>>> SUPPORT FOR THIS PROGRAM IS
PROVIDED BY THE FOUNDATION FOR
EXCELLENCE IN LOUISIANA PUBLIC
BROADCASTING AND FROM VIEWERS
LIKE YOU.
**
>>> HELLO AND WELCOME TO
"LOUISIANA PUBLIC SQUARE," I'M
BETH COURTNEY, PRESIDENT OF THE
LPB.
>> GOOD EVENING, I'M CARL
REDMAN, RETIRED EXECUTIVE EDITOR
OF THE "ADVOCATE" NEWSPAPER.
>>> IF YOU'VE BEEN TO THE GAS
STATION ANY TIME IN THE LAST SIX
MONTHS, FEWER DOLLARS PER GALLON
TO TREND YOUR TANK.
THIS IS DUE TO SUBSTANTIAL DROPS
IN THE PRICE OF A BARREL OF OIL.
TONIGHT WE'LL LOOK AT SOME OF
THE FACTORS CAUSING THAT DROP
AND WHAT THESE PRICE COULD SAY
MEAN FOR LOUISIANA.
>>> THE OIL AND GAS INDUSTRY
ACCOUNTS FOR NEARLY 290,000 JOBS
IN THE STATE.
THE STATE BUDGET STILL RELIES ON
12% OF ITS INCOME FROM OIL AND
GAS DOLLARS.
>>> FOR LOSE RESIDENTS GRATEFUL
TO BE PAYING LESS AT THE
GASOLINE PUMP, ECONOMIST LOREN
SCOTT SAYS HE KNOWS WHO TO
THANK.
>> ANY TIME I SEE THE PRICE OF
OIL DROP FAST, THE WAY IT HAS
NOW, I'LL LOOK ONE PLACE, TO THE
SAUDIS.
>> SCOTT SAYS THE LAST BIG DROP
WAS IN THE EARLY EIGHTIES BY
SAUDI ARABIA.
TO REESTABLISH DISCIPLINE IN THE
ORGANIZATION OF PETROLEUM
EXPORTING COUNTRIES OR OPEC.
THE MOST RECENT PRICE DECREASE
WAS TRIGGERED BY FALLING DEMAND
BY THE U.S. FOR INTERNATIONAL
CRUDE.
>> THIS TRACKING PHENOMENON ON
THE OIL SAID CAUSED U.S.
PRODUCTION TO RISE SINCE 2008,
70%.
WHAT THAT MEANT WAS, INSTEAD OF
US EXPORTING 66% OF THE CRUDE
THAT WE BRING IN, WE'RE ONLY
IMPORTS 44% OF THE CRUDE WE
BROUGHT IN.
>> IN THE SUMMER THE DEPARTMENT
OF COMMERCE RULES U.S. COMPANIES
COULD GUN EXPORT U.S. OIL AND
DIESEL AND GASOLINE.
>> FIRST OF ALL, YOU TOOK AWAY A
BIG SHARE OF OUR U.S. MARKET,
YOUR APARTMENTING ONLY 40% NOW
INSTEAD OF 60%.
NOW-YEAR GOING AFTER THE
INTERNATIONAL MARKET?
I DON'T THINK SO.
THEY DROPPED THE PRICE OF OIL.
>> CRUDE OIL PRICE VS. DROPPED
FROM A HIVE NEARLY $110 A BARREL
LAST YEAR TO THE LOW 50s THIS
MONTH.
I'LLFIELD SERVICE PROVIDE BAKER
HUGHES HAS ANNOUNCED IT'LL CUT
7,000 POSITIONS NATIONWIDE
INCLUDING LAYOFFS IN HOUMA AND
LAFAYETTE.
>> THE GOOD NEWS FOR US IS NOT
HAPPENING HERE NEARLY IN THE
SAME ORDER FOR TWO REASONS.
NUMBER ONE, OUR MAIN OIL SHALE
IS TUSCALOOSA, THERE WEREN'T
VERY MANY RIGS OPERATING THERE
IN THE FIRST PLACE, TALKING IN
THE TEENS PROBABLY.
EVEN 92 SHUT IT TOTALLY DOWN
YOU'RE NOT TALKING ABOUT THAT
BIG A HIT.
>> SECONDLY, SCOTT SAYS THE
RECENT PRICE CUT WON'T AFFECT
LOUISIANA'S OFFSHORE DRILLING
ACTIVITY.
>> THOSE BIG COMPANIES THAT
OPERATE OUT THERE LIKE B.P.,
EXXON AND SHELL, THEY HAVE A
10-YEAR PLANNING HORIZON.
THEY ARE NOT GONNA CHANGE THEIR
PLANS BASED ON WHAT HAPPENS IN A
SIX-MONTH TIME PERIOD.
>> BUT TO FULLY UNDERSTAND THE
IMPACT OF DROPPING OIL PRICES ON
LOUISIANA'S ECONOMY, YOU HAVE TO
CONSIDER THE NATURAL GAS
DYNAMIC.
OVER THE LAST FIVE YEARS THE
PRICE OF NATURAL GAS HAS
DECLINED FROM $12 PER UNIT TO
THREE, A BOON TO THE STATEST
LARGEST CONSUMERS OF NATURAL
GAS, CHEMICAL COMPANIES.
DAN BORNE IS PRESIDENT OF THE
LOUISIANA CHEMICAL ASSOCIATION.
>> THE CHEMICAL INDUSTRY IN
LOUISIANA USES NATURAL GAS LIKE
A BAKERY SHOP USES FLOUR.
WE USE TO IT CREATE ELECTRICITY
IN OUR PLANTS.
WE USE TO IT GENERATE STEAM AND
HEAT FOR OUR PROCESSES.
BUT MORE IMPORTANTLY THAN THAT
WE USE IT AS RAW MATERIAL, A
BASIC FEEDSTOCK FROM WHICH OTHER
PRODUCTS FLOW.
>>> BUT THE PRICE OF NATURAL GAS
HASN'T DROPPED IN EUROPE SO
CHEAPER AMERICAN CHEMICAL
PRODUCTS HAVE GAINED MARKET
SHARE OVERSEAS.
LOW NATURAL GAS PRICE VS. ALSO
ATTRACTED TREMENDOUS INVESTMENT
INTO THE STATE, SCOTT SAYS.
>> THIS HAS JUST SUDDENLY CAUSED
US TO GO FROM A SITUATION WHERE
IN A REEEALLY GOOD YEAR, IF WE
HAD $5 BILLION IN INDUSTRIAL
ANNOUNCEMENTS THAT WOULD HAVE
REALLY BEEN GREAT.
IT WOULDN'T BEEN A GREAT YEAR.
