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Bike trail funding is on a roll

Just as more Morgan City residents are using bicycles for exercise during COVID-19 restrictions, the city government got some good news about its bike trail plans.
The state of Louisiana, through Lt. Gov. Billy Nungesser’s office, announced that it is awarding state dollars towards two of the three grants submitted last year towards the Bike Morgan City project.
Funds have already been awarded for the first phase of the plan, and now two more phases are being funded through the Louisiana Recreational Trails program, the H&B Young Foundation, and the city of Morgan City. Construction should begin soon on a total of three phases, according to St. Mary Excel.
The foundation initiated the health and wellness community biking project with funds to design a comprehensive bike trail. Its first donation of $12,000 for the project ($10,000 for the plan and $2,000 for trail posted riding guidelines) is reaping great returns in community improvement.
“Its further commitment of $90,000 will continue the momentum towards building a better community,” St. Mary Excel said in a news release. “The Young Foundation and its commitment to Morgan City shows how community-impacted philanthropy contributes to the quality of life enjoyed by residents.”
“It’s something to add to Morgan City’s offerings to the public,” said H&B Young Foundation President Brenda Ayo.
The project is one of the improvements envisioned in an Urban Land Institute study, commissioned by St. Mary Excel, of development opportunities in Morgan City and Berwick.
“This study will cross over administrations,” said Morgan City Mayor Frank “Boo” Grizzaffi in a text message. “It has a clearly defined path for our communities.
“It is extremely important we act on the suggestions in order for this not to become just another study.
“Improving Quality of Life, re-branding our economy and promoting our culture are very attainable goals.”
The city of Morgan City also committed to the trail development from Fig Street to La. 70 which is halfway complete. Ochsner St. Mary will fund bicycle racks to be placed around the area to increase the use of bikes for short errands. St. Mary Excel will continue its grant writing efforts.
For the 2018 first phase, a Recreational Trails Program for Louisiana grant was submitted and approved in which trail development would be completed between Lakeside Subdivision and the Cajun Coast Visitors’ and Convention Bureau along the Auburn levee.
In 2019, the H&B Young Foundation committed a total of $90,000 of financial support for the three grants that were submitted. This financial support allowed St. Mary Excel to submit three grants through city of Morgan City, the Cajun Coast Visitors and Convention Bureau, and the St. Mary Parish Levee District.
These grants will continue the bike trail from the Cajun Coast Visitors and Convention Bureau along the levee, behind David Drive and to the intersection of La. 70. $60,000 of that commitment will be used to fund the two awarded grants and the other $30,000 will be banked to re-apply for the third grant in the spring of 2020.
Grant authorities are encouraging St. Mary Excel to keep the third request for the 2020 funding cycle. St. Mary Excel plans to do so and is also submitting a fourth grant by July 1 to connect downtown Morgan City to the trail.
The bike trail plan has been publicly displayed at the Artist’s Guild Unlimited, Atchafalaya 24 Hour Fitness, Anytime Fitness Center, Core Physical Therapy and Sports Performance, and Ochsner St. Mary.
The Young Foundation and its commitment to Morgan City is a shining example of community impacted philanthropy contributing to the quality of life enjoyed by residents. The foundation has led the biking project work.

