By Stephen Winham, Guest Columnist
“… Already long ago, from when we sold our vote to no man, the People have abdicated our duties; for the People who once upon a time handed out military command, high civil office, legions — everything, now restrains itself and anxiously hopes for just two things: bread and circuses”
Juvenal [circa 100 AD], Satire 10.77–81
“Bread and circuses” (or bread and games; from Latin: panem et circenses) is metonymic for a superficial means of appeasement. In the case of politics, the phrase is used to describe the generation of public approval, not through exemplary or excellent public service or public policy, but through diversion; distraction; or the mere satisfaction of the immediate, shallow requirements of a populace, as an offered “palliative“… The phrase also implies the erosion or ignorance of civic duty amongst the concerns of the commoner.
—Wikipedia
Have these words of a Roman poet, written 1900 years ago, ever been more relevant to our country and state? And, this is hardly satire. In Louisiana’s government, we still get the circuses (the just-ended special legislative session, for example), but they are not nearly so much fun as they were in the past. They also no longer provide the level of distraction our elected officials expect. Our leaders still provide the bread, too, though too many are left with the heels – and we are not always sure even they are distributed equitably.
Just as our country is clearly divided, our state is becoming increasingly partisan. Confronted with precisely the same problems, the two sides view them as if they exist in alternate realities. The factions do not seek to find common ground. They might compromise, but that is hardly the same thing.
In the most recent session of the legislature a purported compromise on how to best patch the state’s budget for the remainder of this year resulted from an agreement by the administration to accept the effect of a very questionable House Concurrent Resolution that will, if we believe the proponents, be a great “reform” and will magically free up almost a hundred million dollars in state general fund for the fiscal year that begins July 1, 2017 – money, mind you, that was always there for the taking, just never captured. Sound just a little suspicious?
How does this magic work and how does it differ from past gimmicks, you might well ask? Well, unlike some of those, it really does free up general fund, but it also cuts other constitutional and statutorily dedicated funding, notably including the Transportation Trust Fund. The Transportation Trust Fund has already been criticized for not being used more on roads and bridges desperately in need of repair – and now we are going to take another $15-$18 million of it to pay part of our General Obligation (not highway) Debt service? And, lest we forget, TTF funds match Federal Highway funds so the potential impact is greater than the amount diverted. Is this your concept of “reform?” It certainly is not mine.
The Bond Security and Redemption Fund ensures our general obligation debt service will always get paid first. It is the subject of HCR1 of the special session. Money constantly (and somewhat theoretically) flows through it on the way to the general fund from which we have typically paid general debt service. I consider the fund a practical fiction because it would only have actual effect if somebody ever pressed the “stop” button and froze it to draw the necessary amount for debt service. However, its existence enhances our bond ratings. There is a legitimate concern that messing with it in any way can jeopardize our ratings, not because it places the payment of debt service in danger, but simply because we have started messing with it at all. The fact we have recently had to borrow short-term to meet current obligations is further evidence we should leave the BSRF alone. To the extent confidence in our fiscal status is eroded, and our ratings decline, we must pay more to service our debt.
House Speaker Barras, the author of the concurrent resolution that directs this miracle reform is a banker. He certainly knows all these things. Let’s put the best face possible on the resolution and assume he wanted its passage to ensure the special session did not close with absolutely no action toward addressing our long-range problems – which would have been the case in its absence. This proposal had been made before and rejected by the administration for the reasons above and others – reasons I consider valid.
Could using the resolution as a bargaining chip have been a power play more than anything else? Barras was not JBE’s pick for Speaker of the House. The Republicans in the house are flexing their muscles in a faint attempt to emulate the partisanship of their national counterparts. Did they rally around the speaker to get in JBE’s face with this one? Could this distraction have also been the center ring performance in this special session – a small act in a small session with bigger acts like those in past sessions to come when the Greatest Show on Earth returns to Baton Rouge in April?
Let’s face it. Nobody has done anything that comes close to solving our overall budget problem. Our roads and other infrastructure are crumbling, our state services are becoming increasingly mediocre and, in the case of some life-and-death situations, dangerously ineffective. Worse, most everybody seems to be ignoring the fact that we face a $1.2 billion (gee, why does that number sound so familiar?) gap in Fiscal Year 2018-2019 when the temporary sales taxes used to bandage the budget the last time we hit the wall expire.