WE HAVE HAD $120 BILLION OF
ANNOUNCEMENTS IN OUR STATE, JUST
UNHEARD OF.
>> THIS INCLUDES SIX LIQUID TO
GAS EXPORT FACILITIES IN CAL IS
A SUE PARISH ALONE.
A HEALTHY RATIO WOULD BE IF THE
PRICE OF A BARREL OF OIL IS AT
LEAST SEVEN TIMES GREATER THAN
THE PRICE OF WHAT WE CALL AN
MMBTU OF NATURAL GAS.
THAT'S ONE UNIT OF NATURAL GAS.
IF OIL IS AT $60 A BARREL AND AN
MMBTU OF NATURAL GAS IS AT $3 AN
MCF, THAT'S A 20 TO 1 RATIO.
SO ANYTHING SEVEN TO ONE OR
GREATER IS GOOD FOR LOUISIANA
AND GOOD FOR THE GULF COAST.
>> WITH THE RATIO DROPPING THIS
MONTH TO AROUND 18 TO ONE, SOUTH
AFRICAN ENERGY SASOL PUT ITS
ENERGY PLANTS ON HOLD.
>> IT'S CAUSED THEM TO TAKE IT
FROM THE FOOD AND PUT IT ON THE
SELLLARITY AND THEY ARE TAPPING
ON THE BRAKE.
>> LOUISIANA OFFERED SASOL $257
MILLION IN SUBSIDIES TO RECRUIT
THEM TO THE STATE.
FOR STEVE SPIRES WITH LOUISIANA
BUDGET PROJECT, THE PLANT DELAY
SERVES AS A TEACHING MOMENT.
>> THERE'S NO TAX INCENTIVE
THAT'S MORE POWERFUL THAN MARKET
FORCES.
WHAT WE THINK STATE GOVERNMENT
SHOULD LOOK AT IS HOW TO INVEST
AND FURTHER DIVERSIFY THE
ECONOMY.
EVERY TIME WE GIVE A BUSINESS
TAX BREAK WE HAVE LESS DOLLARS
TO INVEST IN THOSE THINGS.
>> AT THIS POINT I THINK WE
SHOULD PUT EVERYTHING ON THE
TABLE.
>> REPRESENTATIVE BRETT GEYMANN
IS A REPUBLICAN MEMBER OF THE
APPROPRIATIONS COMMITTEE.
HE SAYS WITH THE LEGISLATURE
FACING A KANSAS CITY 1.6 BILLION
BUDGET GAP IT'LL NEED TO MAKE
SOME TOUGH POLITICAL DECISIONS,
INCLUDING POSSIBLY SCALING BACK
TAX INCENTIVES.
STATE GOVERNMENT DEPENDS ON 13%
OF ITS REVENUE FROM OIL AND GAS.
DROPPING OIL PRICES, GEYMANN
SAYS, DON'T MAKE THINGS ANY
EASIER.
>> OUR BUDGET WAS ORIGINALLY
FORECASTED ON $94 A BARREL.
AND OF COURSE AS WE KNOW IT'S
AROUND 50 OR IN THE 40s
CURRENTLY.
THAT'S CAUSED A SEVERE PATROL.
WE'VE DONE THAT BY USING
ONE-TIME FUNDS TO PAY FOR THE
ONGOING EXPENSES.
THE PROBLEM IS THE FOLLOWING
YEAR WE FACE THE SAME CHALLENGE
AGAIN.
WHAT WE NEED TO DO IS ONLY SPEND
WHAT WE HAVE COMING IN, IN ORDER
TO BALANCE THE BUDGET.
>> JOINING US TO EXPLORE THE
AFFECT THE DROPPING OIL PRICES
ON THE STATE IS OUR STUDIO
AUDIENCE.
IT INCLUDES BRANCH AREA
RESIDENTS, FORM REFINERY
EMPLOYEES, UNIVERSITY OFFICIALS
AND MEMBERS OF LOUISIANA'S
LEGISLATIVE YOUTH ADVISORY
COUNCIL FROM JENA, WINNFIELD AND
SLIDELL.
WE THANK EVERYONE FOR BEING HERE
AND ALL OF YOU FOR TUNING IN.
LSU'S PUBLIC POLICY RESEARCH LAB
SURVEYED LOUISIANA CITIZENS ON
TONIGHT'S TOPIC.
58% SAID THEY WERE SPENDING IT
ON OTHER THINGS.
58% THAT I TER SPENDING IT, 33%
SAY THEY ARE SAVING THE OF EXTRA
MONEY.
IN LIGHT OF LOWER PRICES AT THE
PUMP, THOSE SURVEYED WERE ASKED
ABOUT THEIR SUPPORT FOR AN
INCREASE IN THE STATE'S TAX ON
GASOLINE WITH MONEY DEDICATED TO
IMPROVING THE STATE'S
INFRASTRUCTURE.
57% OF RESPONDENTS FAVOR THE
IDEA, 36% OPPOSE IT.
7% WERE UNSURE.
WHEN ASKED WHAT EFFECT GASOLINE
PRICES DROPPING BY OWN A DOLLAR
A GALLON SINCE LAST YEAR HAS HAD
ON LOUISIANA'S ECONOMY, A TOTAL
OF 45% SAID VERY OR SOMEWHAT
POSITIVE, 10% SAID NEITHER
POSITIVE NOR NEGATIVE, AND A
TOTAL OF 38% SAID VERY OR
SOMEWHAT POSITIVE, 8% WERE
UNSURE.
SO LET'S START THERE, IN
LOUISIANA DO THE WINNERS
OUTNUMBER THE ALLUDESSERS FROM
DROPPING OIL PRICES?
AND IS THIS JUST A BUMP IN THE
ROAD OR A MAJOR BLOW TO OUR
STATE'S ECONOMY?
>> M.
>> I THINK IT'S A MAJOR BUMP IN
THE ROAD.
HIGHER EDUCATION WILL SEE ABOUT
$500 BILLION ACCORDING TO WHAT
WE EXPECT TO SEE IN THE BUDGET
ON FRIDAY.
THAT'S HUGE.
IT'S NOT SOMETHING THAT IS GOING
HAPPEN JUST ONCE, IT'S HAPPENING
YEAR AFTER YEAR, OR AT LEAST
OVER A LONG PERIOD OF TIME.
SOMETHING WE CAN EXPECT THAT
WHEN OIL PRICES DROP WE'RE GOING
TO BE HURT.
WE'LL PROBABLY BE DEVASTATED AS
A RESULT.