Patterson trims hours to save money

The Patterson city government is trimming four hours a week off the schedules of nonessential employees, hoping to make up for some of the revenue lost to COVID-19 restrictions.
Patterson City Hall will continue to be closed to the public after noon on weekdays. Beginning May 15, employees other than those who work with the Police Department, the natural gas system or the water plant will go home at noon Fridays.
The move was announced at Tuesday’s City Council meeting, conducted by live-stream and teleconferencing.
“We’re trying to be proactive,” Mayor Rodney Grogan said.
Local governments across the region rely heavily on sales tax revenue. The restrictions placed on businesses, including the outright closure of enterprises such as barber and beauty shops and gyms, will have an impact on government income.
The May 15 date coincides with the end of the current stay at home order by Gov. John Bel Edwards and the day when state government hopes to move into Phase One of the Trump administration’s Make America Open Again guidelines. Whether Louisiana enters Phase One, a limited lifting of some COVID-19 restrictions, depends on whether the state has demonstrated two straight weeks of improvement in the number of infections, hospitalizations and deaths.
Grogan said the four-hour reduction resulted from consultations with Accountant Reginald Weary and other department heads.
Employees deemed to be providing essential services, including police and utility workers, will work their full shifts.
“But I’m asking that they keep the overtime down,” Grogan said. “The overtime is killing us when it comes down to throwing us off the budget because if someone is sick we have to pay the sick pay as well as overtime for the other workers.”
Also May 15, Patterson city employees will be ordered to wear masks when dealing with the public. Grogan said the order doesn’t apply to the public at large, but he urged people to follow public health guidelines by wearing masks in public.
Also Tuesday, Grogan said Patterson’s Census 2020 response rate so far is 39%.
He has urged residents to take part in the Census as a way to make sure the city government is in line for any government assistance to which it may be entitled.

Tax-free status of paycheck protection loans in question

Work still is needed to ensure that the billions that the U.S. Small Business Administration has lent to businesses via the Paycheck Protection Program are fully tax free if they qualify as forgivable loans.
While the loans have been marketed as eligible for forgiveness if at least 75% of expenses are used on payroll, Tim Matte, co-owner of Pitts & Matte certified public accounting firm in Morgan City, said there still is work to be done to insure these loans don’t essentially qualify as taxable income.
Matte, who has been in the tax business for nearly 40 years, said that the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, approved by Congress states that loans forgiven are tax free.
However, he said the Internal Revenue Service’s position is if an expense is paid with tax-free income, then it can’t be deducted.
“So the IRS’ current position is ‘Yes, that forgivable loan is tax free, but the expenses you paid with it are not deductible,’” Matte said Tuesday.
So essentially, he said, as of now, the loan is not tax free.
Tax lawyer Robert Wood wrote in a Forbes article that the IRS has said “this treatment prevents a double tax benefit.”
However, he said the double-tax benefit is what the loans are meant for.
“There could be a dispute about what Congress really meant in the hastily passed CARES Act, and the pushback from some in Congress suggests that,” Wood wrote.
He said the IRS and opponents of the deductions have made points to side with their case.
Matte said the American Institute of Certified Public Accountants has contacted Congress and the Treasury Department to remedy this issue.
“I think there’s more to come to that story, basically, how that’s going to ultimately end up being handled,” Matte said.
While tax filings slowed for his business since the federal and state deadlines have been extended from April 15 and May 15, respectively, to July 15 for all tax filings, Matte said that helping customers navigate the intricacies of the Paycheck Protection Program filled the void.
“Once the PPP passed, then kind of the focus changed of ‘well, I’ll take care of my taxes later, but let’s get this done,’ or in some cases maybe had already taken care of their taxes for ’19 and it was just a matter of going back and assisting them in pulling up the information they needed and how to apply and so forth,” Matte said.
As for stimulus checks, Matte said those are not considered taxable income.
While he has fielded many questions on the checks, he said if consumers filed their taxes and selected the paper check option instead of direct deposit, those paper checks have started being sent recently and are starting with the lower income brackets.
One thing to remember for those who collect Social Security is that the IRS is using income tax return information initially before Social Security data.
“If you don’t normally get a refund and therefore don’t have direct deposit information, then you’re getting a check, and those checks are coming later,” Matte said.
As for advice to tax filers, Matte encouraged the public to file their taxes now, even if they owe money.
“Certainly if you owed money or you think you owe money, you don’t have to pay it until July 15,” Matte said. “(That) doesn’t mean you can’t file your return, and it would be perfectly OK to file your tax return and then wait and pay the money on July 15.”

