WWL>Topics>>4-9-14 10:10am Garland: on Louisiana's economy

4-9-14 10:10am Garland: on Louisiana's economy

Apr 9, 2014|

Garland talks about Louisiana's economy in light of Gov. Jindal's latest spending freeze with attorney C.B. Forgotston and Louisiana economic development secretary Stephen Moret.

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Automatically Generated Transcript (may not be 100% accurate)

New Orleans marrow -- lender recently was superior Aspen institute for speech and conversations. About different problems that user fees and one of things reported people are being murdered in the streets of America. And the number of the victim and have exceeded. All the wars the US has followed since 19100. Combine. And the largest percentage of the deaths or -- we'll talk about what the -- said several other murders a drink news and bring it a couple of experts and people that are involved in this in their community leaders on daily bases try to better and stay and it. Video shootings at the military conflicts mass murderers and schooled and so forth and so on. It's only talk to bow out. That we don't have room in the facilities. Or for the mentally ill. We're putting them in prison. Mostly. What what is their any correlation all of these mass shooting cities. Acts of violence that we seem to have -- weekly basis in this country's much of what might be. Well linked to mental -- -- This hour. For a month can be used we've. -- Stephen morial and secretary Louisiana economic development tells me. Companies coming into this state. There are hiring like crazy payroll -- growing. All these new employees. Are gonna be paying more taxes. When I have. Business people. Veteran -- -- who try acting business that the state tell me the same thing. But I had a look at our legislatures. -- grows old and in this session. And el bared their talking about budget cuts. And one of the U executive orders from the governor. Conserving. Budget reasons. That spoke for the legislature. Of the governor's whereas underlying assumptions in the aids in the development of current year's state budget. Would be altered by a decline. In state revenues. Little confused so -- call -- currency be forgotten. Attorney here in the watchdog of sorts of the legislatures should be welcomed sure appreciated. Well I appreciate you have me down Garland and if you'll allow me that tan little explain. The fact that. The economy has not been. The short answer and you are all of this that you can't have a booming economy. And that decline in state revenues. Particularly. Sales taxes and income taxes. Okay where the ball. As you know Chris you've been in the media business you've been in. On the others the media. All good politicians and speak Spin Doctors like the ethically chance challenge they've been more. Work like the magicians. To keep us focused. In the wrong direction. Now I'm gonna explain exactly what about me. If you ask me CB has business doing this year. I'd say -- and I made. All are. -- -- 50000 dollar toward the business he says well that's great -- this is just the first quarter. And then we go along so okay you I'll leave you -- impression of businesses is dead right. But if you ask me CB. How much did you do net the -- you're businessman involved you know that is what you take home. That counts not what you gross. I'll say it will hold common -- put me on the spot actually I'll Austrian right. -- business isn't so good -- And so. Say. That's where we are being missile. More -- The politicians. And anybody else that's out there being a cheerleader. When the facts. But allowed that as you pointed out initially. -- the little edit the limit it to a -- -- breakthrough could only get details that -- it won't come back. And those who -- specific she'd taken on through our rights act of god. Are welcome backward thinking about the economy. We've been told over and over its booming now -- general won't spending -- CB for guts and talk to me it's going all. Will call in part I wanna commend you for being in the first raised this question and to understand. That this is a contradiction. First that this is the key to the whole thing. New jobs. Does not equal additional jobs those are two different things. Jindal and Moret said that in 2013. This state created. 50000. Jobs. All the private sector did it. However the governor's own economist in the legislative fiscal office economist. In January before the revenue estimating committee said there were only 20000. Additional -- So. That in that sounds like a lot but that's. That's some minimal that's that static -- That's nothing and therefore there's no reason to expect more revenues. Also. There is a difference. In types of jobs. About thousand service workers. In Louisiana. Do not equate. To 500. Middle management falling -- jobs they just don't produce those kind of revenue. So the got to focus on the net. Output. Of your earnings as well as the jobs created. So what we've done it and another thing that more rate has distracted this week at. It's about talking about all the ribbon cuttings that they've attended. And all the projected jobs that come in ten years. Even the. Some of the governor's own floor leaders in the education a questioning his workforce development because they say how can you possibly get people. Trained now. For the jobs that -- say or needed to -- fail. The award these are all long term things the other thing that more rate as it is advantageous. That he projects these job -- -- in if you look at the projections after all these ribbon -- The and majority of these jobs are out in ten years. However when -- happen in years come around nobody ever questions. Whether those jobs actually