>> HIGHER EDUCATION HAS BEEN HIT
WITH BUDGET CUTS OVER THE LAST
FEW YEARS, FUNDING HAS BEEN VERY
SPARSE.
HOW LONG DO YOU THINK THIS IS
GOING LAST?
>> SO WE COME UP WITH A SOLUTION
THAT'S GOING FIX THE PROBLEM.
OIL PRICE GOES UP, THEY GO DOWN.
I THINK OUR LEGISLATURE, OUR
GOVERNOR NEED TO COME UP WITH A
SOLUTION THAT'S LONG TERM,
THAT'S SUSTAINABLE AND IT'S
GOING WITH STAND WHEN WE HAVE
THESE HUGE DROPS IN OIL PRICES.
>> WHAT KIND OF SOLUTION MIGHT
THAT BE?
HERALD, YOU WERE IN STATE
GOVERNMENT, WHAT DO YOU THINK?
IS A SOLUTION POSSIBLE FOR STATE
GOVERNMENT?
>> I THINK SCIEN THE LONG TERM
BUT IT'S GOING TO TAKE REAL
STRUCTURAL CHANGES, WHICH OUR
COMMISSIONER OF ADMINISTRATION
PROMISED US ON FRIDAY.
>> WE'LL WAIT TO SEE WHAT THOSE
ARE.
I HOPE THEY ARE LONG TERM.
>> IN AN ELECTION YEAR DO YOU
THINK THAT'S POSSIBLE?
>> THAT'S A GOOD GUESS.
LONG TERM PLANNING AND
GOVERNMENT IS FOUR YEARS'
ELECTED OFFICE.
THAT'S ABOUT IT, I DON'T KNOW.
>> DONALD, YOU'RE WITH THE
SOUTHERN BUSINESS SCHOOL.
>> I THINK WE NEED A MORE
ENLIGHTENED APPROACH TO THE
BUDGET, ESPECIALLY WHEN WE TALK
ABOUT OIL.
THIS IS A PERMANENT ASSET AND WE
BASICALLY SHOULDN'T BE SPENDING
IT ON CURRENT USES.
IF WE FOLLOW WHAT SOME OF THE
SCANDINAVIAN COUNTRY VS. DONE,
ESPECIALLY NORWAY, THEY HAVE PUT
THEIR OIL REVENUES IN A
PERMANENT FUND AND ONLY WITHDRAW
CERTAIN AMOUNTS EACH YEAR.
I'M THINKING AN APPROACH LIKE
THAT.
WE NEED TO PRIORITIZE OUR
SPENDING TERMS WHAT IS A
PRIORITY.
EDUCATION, HEALTH, HIGHWAYS,
THINGS OF THAT NATURE THAT NEED
TO BE PAID FOR.
>> I SPENT 16 YEARS COVERING THE
LEGISLATURE AT WHAT WE USED TO
CALL IT BIG POINTY BUILDING, THE
CAPITOL.
THE FIRST YEAR I WENT THERE WAS
1985.
THE BIG THING WAS A $800 MILLION
SHORTFALL.
EVERY YEAR THERE'S A SHORTFALL,
HUNDREDS OF MILLIONS, SOMETIMES
OVER A BILLION DOLLARS.
YOU'D THINK THE PUBLIC WOULDN'T
BELIEVE THERE'S A SHORTFALL OR A
PROBLEM WITH STATE FINANCES.
SOMEHOW OR ANOTHER THEY WILL BE
BAILED OUT.
>> TYRONN LUE IT'S ROBEY.
>> YOU CAN TAKE ME FISHING
SOMETIMES.
>> NO, I THINK THE PROBLEM IS
NOT GOING GET ANY EASIER.
CONDITIONS ARE SUCH THAT CRUDE
PRICES ARE GOING TO BE UP AND
DOWN FOR MANY YEARS TO COME.
YOU LOOK AT THE PULL-OUT OF
CRUDE PRICES OVER THE PAST
SEVERAL DECADES, IT WAS PRETTY
STEADY UNTIL WE HAD THE FIRST
WAR IN THE GULF.
SO I THINK WHATEVER PLAN WE COME
UP WITH, WE'RE GOING TO NEED A
LEVELING FACTOR THAT WILL CARRY
THE GOVERNMENT, WHETHER IT'S
SETTING ASIDE MONEY OR
READJUSTING THE BUDGET, IT'S
HARD TO SAY.
>> THE ANALYST WHOSE HAVE BEEN
LOOKING AT THIS SITUATION AROUND
THE WORLD ARE PRETTY UNIFIED IN
SAYING THAT THE PEOPLE WHO ARE
WINNING AND THE PEOPLE WHO ARE
LOSING, AMONG THE LOSERS ARE THE
BIG OIL PRODUCING COUNTRIES WHO
HAVE UNSTABLE ECONOMIES.
VENEZUELA, RUSSIA, IRAN.
DOES LOUISIANA FIT IN THAT MIX?
IS OUR FUNDAMENTAL ECONOMY SO
UNSOUND THAT WE ARE DOOMED TO
THIS SORT OF YO-YO?
>> I'M FROM JENA.
SOME OF THESE OTHER FOLKS HAVE
GOOD BACKGROUNDS IN OUR STATE
GOVERNMENT AND IN OUR RESEARCH
AND IN OUR EDUCATIONAL SYSTEM.
I COME FROM INDUSTRY AND
ENGINEERING.
SO I MAY HAVE A DIFFERENT
PERSPECTIVE ON CERTAIN ASPECTS.
I VIEW OUR STATE AS BEING
HEAVILY DEPENDENT UPON OIL
PRICING, AND THE OIL AND GAS
INDUSTRY.
AND THEREFORE NOT ONLY THE
STATE'S INCOME TO RUN OUR
GOVERNMENT BUT ALSO THE INCOME
INTO THE PRIVATE AND THE
PERSONAL BUDGETS OF ITS
CITIZENS.
SO THEREFORE THEY ARE VERY
CLOSELY -- BOTH ARE
SIGNIFICANTLY IMPACTED BY THE
PRICE OF PETROLEUM PRODUCTS.
SPECIFICALLY CRUDE OIL.
>> I THINK, THOUGH, INDIVIDUALLY
AND AS PRODUCERS WE HAVE TO
ANTICIPATE THAT THE BOOM DAYS
MAY BE OVER AS FAR AS LONG TERM
PLANNING.
BUT WE MUST ANTICIPATE THAT
SOMEWHERE IN THAT 70, $75 RANGE,
THAT MAY BE WHERE EUPHORIA IS
GOING TO BE FOR THE FORESEEABLE
FUTURE.
>> YOU RAISE A GOOD POINT ABOUT
INDIVIDUAL RESPONSIBILITY AND
INDIVIDUAL APPROACH TO THIS.
