Legislators managed to pass tax increases and budget cuts during the first, and maybe last, special session of the year but they admittedly fell short of making any structural changes.
The shortened timeframe and Gov. John Bel Edwards’ special call, or agenda, were both culprits, but members of the House and Senate didn’t ignore the issue completely.
They adopted HCR 11 by Rep. John Schroder, R-Covington, which creates a review panel that will make recommendations on budget and tax reforms that will be turned into legislation for the next applicable session — probably the 2017 regular session.
Schroder said the goal is to modernize and enhance the efficiency and fairness of the state’s tax policies for individuals and businesses. His resolution charges the panel, known as the Task Force on Structural Change in Budget and Tax Policy, with reporting its findings to the Legislature by Sept. 1.
Spending reforms and overhauling the tax code were major sticking points for Republicans during the special session. They asked the governor on different occasions to agree to future negotiations on such reforms that target the state’s pension systems, sentencing guidelines, Medicaid program and other areas.
Schroder’s resolution, which was co-authored by House Speaker Taylor Barras, R-New Iberia, and Senate President John Alario, R-Westwego, stacks the panel with academics, tax professionals and representatives from business and civic organizations.
It will not be a study group, Schroder said, but rather a policy recommendation panel that will sift through recently-completed studies in order to produce a legislative package. That would give lawmakers time to draft bills and meet with other stakeholders ahead of the next applicable session where such matters can be introduced.
Bills that increase taxes and make certain fiscal changes can only be introduced in regular sessions held in odd-numbered years.
For those involved in tax policy and those who were playing offense or defense during the special session, the formation and membership of the panel is of great interest — as will be its work.