Ensuring Fiscal Discipline

July 3rd, 2008 | Posted by admin

Dear Friends,

Bobby JindalEnsuring Fiscal Discipline

 

Earlier this week I vetoed 25 items – totaling more than $9 million — targeted for non-state projects and initiatives. As I said in a letter to the Legislature as they began the process of debating this year’s budget bills, these types of projects and groups would need to meet four specific criteria, such as having a statewide or substantial regional impact, or otherwise be vetoed.

 

I will once again make myself clear – pork-barrel spending, slush funds, and pet projects no longer have a place in Louisiana’s budget. We have seen at the federal level how this type of spending leads to ridiculous projects receiving funding, such as the bridge to nowhere, and I will not allow us to go down the same path here in Louisiana.

 

Some of the programs that I vetoed pursue good and worthy goals, but did not meet these important criteria to make state spending more responsible, transparent and accountable. The state will never have a shortage of good ideas looking for state funding. But it is our duty to serve as watchdogs for taxpayers, ensuring that their money is invested wisely.

 

Since taking office, we have made other fiscal reforms that has reduced state spending, making better use of taxpayer money. Some of those reforms include:

  • Eliminating the use of “one-time” money to cover recurring expenses.
  • Cutting 984 state government positions, saving an estimated $58 million;
  • Eliminating two government offices and consolidating six others; and
  • Saving $39 million as a result of a statewide government hiring freeze, saving $14 million more than originally expected.

The Baton Rouge Advocate applauds this fiscal discipline saying, “[Jindal] has demonstrated a concern for the public’s view on pay raises and its interest in responsibly spending tax money.”

 

As we continue to review projects in House Bill 1, I will continue to use the same criteria for projects, helping to identify greater savings for our state.

 

Strengthening our State’s Economy

For the third time this week, Louisiana’s bond rating has been raised by a major credit rating agency. Today, Fitch Ratings upgraded Louisiana’s general obligation bond rating from an A to an A+. Earlier this week, Moody’s Investors Services boosted the grade from A2 to A1, and Standard and Poor’s Rating Services increased our state’s credit rating on general obligation bonds from an A to an A+ and on state-backed debt from an A- to an A. This will allow our state to borrow money more cheaply, saving taxpayers money in the future. As noted by the Associated Press, this increase came from, among other factors, “budget discipline that will help the state withstand any income slowdowns.”

 

We got three chances to show the financial world that Louisiana is making wise fiscal decisions and we came away with three solid hits. By showing a strong sense of fiscal discipline in this year’s budget by eliminating the use of one-time funds to pay for recurring expenses, our state has gained national attention. This is another sign that Louisiana is open for business, and that businesses around the nation and around the world should look at Louisiana as a potential location for expansion or relocation. However, there is still much more work left to do in order to improve our state’s finances, and we will continue to enact measures that bring this kind of positive attention to our state, proving once again that Louisiana is the best place in the world to raise a family.

 

Bobby JindalRelocating Another Company to Louisiana

Last week another multimillion dollar business announced it will be relocating its headquarters and research and development laboratories to Louisiana. Bercin, Inc. will move from Rhode Island, bringing an investment of more than $5 million to Livingston Parish, with salaries averaging $90,000 plus benefits. As reported by the Baton Rouge Advocate, “the company’s sales have tripled in recent years to more than $60 million and 40 percent of its business comes from exports, a phenomenon that brings more money into the state.”

 

It is especially telling that Bercen’s President and CEO stated that he felt like Louisiana provides a more competitive business tax climate than their current home in the Northeast, as well as a better ability to recruit employees from area universities. By cutting the burdensome taxes as we have done that have harmed Louisiana’s economy and our families for too long, we will be able to attract additional businesses like Bercen to Louisiana, as well as help businesses already here grow and expand.

 

This is the fifth large economic development announcement this year, and I will continue working hard to ensure that these opportunities continue to come throughout our state.