HOW IS THIS AFFECTING Y'ALL
INDIVIDUALLY?
BRAD, YOU'RE A DIFFERENT
GENERATION THAN ME, THIS IS
PROBABLY THE FIRST TIME YOU'VE
SEEN THIS KIND OF THING.
WHAT'S YOUR TAKE ON IT?
>> I THINK THAT THE OIL AND GAS
PRICES ARE GOING TO FLUCTUATE
WITHIN THE NEXT CUSTOM DECADES,
I THINK THAT'S JUST WHAT COMES
WITH THE INDUSTRY.
AND I THINK THAT THE LOUISIANA
LEGISLATURE AND THE NATIONAL
GOVERNMENT HAVE TO MAKE
LEGISLATION OR WORK ON A POLICY
THAT ACCOMMODATES THESE SORTS OF
FLUCTUATIONS OVER THE YEARS.
>> YOU THINK THE FLUCTUATIONS
WILL CONTINUE YEAR IN AND YEAR
OUT.
>> YES, SIR, THAT'S WHAT I
THINK.
>> JACOB, YOU'RE ALSO A YOUNGER
GENERATION THAT HASN'T SEEN
THIS.
>> WHAT IS YOUR TAKE?
>> YES, SIR, I AGREE WITH BRAD,
I SEE IT FLUCTUATING, GOING UP
AND DOWN IN THE FUTURE.
OUR STATE SHOULD TRY TO NOT RELY
SO HEAVILY ON THIS OIL AND GAS
INDUSTRY AS A MAIN SOURCE OF
INCOME, AND AS MR. DONALD SAID,
MAYBE USING A DIFFERENT METHOD
OF ACQUIRING THE TAXES AND
STORING THEM AS A FUND.
>> IF YOU DON'T HAVE THE OIL AND
GAS REVENUE, YOU HAVE TO LOOK
SOMEPLACE ELSE FOR A REVENUE.
WE SAW IN THE SURVEY IT'S PRETTY
WIDESPREAD SUPPORT FOR A
GASOLINE TAX IF THE MONEY GOES
TO HIGHWAYS.
WOULD YOU BE WILLING TO PAY MORE
AND HOW MUCH MORE IF YOU KNEW
YOU'D GET BETTER ROADS?
>> I'M A UNIQUE FOREIGN ANSWER
THAT QUESTION.
I TYRONN LUE DON'T DRIVE THAT
MUCH, I TYRONN LUE BICYCLE A
LOT.
I DON'T HAVE A PROBLEM PAYING
ADDITIONAL FUNDS FOR GASOLINE IF
IT'S GOING TO SOMETHING THAT'S
NECESSARY.
I DO HAVE A PROBLEM SPENDING IT
JUST TO GIVE EXTRA MONEY FOR NO
GOOD REASON.
BUT I DON'T HAVE A PROBLEM
PAYING MORE FOR GAS IF IT'S
GOING TO ASSIST THE RESIDENTS OF
THE STATE OF LOUISIANA, NO.
>> DOES ANYBODY HAVE ANY FAITH
THAT THE LEGISLATURE IS GOING
RAISE TAXES THIS YEAR TO CLOSE
THIS GAP?
>> I DON'T THINK YOU HAVE TO
RAISE TAXES TO CLOSE THAT GAP.
YOU KNOW THERE'S $7 BILLION
WORTH OF TAX CREDITS LOUISIANA
GIVES TO BUSINESSES AND
INDUSTRIES TO HELP THEM BE
SUCCESSFUL, WHICH IS GREAT.
WE NEED MORE BUSINESS INDUSTRY
TO BE SUCCESSFUL AND COME TO
LOUISIANA.
BUT WHEN YOU'VE GOT A $1.7
BILLION HOLE, DON'T YOU THINK IT
WOULD BE IMPORTANT TO CAREFULLY
LOOK AT THOSE TAX CREDITS AND
FIND A WAY TO ROLL SOME OF THAT
BACK TO FILL THAT HOLE?
SEEMS LIKE WE WOULD BE IN A MUCH
BETTER SHAPE IF WE DID SOMETHING
LIKE THAT.
OUR OTHER ISSUE, JUST FORGET
ABOUT OIL AND GAS AND THE
FLUCTUATION.
OUR OTHER ISSUE IS THE MAJORITY
OF THE STATE BUDGET IS
DEDICATED, ALL BUT HIGHER
EDUCATION.
EVERYBODY ELSE HAS A DEDICATION.
IF YOU DEDICATE THE FUNDS AND
YOU CAN'T CUT BUT FROM ONE SPOT,
WE'RE IN A BAD SITUATION.
WE NEED TO COME BACK FROM THE
1970S LIKE WE DID IN 1973, DO A
CONSTITUTIONAL CONVENTION AND
UNDEDICATE THE FUNDS SO PEOPLE
RUNNING STATE GOVERNMENT CAN
DEAL WITH THE UPS AND DOWNS OF
THE FLUCTUATIONS OF INCOMES AND
LOWER PRICES AND THE HIGHER
PRICES.
>> WE'RE GOING STOP ON THAT
NOTE.
THAT'S ALL THE TIME WE HAVE FOR
THIS PORTION OF OUR SHOW.
WHEN WE RETURN WE WILL BE JOINED
BY A PANEL OF EXPERTS TO FURTHER
EXPLODE OIL PRICES AND
LOUISIANA.
>>> WELCOME BACK TO "LOUISIANA
PUBLIC SQUARE."
TONIGHT WE'RE DISCUSSING
"DOLLARS PER BARREL: OIL PRICES
AND LOUISIANA." OIL
WE JUST HEARD GREAT POINTS FROM
OUR STUDIO AUDIENCE.
NOW OUR PANEL OF THE EXPERTS IS
GOING TO WEIGH IN.
GREG ALBRECHT HAS BEEN CHIEF
ECONOMIST OF THE LEGISLATIVE
FISCAL OFFICE SINCE 1991.
IN THIS ROLE HE IS RESPONSIBLE
FOR FORECASTING THE STATE'S
MAJOR TAX REVENUES ESTIMATING
THE FISCAL IMPACT OF TAX
LEGISLATION.
STATE SENATOR NORBERT CHABERT IS
A REPUBLICAN FROM HOUMA.
HIS AREA INCLUDES ALL OF THE
COAST OF TERREBONNE AND
LAFOURCHE PARISHES, MOST AREAS
OF THE HOUMA-THIBODAUX REGION.
HE HAS WORKED AS STEALSMAN IN
THE OIL AND GAS SERVICES
INDUSTRY.