The latest of literally dozens of past blue ribbon groups tasked with providing options for fixing the state’s fiscal problems, the Task Force on Structural Changes in Budget and Tax Policy, issued its final report, to little fanfare, on January 27, 2017. Some of the best minds in our state participated in this study and it provides solid recommendations based on current information. Our leaders need only choose among them. I commend its reading to you. Why has this report not become part of the circus yet – Is it too dull to have entertainment value? Do our leaders believe we cannot be convinced by (or even understand) facts? Do they believe illusion, misdirection and confusion are always better and that we are easily fooled?
Commissioner of Administration Jay Dardenne was a key participant in the task force. When the Fiscal Year 2017-2018 executive budget was presented, the governor and Commissioner Dardenne declined to say what they might ultimately suggest as the solution to our problem. They also said, as they have in the past, this is not the budget they want to see implemented. Well, if it isn’t, what is?
If the cuts presented in the governor’s proposed budget, most notably to TOPS, are not realistic – not something we can all live with – what cuts are? We don’t know because, despite protestations to the contrary, we have not seen a truly honest budget in many years – one that says, “Okay, Louisiana, you don’t want to pay more taxes, here are the things we are going to permanently cut and we are going to stand behind them to the end.” This is very different from: “Well, shucks, here’s some things that will balance the budget, but we don’t want to do them and neither do you, so what have you got to offer as an alternative?”
Representative John Schroder has taken the position the governor should present a realistic plan he is willing to stand behind to provide the legislature with a realistic starting point. The governor seems to be saying no such plan exists. So, if the governor doesn’t have a plan and neither does the legislature, where does that leave us?
Our governor has greater control over the budget than is the case in some other states. Representative Schroder has a point, but the simple fact is the legislature, not the governor, holds the power of appropriation and many, including me, consider it to be its greatest power. The governor can recommend things all day long, but he cannot enact appropriations or taxes.
Speaking of taxes, why are so many of our citizens convinced they already pay too much in taxes for what they get from the government? Look no further than LouisianaVoice, The ADVOCATE, nola.com, almost any television or radio station and what do you read, see, and hear?
Every day we are bombarded with tales of waste, corruption, theft, etc. in our state departments. Are you going to tell me nothing can be done about this? Am I to believe lightening would strike JBE and our other elected officials dead if they dared expect the people they appoint to run these programs as effectively and efficiently as possible and to demand accountability for their failures? I’m not talking about the simple act of firing those who are doing a poor job. That doesn’t accomplish anything if the replacement continues the practices of the predecessor. I am talking about expecting officials to have integrity and to know enough about the operations of their departments to stop these things from happening in the first place.
I honestly and truly believe people are willing to pay for things from which they see benefits and that they believe are providing maximum value – the marketplace proves this. Every effort must be made to instill confidence in our government’s ability to manage our resources in the best way possible. Sure, its goals are different – government exists to provide services, not make a profit, but that is no excuse for not performing to the highest standards possible.
I don’t know about you, but I am finding the circus less than entertaining and I can provide my own bread for the most part. Others have given up on the circus, but need help from its owners. It is past time those owners accept their responsibilities – and it is up to us to lean on them to do so every chance we get – beginning right now and continuing in earnest during the next legislative session. Our leaders need to all look at what is happening to the real Ringling Brothers Circus and realize it could happen to them – and, much worse, to us.
Excellent commentary Stephen. Bravo!
Thanks, Fredster!!
Impressive, factual, and thought provoking article,
Let’s all officially go on record with our Legislators that we will not tolerate their insincere jawboning this entire upcoming legislative session and then in the last 15 minutes of the session vote to renew/extend the TEMPOARY sales tax increase enacted in an earlier fiscal year. They must find the money in corporate tax exemptions and excessive expenditures such as we have recently witnessed by Mike Edmonson, et al at La. State Police. Do what we elected you to do. WORK!!
Sales tax does not expire until 6/30/18. They won’t even have to address it this session because, when they made the decision to steal more money from us last year to line the pockets of folk like Dardenne, Edmonson, Wilson, Robinson, and others, they committed to do so for 27 months commencing on 4/1/16.
The problem is if they wait until the next session to do anything they will have wasted the time they gave themselves to make the kind of rational decisions they need to make – and they will wind up in the position “My Eyes…” suggests – as they have all-too-often-to-be-further-tolerated done in the past.