Bill would put caps on spending

A Louisiana legislative committee on Tuesday advanced a bill that would restrict how much of the money the state expects to collect that lawmakers are allowed to spend.
The nod from House Appropriations is the first step for an effort that has failed in prior years.
By law, the governor and legislators cannot call for spending more in the next fiscal year than what the Revenue Estimating Conference predicts will come in from taxes, fees and other sources. Under House Bill 118, lawmakers would be further restricted to 98 percent of that estimate.
Predicting how much money is likely to flow into state coffers is an inexact science, and no one expects the REC to get it exactly right. Rep. Rick Edmonds, the Baton Rouge Republican who authored the bill, said the change would provide a cushion in case the REC overestimates how much money will come in, he said.
But if the estimates are low or pretty close to accurate, state government would create surpluses. While surpluses can’t be spent on general government operations, they can be dedicated to one-time expenses like roads and bridges, used to pay down retirement debt, or put aside in the “rainy day” fund.
A healthier “rainy day” fund could come in handy if there is another shock to the state’s economy similar what is being experienced worldwide due to the response to the COVID-19 pandemic, supporters said. But detractors say a time of unprecedented crisis is exactly the wrong time to be limiting the amount lawmakers can spend to address that crisis.
The bill would go into effect for the 2021-22 budget year, when it might cost the state general fund as much as $206 million, according to the estimate prepared by the legislative fiscal office that acknowledges the revenue uncertainty created by the pandemic.
Rep. Barbara Carpenter, D-Baton Rouge, worried about the cuts to services the artificial limit would require. She noted that health care and higher education often are first on the chopping block. Health care will only be more critical as the state deals with and recovers from the pandemic, she said, and higher education has only just now been stabilized after a decade of cuts.
“I just think it would be a travesty if we have to go back and cut them again,” she said.
House Appropriations also advanced bills by Rep. Beau Beaullieu, R-New Iberia, that, taken together, would limit the growth of state spending to 5 percent per year at most. The change would require a state constitutional amendment, which means two-thirds of lawmakers and a majority of voters would have to approve. If enacted, a two-thirds majority of legislators still could vote to exceed the cap if they felt it necessary.
Daniel Erspamer, CEO of the fiscally conservative Pelican Institute for Public Policy, said having a spending limit helps to “smooth out the ups and downs” of state budget cycles. The state has had an expenditure limit since the 1990s, speakers said; Beaullieu’s bills would update the methodology.

DWAYNE W. WHITE

June 24, 1970 — May 2, 2020
Dwayne W. White, 49, a resident of Gibson, passed away on Saturday, May 2, 2020, at his home.
Dwayne was born on June 24, 1970, in Lafayette, the son of Wayne White Sr. and Marie Billiot.
Dwayne loved to live free and be on the open road taking trips on his Harley and he loved listening to music.
He will be sadly missed and lovingly remembered by his brother, Wayne White Jr. and wife Dawn of Berwick; his sister, Chanda White of Morgan City; his companion of 19 years, Leona Patton of Gibson; his niece, Savanna White; and his dog and best friend, Toby.
Dwayne was preceded in death by his parents, Wayne White Sr. and Marie Billiot Butler; and one brother, Shane White.
A memorial service will be held at a later date.

LOUISE ANITA PLESSALA

Louise Anita Plessala, 69, a native of Morgan City and resident of Berwick, died Friday, April 24, 2020.
She is survived by a son, Benjamin Chaisson; and a host of other relatives.
She was preceded in death by her parents and a brother.
Hargrave Funeral Home is in charge of arrangements.

TAMMY MOORE JAMES

Tammy James, 56, a native of Algiers and resident of Bayou Vista, died Tuesday, May 5, 2020, at Ochsner Medical Center in Jefferson.
Jones Funeral Home is in charge of arrangements, which are incomplete at this time.