JAN MOLLER IS DIRECTOR OF THE
LOUISIANA BUDGET PROJECT, WHICH
MONITORS A REPORT ON STATE
GOVERNMENT SPENDING AND HOW IT
AFFECTS LOUISIANA'S LOW TO
MODERATE INCOME FAMILIES.
DAVID DISMUKES IS A PROFESSOR,
EXECUTIVE DIRECTOR AND DIRECTOR
OF POLICY ANALYSIS AT LSU'S
CENTER FOR ENERGY STUDY.
BEFORE WE GO TO OUR AUDIENCE
QUESTIONS, I'D FIRST LIKE TO ASK
EACH MEMBER OF THE PANEL,
BRIEFLY FROM YOUR PERSPECTIVE,
WHO IS HURT THE MOST?
>> ARE THERE JOB LOSSES
OCCURRING, THAT'S THE WORST KIND
OF HURT THERE IS.
BENEFITING THE MOST, JUST THE
AVERAGE HOUSEHOLD, LOWER ENERGY
PRICES AND PARTICULARLY GASOLINE
PRICES IS MONEY IN PEOPLE'S
POCKETS.
A GOOD THING FOR MOST
HOUSEHOLDS.
>> PERSONALLY I THINK THERE
REALLY ARE NO WINNERS IN
LOUISIANA UNFORTUNATELY WHENEVER
THE PRICE DROPS AS LOW AS IT
HAS, AS SUDDENLY AS IT HAS.
WE'RE SO INTERWOVEN IN THIS
STATE FROM AN INDIRECT
STANDPOINT ON A DEPENDENCY ON
OIL AND GAS REVENUE.
THE ECONOMY IS SO DEPENDENT,
WHETHER YOU'RE WORKING AT PUBLIC
UNIVERSITY DEPENDING ON STATE
DOLLARS OR YOU'RE A WAITRESS IN
A RESTAURANT WORKING MAYBE TWO
JOBS.
WHEN THE PRICE OF OIL DROPS IT
HURTS THE ECONOMY AND HURTS
EVERYBODY.
>> I WOULD ECHO WITH A GREG
SAID.
LOSERS ARE THE FOLKS WHO WORK IN
THE OIL AND GAS INDUSTRY.
AND THE WINNERS ARE MOST
HOUSEHOLDS IN LOUISIANA SEEING
MORE MONEY IN THEIR POCKETS.
I WOULD ADD TO THE LIST OF
LOSERS, ARE THERE GOING TO BE
PAINFUL BUDGET CUTS COMING,
WE'LL LEARN ABOUT THEM LATER
THIS WEEK.
WE DON'T KNOW WHO OR HOW IT'S
GOING AFFECT BUT THAT'S ALSO
GOING TO AFFECT PEOPLE WHEN
PRICES DROP.
>> I'D HAVE TO AGREE.
THE LOSERS ARE THOSE EMPLOYED IN
THE SERVICE SECTOR HERE IN
LOUISIANA.
THE WINNERS ARE OBVIOUSLY GOING
TO BE THE CONSUMERS IN THE STATE
IN TERMS OF THE LOWER PRICES FOR
RETAIL GASOLINE.
>> YOU HAD A QUESTION YOU WANTED
TO ASK THE PANEL?
>> I REALLY WANTED TO ASK DR.
DISMUKES, ONE OF THE THINGS THAT
HAS HELPED PROPEL THE OIL
INDUSTRY IN AMERICA IS THE FACT
THAT WE HAVE THE ABILITY TO
EXTRACT NATURAL GAS AND USE IT
IN OUR BOILERS AND OTHER
EQUIPMENT.
WE EXTRACT IT AS A LOWER PRICE
BECAUSE WE CAN USE FRACKING.
THE E.U. HAS STRINGENT LAWS AND
REGULATIONS AGAINST FRACKING.
HOWEVER, IF THEY WERE TO RELAX
THOSE RESTRAINTS, QUITE
DRASTICALLY IMPACT WHAT THEY ARE
ABLE TO SELL OIL FOR.
I'M JUST WONDERING, WHAT WOULD
THAT DO TO OUR STATE AND TO THE
AMERICAN ECONOMY AS A WHOLE?
>> I THINK IT'S A GOOD QUESTION.
ARE THERE A CONSIDERABLE AMOUNT
OF UNCONVENTIONAL RESOURCES NOT
ONLY IN WESTERN AND EASTERN
EUROPE BUT IN CHINA AND OTHER
PLACES IN THE WORLD.
THEY ARE LOOKING VERY CAREFULLY
AT NORTH AMERICA IN TERMS OF
LEARNING HOW TO EXTRACT THESE
APPROPRIATELY AND PRODUCTIVELY.
THE SIMPLE FACT OF THE MATTER IS
NORTH AMERICA IS THE PRIMARY
PLACE YOU CAN FRAC AND EXTRACT
THESE UNCONVENTIONAL RIGHT THE
COST EFFECTIVELY.
WE HAVE A VERY GOOD GEOLOGY FOR
THAT, THE INFRASTRUCTURE AND THE
ROADS.
MOST IMPORTANTLY WE HAVE RULES
AND REGULATIONS IN THE UNITED
STATES AND A SYSTEM OF PROPERTY
RIGHTS YOU DON'T HAVE IN OTHER
PLACES OF THE WORLD.
GOVERNMENT OWNS A LOT OF THOSE
MINERAL RIGHTS AND YOU HAVE TO
NEGOTIATE TO GO IN AND FRACTURE
WELLS IF YOU'RE IN POSSESS LAND POLAND O
EUROPE.
>>> AS THEY MOVE FORWARD IN
TIME, IT'S NOT A DRAMATIC CHANGE
OVERNIGHT.
ARE THERE OTHER COUNTRIES IN
EUROPE LOOKING AT THIS.
I THINK YOU'RE PROBABLY A GOOD
FIVE TO 10 YEARS OFF EVEN IF
PEOPLE WERE TO START TODAY.
I THINK IT WOULD BE MORE
BENEFICIAL IN TERMS OF
DIVERSIFYING ENERGY SOURCES
AROUND THE GLOBE BY HAVING MORE
SELF-SUSTAINING PRODUCERS.
>> I JUST WANTED TO ASK YOU, IN
ADDITION TO THAT, SINCE NOT JUST
THE OIL AND GAS BUT THE
PETROCHEMICAL INDUSTRY, LIGHT
HYDRO CARBONS AND SUCH ALL YEARS
NATURAL GASES IN THEIR FURNACES
TO CRACK LPG, I GUESS MY
QUESTION IS, FIT WERE TO -- IF
THOSE REGULATIONS WERE TO BE
RELAXED, WOULDN'T IT AFFECT MORE
THAN JUST THE GAS PUMP?
