The LABI Report: Ask politicians tough questions
Published 12:00 am Friday, October 25, 2002
By DAN JUNEAU
Exactly one year from now, Louisiana will be in the throes of heated races for the Legislature and statewide elected offices.
Airwaves will be filled with political ads, while yard signs and billboards plead for voters to support particular candidates. The somewhat distant elections will have a great bearing on whether or not this state will begin to reverse negative economic and demographic trends that plague it.
If the economy is to grow stronger, create more quality jobs and provide the opportunities necessary to keep our young people at home, the business community is going to have to become more involved in the elections than it ever has in the past.
Candidates for governor and the Legislature are already contacting business leaders to ask for their support and financial assistance.
Business men and women would do well to ask the candidates some key questions before signing on with the first “sincere sounding” politician who walks in their door.
The following are some issues members of the business community should have answered before making a commitment to a candidate.
Will the candidate fight to keep the important civil justice reforms passed by Gov. Mike Foster and the business community in 1996?
Those reforms are one of the few advantages Louisiana’s economic developers have over other southern states in the battle for new jobs and investment. In particular, the absence of general punitive damages is a major plus for Louisiana when industrial prospects look at some of the lawsuit horror stories occurring in neighboring states that allow runaway punitive damage claims, particularly in class action lawsuits.
Is the candidate going to protect and improve upon our K-12 accountability reforms that are showing signs of success?
The track record for education reforms in Louisiana is terrible, because in the past, when those who enacted the changes leave office, the natural enemies of accountability in education kill the reforms. The K-12 reforms are not perfect, but they are a good start to bring much needed improvement to public education in the Bayou State. We need a governor and legislators who will protect the reforms and strengthen them.
Will the politician asking for support commit to removing two major tax disincentives that hinder our job creation efforts?
Louisiana is one of only two states that tax corporate debt. Additionally, our imposition of sales-and-use taxes on manufacturing machinery and equipment puts us at a decided disadvantage with other southern states in the race for jobs and investment. It is imperative that we phase out the debt portion of the corporate franchise tax and the sales tax on business equipment used in production.
It is particularly important the next governor commit to these top priority reforms.
And last but not least, will the candidate take steps to stop the insane practice of local governments parading to Baton Rouge to beg for money for local projects and services?
The state needs to fund state highways and true state services, such as postsecondary education and indigent health care. Local obligations should be removed from the budget, and other reforms, particularly in the area of the property tax, must be gradually put in place to allow more local funding of government services.
Government census data confirm more and more of our young and most skilled citizens are moving out of Louisiana in search of better economic opportunity.
The voters in this state understand that trend and its implications better than many of our elected officials, and they will support meaningful reforms to expand investment and create better paying jobs that will keep their children and grandchildren in Louisiana.
That being the case, the business leaders being courted for support by political candidates should not be bashful about asking for a commitment on key reforms needed to revive our economy and stop the out-migration of our best and brightest.
DAN JUNEAU is the president of the Louisiana Association of Business and Industry.