Eggs and Issues: Breakfast with a side of politics

Published 12:00 am Thursday, August 16, 2018

Three Iberia Parish state legislators took the stage at the Ramada Inn’s Conference Center Wednesday morning for the Greater Iberia Chamber of Commerce’s Eggs and Issues event. 

House Speaker Taylor Barras, R-New Iberia, Rep. Blake Miguez, R-Erath, and Sen. Fred Mills, R-Park,s each gave their perspectives on the recent legislative sessions that occurred this year and where state government is heading in the future. 

Barras, who pointed out that state government has had 10 legislative sessions in a four-year period, said that state government currently has the largest budget in state history with the exception of its general fund which is controlled by the legislature. 

Barras said the $9.4 million state general fund, which is the part of the state’s budget controlled by the legislature, had remained relatively consistent over the past decade. However, the amount of federal funds shifted to the state for Medicare had done much to bloat the budget.

And in 2021, Barras added, the burden of paying for Medicare will begin to shift to the general fund. 

“Of the $33 billion that’s spent, health care, general government and education make up the lionshare of the budget,” Barras said. “I would say well over 80 to 85 of our budget is spent on those three budgets, the other departments share the other parts of the budget.”

The Speaker also mentioned the annual state bonds issued for capital outlay, and how they recently affected local government. 

Barras said that Iberia Parish had about $25 million in capital outlay for several projects that have taken years to process through state government. He also mentioned the capital outlay items that were vetoed by Gov. John Bel Edwards earlier this year. 

“It was directed at one person, I think he made his point,” Barras said. “But we’re making the point back that everyone one of those projects will be put back on the list in September.”

Miguez briefly discussed a point of optimist for state coffers, the legislation by the U.S. Supreme Court allowing for states to tax sales made on the internet. Although legislators are waiting for word from the Department of Revenue, Miguez said he’s optimistic that collecting those taxes could bring hundreds of millions to the state budget. 

He also suggested that state legislators should begin lowering its sales taxes in anticipation of those new funds, in order to ease the tax burden on residents and businesses.

“There was a renewal of an increase of a tax, what happens when those millions of dollars come in.?” Miguez asked. “Now we need to lower those taxes so we can promote our economy and make it more competitive.”

 After getting a question regarding the need for retirement reform in state government, Mills and Miguez spoke about possibly converting from a pension to something along the lines of a 401K system.

With life expectancy growing, Mills said the current system wasn’t feasible and reform may be needed down the road. 

“I think even the groups getting ready to retire realize the goose that’s laying the golden egg is about constipated,” Mills said. “I think what they’re seeing is if something is not done it’s really to the point where it could be detrimental to the retirees.