Latest news with #MatthewPerschall
Yahoo
5 days ago
- Business
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Louisiana political campaigns might get to withhold more donation, spending info
Matthew Perschall/Louisiana Illuminator Louisiana lawmakers might diminish information available to the public about political donations and election spending through a sprawling rewrite of the state's campaign finance law. Gov. Jeff Landry is pushing House Bill 693, sponsored by House Republican Caucus Chairman Mark Wright, R-Covington. It carves out more circumstances under which political contributions and expenditures don't have to be disclosed on a public campaign finance report. The 101-page proposal is difficult to understand for people who don't deal with campaign finance regulations frequently. Even staff attorneys for the Louisiana Board of Ethics, which enforces the campaign finance laws, admit the changes are confusing. 'To be honest with you, it's going to take quite a grace period to figure all this out,' Ethics Administrator David Bordelon said when presenting the bill to the state ethics board last month. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Private attorneys Stephen Gelé and Charles Spies helped write the bill. They have represented Landry in multiple disputes he has had with the ethics board, including over campaign finance laws and enforcement. Gelé has said the proposal respects constitutional rights, including freedom of speech, while still providing transparency and 'preventing the appearance of corruption.' The state's preeminent government watchdog group disagrees. The Public Affairs Research Council of Louisiana (PAR) has come out against the legislation, saying the bill would benefit politicians while offering little for the general public. 'There is a very large bill, and I don't quite understand the problem it is trying to solve,' PAR President Steven Procopio said at a legislative hearing last month. In more than 20 places in the law, the bill increases the minimum dollar threshold at which a donation or expense has to be included on a public campaign finance report. For example, national political committees that raise most of their money outside Louisiana are required to publicly disclose their spending on a Louisiana election once it reaches $20,000. The proposed bill would hike that disclosure threshold to $50,000. The current law also requires any campaign contributions or expenditures over $200 given within the 20 days before the election to be reported on a public campaign finance report. The proposed law would hike that disclosure threshold to $5,000. Louisiana set to spend at least $7 million to bring Saudi-owned LIV Golf to New Orleans Over a dozen similar changes are also part of the legislation. Individuals who are not political candidates and groups that are not explicitly political committees could also spend money on an election without disclosing contributions they accepted for the politicking. Those who are not a candidate or a designated political committee would only be required to disclose election spending over $1,000 in a political cycle and if it involved: federally-regulated broadcast media; 500 pieces of mail; a phone bank of 500 calls within a 30-day period; or digital or print advertising with a candidate's image that's distributed in the area the candidate would represent within 30 days of their primary and 60 days of their general election These changes would apply to large, statewide elections and smaller ones such as those for police juries, town councils and school boards. Money spent to communicate with people in a 'membership organization' – such as a union, industry association or an athletic club – as well as employees and stockholders of a business also would not have to be reported as a political expense. This could include communication sent to thousands of people at once. In some cases, current campaign finance law obliges people to report this type of spending that would be shielded under the Wright bill. Supporters of the legislation said these exceptions were mainly carved out with so-called social welfare organizations in mind. The organizations, which critics call 'dark money' political groups, are registered with the IRS as 501(c)(4) nonprofits for tax purposes and are not required to disclose their donors under federal regulations. It's unclear to what extent the groups have to disclose their spending on Louisiana elections under current state campaign finance laws. Landry has set up at least of these 'dark money' groups, Protect Louisiana Values, to advance his political agenda. It also notably put up the money for Landry to rent a live tiger to attend an LSU football game last year. Defying Landry, Louisiana lawmakers reject giving him more control over licensing boards Former Gov. John Bel Edwards also established two of his own 'dark money' groups during his eight years in office: Rebuild Louisiana and A Stronger Louisiana. While limiting disclosure on political spending, Wright's legislation does open up allowable uses of politician's campaign funds to a much wider group of expenses, including their home mortgages, country club fees and gym memberships. The legislation is also one of a few bills Landry is pushing to soften ethics laws and regulations this session. Lawmakers in favor of them said they are reacting to overzealous enforcement by the ethics board. In 2007, former Gov. Bobby Jindal and legislators passed dozens of restrictions and public disclosure requirements for elected officials and public employees as part of Jindal's effort to reach a 'gold standard' of ethics for Louisiana that would be a model around the country. Lawmakers are now saying that effort was overreach that needs to be corrected. 'I haven't come across an elected official who has enjoyed working through this process and hasn't questioned what they did back in the Jindal era,' Wright said of ethics and campaign finance regulations. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
