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Louisiana officials on Friday temporarily avoided triggering the business tax increases and worker benefit cuts that could be needed to replenish the state’s shrinking unemployment insurance trust fund, though no one has yet proposed a permanent solution.
State law requires the Revenue Estimating Conference before Oct. 1 to project how much money will be available next year in the fund. That number determines how much businesses will be taxed to support the fund, how much unemployed workers will receive, and whether a worker training program will operate.
State House Speaker Clay Schexnayder and Senate President Page Cortez, two of the REC’s four members, declined to adopt an estimate at Friday’s meeting, buying a few more days to discuss other options when the Legislature convenes its special session Monday. Another REC meeting is scheduled for Tuesday.
Record demand during the business restrictions imposed in an attempt to slow the COVID-19 pan-demic has caused the fund to dwindle from more than $1 billion to less than $50 million. Officials expect the fund to be tapped out by Oct. 5.
The Louisiana Workforce Commission will borrow money from the federal government to pay legally required benefits through the end of the year. The money initially will be interest-free but must be paid back.
The higher costs for businesses could come on two fronts. The amount of employee wages that are taxed, and the tax rate, rise when the projected balance falls. And when the fund balance falls below $100 million, employers by law must pay an additional “solvency tax.”
Edwards on Friday said he was amending his current COVID-19 emergency order to suspend the solvency tax statute, effectively pushing back when employers would have to start paying the tax from April to July. The hope is that the state’s economy would be further on the road to recovery by then.
But Cortez questioned whether Edwards has the authority to suspend the law.
“In effect, this executive order is asking you not to follow the law,” he told Ava Dejoie, who heads the Louisiana Workforce Commission.
Cortez considers figuring out a way to avoid putting new costs on businesses, many of which are struggling, the top priority for the 30-day special session that begins next week. Options could in-clude using surplus dollars from a prior fiscal year or borrowing money through a bond issue to re-plenish the unemployment fund.
Also at Friday’s REC meeting, members discussed state government’s overall fiscal picture. Though the final tally is not yet available, the state may have run a surplus of around $200 million

Jeremy Alford, whose Louisiana politics column appears in The Daily Review, is reporting this afternoon that former Gov. Mike Foster of Franklin has entered hospice care.

Alford quotes family members who wish to "extend their continued gratitude for the many prayers and well wishes."

Foster turned 90 July 11.

A Korean War veteran and businessman in construction and sugar cane, Foster represented St. Mary Parish as a Democratic state senator for two terms beginning in the mid-1980s before switching parties in time for his run for governor in 1995.

A big field of candidates included better-known hopefuls, including future U.S. Sen. Mary Landrieu, Lt. Gov. Melinda Schwegmann and former Gov. Buddy Roemer.

But at a time of backlash against the rapid expansion of legal gambling in Louisiana, Foster came out strongly against the further spread of gaming. Foster led all 16 candidates in the primary with 26% of the vote, winning a runoff spot against state Sen. Cleo Fields, D-Baton Rouge.

The following month, Foster won 64% of the runoff vote. He was reelected easily in 1999, winning 62% of the primary vote against 10 opponents.

The Old Building held a St. Mary Chamber of Commerce ribbon-cutting Friday at its facility at 3190 First St. in Berwick. The event and performance venue is owned by Colleen Askew. She was joined by family, local officials and chamber representatives, among others, for the occasion.

The Daily Review/Geoff Stoute

EDITOR’S NOTE: Bo Duhé announces his candidacy for reelection as District Attorney.
Incumbent District Attorney Bo Duhé has announced his campaign for reelection on the Republican ticket.
Duhé was elected as District Attorney in 2015 of Louisiana’s 16th Judicial District, which includes St. Martin, Iberia and St. Mary parishes.
He has worked for the office since 1993, when he began as assistant DA.
“I have 28 years of experience protecting the families in our three parishes,” says Duhé. “For each and every case, I carefully listen to both sides to ensure that when a crime is committed, justice is fair and equitable.”
Duhé was born and raised in New Iberia and graduated in 1980 from Catholic High School. His father, John M. Duhé Jr., is a former attorney in New Iberia, State District Judge and a Federal District and 5th Circuit Court of Appeal’s Judge.
Duhé received a business degree from the University of Louisiana at Lafayette in 1984 and after working in banking, he went to Tulane where he received his law degree in 1992.
He and his wife Lisa Trahan Duhé have three grown children and two grandsons.
“In such unprecedented times, we need a steady, fair and experienced leader,” says Matt Delcambre. “Bo comes from a family of well-respected attorneys. He cares deeply about his community, and we need him as our District Attorney.”
When asked his greatest accomplishment, Duhé says unequivocally that it’s surviving cancer. In August, Duhé will serve as president of the Louisiana District Attorneys Association, where he’s also served as vice president and on their legislative and technology committees. He was named Iberia Parish Distinguished Citizen of the Year in 2015 by the Evangeline Area Boy Scout Council. He received the Chez Hope Peacemaker Award in 2017 and the Virginia Tyler Guillotte Award in 2018.