existed there. And the media never yeah of course the follow up on this -- And and the media never answer that question and usually about that tan. Moray or is predecessor or successor. A -- that seniors and nobody bothers to check NC a -- creating net new jobs. The other thing is let's say there war when he thousand additional. Jobs created. Last year but it was -- about private sector. Not not anything government. And -- the question then becomes how many new people entered the workforce. -- there in the metro -- -- -- they have more than 20000. Kids that graduate from the past do every year. And and even even more that don't -- never planned on going to college. Are never into the work force so we're just constantly being said look over here on the left and the actions going to the right. There's just nothing more -- spears and deception. About the about all right. Politicians and the other. Spin Doctors out there tried that consensus that the economy is good. When we're living in the economy and it's not this or certainly not but. We'll we're lucky to be living alone and in fact. This is nothing you -- ever hear from the legislators -- that would make and it talked about literally got cut because we don't have money. -- -- The revenues steadily grow throughout this recession. To that 300 million dollars a year in state funds. The problem is the legislature. Under Bobby Jindal. Spanned about that be -- dollars extra every year in state -- And therefore they've had to go to one -- revenues. And other sources barring from ponds that never or replenished. Just about the budget. Wouldn't the chickens are coming home to roost and frankly if we had the biggest booming economy in the history of the state. We still could not produce enough revenues. To keep up with the spending level is going down at the State Capitol today. For the did. To a little immature police and Stan. When you're talking about that 40000. Odd jobs that Stephen talks about the -- and talks about that's produced by the private sector and not the government. No actually government to reducing. They get well enough there reducing their jobs but they're merely shifting into the private sector in other words. The thousands of jobs. That moved out government that general likes to brag about it. Merely moved from the public hospitals. To the privately. Managed. Public hospitals. But they're no longer on the state payroll also general brags about that. Then he merely move them to the public sector and the to the private sector and -- that 2000 jobs. New jobs in growth. I mean can't have it both ways Somalis are not deceive about magicians. And on the 20000 figure. Orchards singers just your New Orleans and every year we gradually 20000 kids ultra -- -- I don't go to college so. Even -- 20000 jobs private or government. Is no -- new year. What what we should be do. It's like it's like the unemployment figure -- most meaningless figure out now. Because it depends on the fact that somebody is either drawing unemployment benefits. Are actively seeking work if -- 101000 of those graduates. From past -- don't actively seek work they're not counted in the unemployment figure. They just decide to go sell drugs -- -- are obviously not. On where and when I look at quotes from. Chairman of the Appropriations. Committee did you use the word. You Serbs were we're digging the hole deeper and deeper very based C. -- what your talking about that thing from everything I'm reading they're talking about lawmakers possibly. Cutting sixty million pay raises for rank and file state worker reported million higher education six million new money from colleges. -- would we hear this every year. We keep functioning. And do we ever get to a point -- no returner. I think we're about at that point now where the legislators do anything has completely hypocritical. Again -- and chairman of the Appropriations Committee talked about in the idea you know -- he's he's on the on the machine -- and tobacco. He nodding euthanasia he got tobacco lap. Every one of these budget world war blast by him and passed by him. He got up until the legislature at the end of every session the last six years the -- that budget is now. And vote for. And they did. That -- ignorant. Are he's lying and I think it is a combination of both. When I look at this is couldn incentive fund and the legislature. Yeah and it's -- -- dollars high demand programs double filled the petrol chemical engineering. And the manufacturing jobs combing to Louisiana. As so they think we've got a lot of jobs coming. Well they think that the that's what they've been sober Bala at listen to people around here rush you know. Site. That. In the next back years more people being employed in jobs. That we don't even know about right now than anything -- so yes we need. Retraining. Of the work force. But -- we are still training but it will. Manufacturing jobs when we need to be training for jobs that are -- Which not necessarily all coming here but all becoming. Occupations in Louisiana we have not train people step but these jobs so we're not necessarily training for new jobs. -- training for different jobs so what's new is not edition. So it could be that and and they have programs that that that the department of economic development where you go in and say let. -- -- -- -- -- -- -- -- -- -- But they don't know a damn thing about computers. Now Matt Light half a -- in -- but didn't trying to tie this to become computer program sure the president knows enough to learn how to tie. So that's that's what we're doing in most cases it's not like there's anything new coming here. Will we still have the same economy based on the petrochemical industry that