier local economy than the rest of the nation, Cole did acknowledge home values nationwide are plummeting.
“So far it hasn't affected us,” he said. “We'll be watching to see what happens.”

Property owners speak up

Although it has been reported that Southwest Louisiana is not suffering from the economic downturn like the rest of the country, a visit with with local property owners turns up a different view.

Kerry Caballero, Director of Pharmacy at Extended Care of Southwest Louisiana in Lake Charles, reported his property taxes were up approximately 30 percent from last year. Does he believe his property increased in value by 30 percent?

“No, because the housing market is stagnant,” he said. “In a down economy, citizens want to hold on to their money and not make large purchases.”
Caballero agreed that the steep home price declines that have been making headlines doesn't reflect what's happening here in Lake Charles.

“The rate of foreclosures is nowhere near that of the West Coast,” he said. “Still, houses are staying on the market quite a long time in Lake Charles.”

He said several people he knows are having difficulty selling their homes for the asking price because of the amount of time it takes to make a sale.

“Ideally, there should be a direct correlation between the tax increase and the value of your home,” Caballero said. “But, taxes are increasing and property values are staying the same, or decreasing.”

Caballero said he plans to challenge his tax bill this year.

In an article on BusinessReport.com, J.R. Ball reported that homeowners from across the state are arguing that their homes, businesses and property are not worth as much as the government says.

He said, “The rumbling began a month or so in Livingston Parish – where the legally required four-year reassessment showed the value of a typical house increased by more than 25 percent – and has now made its way to St. Tammany Parish, where the screams are so loud that area state legislators are promising new laws to stem the tide against what Rep. Kevin Pearson calls 'sticker shock.'”

State Rep. Pearson, R-Slidell, said some in his district have seen their homes increase in value by more than 150 percent in only four years.

Ball wrote, “I'll speak only for myself here, but I'd be thrilled if the value of my home soared 150 percent over a four-year period. I guarantee you folks in places like Miami, Las Vegas and Los Angeles – where home values have plunged by something like 150 percent over the past 18 months – would be giddy with any increase in the value of their property.”

Taxation without representation

He and others from across the state report there's a type of bait-and-switch tax increase that has become commonplace throughout the state as the homestead exemption weakens in economic value.

“State law also allows the scores of taxing authorities – school, parks and library systems, council governments, and any number of fire departments, development districts and what not – to raise additional revenue by rolling the millage forward to a rate up to the original voter-approved millage,” Ball stated. “Almost every taxing authority, many of which are filled with decision-makers not elected by voters, goes this route, which is why property reassessments have become synonymous with higher property taxes.”

Normally, state law requires that proposed tax increases go before the voters in the next scheduled election, yet this “roll forward” loophole has allowed many local governmental bodies to avoid the intent of that constitutional provision, thereby increasing taxes without public approval and spending the money however the politicians chose.

Many have called for a change in state law that would require any attempts to roll forward millages to be approved by a public vote in the next election.

State Rep. Jeff Arnold, D – New Orleans, attempted to pass such legislation earlier this year, but opposition from local governments blocked his bill.

Perhaps in the next session, homeowners scorched by rising property taxes will generate enough support to approve Arnold's reform.

Immediate tax relief

Meanwhile, there is hope. Local property owners may be eligible for tax relief.

Paul Hargrove, of West Monroe, said property owners who incurred wind damage and flooding from recent hurricanes can have their property reassessed and even request deferment of taxes.

Hargrove, a member of the Louisiana Tax Commission, recently discovered provisions in state law that allow property owners who suffered damage from a declared disaster the options of obtaining a reassessment and a deferment in paying taxes.

According to state law, assessors are required to reassess all “lands or property, including buildings, structures, or personal property that are destroyed, uninhabitable, or non-operational due to a disaster or emergency declared by the governor.”

Following hurricanes Katrina and Rita in 2005, the state lawmakers approved legislation that allows for property owners who incurred damaged or destroyed property from a disaster or emergency declared by the governor the option to “file and application for deferment of payment of taxes.”

The Louisiana Tax Commission can provide an affidavit for taxpayers to sign. The LTC provides the affidavit on its Web site at www.latax.state.la.us.

Property owners should contact the tax assessor if they own property that was damaged by a declared disaster. Also, the tax assessor is the public official who should be contacted about deferring property tax payments.

According to state law, “the property owner wishing to defer payment of taxes shall make a sworn statement in triplicate no later than Dec. 31 of the year in which the damage or destruction occurred, or 30 days after the tax bill has been mailed, whichever is later.”

This applies to both residential and business property tax payers who had any damage related to the storm.

It is important property owners document the damage caused by a disaster to provide to the parish tax assessor, Hargrove said. Documentation can include photographs, damage and work estimates from contractors and insurance claim documentation.

A red flag

When the economy is faltering and spawning foreclosures, short sales and homeowners otherwise bailing out of homeownership, consider it a red flag - and time to scrutinize the tax bill.

Over valued or over assessed property is perhaps the most common and successful grounds for challenging tax bills, according to officials.
Anyone who believes their property was not property was not properly assessed can discuss the matter with Cole. Sometimes values change because of errors, he said.

Property owners who think their assessment is incorrect should notify his office before Dec. 31, Cole said.

“With 120,000 parcels of property to reassess, it's possible to make mistakes,” he said. “Most of the time the values are correct. But if it is wrong and there's evidence to back it up, reductions can be made.”

For more information, visit the assessor's office in the Magnolia Life Building on 1011 Lakeshore Drive.

