Tax break delay goes to House

• By MICHELLE MILLHOLLON
• Advocate Capitol News Bureau
• Published: Jun 4, 2009 - Page: 8A

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The Senate advanced a controversial measure Wednesday that would generate more money for higher education by delaying a tax break.

The Senate voted 29-9 in favor of sending the legislation to the House, where many lawmakers warn it will be defeated.

Senate Bill 335 by state Sen.  Lydia Jackson, D-Shreveport, would freeze the amount of federal excess itemized deductions that state income tax filers can deduct at current levels through 2011. Instead of being able to claim 100 percent, tax filers would only be able to claim 65 percent.

The savings to state government would be $118 million.

Gov. Bobby Jindal is vowing to veto the legislation. Many in the House have said the bill is dead on arrival.

“If we will delay this small benefit to taxpayers for a simple three-year period, we can go a long way toward providing additional resources to our colleges and universities,” Jackson said.

Higher education officials are pleading with lawmakers to reduce the $219 million in cuts that Jindal proposed for public colleges and universities. The state is facing a more than $1.3 billion drop in revenue for the fiscal year that starts July 1.

Republican Party of Louisiana chairman Roger Villere said the advancement of the legislation is disappointing.

A number of senators spoke in support of SB335, including several Republicans. Jindal is a Republican.

The Senate amended the bill to direct the dollars to higher education.

“Drastic cuts to the tree of higher education will cause a withering that will take years to overcome,” said state Sen. Bob Kostelka, R-Monroe.

Kostelka was one of 10 Republicans who voted for the legislation.

State Sen. Gerald Long, R-Natchitoches, said he changed his mind 30 times about the legislation.