WOULDN'T IT AFFECT THE CHEMICAL
INDUSTRY THAT PRODUCES OTHER
THINGS?
>> IT COULD.
BUT I THINK WE'RE IN A POSITION
RIGHT NOW IN I THINK U.S.
MANUFACTURING HISTORY WHERE THE
SCALES ARE STILL TILTED TOWARDS
THE U.S. AND PARTICULARLY
LOUISIANA.
ARE THERE PEOPLE BECOMING
CONCERNED ABOUT THESE BILLIONS
OF DOLLARS OF INVESTMENTS THAT
HAVE BEEN ANNOUNCED, MANY OF
WHICH ARE ALREADY UNDERWAY.
THERE WILL PROBABLY BE SOME
CANCELATIONS, IT HAS TO DO WITH
THE UNIQUE NATURE OF WHAT THEY
ARE TRYING TO DO, ARBITRAGING
HYDRO CARBONS.
I THINK WE'RE WELL POSITIONED TO
TAKE ADVANTAGE OF A LOT OF THAT.
>> I THINK THE QUESTION ALONG
THE LINES OF DIVERSIFYING AND
MAKING FUTURE PLANS.
>> IF IT'S ALREADY KNOWN THAT
THE OIL INDUSTRY IS AN
UP-AND-DOWN INDUSTRY, THEN WHAT
IS THE PLAN FOR ADDRESSING THAT?
I MEAN, IF IT'S SOMETHING THAT'S
FORESEEABLE WHY NOT HAVE A PLAN
TO MAKE THIS WHOLE AVOIDABLE?
>> MAYBE SENATOR CHABERT OUGHT
TO START THAT ONE.
>> IN NATURE, YES, WE ARE AN OIL
AND GAS ECONOMY.
BUT WE ARE MORE AN OIL AND GAS
SERVICE ECONOMY THAN ANYTHING.
IT'S NOT LIKE SHELL OR CHEVRON
HAVE THEIR CORPORATE
HEADQUARTERS IN D'S BATON ROUGE
OR IN DOWNTOWN NEW ORLEANS.
THE MAJORITY OF THE COMPANIES
THAT MAKE UP THE LOUISIANA OIL
AND GAS ECONOMY ARE SERVICE
COMPANIES, WHETHER THEY ARE
SERVICING DEEPWATER DRILLING,
WHETHER THEY ARE IN FABRICATION
OF THE ACTUAL PLATFORMS OR THE
OFFSHORE SUPPLY VESSELS THAT
SERVICE IN DEEP OR SHALLOW
WATER.
THOSE RIGHT PEOPLE THAT ARE
EMPLOYED.
THOSE ARE THE MULTIPLIERS THAT
SAY, OKAY, IF A COMPANY OPENS UP
IN SOUTH HOUMA AND EMPLOYS 50
PEOPLE, RIGHT, THERE'S A
MULTIPLIER THAT'S GOING ATTACH
TO THAT.
MORE PEOPLE AT THE HOSPITAL,
MORE AT THE SCHOOL, AT THE
WAL-MART, EVERWHERE.
THE SAME THING HAPPENS WHENEVER
THAT PARTICULAR COMPANY MAY
CLOSE DOWN.
IT'S DIFFICULT TO SAY, HOW DO
YOU CHANGE YOUR ECONOMY TO DEAL
WITH SOMETHING THAT IS SO
CYCLICAL, LIKE OIL AND GAS IS?
LET'S FACE IT, HALF OF THE
REASON WHY WE DO WHAT WE DO IN
LOUISIANA IS ONE REASON AND ONE
REASON ONLY: THE GEOGRAPHIC
PROXIMITY TO WHERE THE OILS.
THAT'S A HUGE DERMATO NANT ON
WHAT YOU DO.
IF YOU'RE IN KANSAS YOU'RE GOING
PLANT CORN.
IN SOUTH LOUISIANA YOU SERVICE
THE OIL AND GAS INDUSTRY BECAUSE
THAT'S WHERE THE OIL AND GAS IS.
>> GREG, YOU AND I WERE BOTH
AROUND THE LEGISLATURE IN THE
90s WHEN THEY WERE WRESTLING
ABOUT THIS BEFORE.
HAVE WE DIVERSIFIED FAR ENOUGH
TO WHERE WE'RE NOT GOING TO SEE
AS HUGE AN IMPACT ON LOUISIANA?
>> WE'RE MORE DIVERSIFIED THAN
WE WERE IN THE MID 80s WHEN I
STARTED DOWN THERE, OBVIOUSLY.
WE WILL BE A LARGE OIL AND GAS
BROADLY DEFINED, EXTRACTION TO
PETROCHEMICAL REFINING MONTH
PROBABLY FOREVER.
WE ARE ENDOWED WITH THE RESOURCE
AND WE HAVE GENERATIONS OF
SKILLSETS DEVELOPED HERE.
THAT'S WHAT WE DO.
THE UPS AND DOWNS OF THE OIL
CRISIS USED TO GENERATE MUCH
BIGGER SWINGS IN OUR ECONOMY AND
IN THE STATE'S REVENUE BASE THAN
THEY DO NOW.
NOT THAT THEY ARE IMMATERIAL BUT
IT'S NOT LIKE THE MID 80s WHEN
WE LOST HALF THE INDUSTRY IN
THAT DOWNTURN.
AND MUCH THE OTHER INDUSTRIES.
THAT'S NOT WHAT'S HAPPENING
TODAY.
NOT TO BELITTLE THE LOSSES THAT
ARE OCCURRING IN COMMUNITIES AND
COMPANIES AND HOUSEHOLDS TODAY.
WE'RE NOT NEARLY AS AFFECTED AS
WE WERE.
THAT'S A SIGN OF OUR DIVERSITY.
>> YOU HAD A QUESTION ABOUT
INDIVIDUALS.
>> WHAT CAN WE DO SO THAT THE
PRICE OF OIL DOES NOT NEGATIVELY
AFFECT THE STATE BUDGET AND THE
STATE -- I DON'T KNOW, LIKE
PROGRAMS?
>> I THINK THE STATE BUDGET'S
ALWAYS GOING TO BE AFFECTED BY
OIL PRICES IN SOME WAYS.
BUT LIKE GREG SAID, IN THE MID
80s 40% OF THE STATE BUDGET
WAS MADE UP OF OIL AND GAS
REVENUES.
NOW IT'S DOWN TO 13%, WE'RE NOT
NEARLY AS DEPENDENT ON OIL AS WE
ONCE WERE.