Metal Shark delivers river towboat

Jeanerette-based Metal Shark’s Bayou La Batre, Alabama, shipyard has delivered its first new build, a 120-foot by 35-foot’ river towboat for Florida Marine Transporters Inc. of Mandeville, the company said in a news release.
The four-decked, welded-steel, USCG Subchapter “M”-compliant towboat Stephanie Pasentine, which bears the distinction of being Louisiana-based Metal Shark’s first-ever steel new build and also its first inland towboat, was designed by John W. Gilbert Associates Inc.
The vessel’s twin Cat 3512C marine diesel engines deliver 2,011 horsepower each at 1,600 RPM and turn 100-inch by 69-inch stainless steel propellers through Twin Disc model MGX5600DR reverse reduction gears with a 6.56:1 ratio. Sleeping accommodations and facilities have been provided for a nine-person crew.
The new towboat is the first delivery in a three-vessel contract with FMT announced in late 2018, signaling Metal Shark’s entry into the inland towboat market following its acquisition of the assets of Horizon Shipbuilding earlier that year. With the purchase, Metal Shark, best known as a builder of welded aluminum vessels, assumed ownership of a fully developed 35-acre Alabama shipyard and began to expand into steel shipbuilding.
Metal Shark has significantly grown its Alabama operations since acquiring the yard, the company said.
Under the direction of company VP Doug Barrow, formerly the general manager of Great Lakes Towing Co. and Great Lakes Shipyard, and new construction mManager OW Brown, Metal Shark Alabama has grown from the 23 original employees acquired in the 2018 purchase to over 150 employees today.
Multiple steel vessels are currently under construction at the yard, including two additional 120-foot x 35-foot’ towboats for FMT, as well as a 70-foot steel Z-drive tugboat for North Carolina DOT. Metal Shark Alabama is also highly active in the vessel refit and repair sector, with several projects typically underway at any given time.
“Since 2018 we have invested in our Alabama operations by growing our workforce, engaging new clients, and implementing Metal Shark’s well-proven serialized construction methodologies,” explained Metal Shark CEO Chris Allard.
“Today as we celebrate the delivery of our first Alabama-built vessel, our first steel new build, and our first inland towboat, I’d like to thank our employees, and particularly our customer Mr. Dennis Pasentine, owner of Florida Marine Transporters. We were fortunate to earn his business and I am proud of our relationship, which is one I hope to continue well into the future.”
Metal Shark is a diversified shipbuilder specializing in the design and construction of welded aluminum and steel vessels from 16 feet to over 300 feet for defense, law enforcement and commercial operators. Key customers include the United States Coast Guard, Navy, Air Force, Army, foreign militaries, law enforcement agencies, fire departments, passenger vessel operators, pilot associations, towboat operators, and other clients worldwide. With three fully self-contained shipbuilding facilities in Alabama and Louisiana plus a dedicated engineering facility in Croatia, Metal Shark’s 500-plus employees produce over 200 vessels per year.

Survey: Half of energy companies expect bankruptcy

The second in a series of “point-in-time” surveys shows that nearly a quarter of the state’s oil related workforce has potentially already been laid off, and four in every five exploration and production companies has already begun shutting in wells, the Louisiana Oil and Gas Association said.
“Our members have indicated they’ve already been forced to lay off 23% of their workforce and the large majority are now taking steps to shut-in production,” Louisiana Oil & Gas Association President Gifford Briggs said. “We feared these outcomes would take place by mid-to-late May, but the crushing weight of the crisis is taking hold much quicker than expected. Without a doubt, we need federal and state policymakers to take immediate action to help mitigate further losses from these extreme market conditions.”
Louisiana’s severance tax rate is the highest in the country at 12.5%, nearly four times the neighboring Texas 4.6% rate. Oil prices closed most recently on the West Texas intermediate at $18.84,. Louisiana’s independent producers require an average of $37 a barrel to break even.
Further, more than half of company leaders indicated that bankruptcy or closures are likely. According to the Louisiana Workforce Commission and the Department of Natural Resources, the oil and gas industry employs approximately 33,900 workers operating around 33,650 oil and gas wells around the state.
This survey from LOGA’s members, which comprises 450 exploration and production and service companies across Louisiana, is below.
LOGA's survey results included:
--77.5% of operators have already begun taking steps to shut-in production
--97% are moderately or extremely concerned about the future of the industry
--51.35% said bankruptcy is likely
--34% applied for EIDL funds, of those only 25% received the funds they expected
--Of those who received funds, 46.67% indicted they were not enough to help them stay in business
--Of those who received funds, 72% indicated they were not enough to avoid layoffs
“We’re one of the largest employers in Louisiana with the highest average wages. Just imagine what shut-ins and company closures mean for individuals and communities. These are real dollars and their lack is going to be felt all across the state,” Briggs added.
“Of the things we can control, we must take bold action to enact immediate changes,” Briggs said. “We are looking forward to working with the legislature and the administration to figure out how to keep wells flowing and keep people employed as long as possible.”