28-05-2025
- Business
- Yahoo
University of New Orleans transfer to LSU System expected to cost $23 million this year
The University of New Orleans sign sits in front of the University Center on Dec. 15, 2022. (Matthew Perschall for Louisiana Illuminator) Louisiana lawmakers are advancing legislation to transfer the University of New Orleans from the University of Louisiana System to the LSU System at a cost of about $23 million, Senate President Cameron Henry, R-Metairie, said. Senate Bill 202 by Sen. Jimmy Harris, D-New Orleans, unanimously passed the Senate Tuesday. It will next be discussed in a House committee and must also receive approval from the House of Representatives and Gov. Jeff Landry before it takes effect. The bill would reverse the action legislators took 14 years ago to move UNO to the University of Louisiana System from the LSU System, which it had been a part of since the university was founded in 1958. The implementation of Harris' legislation is subject to funding. LSU estimates the transfer will cost $41 million in the first year and another $40.4 million over the next four years. 'That's more of a pie-in-the-sky type thing,' Harris said of LSU's estimate. Lawmakers don't plan to spend that much this year, Henry said in an interview after the vote. Instead, he expects to spend $20 million to wipe out debt to vendors and another $3 million for must-do deferred maintenance costs. Those deferred maintenance dollars will likely come from existing funds for campus construction projects, Henry said. The university's possible return to LSU's control is in response to UNO's acute budget crisis. The school faces a $30 million shortfall and has implemented a spending freeze, layoffs and staff furloughs in an attempt to make ends meet. UNO administrators have kept open the possibility of further layoffs and furloughs. Its budget crisis is largely tied to enrollment. The school had a student body of around 17,000 before Hurricane Katrina, with an immediate drop to around 6,000 after the storm. For the fall 2024 semester, its total enrollment was 6,488. Unlike UNO, every school in the LSU System has reported enrollment increases over the past few years, in contrast to nationwide trends of declining student numbers on college campuses. The Louisiana Board of Regents, which oversees all higher education in the state, has already approved the transfer. At the time of the system switch in 2011, UNO alumni and boosters applauded the plan, as many felt the university was overshadowed in the LSU System. UNO would be the only institution in the LSU System classified as an R2 university, meaning it has high levels of research activity, second only to LSU's main campus, which is a R1 school with the highest research activity rating. In the University of Louisiana System, there are two other schools with research-level rankings: the University of Louisiana Lafayette, an R1, and Louisiana Tech, an R2. UNO would also be the only other school in the LSU System with an NCAA Division I athletics program. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
15-05-2025
- Business
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Tax breaks for Louisiana college athletes on NIL money punted under budget pressure
The new video display scoreboard in Tiger Stadium's north side as seen from the Pete Maravich Assembly Center on Sept. 13, 2024. (Matthew Perschall for Louisiana Illuminator) Louisiana lawmakers have pumped the brakes on exempting college athletes' name, image and likeness compensation from income taxes as they work to approve a lean state budget. Two legislators who filed bills to exempt NIL payments from income taxes have said they will not pursue votes on their legislation, citing perception issues with giving well-paid student-athletes a tax break while tightening the belt on critical state services. 'It didn't seem like there was an appetite for creating a new deduction,' Rep. Rashid Young, D-Homer, said. 'It's partly perception and then partly real dollars.' Young's House Bill 168 would have exempted the first $12,500 of student-athletes' NIL income from state taxes. It would have aligned the exemption with the standardized deduction offered to every other Louisiana resident. It's not clear if this legislation is necessary for the athletes to receive the deduction, but Young said he wanted to make sure they get it. House Bill 166 by Rep. Dixon McMakin, R-Baton Rouge, would have exempted the entirety of an athlete's NIL income from state taxes. Both lawmakers said they would consider bringing back the legislation depending on the outcome of a study on name, image and likeness deals that lawmakers will undertake. Young's House Resolution 15 will create an NIL task force that will bring together lawmakers, college athletics officials, student-athletes and private business to discuss related issues and make recommendations to the legislature. Additional proposals are expected next year. Young said he hoped to get more transparency on athletes' NIL compensation. Louisiana laws exempt information related to NIL deals from public disclosure. Fiscal analyses for the two bills note that Louisiana's four higher education systems have 427 athletes with NIL deals worth a combined $17 million for the 2024-25 school year. Athletes are only required to report deals worth more than $600, meaning this is not a full picture of NIL compensation for Louisiana athletes. Though legislators are not taking action this year, Louisiana Gov. Jeff Landry signed an executive order Tuesday that aims to give colleges and universities legal cover to directly pay college athletes. The order purports to prohibit the NCAA, an athletic conference or another organization with oversight of college athletics from taking action against Louisiana schools that directly compensate athletes or facilitate NIL deals for them. NCAA rules currently prohibit the paying of players, but athletes are allowed to make money through NIL endorsement deals. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
