Lawmakers Eye Loopholes

Louisiana lawmakers will consider the revenue lost through a multitude of state tax exemptions when trying the balance the budget for fiscal 2012, House Speaker Jim Tucker said last week in an address to the Louisiana Hospital Association.

Tucker said the Legislature is more likely to favor suspensions of some exemptions rather than outright repeals. Gov. Bobby Jindal and others would regard a repeal of an exemption as a tax increase, he said.

But things could change as budget writers work to cover a revenue shortfall of $1.6 billion in fiscal 2012, according to Tucker. He said tax exemptions approved over the years cost Louisiana $7 billion a year. The state general fund budget is $7.8 billion in fiscal 2011.

“Exemptions are about the same size we are looking at in taxes,” Tucker said. “This is something that ought to be looked at.” The exemptions will be “rigorously discussed” when the Legislature convenes April 25, he added.

Louisiana Treasurer John Kennedy told the hospital group that the state’s budget problems result from an inefficient organization, not a lack of revenues.

He slammed Jindal’s suggestion that the government could generate $460 million of one-time income for fiscal 2012 by selling state buildings and $100 million by privatizing the health care plan for government workers.

“Even if you could sell them for a good price in a bad economy, it’s a way out instead of looking your problem in the eye,” Kennedy said.

Jindal’s proposal also includes $250 million of bonds supported by future increases in state lottery earnings.

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