Session includes ‘Stelly tax’, pay raise

• By JORDAN BLUM
• Advocate Capitol News Bureau
• Published: Jun 24, 2008 - UPDATED: 12:05 a.m.

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More money going into lawmakers’ pockets and more money being returned to taxpayers were the dominant topics of the three-month legislative session that ended Monday, area legislators said.

State Sen. Bill Cassidy, R-Baton Rouge, called it a “tale of two sessions.”

A more than $300 million a year state income tax cut that undoes key parts of the 2002 so-called “Stelly tax” was “overshadowed” in the final two weeks of the session by legislators voting to more than double their base salaries, said state Sen. Eric LaFleur, D-Ville Platte.

Rep. Joel Robideaux, No Party-Lafayette, said legislators fought for years for the income tax bracket changes and even eventually gained the support of Gov. Bobby Jindal, who initially opposed the measure.

The Legislature gave the repeal bipartisan support. But much of that goodwill was quickly undone with the pay raise vote, he said.

“This year we shot ourselves in the foot,” Robideaux said. “I do think we accomplished a lot. I just don’t know if we’re going to be remembered for it.”

“It’s almost like it negates all the good we have done,” added Rep. Tom McVea, R-St. Francisville.

Jindal called the Stelly repeal “tremendous” while labeling the pay raise “over the top.” But he has repeatedly said he will not veto the pay increase.

Senate Bill 87 by Sen. Buddy Shaw, R-Shreveport, would deliver income tax breaks of up to $1,000 for some households. The cut takes effect next year.

Senate Bill 672 by Sen. Ann Duplessis, D-New Orleans, would increase lawmakers’ $16,800 annual base salary to $37,500. Top legislative leaders would get more money. Legislators also get a $6,000 expense allowance and $143-a-day per diem payments for every day in session or committee.

Sen. Ben Nevers, D-Bogalusa, said the boost was justified to prevent the Legislature from being filled with wealthy members only. Legislators had not given themselves a salary jump since 1980.

Rep. Avon Honey, D-Baton Rouge, said the best thing in the regular session is passage of Jindal’s work-force changes. He said it will help Louisiana employers get trained workers for the jobs they need and residents trained for those jobs.

Senate Finance Committee Chairman Mike Michot, R-Lafayette, helped write Louisiana’s $30 billion budget. He praised the restoration of $120 million in spending trimmed by the House because he said it would have stalled recent funding gains for health care and education.