The time to start making those decisions is NOW and they need to be made as soon as possible so that we can all plan for the future. If the answer is cuts, people need to prepare for them in many cases more so than they would a tax increase.
I cannot emphasize strongly enough the need to pay heed to the information found in the January 27, 2017 task force report and start acting NOW, not a year from now. All information, including that in this report, evolves over time. Why not use the best information available today to plan for tomorrow even recognizing that? Doing NOTHING is not an option.
It is mind boggling that Edwards and Dardenne would propose a budget that calls for more cuts and “is not the budget they want to see implemented.” How can you possibly get to where you want to go if you don’t tell people where that is and as for their help in getting there?
After 8 years of Jindal budget cuts, supported and implemented by the legislature, Edwards should be asking for tax changes to generate sufficient revenue to begin to repair the damage. I am so disappointed! The citizens of Louisiana, teachers, students and civil servants have suffered enough.
It’s a safe assumption that JBE is going to be trounced in 2019, but if he attempts to “enact tax changes to generate sufficient revenue,” he’s just going to add 10 points to his loss margin (and that assumes any such measure fails to pass).
I am in favor of draining the “Rainy Day Fund” fully and NEVER replenishing it!! It is the ONLY way to bring about the needed budget cuts of pure lard that are inherent in Louisiana’s budget. The existence of this fund has done nothing but perpetuate irresponsible spending. Once it’s fully drained, good riddance.
So, I guess many folk are disappointed with JBE just for vastly different reasons.
Edwards certainly lost my vote. I want to see him go down in flames next election. None of this is about a revenue problem or a spending problem. It’s a giant scam in which manufactured budget crises are used to justify year after year of austerity while secretly directing money toward special interests like the LSU Lab School teachers, who will be the only state employees to get raises this year. Up yours Edwards and Dardenne!
Wow!!
I’m shocked to hear the Transportation Trust Fund is being raided yet again! Why? Because I recently videotaped JBE’s Revenue Secretary, Kimberly Robinson, about this past practice as being a reason to oppose a gas tax increase. She said that would NOT happen because JBE had “heard from constituents fed up with that transpiring in the past”: http://www.soundoffla.com/?p=506.
So much for constituent feedback I guess!!
Here’s one of my sources on this:
http://kedm.org/post/how-house-measure-state-debt-could-impact-transportation-department#stream/0
It is interesting that there is no mention of HCR1’s effect in this report today:
http://www.theadvocate.com/baton_rouge/news/politics/article_912d12bc-f93b-11e6-b854-1b8f171d3595.html
Per the US Bureau of Economic Analysis, Louisiana produced 1.5% of the US Gross Domestic Product (GDP) before Jindal and by 2015, it was down to 1.3%. This doesn’t look like much, but it simply and conclusively proves that the conservative economic policies Jindal and the legislature implemented DID NOT WORK. This is after billions in reduced or waived taxes that were supposed to attract more businesses. If Louisiana is going to stop this decline relative to the rest of the US, the Governor and legislature MUST DO SOMETHING DIFFERENT.
Just like businesses, the state can’t cut its way to success. Louisiana needs an educated work force which can only come from a good education system, kindergarten through university. Louisiana needs good roads, bridges, trains and other infrastructure. But mostly, Louisiana needs leadership, executive and legislative, that can plan how to get ALL the things that Louisiana needs and get us moving toward those goals. And part of that is making business pay its fair share so the state will have the money to reverse Jindal’s disastrous changes.
Louisiana has TOO much money right now!! There is MASSIVE waste in terms of six-figure dead-head political crony administrative positions at LSU. It is a trend that began when TOPS was born!! They load LSU’s payroll down with these folk as political rewards, then they boost student tuition to whip LSU students and their parents into a frenzy about fully funding TOPS so they can add even more administrators!!
The whole process continued until it all literally collapsed under its own weight and TOPS simply could no longer be fully funded because it was strangling business and individual taxpayers to their breaking points. This whole trend in higher education is not unique to LSU and Louisiana. It’s happening all over the nation:
https://www.jamesgmartin.center/2010/09/administrative-costs-mushrooming/#.VsAWeUaGph0.facebook
&
http://www.huffingtonpost.com/2014/02/06/higher-ed-administrators-growth_n_4738584.html
Frankly, this is the biggest governmental scam in my lifetime. LSU was not included in the survey above (likely because they would not cooperate in providing the data), but as you can see, Ole Miss ranks fifth in the nation in exploiting this college administrator hiring scam. Does anyone honestly think LSU isn’t going to beat Ole Miss at such a scam? I darn sure don’t!!!
