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By JEREMY ALFORD Published: November 3, 2005 THE NEW YORK TIMES BATON ROUGE, La., Nov. 2 - Having called a special session of the Legislature for this weekend that will be pivotal to Louisiana's recovery, Gov. Kathleen Babineaux Blanco has prepared an ambitious agenda for lawmakers, with issues including tax incentives for redevelopment, better management of levees and a possible takeover of some New Orleans schools. But a looming hole that may exceed $1 billion in the state's current budget could overshadow all else during the 17-day session, which begins Sunday evening. Layoffs and early retirements of state employees are expected, as are severe cuts to programs and services. The session is likely to be the first major test of the state's ability to transcend political and regional divisions and reach agreement on plans for recovery. Some federal and municipal officials wonder whether lawmakers are up to the job, and the governor has made it clear that she does not want to be bogged down in politics as usual. "I'm asking legislators to put aside partisanship, historical and regional differences and take a fresh, new look at the recovery," Ms. Blanco, a first-term Democrat, said Tuesday. The Legislature's Republican minority has made a show of opposing her administration's priorities in recent sessions, but Ms. Blanco was careful to include a few Republican initiatives in her agenda for the special session, thus broadening its scope significantly and possibly gaining allies. To help businesses get back on their feet, she has proposed eliminating sales taxes on new machinery and equipment, exempting new debt from the corporate franchise tax and reducing sales taxes on electricity and natural gas. But the idea of reducing revenue through tax incentives in a state already starved for cash is drawing both skepticism and optimism. "I don't sense they have a good handle on what the financial ramifications will be," said Barry Erwin, president of the Council for a Better Louisiana, a group that monitors the activities of state government. "But they know some of these things need to be done to start the recovery and stimulate the economy." Steve J. Scalise, a Republican legislator from the New Orleans suburb of Metairie, said most of his colleagues were willing to compromise in the hope that the end result would send a clear message to Congress as to what Louisiana needs. "From our perspective, we've been working with the governor on several proposals already," Mr. Scalise said. "I think it's critical that we move beyond the politics of the past and send a message that we're dealing with these problems." But earnest declarations, especially this early, may be nothing more than wishful thinking, said Jim Nickel, a Baton Rouge lobbyist and former chairman of the Louisiana Democratic Party, who foresees plenty of political maneuvering. "Everything that goes on in that building is political," Mr. Nickel said of the state's high-rise Capitol. "Whoever tells you it's not is lying." Among the more contentious issues expected to be discussed during the session will be a set of proposals to overhaul state oversight of levee boards, some of which have histories of corruption. Some critics have said the New Orleans levee operators share responsibility for the recent flooding, and the Orleans Levee Board president resigned last week amid accusations that he had awarded contracts to relatives. "Some of these levee board commissioners would sell their mothers' gold teeth to keep their positions," said Warren J. Triche Jr., a Democrat who is vice chairman of the House Appropriations Committee. "This brother-in-law business has been going on for years, and it has to stop. We need one person in an authoritative position to be responsible to the people." The governor also wants more control over New Orleans public schools. Current law already gives the state this authority, but only for schools that are failing on the basis of statewide test scores. Ms. Blanco's proposal would allow the state to take control of schools falling anywhere below the statewide average. Officials say charter schools and university partners would play a major role in the plan, which as a concept has already won some support from Mayor C. Ray Nagin of New Orleans and the local school board. Dan Juneau, president of the Louisiana Association of Business and Industry, one of the state's most influential lobbies, said voters were expecting an efficient and high-minded response from legislators. "If we don't see some real leadership in this session, if people don't step up," Mr. Juneau said, "there's going to be blood in the streets during the next elections." |
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