 

Protecting Our Children

I was outraged by the decision made by the United States Supreme Court this past week declaring that they would overturn the death penalty in a Louisiana case given for a man convicted of child rape. And just yesterday we learned that in making their decision, the Supreme Court overlooked a 2006 Act authorizing the death penalty for child rape under the Uniform Code of Military Justice. We have spoken to the Attorney General’s office, as well as others involved in the case, and encouraged them to review these new facts and consider petitioning the court for a rehearing.

As the father of three young children, I am appalled by the court’s ruling in this case. And, as shown in this article by the Associated Press, elected officials across the country are upset with this decision as well.

The court ruled that the death penalty was unconstitutional – I say this is a slap in the face to parents, families, and children across the state of Louisiana. It is incomprehensible to me, and reflects a clear abuse of judicial authority. One Justice even stated that ‘the death penalty is not a proportional punishment for the rape of a child.’ The Justices on the court obviously have a different definition of proportional punishment than the people of Louisiana, and we will continue working to amend our state’s statutes in order to maintain the death penalty as a punishment for these horrible crimes.

On the very same day as the court’s decision, I signed into law Senate Bill 144, which authorizes the chemical castration of convicted sex offenders. I am very pleased that we now have such stringent penalties against sex offenders in our state, which shows that we will do whatever it takes to protect our children.

I was also pleased to visit Monroe yesterday along with Louisiana State Police Colonel Mike Edmonson to sign multiple bills into law that will further protect our children. Among the new laws, as reported by the Monroe News Star, are lifetime registration for sex offenders and increasing minimum sentences for solicitation of a minor and for molesting a juvenile. We have also signed into law legislation that will allow internet providers to limit service to convicted offenders, and to prohibit offenders from wearing a mask on days such as Halloween. These new laws send a strong signal to sex offenders that they should stay far away from Louisiana.

Tackling the Challenges Ahead
I want to take one more opportunity to thank you for sharing your thoughts regarding my veto earlier this week of a proposed pay raise for the Legislature. As I said, I made a mistake by attempting to allow the Legislature to handle their own internal affairs, and have since realized this is an untenable position when juxtaposed with our reform agenda.

As stated by National Review, the “… move on Monday wasn’t some procedural goo-goo move, it was about honesty and leadership.”

 

It’s time to get back to doing the people’s business. As the Lafayette Daily Advertiser states, “…voters now can turn their attention to the good things accomplished in this year’s two special sessions and the regular session just ended.”

 

The Daily Advertiser continues by saying that the non-profit Council for a Better Louisiana, “lists the revamping of workforce training as the most significant piece of legislation in the administration package” and that the legislation will “help streamline the workforce-delivery system, make it more responsive to employers and ultimately get more of the types of skilled workers needed in Louisiana.”

 

 I want to thank you, and all the citizens of Louisiana, who have become so engaged during the recently completed legislative session, as well as our earlier two special sessions. As noted by the Tri-Parish Times, “People are ready for change. They’ve embraced it. And now, they’ve demanded it.”

 

As we continue to move forward toward a New Louisiana, I ask you to stay involved. There is a lot more to do, and I look forward, with your help, to tackle the many challenges that continue to face our state.

 

Kicking Off the Annual Peach Festival

I had the opportunity to help kick off the annual Peach Festival last Friday in Ruston. The festival is one of the longest continuing agriculture festivals in Louisiana, and has earned that distinction largely through involvement by community members and community volunteerism. Ruston Peaches are known throughout the world and the festival is just another example of one of our unique state treasures.

 

Happy 4th of July!

I want to wish you and your family a happy and safe July 4th weekend. While this weekend is certainly a time to get together with family, have barbeques, and relax, it is also a weekend for reflection and thanks. We so often take for granted the things that make our country great, and I hope you take a minute this weekend to remember why America is the greatest country on Earth.

 

Sincerely,

 Bobby Jindal

Governor Bobby Jindal

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