PRIORITIES

During the 2011 regular session of the Louisiana Legislature, BRAC advocated for a number of items critical to maintaining the positive momentum of the Capital Region’s economic development efforts. The session convened on Monday, April 25, 2011 and adjourned on Thursday, June 23, 2011.

The full set of BRAC’s legislative priorities consisted of:

Higher Education Funding and Reform: BRAC will pursue efforts to enhance the financial autonomies and performance standards of higher education. BRAC believes that higher education institutions should be given sufficient authority to manage costs in appropriate and accepted manners while demonstrating meaningful reductions in administrative expenses. BRAC will support legislation to provide for broader campus autonomies and competitive-level institutional funding in order to enable Louisiana State University (LSU) to compete with its flagship peers and Southern University to pursue higher performance targets.

[ SB 241 by President Chaisson, HB 549 by Speaker Tucker(GRAD Act 2.0); HB 448 Rep. Downs (Per Credit Hour Tuition); HB 97 Rep. Hoffmann (Operational fee); HB 526 by Speaker Pro Tem Robideaux (LCTCS standardized tuition and fees) ]

Tools to Attract Air Service: BRAC supports the use of incentives to recruit competitive air services to the Baton Rouge Metropolitan Airport and other air carrier airports. The Louisiana Department of Transportation and Development allocates construction and maintenance funding from the Transportation Trust Fund to the state's commercial carrier airports through its administration of the Airport Construction and Development Priority Program. A recent Louisiana Attorney General opinion provides that monies contained within the Transportation Trust Fund can be used for development projects that enhance or increase air service at commercial carrier airports. BRAC will seek legislation to codify the attorney general's interpretation of the allocation of Transportation Trust Fund dollars and create an air service fund to support improved service at air carrier airports around the state.

[ HB 302 by Rep. M. Jackson ]

Access to Risk Capital for Entrepreneurship: BRAC is dedicated to improving access to risk capital for Louisiana's start-up companies. Proposed legislation will seek to reinstate an angel investor incentive that will offer early stage investors a rebate of thirty-five percent of the monies invested in a Louisiana entrepreneurial business. Modeled on national best practices, an angel investor rebate program offers critical sources of capital needed for Louisiana's entrepreneurial businesses. From 2005 – 2009, the Louisiana Angel Investor Tax Credit Program proved effective, with ninety-four companies statewide receiving over $61 million worth of early stage investments from 686 investors. In the Capital Region, there are seven companies that have benefitted from roughly $12 million in investments.

[ HB 597 by Rep. M. Jackson ]

Economic Development Marketing Funds: Louisiana Economic Development's (LED's) Tier 1 Regional Awards and Matching Grant Program offers critical dollars to the eight regional economic development authorities to fund business development marketing initiatives, business attraction efforts, and business retention and expansion programs. The governor's executive budget proposes a $340,000 cut in Tier 1 funding for a total allocation of $1,360,000. In total, regional economic development funding has been reduced by 80% since FY08, including regional representation in LED, the Tier 1 program, and the Tier 2 program. If the FY12 budget is approved, Tier 1 funds will have been reduced by 120% from $2.995 million since the FY08 budget. This year's decrease in Tier 1 funding will hamper BRAC's efforts to effectively market economic development sites within the nine-parish Baton Rouge area, and similar efforts statewide. BRAC and its regional peers across Louisiana will support reinstating Tier 1 dollars to their 2010 levels.

[ HB 1 by Rep. Fannin ]

Enhancement and Renewal of Job Creation Incentives: BRAC will support the enhancement, renewal, and extension of important job and investment incentives including the Quality Jobs program, the Research & Development (R&D) Tax Credit, and the Digital Media Tax Credit. These incentives have recently helped the Baton Rouge area to attract jobs and investment from companies such as Electronic Arts, Firebrand Games, SNF Holding, and TraceSecurity. Of particular importance, the Quality Jobs program will end this year if the legislature fails to take action. Quality Jobs is an effective job creation incentive designed to induce businesses to locate or expand operations in Louisiana by offering qualifying employers rebates equal to five to six percent of payroll associated with net new jobs, sales/use tax rebates, and investment tax credits.

[ HB 248 by Rep. Henry, SB 123 by Sen. Martiny (Digital Media); HB 441 by Rep. Carter, SB 135 by Sen. Claitor (R&D); SB 72 by Sen. Michot (Quality Jobs) ]