we've had since we've had in an economy that is it. -- -- more mature -- napoleon's them -- to your you're sitting basically. We're -- being told one orange and gold and -- others. About a ball rolls. Product in this state not net now whether we actually put in the pot. In deported -- to the 2013. Where we were told we'd get 50000. Jobs that we. Created we have Altria in the fiscal does that no -- I don't own budget office. Okay and -- they said there was 20000 that's from the private sector. The cut and general claims that we've reduced the the public sector about 6000. So you know it's not broke in the public sector. So. You also realize they'd even though jobs cities quote gotten rid of most of more vacant positions and the others were shipped. Simply shifted. To a different payroll in the private sector and that's part of the growth. -- when you mentioned the 5000 service jobs with -- revenues obviously. Is that something. The governor and company claim or is evidence of new job. Well liked it they don't distinguish that but when they cut the ribbon remembers it differently cutting the ribbon and opening the -- -- -- popped in not starting this. To go to different. They talk about that job it will pay as much as 50000 dollars. But but you gotta be make in. I mean those we lost middle management jobs when -- left you'll -- Far -- and it will -- six figures. And -- 50000 dollar job is a lot of money. It doesn't prevent this thing. I'm Matt and those people can't necessarily about 300000 dollars homes in new -- And that the kids in private news in bailout and contribute to the arts in all kind of the thing. You need those -- paying jobs so a job. Is a job as far as numbers but you got to qualify. Not just quiet about the numbers that job. Or -- agreed thank you so much show -- will do follow up to in this this is supposed Cooper's one veteran stand to get more renters. Thank you so mud show up for being in the watchdog appreciated the top. It's -- we're coming right back Garland Robinette with the would call -- the thing. Our board finger bowed to the Louisiana budget themselves follow we have Stephen -- whether secretary Louisiana economic developed. She even welcomed match. Good morning that the -- Every element told -- and a league becomes -- and thinking. We're adding jobs the economy is moving things are looking let me read a couple of headlines and couple of excerpts from at least four news reports -- Booming economy in general or Asia -- spending present actually that's an opinion please this is -- news. The -- the spotlight -- stored -- sure and jungles budget then again into the news articles and here's some sentences of pulled out. Lawmakers should have the legislature. Saying financing seemed reluctant shaky. House Appropriations. Committee conducting an agency reviewed there's -- like what they've seen. Here's another one over reaching new spending could set -- long term problems for future. Governors of days. Here's the head of the Appropriations Committee determined we're digging a hole deeper and deeper. Here's what's over the legislatures. Are considering killing 62 million pay raises for state workers. Reporting billion for higher education six million new money. And finally. Lawmakers are questioning if this city can afford to boost spending. While budget estimates forecasts only modest income group at the -- For the state treasurer. -- -- him a little confused here that it seemed like whatsoever being -- were booming on the side. We see a lot of cuts and cuts and cuts and budget for his help. Personal talk about it. -- -- To get back to -- in 2008 the current situation took office that was just a couple weeks after the official store. But the Great Recession in one of the biggest recessions in the history of the country is at stake was heavily impacted by the including. But we went into the recession later -- -- -- it's more job -- has changed its became out of the recession earlier been published its. Now as a result. We have today. The lowest unemployment rate and so now. And we have the second best private sector job growth and so now and January 2008 and we couldn't stretch to present. That's. That's been in the context of deep national economic downturn and so there's no question that. While we he has strong group can -- -- six after period. Has been considerably better themselves in the country fall. It's not the talent group that we would expect experience. If we were you know period national economy was experiencing positive progress. It's certain that who explains part of the pictures that while we've done a lot better than the other states and the country. In the country overall. All we have not been nationally -- -- in the country it's been going effect today. Although they've mostly been almost every economist I talk to one when I talk about it. How well we're done -- so we'll keep in mind a lot of doubles federal dollars in their goal and what. Yeah I think that the State's economy definitely benefitted substantially. Particularly in 2008. In 2000. From Katrina we've covered related spending. And as that money has gone away we had to -- -- private sector job growth to be offset the losses since it. And that's in the Atlantic that's actually one of the reasons why. Even though our overall job group has been strong role itself in the country fall. That the Lebanese numbers is not over as well one of the biggest reasons is that there was contact Katrina. Recovery spike of spending and that's -- sick since in time period. Since subsided. And kind of got back to normal in Iraq in particular can we need. Connected on back -- back in nineteen. The year 1980. All the way through the years just before