Budget battle gets worse

• By MICHELLE MILLHOLLON
• Advocate Capitol News Bureau
• Published: May 24, 2009

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Business leaders urged lawmakers Saturday to avoid making deep cuts to the state’s public colleges and universities.

The Shaw Group President and CEO Jim Bernhard said Louisiana lacks the knowledge base necessary to attract many companies to the state.

“If you invest in our children, you’ll be proud 20 years from now,” Bernhard told the Senate Finance Committee.

Sean Reilly, chief operating officer and president of the outdoor division of Lamar Advertising, asked legislators to protect higher education from “truly draconian cuts” to the greatest extent possible.

He said there is only one shot to get it right.

Gov. Bobby Jindal proposed cutting $219 million from public colleges and universities in the budget year that starts July 1. The state, like the rest of the nation, is suffering an economic downturn.

The Shaw Group recently said it will forgo $172.5 million in state incentives for a Lake Charles nuclear manufacturing plant and headquarter retention.

The Baton Rouge-based corporation wired $13.5 million back to the state and scrapped plans to receive $28.5 million from a state economic development “megafund.” Other incentives included forgivable loans.

The Shaw Group is one of only two Fortune 500 companies in Louisiana in 2009.

Bernhard, a former chairman of the state’s Democratic Party as well as Shaw’s chief executive officer, urged the state to use the money for higher education.

Bernhard also is considered a possible contender to challenge U.S. Sen. David Vitter, R-La.

Vitter is seeking re-election next year.

Bernhard declined Saturday to delve into his political ambitions.