Posted in Legislative, News, PAL |
PAL would like to express our appreciation to Governor Blanco and her cabinet, particularly Com. Jerry Luke LeBlanc, DOTD Secretary Johnny Bradberry, and LED Secretary Mike Olivier for their support in helping us to obtain additional funding for port infrastructure development during the legislative session. The Ports Association of Louisiana approached the Legislative Session and the Blanco administration with two goals for increased funding. The first goal was to secure additional funding for the 2007-2008 Port Construction and Development Program (PCDPP).
That program has $64 million in recommended projects. With an anticipated annual funding level of $20 million, it would have taken over three years to initiate all of those projects, creating an impossible situation for Louisiana ports. PAL representatives met with Gov. Blanco and Com. of Adm. Jerry Luke LeBlanc, as well as DOTD Secretary Johnny Bradberry and Secretary Mike Olivier, to request that in addition to the budgeted $20 million, an additional $42 million be appropriated from the surplus state funds.
After multiple communications and meetings with members of the Legislature, which resulted in strong support for the additional $42 million appropriations, HB. 765 was enacted into law and appropriated $42 million from the state’s surplus to the PCDPP. On the House side, PAL had strong support from the Transportation committee and particularly its Chairman Roy Quezaire, and Appropriations Committee Chairman John Alario and the entire Appropriations committee. In the Senate, the Transportation Committee and its Chairman, Noble Ellington were very supportive of our efforts.
Additionally, HB 2, the Capital Outlay Bill, included $25 million for the PCDPP, an increase of $5 million as a result of the recommendations of Secretary Bradberry. This would make a total of $67 million available for the 2007-2008 PCDPP approved projects.
The second goal of PAL was to secure support for long term increased funding of $40 million annually for the PCDPP as recommended by the PAL Five Year Capital Improvement Plan, DOTD’s Intermodal Transportation Plan and the Report of the Maritime Advisory Task Force.
PAL supported the efforts of the Good Roads Association to secure new funding for the Transportation Trust Fund (TTF), by supporting legislation to shift sales and use taxes on vehicle sales from the general fund to the TTF as included in HB 722 by Rep. Quezaire and Sen. Ellington. The PCDPP currently receives $20 million annually ($25 million this year- as explained above) from the TTF. In the division of the funds as provided in HB 722, the PCDPP would have received 7% of the sales tax funds to be shifted to the TTF, or the equivalent of $25 million of additional funding from the TTF for a total of $45 million annually.
The bill which had a fiscal note of approximately $380- 400 million, was amended in the Appropriations committee to make it effective on July 1, 2008 and sunset on July 1, 2010, giving the new legislature and governor the opportunity to budget for the shifting of funds. The bill was strongly opposed by the Blanco administration on grounds that it would cause problems for future funding of education and health care. Nevertheless the House passed the bill with 103 votes in favor, and no votes opposed. The bill was then referred to the Senate Finance Committee, where it was eventually deferred with the same reasoning as put forth by the administration.
Additionally, Sen. Reggie Dupre introduced SB 146 to create the Windfall Highway, Infrastructure and Protections (WHIP) fund, a bill he had also introduced in the special session. That bill redirected a portion of the revenue from mineral production, which by constitution is deposited into the Budget Stabilization Fund until it reaches a constitutionally mandated level, At that point the surplus is deposited into the general fund. The bill provided that 25% of the surplus during 2008-2009 fiscal year, and 50% the following fiscal year, be deposited into the WHIP fund. The bill provides that of the funds deposited into the WHIP fund, 30% are to be deposited into the Coastal Protection and Recovery fund and 70% are to be deposited into the TTF with 10% of that funding designated for the PCDPP. This would result in approximately $4-5 million in 2008-2009 and $9-10 million in 2009-2010 of additional funding for the PCDPP. This bill will also sunset in July 2010. This bill passed both houses and awaits action by Governor Blanco.
In addition to the above, several ports received funding for port projects in the Capital Outlay bills HB 2, 3, 765. Port of New Orleans received funding to begin the process of relocating the frozen chicken facility to the Mississippi River. The Port of South Louisiana, the Port of St. Bernard and the Port of Greater Baton Rouge all received funding for several projects including the Lower Mississippi River Security program matching funds.
In spite of this success in meeting our first goal, PAL will be back next session again trying to meet our second goal…. to obtain a secure, stable and recurring funding source of $40 million annually for port infrastructure development.
PAL appreciates all of the legislative, administration, port and associate membership support that we received during the session. YOU MADE IT POSSIBLE!
