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Rep. Nick Lorusso’s 2007 Review of some important legislation affecting the citizens of Louisiana

INVESTING IN

OUR CHILDREN’S FUTURE

The Legislature passed several bills aimed at improving the quality of education in Louisiana so that our children will be prepared for the new economy. These investments include the following in Act 18:

Increasing teacher pay by $2,375 – in line with the Southern Regional Average

Fully funding ($2.8 billion) higher education for the first time in our state’s history

Providing $30 million to expand the state’s free pre-K education program

PROPERTY OWNERS’

INSURANCE REFORM

Louisiana property owners have been hit hard over the past two years after the devastation left behind from Hurricanes Katrina and Rita. The effects of these storms have been felt state and industry wide. The Legislature debated ways to provide long-term relief to policyholders. These gains include the following:

Abolishing the Insurance Rating Commission (Act 459)

Establishing an incentive pool to attract more insurance companies which will increase competition and make insurance more affordable and available (Act 447)

Giving residential homeowners a 7% tax credit based on next year’s property insurance premiums (Act 447)

Providing premium discounts for policyholders who comply with the new statewide building code standards (Act 447)

INFRASTRUCTURE FUNDING

The Legislature committed surplus monies to improving existing roads, constructing new roads, expanding port capacity, improving coastal restoration, and paving the way for economic development. These allocations include the following:

Investing $600 million in infrastructure projects – a record amount to fix our crumbling roads (Act 203)

Funding $200 million in historical investment needs for coastal restoration and flood protection (Act 203)

Increasing the Economic Development Fund by $150 million to attract new industries and to assist with the expansion of existing businesses (Act 203)

TAX RELIEF FOR FAMILIES

AND SMALL BUSINESSES

In this fiscal session, several legislative instruments were filed to provide tax cuts for families, tax credits to improve the economy, and tax relief for small business owners. Those tax relief bills passing the Legislature include the following:

Restoring pre-Stelly itemized income tax deductions (Act 399)

Establishing the annual Louisiana Sales Tax Holiday the first Friday and Saturday in August on purchases up to $2,500 (Act 244)

Authorizing a sales tax holiday for the purchase of certain hurricane preparedness items or supplies (Act 429)

Ending the state inheritance tax and repealing the state gift tax effective in 2008 (Act 371)

VETOED BY THE GOVERNOR

Reducing the sales taxes on utilities for businesses (HB505)

Allowing individual income tax deductions for certain private and parochial elementary and secondary education tuition (SB45)