Panel OKs rebate checks
Published 12:26 am Tuesday, April 8, 2008
BATON ROUGE (AP) — Lawmakers should be able to consider giving taxpayers a rebate check when Louisiana’s coffers are overflowing with large surpluses, a Senate committee decided Monday.
A measure that would let lawmakers and the governor consider giving rebate checks, tax credits or tax deductions when the state has a surplus was approved without objection by the Senate Finance Committee.
The idea has gained interest since Louisiana has spent about $2 billion in surplus cash in the past two years on highway construction, road repairs, coastal restoration projects and other items — and the state is expected to have more surpluses on the horizon.
‘‘I’m sure you’ve heard back home, like I have, ’How ’come you can’t give a little of that back to us?’’’ said Sen. Mike Walsworth, R-West Monroe, one of the sponsors of two separate bills that would let the state use surplus dollars to provide rebates to taxpayers.
The bills wouldn’t require the rebate checks, but would add the rebate idea to a list of ways state surpluses can be spent.
Right now, surpluses can’t be returned to the people, but can only be spent on one-time items, like construction projects, debt payment and coastal restoration projects.
To get a tax refund, credit or deduction, the Legislature and the governor would have to approve it, just like they would any other surplus spending plan.
The proposals head next to the full Senate for debate. It would require a change to the Louisiana Constitution, so it needs a two-thirds vote of the House and Senate and approval of voters this fall for passage.
Sen. Ed Murray said the bills should have a trigger that requires rebates for taxpayers when the state has a surplus of a certain amount, rather than leaving it to the discretion of the governor and Legislature. Murray, D-New Orleans, said he’ll propose an amendment in the Senate.
‘‘People are going to read this, they’re going to vote on it, and they’re going to think they’re getting money back,’’ Murray said.
Sen. Nick Gautreaux, D-Meaux, sponsor of a similar bill, said part of the surpluses should be spent on rebates, tax deductions or tax credits because much of the state’s increases in income are tied to better-than-expected individual income tax collections.
Gov. Bobby Jindal’s press secretary Melissa Sellers said the bill wasn’t pushed by the Jindal administration, but she said the governor was supportive of tax cuts for Louisiana residents.
An attempt by Walsworth to make his bill effective in 2012 — when the next terms of office begin — failed, only gaining Walsworth’s support on the committee. Seven senators voted against it. Gautreaux said that would make the bill take effect once the state’s large post-hurricane surpluses are projected to end.
‘‘I think our good times are ahead of us for the next one or two years,’’ Gautreaux said.
Walsworth said a delay would give the governor’s administration ‘‘time to take care of problems they see with the budget.’’ He said he agreed to offer the amendment because someone requested it. When questioned by reporters, Walsworth refused to say who asked for the amendment, replying, ‘‘Just a friend.’’
When asked whether Jindal’s office requested the delay, Sellers wouldn’t reply directly. Instead, in an e-mail she said, ‘‘This is not one of the Administration’s bills.’’