Yes He Did

By Lisa Yates
Editor, The Times



After the Nov. 4 election, lake area Republicans decided to take a look at how America elected to the presidency Barack Hussein Obama – the son of a Kenyan immigrant.

Eight years ago, no matter what your party affiliation or political persuasion, would you have believed it possible? Probably not.

That's why members of the Republican Roundtable of Lake Charles made this the topic of their noon meeting, Nov. 14, at Reeves Uptown Catering on Ryan Street.

Leading McNeese State University specialists in accounting, finance and economics analyzed the Nov. 4 presidential election and presented a program entitled: “The Obama Promise: Analysis and Policy Implications.”

The speakers addressed what the election results told attendees about the economic, racial, gender and foreign affairs issues that figured prominently in the campaign, and what remains at the top of the agenda.
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Republican Roundtable Co-chairs Terry Backhaus,Pam Mattingly and Bob Dewey, (front row, L-R), welcome guest speakers McNeese State University Dept. of Accounting, Finance and Economics faculty: Salvador Contreras, Ph.D.; Michael Kurth, Ph.D.; and, Bob Dewey, Ph.D.

Speakers included Mike Kurth, Ph. D., a professor of economics who heads the department at MSU; Daryl Burckel, Ph. D., a professor of accounting and specialist on demographics; and, Salvador Contreras, Ph. D., an assistant professor of economics who specializes in research and technology.

Black voters

“Do not delude yourself – Obama did not win because of black voters,” Kurth said. “That's not to say that racism is dead. Racism is not dead and there were some voters who went to the polls just to vote against the black guy. But 75 percent of his votes came from outside of the African American community.”

In the interest of full disclosure, Kurth admitted a bias – he and Burckel are both Republicans, while Contreras is a Democrat, who supported Obama, he said.

“That makes our presentation fair and balanced,” he joked.

Kurth said he did not vote for U.S. Sen. John McCain of Arizona, but instead supported U.S. Rep. Ron Paul of Texas for president. He spoke openly, sharing his opinions and backing these with data displayed on a large screen in the room during the multi-media presentation.

One of the graphics displayed was a large bell-shaped curve named the “Median Voter Model.” Kurth said the model illustrates the challenge faced by both candidates in the 2008 election.

“The key to getting elected is to capture the group in the middle,” he said. “Whoever gets to the center first – after the primaries – wins.”

Kurth said Obama played to the middle more effectively than McCain. Obama's ability to win this large middle group surprised a lot of people.

Never underestimate your opponent

“Just like in football games, never underestimate your opponent,” Kurth told the crowd.

Although Democrats outnumbered Republicans, Kurth said party affiliation wasn't a key factor to Obama winning. Instead, voters consider a wide range of issues when they cast their ballots.

“For example, after the terrorist attack on 9/11, more voters identified themselves as Republicans,” he said. “There's been a steady decline afterwards.”

Kurth used another example to make his point. While many black and Hispanic voters are registered as Democrats, he said, a large number in these communities are not sympathetic to gay marriage and voted to end it in California.

“Forty percent of voters don't identify with either party and tend to vote independently – Many of these are conservative voters,” he said. “That's why to win, you have to capture the independent voter; and, that didn't happen in this election.”

Kurth said one issue, and one issue alone, dominated the 2008 presidential election – the economy.

He said the Republican Party dropped the ball on this issue when they had a chance to pick it up and run.

“The bailout plan was the stupidest thing I ever saw,” Kurth said. “This was an opportunity the Republicans should have seized.”

The Republicans had their chance when they controlled both the Congress and Presidency. So now that President-elect Obama is in office, what can we expect?

Really scary

Burckel painted a bleak picture he called “really scary.”

That's not so much a result of the election, but rather, a result of huge deficit spending over the past decade, he noted.

“The budget is pretty much on autopilot,” Burckel said.

He said the Senate's huge rescue package raised the national debt to $10.6 trillion. That, coupled with rising health care costs, are reasons why Burckel and others believe the nation is on an unsustainable fiscal course.

In fact, federal spending on Medicare and Medicaid alone is expected to jump 30 percent in the next decade – from 4.6 percent of the GDP (gross domestic product) to 6 percent in 2018. By 2050, it could jump to 12 percent of the GDP.

“We are in a permanent state of unbalance in our budget,” he said.

Campaign promises

With the economy in disarray and the nation's treasury draining, many are skeptical Obama can make good on his campaign promises.

Contreras crunched the numbers and presented to the group some of the conclusions of his research.

Obama promised to improve America's education system. Can he do it?

His education plan outlined $8 billion for recruiting, performance pay and other initiatives to update the education law known as No Child Left Behind. But his plan also offered grand proposals for every level of education, including a $4,000 tuition tax credit that would make college more affordable for millions of students and a $10 billion expansion of early childhood programs.

The challenge will be how to finance all these proposals, according to Contreras.

“I'm not sure how he's going to make good on this promise,” he said.

Obama also promised to invest $150 billion over 10 years to develop renewable sources of energy, like wind, solar and biofuels, and to encourage energy conservation in homes and offices. He also promised to help the auto industry to develop high-mileage and electric cars.

“I think he'll do good in this particular promise,” Contreras said.

The future of the nation's economy

He was not so optimistic when it came to the future of the economy.

“From all indications, the U.S. Is in very bad shape,” Contreras said, adding that unemployment numbers are beginning to climb.

“Things look bleak,” he said. “Prices are the only thing that are stable. Gas is at $2 a gallon, and oil is $56 a barrel.”

Many who voted for Obama are hopeful that he will deliver on his campaign promises, but if our local economists are correct, Obama's agenda just doesn't add up.

Only time will tell.