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As Louisiana begins to return to normalcy following Hurricane Francine, the Legislature is getting back to work this week and will focus partly on the immortal words of late U.S. Sen. Russell Long, who was a masterful Finance chairman: “Don’t tax you, don’t tax me. Tax that fellow behind the tree.”

That said, part of the workload this week includes prepping for next year’s fiscal session, and perhaps for a tax-focused special session this fall in the wake of the presidential election. 

On Wednesday, House Ways and Means and Senate Revenue and Fiscal Affairs — the tax committees — plan to hold a joint meeting to scrutinize the tax credits and incentives that Louisiana Economic Development oversees. 

The basic conundrum regarding tax incentives is pretty familiar by this point. Many taxpayers feel the state gives up too much of its potential tax revenue, and argue that expanding the tax base would allow everyone to pay lower rates.

But while “tax breaks” as a broad concept may not be popular, every program exists for a reason. And all of them are supported by stakeholders prepared to defend their interests at the Capitol. 

LED doesn’t oversee most of the tax breaks that make up Louisiana’s $7 billion or so annual total, such as the sales tax exemption for food, which is unlikely to go away. Some of the high-profile programs the department does administer include the Motion Picture Investor Tax Credit (which cost about $134.5 million during the 2022-2023 fiscal year, according to the Revenue Department’s latest tax exemption budget), Quality Jobs (about $150 million) and Digital Media and Interactive Software (almost $17 million).

Lawmakers are looking for a mix of spending cuts and tax changes to close next year’s anticipated shortfall. 

Also on this week’s calendar, following several cancellations last week: 

— The America 250 Louisiana State Commission meets today at the Old State Capitol. The commission is part of the national effort to commemorate the country’s 250th anniversary. 

— The Coastal Protection and Restoration Authority meets Wednesday. 

— The Gaming Control Board meets Thursday, as does Integrated Criminal Justice Information System Policy Board. 

— The Appropriations Committee’s Supplemental Pay Subcommittee also meets Thursday. A recent Louisiana Legislative Auditor report, which the committee plans to discuss, found that supplemental pay for law enforcement and fire protection cost the state about $140 million in fiscal year 2023. Some people who are not supposed to be eligible get the extra pay, and some police chiefs get the pay bump without completing the necessary continuing education, the LLA found. 

— The Revenue Estimating Conference meets Friday, where they will address the fiscal impact of legislation passed this year, including HB 786.

 — The Joint Budget committee is set to convene Friday just after the REC. Supplemental pay and approval of Water Sector Commission recommendations are on the agenda. 

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