04-05-2025
- Business
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Louisiana election results: May 3, 2025
Voters leave the Bricolage Academy gym after casting their ballots in New Orleans, Tuesday, Nov. 5, 2024. (Matthew Perschall for Louisiana Illuminator) A lone legislative race and a smattering of local tax referendums around the state were put before Louisiana voters Saturday, when a sparse ballot had to compete with the usual spring schedule of festivals and events throughout the Bayou State In East Baton Rouge Parish, a special election was held to fill the vacancy in Louisiana House District 67. The position became open when Larry Selders won a February election for the state Senate seat vacated when Cleo Fields won the 6th Congressional District race last year. One notable item on Saturday's ballot was the Lake Charles mayoral race, with Republican incumbent Nic Hunter losing to independent challenger Marshall Simien Jr. Other highlights from Saturday's results included a rejected property tax referendum for the East Baton Rouge Parish district attorney's office. DA Hillar Moore had said the new millage was needed to bring his agency up to par in staffing and compensation with comparably large prosecutorial districts in Orleans and Jefferson parishes. The 4-mill levy was projected to raise $24 million annually, with Moore projecting there would be enough revenue generated for his office to return millions to the parish government general fund. With the new tax failing, resources for the district attorney will continue to come from parish government. In New Orleans, voters narrowly approved a property tax for the Orleans Parish Sheriff's Office, which has the primary task of operating the city jail. The final vote tally saw the measure prevail by a margin of two votes out of more than 25,000 ballots cast. The results still have to be verified by the Secretary of State. Although the sheriff's tax has already been in place for years, opponents leaned into a 'no new taxes' message in their campaign against the 2.46-mill, 10-year collection. The tax is expected to generate nearly $14 million in revenue for the sheriff's office. St. Tammany Parish voters approved a bond sale for its public school system with a ceiling of $325 million. The debt is not expected to result in an increase to existing property millages dedicated to the school district. A property tax in Livingston Parish public schools was renewed for another 10 years. The 7 mills will generate nearly $5 million a year for the district. Rapides Parish voters also renewed two property taxes for their public school system, totaling 9.58 mills combined, for the next 10 years. They're forecast to generate more than $10 million annually. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
21-04-2025
- Business
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Louisiana legislators to consider college athletics subsidies
The new video display scoreboard in Tiger Stadium's north side as seen from the Pete Maravich Assembly Center on Sept. 13, 2024. (Matthew Perschall for Louisiana Illuminator) The Louisiana Legislature is considering several proposals that would create tax breaks and new revenue streams for college athletes and their sports programs. If passed in their current state, the proposals would exempt college athletes from income taxes on their name, image and likeness (NIL) deals and would create a new fund to give tax dollars to NCAA Division I athletics programs like LSU's. But critics say the Republican-backed proposals are doing something antithetical to their party's free-market philosophy. They also argue the bills could further widen the divide — cultural and fiscal — between academics and athletics. The change could also come at the expense of priority services the state provides, such as early childhood education House Bill 639 by Rep. Neil Riser, R-Columbia, would increase the tax on sports gambling from 15% to 32.5%, aligning it with the tax on video poker machine wagers. Increasing the tax rate on sports gambling has support from both conservative and progressive corners, both of whom want to use the revenue to offset the 'social ills' of gambling. But Riser's bill goes further, altering the revenue split and putting 25% into a fund that would benefit student-athletes at public schools that compete at the NCAA Division I Football Bowl Subdivision and Football Championship Subdivision levels. That includes UL Lafayette, UL Monroe, Louisiana Tech, LSU, Grambling, McNeese, Nicholls, Northwestern, Southeastern and Southern. The University of New Orleans, which does not have a football program, would be left in the cold. 'The need is so high,' Riser said in an interview with the Louisiana Illuminator and Tiger Rag. 'When you start talking about the SEC, talking about any level of athletics right now, it's changed so dramatically.' 