LA. LAWMAKERS PASS BILL–Seems the third time was a charm as most Louisiana Lawmakers finally agreed to pass the extension of a sales tax hike to avert the “fiscal cliff”. This was the third special session of the year and the seventh during Governor John Bel Edwards’ administration. The votes came in the Senate Sunday night to reduce a revenue shortfall that otherwise would’ve forced deep cuts to state services July 1 when the temporary 1-cent sales tax expires. Edwards called the special sessions after lawmakers failed to resolve budget problems during regular sessions. During a press conference, the governor said " No it shouldn't have taken this long, it shouldn't have been this hard" Edwards said. "But the good news is the fiscal cliff is now gone. And we have predictability ahead of us."
The past few days, lawmakers have been in a tug-of-war over fractions of a penny as different proposals ranged from a 1/3
rd to a half-a –penny sales tax extension – to address about a half-billion dollar budget shortfall that would have enacted severe cuts to programs ranging from nursing home care, food-stamps, TOPS Tuition, Higher Ed, and charity hospitals.
The general consensus among lawmakers is no one’s completely satisfied with the bill that was passed Sunday, a feeling shared on the senate floor by Democratic Sen. Karen Carter Peterson of New Orleans, who asked her fellow lawmakers to consider the people of Louisiana before voting on the bill. Peterson explained "None of us, I believe is happy are completely happy withmany of the the instruments; I know I'm not. But in furtherence of the people's interests, we all have had to compromise."
The Senate passed the measure with a vote of 33 to 6, and so the state sales tax rate will go from 5 percent down to 4.45 percent on July 1st. The state sales tax rate otherwise would have dropped to 4 percent when a temporary 1-cent sales tax expires at the end of the month. The extended tax, it too is temporary as it’s scheduled to expire in 2025.