Agree. Same result in Kansas under Jindal clone Brownback. Tax cuts led to deficits rather than increased production and tax revenue.
Page 15 of the Task Force report reveals some shocking things about tax breaks, including:
– Corporate Income and Franchise tax exemptions went from 87.1% of such taxes actually collected in FY2000 to 272.1% today (in dollar amounts, exemptions in FY 2000 totaled $428 billion, in FY2015 they totaled $1.7 Billion).
– 2/3 of Louisiana’s total income base from taxes (Sales, Individual Income, Corporate and Severance), you find exemptions went from 39% of collections in FY2000 to 106% in FY2015 or from $1.8 Billion in FY2000 to $7.3 Billion in FY2015.
I strongly suggest everybody look, if at nothing else in the Task Force report, Fiture1 on page 12, Figure 2 on page 13 and Table 1 on page 15. The link is in my post below this one.
Thanks, Stephen.
JBE’s only hope now is to call for a constitutional convention, with a clear message and plan to clean out the dedications (of all kinds) and set the state on a better path. Won’t happen, sadly. The Edmonson saga just proves it.
While I’m not sanguine about JBE’s chances at reelection, don’t underestimate the incompetence of the Reps (esp. the AG).
I believe the governor and everybody else ought to take a close look at the report I cited (Task Force on Structural Changes in Budget and Tax Policy) issued a month ago. Among the changes it recommends are those requiring changes to the constitution and it strongly recommends that all dedications be carefully studied toward elimination of those no longer justified.
.http://www.revenue.louisiana.gov/LawsAndPolicies/TaskForceOnStructuralChangesBudgetTaxPolicy
The task force was created via a concurrent resolution authored by Schroder, Barras, and Alario. Schroder, in particular, should carefully consider its recommendations since his most recent public comments indicate he still believes cuts alone are the answer. I can’t begin to tell you how many reports like this sat and gathered dust in the past because they reflected a reality nobody wanted to accept. Look at the participants – a lot of knowledge, and, even more important, experience is reflected there.
One solution is, as you say, elimination of all dedications. Another is to consider having all funds not appropriated and/or used in a fiscal year revert to the general fund at the end of the year except those for which there is a clear and specific purpose in future years. The practice of “sweeping” fund balances should never have happened – certainly not more than once. After that first time there was plenty of time for somebody to have looked at each of these funds to determine why they had balances and whether they needed to retain them in the future.
It is possible a constitutional convention is in order, but it, too, could very easily become a circus creating something nobody really likes as a whole and inspiring countless proposed future amendments if and when the new constitution passed.
The other interpretation is that the putative budgetary incompetence is 100% intentional. The people with the money who pull the strings all have even more money after a decade. “Bread and circuses” does not resonate much with anyone these days. Try, “The rich get richer, and the poor play bingo.”
This is how Edmonson is defined when it comes to leadership. His attention-getting and self-absorbed, narcissistic views are toxic, corrosive, and deflating when it comes to public trust.
There is a good reason – or should I say many good reasons – for this. Those who believe further cuts are the answer need to seriously think about these things:
http://www.theadvocate.com/baton_rouge/news/politics/article_f7949258-fd16-11e6-af07-fbc707f72f0b.html
Enhanced efficiency, effectiveness, and honesty – though they should be absolutely stressed – would not be enough to solve these problems. Think about it.
And, when are we going to tire of hearing criticism of the methodology used in these studies, pretending we don’t have extremely serious problems that currently grossly overshadow our positives, accept we need to do something and then actually do something – honestly?
Carbo quote from above article:
[Edwards spokesman Richard Carbo said. “While the governor understands there are areas for improvement, the methodology used in this report to take a quick score of every state certainly doesn’t come close to capturing the very best parts of making a life here in Louisiana.”]
Great post Stephen. But, the people who need to read it, JBE’s administration and every single member of the legislature, will not. One thing that we must understand is that the governor cannot enact legislation. He can propose legislation through his floor leaders and he can lobby for support, but that’s all he can do. Serious tax reform and changes to the state’s budgeting practices will require various statutory changes and proposed amendments to the constitution. All of which can only be accomplished by the legislature.
Thanks, Clifford. I do believe my state representative read it, but, just in case, I sent him a Cliff Notes version.