THAT SPEAKS TO THE
DIVERSIFICATION THAT'S HAPPENED
AND WE NEED TO CONTINUE TO DERS
FYE AND FOCUS ON THE
FUNDAMENTALS.
IF STATE GOVERNMENT CAN DO A
GOOD JOB OF EDUCATING ITS PEOPLE
AND BUILD STRONG ROAD AND SAFE
COMMUNITIES, BUSINESSES OF ALL
KINDS WILL WANT TO COME TO
LOUISIANA AND BUILD AND GROW.
I THINK IN THE LAST FEW YEARS
WE'VE MAYBE GOTTEN AWAY FROM
SOME OF THAT.
WE'VE BEEN CUTTING HIGHER
EDUCATION AND MONEY THAT GOES TO
ROADS AND BASIC INFRASTRUCTURE.
IF WE CAN KEEP GETTING BACK TO
FOCUSING ON THE FUNDAMENTALS WE
WILL GROW OUR ECONOMY, AN
ECONOMY THAT WORKS NOT GROW OIL
AND GAS INDUSTRIES BUT FOR
EVERYBODY.
INCLUDING FOLKS IN LOUISIANA WHO
DON'T DEPEND ON THAT INDUSTRY.
>> OTHER STATES AROUND US HAVE
HEAVY OIL AND GAS PRODUCTION AND
EXPLORATION AND SERVICES.
TEXAS, THEY DON'T SEEM TO BE HIT
AS HARD.
IS IT BECAUSE THEY ARE BIGGER OR
HAVE THEY DONE A BETTER JOB
DIVERSIFYING?
>> THEY ARE BEING HIT AS HARD.
>> PRETTY DOGGONE HARD.
THE THING THAT SEPARATES FROM US
TEXAS IS THAT THE MAJORITY OF
OUR EXTRACTION OCCURS OFFSHORE.
TEXAS WAS REALLY HIT FROM THE
FRACKING SIDE, INITIALLY WITH
THE LOW PRICE OF NATURAL GAS.
NOW WITH THE COST OF TYRONN LUE COSTS OF
COST OF THE TYRONN LUE FRAC,
EXTRACTION, THE RETURN ON
INVESTMENT IS NOT THERE THEY ARE
FEELING IT, THEIR ECONOMIC
IMPACTS ARE GOING TO BE
STRONGER.
THEY HAVE A FRACKING INDUSTRY.
THE VERTICAL OIL IS SELLING FOR
LESS, AND SOME PRIVATE SECTOR IS
HIT BUT WE'RE NOT.
WE HAVEN'T DEVELOPED A BIG OIL
FRACKING INDUSTRY AND OUR BIG
FRACKING INDUSTRY WAS IN
HAYNSVILLE AND THAT RELATIVELY
SHUT DOWN AFTER GAS PRICES FELL.
THERE'S NOT A LOT TO LOSE IN
TERMS OF TYRONN LUE ECONOMIC
IMPACT.
WE'RE NOT NEARLY AS RELIABILITY
ON THIS PARTICULAR KIND OF OIL
AND GAS EXTRACTION AS THE BIG
FRACKING STATES ARE, TEXAS,
NORTH DAKOTA PRIMARILY.
>> YOU HAD A QUESTION ABOUT
REGULATION.
>> DO OIL AND GAS REGULATORY
SERVICES FOR THE
PRODUCERS-OPERATORS IN CENTRAL
LOUISIANA, I'VE BEEN HIT
ECONOMICALLY.
MY HOUSEHOLD INCOME DECREASED AS
PRODUCERS STARTED SHUTTING WELLS
AND ONLY OPERATING THE ONES THAT
WERE THE MOST PROFITABLE IN OUR
AREA.
MY QUESTION, OBVIOUSLY I KNOW
HOW THE INDIVIDUAL FAMILY IS
IMPACTED.
BUT I WONDER FROM THE STATE'S
VIEWPOINT, IS THERE -- ARE THERE
STUDIES THE STATE HAS DONE THAT
-- YOU KNOW, THE AVERAGE CITIZEN
COULD GO LOOK AT THE WEBSITE AND
SEE HOW THE STATE LEGISLATURE
HAS TAKEN ACTION TO SHIFT OUR
TAX BASE FROM OIL REVENUE, THE
STATE'S ROYALTIES, STATE FEES,
STATE SEVERANCE TAXES AND OF
COURSE INCOME TAXES FROM PEOPLE
THAT WORK IN THE INDUSTRY, ABOUT
TO YOU SAFETY 13% TO OTHER
SOURCES OF REF NEW.
>> DO YOU WANT TO TAKE THIS ONE?
[LAUGHTER]
>> MUCH OF THE SHIFT IN THE
STATE'S REVENUE MIX HAS BEEN A
RESULT OF AN ACTION 18 TEA AFTER
THE EARLY EIGHTIES OR MID 80s
OIL BUST.
WE BROUGHT IN GAMING REVENUE.
WE RAISED INCOME TAXES, RAISED
SALES TAXES, RAISED CORPORATE
TAXES.
THAT'S THE STRUCTURE WE'RE STILL
LIVING ON TODAY.
THIS OIL BUST HAS NOT BEEN
REACTED TO IN THAT WAY.
YET.
I DON'T KNOW THAT IT WILL BE
EITHER, BUT WE HAVE A MIX WE
HAVE TODAY.
IT TOOK 10 YEARS OR MORE OF
CHANGES TO GET TO THE MIX WE'VE
GOT NOW.
IT STILL LEAVES US WITH 13% AND
THAT'S TYPICALLY ABOUT $1.4
BILLION.
YOU LOSE THREE OR $400 MILLION
OF THAT, THAT'S REAL MONEY.
>> AND AS A RESULT OF THE BIG
POST KATRINA, RITA BOOM, JUST
BEFORE THE RECESSION WE CUT
TAXES SUBSTANTIALLY.
SOME OF THOSE INCOME TAXES AND
SALES TAX.
AND WE NOW HAVE A REVENUE
BASELINE RUNNING BELOW THE PRE
STORM PATH.
BUT THE FUNDAMENTAL MIX, PIE
CHART MIX TODAY, IS REALLY A
REACTION TO THINGS WE DID IN THE
MID 80s.
AND MAYBE WE'LL CHANGE THAT MIX
GOING FORWARD.
BUT QUITE FRANKLY WE HAVEN'T
EVEN HAD A SESSION YET IN
RESPONSE TO THIS PARTICULAR
WEAKNESS IN OIL PRICES.
