The third special session of the Legislature is to begin Monday and state Rep. Phillip DeVillier, R-Eunice, said his limit to a sales tax increase is 0.3 percent.
Gov. John Bel Edwards is asking legislators to pass a half-cent sales tax.
On July 1, the state’s sales tax is to be reduced from 5 to 4 percent. The tax was raised two years ago as a temporary budget fix.
DeVillier said, “I would consider the third but then again it is going to depend on what all they tie it to.”
According to a survey of his District 41 constituents he shared at Thursday’s Eunice Kiwanis Club meeting, the sentiment is strong raising taxes.
Opinion was sought by mail from 14,000 households, he said. About 400 replies were received, which he termed as an “extremely strong indication” of what the district thinks.
Respondents’ spending priorities were, in ranking order, hospitals, roads, K-12 education, higher education and TOPS. The results between hospitals, K-12 education and roads were close.
Almost 92 percent of 358 respondents said state government spends too much. Thirteen of the respondents skipped giving their opinion.
Asked “Which of the following do you support?” nearly 90 percent of 359 respondents said “Cutting government expenditures.”
About 6 percent supported increasing taxes and 6.4 percent favored increasing the state budget.
Nearly 49 percent of 350 respondents favored reduction of state government services to cover the budget shortfall.
Other responses about how to cover a budget shortfall were:
— 8 percent increase the sales tax;
— 3 percent increase personal income tax;
— 13 percent reduce exemptions; and
— 37 percent combination of taxes and cuts in government.
“I think it is going to work its way through,” DeVillier said about a budget solution.
“I’m willing to compromise some, but I’m not willing to do the point four or the point five,” he said of a sales tax increase.
DeVillier said the budget numbers change frequently and questions just how much of a fiscal cliff there is.
On Friday, he emailed information from Chris Keaton of the House Fiscal Division about the Department of Health.
It stated, “Over the last 10 years, the State of Louisiana’s State General Fund (generally what people consider their tax dollars) has gone from $9.404 billion to $9.461 billion, or a growth of $57 million. At that same time, the LA Department of Health’s State General Fund expenditures has gone from $1.704 billion to $2.415 billion, or a $711 million increase. So, the state had a revenue growth of $57 million and LDH consumed it all, and then another $654 million. Who got less so that LDH could have more? Sixteen of the twenty-six departments received less SGF than they had 10 years ago. Higher Education was the big loser at $548 million. Youth Services received $37 million less and Agriculture and Forestry received $29 million less.”
At the Kiwanis meeting, DeVillier said District 41 includes LSUE, two hospitals, four nursing homes, local police and fire departments that all rely in some way on state dollars.
DeVillier’s attempt to eliminate or reduce tax exemptions for movie production was scuttled in the regular session.
“I couldn’t even get it out of my own committee,” he said of the bill targeting the $180 million tax credit, an amount which he said would fund LSUE for 45 years.
“For every dollar we give them we lose 77 cents,” he said of the movie production tax credit.
DeVillier will be in his 11th session when the special session opens Monday.