Katrina has taken -- Katrina. Culture which obviously distorted it and the State's general fund revenues grew and after about 3.5 percent per year. The last four years. From. Tickets from. Before include the current year gone back to fiscal year eleven. And a four year period -- sort of mutant in the current fiscal year have a replacement three point 8%. Faster. Than the long lines have extra. But that's -- big reefs. And move on to your non -- and it's big. Lost his seat -- a pardon me in Peru and reluctantly let me take a break here when we come back. I'm kind of get lost in the weeds of statistics and numbers when I'm trying to figure out. Well we're being told on that he quarterly basis. -- jobs big economies boom we're doing so much better. Well we see you on the fairly regular basis budget freezes and cutbacks. And the legislature. That seemingly every session goes well worth spending too much where. Big old branding program go to cover all this and they keep expanding. The budget. So so -- become active and stay in the broad picture doubled up. I'm talking about the budget talking about money and Louisiana's Stephen Moore with the secretary Louisiana economic development. See even him and when reported a couple of terms of maybe I can understand. One of the critics of the administration pointed out that the jobs -- reported by this administration. Basically you're talking about gross not net you're not new jobs don't mean additional jobs. Oh one in the claimed was 2013. Reported. 50000 jobs added than the Louisiana fiscal office and other Louisiana State offices. Reported 20000. Additional rather than fifty and it was private jobs. -- did talk to -- -- this sounds like. Playing with the numbers. In them we turn around read stories of legislators everywhere saying well we're we're in for and they -- for. Heartland of additional two. To support. Portal the Russians. Which are worthy of investment conference that the official forecast for the statements within the State's budget based on. There are forecast for the coming fiscal year budget -- -- is working right now options at three point 6%. Increase in state general fund. That is life in line with the long term growth rate average current regional of these states are cheese. Hurricane Katrina. So that that's that's the actual numbers in the war looking out for an increase in the picture this year is consistent with the long one average but for the Katrina blow. Now we are really good about revenues being average of pre Katrina. Worldly having to do freezes and cut and why was that planned in the -- Well -- -- what happened on that Katrina and actually happened the before under administration -- is that when you have such a tremendous amount in -- Tens of billions I think probably -- couple of billion dollars those who don't recoveries in the on the housing and -- works project and so forth. Honda generated tremendous amount of new tax revenues that was -- current. What happened in Asia spike in revenue and that's -- in the current contract now. The -- of about legislature -- on the budget for the coming year. They're working with an increase revenues it's consistent with what is typically what is -- from that period of work. Hurricane Katrina we -- not a question about the job -- -- on -- arms that we commonly we'll talk about. The jobs associated with projects you know we've secured like energy capital of course I didn't and how many jobs going to Korea and and those are real numbers but obviously want that to the future as well on the traditionalist. Let's look at yeah that's currently it is the deal as they actually produced an official numbers. Employment numbers interest. If you look at from when this administration took office to to. They indicate that Louisiana has the -- best political job growth. -- themselves and after that. Gene which doesn't in this state just on the negative territory Alabama for example as almost a 100000 less jobs today. Been challenging 2000 Georgia -- 113 thousand works jobs. Today -- June 480000. Jobs. In January 2000 to Louisiana's portal job entries on announcements -- absolute job student. -- June 2008 it's up 20100. Jobs according to total. Jobs to its -- -- -- kind of growth we would like -- you that it's one more like a positive. In national economy. But when everybody ultimately negative almost a negative territory. And were -- territory that that's a good place to be the good news I think the really important thing is that we aren't not. And the booming economy at the moment. But we're in emerging. Being -- -- shortly going to be huge manufacturing it and I anticipate we're procedure top group the next few years going to 25 -- 40000 jobs. You're look we're broad -- -- running out of time a mortgage were back on the show because a lot to board -- saying. Is things are gonna curb 52 years on the road when you thought about for next. I'm Portland next year the year after Vietnam. And -- aren't. Boom -- -- -- suddenly -- -- and we'll talk to think about things like the incentive fund. Weather go get high demand for Petro chemical engineering come and everything else -- get four stories here. With companies like -- with the 900 million dollar improvement. 20% of the refinery employees retired. And the young applicants can even -- the aptitude test so a lot of questions and and what seems like. A lot of contradictory recovery. Coverage or misunderstanding between products and governor jungles office in the legislature deserves a whole lot more time I hope you'll give to mimic them would you be helping out to music or sound good to out. -- double -- you'll be 170 AM 053 yeah. Loosening drew double bill -- celebrity it more than 53 young --