Jeremy Alford: Four budget benchmarks to watch

“We’re going to hit it head on.”
That’s what House Appropriations Chairman Zee Zeringue, R-Houma, told me last week when I asked how his committee intended to dive into budget hearings. I wanted to know what potential there was for the committee to pass either a temporary, continuation or contingency budget.
Like most everyone else in leadership positions in the building, however, Zeringue said those intentions could change based on number of circumstances that are in flux. But for now, committee members are charging forward to tackle the budget warts and all, which could eventually mean devastating cuts somewhere down the line.
No one could have predicted the current fiscal environment a year ago. Unemployed residents, sinking oil prices and shuttered businesses are in, while planned investments in early education and teacher pay are out. The tough truth, moreover, is the landscape may stay that way for a while, according to Greg Albrecht, the Legislature’s economist.
“It’s going to be a long, drawn-out recovery here with no real boom,” Albrecht told lawmakers this week, adding, “The numbers are going to go down pretty bad for a while.”
In terms of what they budget will look like come July 1, the start of the new fiscal year, lawmakers like Zeringue are watching for a number of mile-markers.
1.) THE REC: The Revenue Estimating Conference meets Monday and will determine exactly how much the state has to spend next fiscal year. In recent years predicting the outcome of REC meetings has become difficult, with conservatives on many occasions calling for delays in forecasts so more revenue data could be collected.
But should everything go as planned, Commissioner of Administration Jay Dardenne recently told lawmakers his office will have a list of recommended cut ready shortly thereafter.
2.) THE FEDS: Congress has already approved $1.8 billion in aid for our state and local governments, with $810 million going to the latter. The money can only be used on COVID-19 needs, but there’s a push on Capitol Hill to ease those guidelines and maybe even direct more money to states.
If that happens, budget woes from Baton Rouge to Breaux Bridge and Bossier would soften.
3.) THE GAVELS: In addition to watching the REC and Congress, Zeringue said, “We’ll also have to see what kind of direction the House speaker and Senate president take.” There are already expectations for at least one special session, possibly two (one in the summer and maybe another in the fall), which the Legislature or governor can call to order.
Senate President Page Cortez, R-Lafayette, so far sounds hesitant on making final economic decisions any time soon. “We won’t know until really maybe the fall what the real forecast will look like,” he told senators this week, “so there may be a lot of economists guessing to some degree.”
4.) THE OTHERS: House Speaker Clay Schexnayder, R-Gonzales, and Cortez told reporters last week that only about a third of the session’s bills will be heard between now and June 1, when the regular session adjourns.
There will be an emphasis, they added, on legislation related to COVID-19, the budget and the economy.
But Democratic lawmakers say they have been disappointed to see the business lobby’s top priorities, tort reform and oil and gas litigation from coastal parishes, in that mix.
Supporters argue the issues speak directly to economic development, but they could serve as a distraction as well.
Depending on how all of those pieces move, the chairman said lawmakers may have good reasons to come back in a special session for followup budget work, or maybe they won’t — it’s just too early to tell.
Zeringue said the budget hole could be as big as $500 million, but acknowledged “that others believe it could be much worse.” For example, Senate Finance Chairman Bodi White told Advocate reporter Sam Karlin the shortfall could range from $500 million to $1 billion.
In related news, members of the budget-drafting Appropriations Committee will be hearing bills that could ease certain spending restrictions during times of emergency and they’ll have some tough decisions to make in regard to pending judgements and settlement payments for the next fiscal year.
“We’ll be looking into and evaluating those, but it’s going to be difficult,” said Zeringue.
In time, lawmakers will likely discover there are many other difficulties surrounding the budget as well. But for no it’s one day at a time.
For more Louisiana politi-cal news, visit www. LaPolitics.com or follow Alford on Twitter @LaPoliticsNow

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