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Unknowns loom as special session takes shape

by Jeremy Alford, LaPolitics

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The most repeated promise from the governor’s race involves a special session to be held sometime after the inauguration and before the regular session, which convenes March 14.

With roughly two and a half months to go until the next governor takes over, and attempts to tackle a budget fiasco that may require divine intervention, specifics are finally beginning to surface about private meetings, possible legislation, special session dates and how constitutional amendments might be handled.

Lawmakers say they’ve received word that U.S. Sen. David Vitter has a team already working on legislation. Given the tight timeline, some are encouraged by the news, thinking the bills will be made available well before Vitter’s special session call, should he be elected. Those close to the process say it started with Vitter’s leadership forums earlier this year.

At the same time, Rep. John Bel Edwards, the leading Democratic candidate for governor, has better defined what will be in his call, describing it as the “heart” of his special session, if elected.

Members of the lower chamber, meanwhile, are eager to get started now. A budget summit for House members was held last week, with fiscal and legislative staffers invited to attend. Senators are expected to do the same, but the current leadership wants to wait until next month’s runoffs conclude.

“I think everyone just wants to make sure we understand what kind of choices we’re facing,” said Rep. John Schroder, R-Covington.

Scheduling the sessions

Timing has become somewhat of an issue, with the general perception being that the next governor will call a special session on day one, or soon after. Some lawmakers are worried about a rushed schedule.

“The election ends on Nov. 21, followed by Thanksgiving and the transition process,” said Senate President John Alario, R-Westwego. “Then you have Christmas and New Year’s and the inauguration. Chairs have to be selected and the leadership. I’m not really sure you can be ready to get into a special session at that point. It depends, but the earliest you can do it is probably three or four weeks into January.”

Where the session (or sessions) go from there is anyone’s guess.

Rep. Thomas Carmody, R-Shreveport, said, “I’m telling my family to expect at least a six month commitment for the Legislature being in Baton Rouge next year.”

Schroder doubled that: “Those involved in the budget process are expecting, at a minimum, a two-session deal. And members who have chairmanships or are involved with the money committees, for them it could be a full year of working in Baton Rouge. There’s no magic bullet. This is going to take some time.”

Speaker Pro Tem Walt Leger said what is being overlooked is that the tax and budget issues next year will have to be accompanied by significant health care changes, otherwise there is no budget fix.

“I do think we’re facing a significant problem that goes beyond a special session and a regular session and that it has to go into a 2017 session,” Leger said.

What the candidates are saying

From left: David Vitter, Jay Dardenne, John Bel Edwards and Scott Angelle

Edwards said he would hold two special sessions, both in February and possibly into early March. The first would focus on the current fiscal year and the other on broader budget problems. He said his special sessions will not require the full 30 days each that are allowed under the law.

At the “heart” of his broad-based special session will be a proposal to cap and sunset every existing credit and rebate.

“The cap for each will be handled on an individual basis. It’s not a blanket approach,” said Edwards. “We’ll put them on the table — credits and rebates only — and see how far we can go with a cap on each and every one.”

Some in the legislative leadership are hopeful Gov. Bobby Jindal will make a move on the current budget year soon, which includes a $300 million shortfall in Medicaid, $19 million more needed for TOPS, a possible $135 million hit due to falling oil prices and possibly $17 million in taxes that are stuck in escrow due to litigation.

“The administration, before they turn the lights off, are going to offer a solution to take care of the current year budget,” said Alario, adding the $100 million or so deficit from last fiscal year will have to be addressed in the supplemental budget bill during the 2016 regular session.

Public Service Commissioner Scott Angelle said he’s eyeing a late January special session, or “maybe multiple sessions.” Angelle said he’s not confident that Jindal will fully take care of the current fiscal year and that two special sessions will likely be needed.

“Before (Jindal) gets around to turning the lights out there won’t be any lights left,” said Angelle. “He may fix it on paper, but I suspect we’ll still have work to do.”

Without being more specific, Angelle said his fiscal special session will include reforming the tax code, eliminating exemptions, streamlining services, opening restricted funds, overhauling the capital outlay process, lowering the corporate income tax rate and improving tax collections.

Lt. Gov. Jay Dardenne appears to have the most relaxed approach, saying he’s still thinking about timing. He does want two special sessions, like Angelle and Edwards — one to address the current fiscal year and another to make larger budget changes. Dardenne said he has also considered calling a special session to coincide with the regular session, but isn’t sure yet if that’s the best approach.

“Having an aggressive timetable may not give everyone enough time to digest what’s being proposed,” Dardenne said. “I won’t just call a special session and plop down the call.”

Dardenne said in a debate recently that he would consider increasing the personal income tax, but only as part of a strategy to take nothing off of the table. He said he would cut cabinet salaries, reorganize the Division of Administration, merge certain offices and explore eliminating or capping exemptions.

Vitter is the only top contender who continues to say he’ll call a special session immediately, which explains the early focus on legislation, and he has never said that more than one will be needed.

His special session call, in broad terms, will include decreasing spending dedications, tightening up the Transportation Trust Fund, implementing targeted rate cuts and an examination of all credits, exemptions and deductions. But nothing more specific.

The role of constitutional amendments

Vitter is also of the opinion that his single special session will be enough to accomplish a restructuring of the budget process and revenue streams without the need for waiting on the passage of constitutional amendments.

That’s a roadblock lawmakers are worried about; if constitutional amendments do end up being necessary, it may be 2017 or later until the benefits materialize if fall elections are used.

Angelle said he will likely need a package of constitutional amendments for what he has planned and that he may push for a summer election, ahead of the usual fall ballot, so that the 2016-17 budget can be passed with contingencies linked to voter approval of his amendments.

Edwards said his plan may require constitutional amendments as well, but he hasn’t decided whether an early election will be needed. “I think we can fix our problems now without constitutional amendments,” Edwards said.

Dardenne is still considering his options.

“I would be cautious about trying to rush into all of this,” he said. “If we can come up with an idea where constitutional amendments can help with the current budget year, I would be open to an earlier election. Otherwise it can wait.”

Perhaps the special session can wait as well, said Speaker Pro Tem Walt Leger.

“Depending on the style of the next administration and leadership, there could be some value in having a regular session that’s followed by a special session,” said Leger. “It gives you a chance to set a tone, create a foundation and bring some people together. But there’s also some value in having a special session first and using whatever political capital you might have early.”

For more Louisiana political news, visit www.LaPolitics.com or follow Jeremy Alford on Twitter @LaPoliticsNow.