'Even like ULM … just to be competitive [in recruiting], it takes facilities, when you're dealing with [athletes] they require you to have all those things,' Riser said. A frequent adage about LSU athletics is that it doesn't get any state funding, which isn't strictly true. The department notably received $1 million in cash from the state in 2023 to plan for improving or replacing the Pete Marravich Assembly Center and occasionally receives small-dollar amounts for various state-funded projects. But Riser's fund could change that. The state currently brings in approximately $54 million annually in sports gambling revenue. If his bill passes, the state's take would increase to approximately $116 million, with about $30 million dedicated to college athletics. That's a huge amount of money in the context of college athletics in Louisiana. Only LSU has a budget larger than that, with most other FBS and FCS schools in Louisiana bringing in only half or a third as much. Even with heavy subsidies to small programs like Nicholls and Grambling, you can expect LSU to line up to receive its share of the revenue. Presently, the state's split for sports gambling tax revenue calls for 25% to go toward early childhood education, 10% to local governments and the rest goes to gambling addiction programs and other projects. Under Riser's bill, after college athletic departments get their 25%, an additional 3% goes to the Louisiana Postsecondary Inclusive Education Fund, which finances programs for students with disabilities, and the rest goes into the state general fund that can be used for a variety of government needs. Taking money away from early childhood education and gambling addiction programs is certain to ensure a fight over Riser's bill. 'Legalized mobile gambling has created or exacerbated many social and cultural problems, including addiction, bankruptcies, and even increases in domestic violence,' said Peter Robins-Brown, executive director of the progressive organization Louisiana Progress. 'New tax revenue should be used first and foremost to address some of those problems before we talk about spending more money on college sports.' And dedicating state money to college athletics might be a hard sell at a time when lawmakers are digging into couch cushions to find the change necessary to prevent a K-12 teacher pay cut. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Two pending bills would exempt athletes' NIL compensation from state income tax. The most notable proposal is House Bill 166 by Rep. Dixon McMakin, R-Baton Rouge, which would exempt the entirety of athletes' NIL income from the state taxes. McMakin, an LSU alum whose father played baseball for the Tigers in the 1970s, said he proposed the legislation because LSU is competing for athletes against states like Texas that don't have a state income tax. McMakin said the measure is appropriate in light of the economic impact athletes have on the state. LSU athletics generated $500 million for the state in the 2021-22 academic year, according to a university study. But what might be considered the academic parallel to paid student-athletes — graduate assistants — would still be subject to state income tax. Several graduate students interviewed raised objections to this double standard, which Jan Moller, executive director of Invest in Louisiana, said is a valid concern. His organization advocates for policies that benefit lower- and middle-class citizens. LSU covers tuition for graduate assistants and pays them a stipend for the work they do, such as teaching freshman classes and conducting research. Unlike student-athletes, grad assistants have to pay for their own housing, meals and health care on their meager stipends – expenses that are all paid for college athletes on full scholarships. 'They are subsidizing entertainment over academics at the expense of academics,' said biology graduate student Cullen Hodges. 'It's not the government's role to subsidize millionaire college athletes when we can't provide basic services to our citizens,' Moller said. McMakin said if graduate assistants wanted to present evidence of their economic impact, he'll 'happily' add them to his bill. In 2022, LSU research, much of it done or assisted by graduate students, had a $1.3 billion economic impact. The proposal is bad tax policy, Moller said. 'It's conservatives who will always say that we shouldn't pick winners and losers with our tax policy,' Moller said. 'What is this if not picking winners and losers?' A second proposal, House Bill 168 by Rep. Rashid Young, D-Homer, would exempt the first $12,500 of athletes' NIL income from state taxes. That aligns the exemption with the standardized deduction offered to every other Louisiana resident. It's not clear if this legislation is necessary for the athletes to receive the deduction, but Young said he wanted to make sure they get it. Young, a former Grambling football player, said he also supports McMakin's bill. 'Top athletes are leaving the state of Louisiana because they're getting better deals in other states that … don't have any income tax,' Young said in an interview. 'We need to start trying to get in the game.' Young's bill also creates an income tax deduction for taxpayers who enter into NIL deals with college athletes. It was designed to encourage small businesses to get in the name, image and likeness game, he said Young has also proposed a resolution that would create a task force to study the need for increased transparency on NIL and related issues. LSU Athletic Director Scott Woodward, and other Division I athletic directors in Louisiana, would be members of the task force, as well as student-athletes, state legislators and three representatives of the private sector. Sen. Jeremy Stine, R-Lake Charles, wants to 'Make American Athletics Great Again.' His proposed Senate Bill 200 would prohibit athletic departments in Louisiana from giving more than 25% of their scholarships and financial assistance to international athletes. About 23% of LSU's scholarship athletes are international students, according to data LSU athletics spokesman Zach Greenwell provided. Just three schools — McNeese, ULM and UNO — are above the proposed 25% rate. Stine's bill does not address what would happen to these athletes. He did not respond to an interview request for this report. House Concurrent Resolution 13 by Rep. John Illg, R-River Ridge, calls on the Southeastern Conference to schedule LSU home games in September after 6 p.m. to account for the intense heat. Illg's resolution only mentions LSU, ignoring the other football programs in Louisiana that also compete in the heat. SUPPORT: YOU MAKE OUR WORK POSSIBLE