>> IN TERMS OF WHERE YOU CAN GO
TO, TO FIND INFORMATION ABOUT
THE STUDIES YOU'RE TALKING
ABOUT, I'D STEER YOU TO THE
LOUISIANA ECONOMIC DEVELOPMENT
WINDOW, THE WORKFORCE COMMISSION
WEBSITE, AND LOOK AT A CUSTOM
DIFFERENT UNIVERSITIES.
CERTAINLY LSU, U.L., LOUISIANA
TECH, NICHOLS, THOSE WILL BE
YOUR UNIVERSITIES THAT HAVE
STUDIES FOCUSED ON OIL AND GAS
EXPLORATION AND THE COMMIS
AROUND IT.
>> AND GREG'S WEBSITE IS VERY
GOOD.
THE LEGISLATIVE FISCAL OFFICE
KEEP AS LOT OF GREAT INFORMATION
ABOUT WHAT'S IN THE BUDGET.
IF YOU GO THERE AND LOOK THEY
PUT A LOT ON THEIR WEBSITE.
>> MY FRIENDS MELINDA WITH THE
ASSOCIATED PRESS AND MARK
BALLARD FROM THE "ADVOCATE" HAVE
POINTED OUT THE CURRENT STATE
BUDGET PROBLEMS ARE NOT ALL OIL
AND GAS RELATED.
OVER A BILLION DOLLARS OF IT IS
RELATED TO THE WAY SPENDING
PATTERNS HAVE BEEN OVER THE PAST
FEW YEARS TO TAX CUTS, USING A
BUNCH OF ONE-TIME MONEY TO PLUG
INTO RECURRING EXPENSES.
WE'LL
START WITH SENATOR CHABERT.
>> MAYBE IT'S TIME TO BRING BACK
THE SPELLING PLAN, AT LEAST THE
REVENUE SIDE OF IT, AND LEVEL
OUT OUR TAXES SO THAT THEY ARE
NOT AT THE MERCY OF THE
VOLATILITY OF THE OIL AND GAS
INDUSTRY.
WE HAD AT ONE TIME WHEN
SOMEBODY, A FRIEND OF MINE
CALLED AN EMBARRASSMENT OF
RICHES.
NOW WE'RE JUST EMBARRASSED.
WE HAVE THIS $1.WHATEVER BILLION
HOLE TO FILL.
>> WHY DON'T YOU TELL US ABOUT
THIS PLAN.
THE PLAN GOT RID OF SALES TAXES
ON HOUSEHOLD FOOD FOR HOME
CONSUMPTION, HOUSEHOLD
UTILITIES.
TYRONN LUE PUT THAT TAX BASE IN
THE CONSTITUTION NEVER AGAIN
UNLESS THE PEOPLE VOTE THOSE
ITEMS.
IT TRADED THAT REVENUE OFF WITH
AN INCREASE IN THE PERSONAL
INCOME TAX, WHICH NOT ONLY
INCREASED THE OVERALL INCOME
TAX, IT SHIFTED THE BURDEN TO
THE UPPER HALF OF THE INCOME
SPECTRUM.
IT HAD A VARIETY OF GOALS IN
MIND.
IT WAS REVENUE NEUTRAL, WE LOST
MONEY IN THE FIRST YEAR OR TWO
OF THAT.
IT WAS DESIGNED TO GROW BECAUSE
IT WOULD BE DESIGNED TO GROW
WITH INCOME.
IT DID THAT FOR SEVERAL YEARS.
AS THE ECONOMY HEATED UP IN THE
MID 2000s AND THEN IN THE POST
KATRINA, AFTER KATRINA AND RITA
HIT IN THE SUMMER OF 2005, WE
ULTIMATELY HAD MORE MONEY COMING
IN THAN WE KNEW WHAT TO DO WITH.
THE REVENUE BASE EXPLODED ON US
AND WE COULDN'T RESIST.
WE STARTED TO GIVE SOME OF THAT
BACK.
THE INCOME TAX COMPONENT WAS THE
PART WE GAVE BACK.
>> WHAT WOULD OUR BUDGET HOLE
LOOK LIKE TODAY IF WE'D KEPT
THAT, JUST A WILD GUESS ON THAT?
>> THE INCOME TAXES WOULD BE
ROUGHLY AT LEAST $800 MILLION
HIGHER TODAY THAN THEY OTHERWISE
ARE.
>> AND SENATOR CHABERT, IN AN
ELECTION YEAR HOW LIKELY IS IT
THAT ANY WOOD WOULD TOUCH THAT
THIRD RAIL?
>> YOU HEAR THE LEGISLATURE IS
GOING TO BE PARALYZED.
I WOULD ARGUE THAT WE ARE CALLED
TO SERVICE.
YOU HAVE TO RESPOND TO A CRISIS
WITH BOLD ACTION.
IF YOU'RE WORRIED ABOUT GETTING
REELECTED, MYSELF INCLUDED, AND
YOU'RE GOING TO SACRIFICE WHAT'S
TO BE DONE RIGHT, WE SHOULD
THROW THE BUMS OUT, MYSELF
INCLUDED.
THE PROBLEM IS THAT THE
STRUCTURAL TAX GATHERING
APPARATUS IN THIS STATE AND THE
SPENDING DEDICATIONS THAT WE
HAVE ARE A COMPLEX PROBLEM TO
SOLVE.
OUR FISCAL SESSION THIS YEAR IS
ROUGHLY 60 DAYS.
WE'VE BEEN WORKING ON THIS
PROBLEM FOR A LONG TIME.
WITH REF NEWF ESTIMATING WE CAN
HAPPY A BUDGET SHORTFALL IS
GOING TO BE, AS YOU KNOW.
IT'S NOT AN EASY FIX.
WHAT I FORESEE HAPPENING IS
WE'RE GOING UNFORTUNATELY HAVE
TO BEAR THE BRUNT OF THIS
MASSIVE BUDGET DEFICIT AND AFTER
THIS NEXT ELECTION CYCLE WITH A
NEW ADMINISTRATION, AS WE ALL
KNOW WE HAVE A VERY POWERFUL
EXECUTIVE BRANCH IN THIS STATE,
YOU'LL PROBABLY SEE SOME BOLD
ACTION HAVE TO BE TAKEN BY THE
NEXT LEGISLATURE AND CERTAINLY
THE NEXT GOVERNOR.
>> JAN, DO YOU THINK THE AVERAGE
CITIZEN IS READY FOR TAXES?
>> THEY ARE GOING TO HAVE TO BE
WHETHER THEY ARE READY OR NOT.
THE ELEPHANT IN THE ROOM IS WE
HAVE A GOVERNOR WHO HAS REFUSED
TO LOOK AT THE REVENUE SIDE OF
THE LEDGER FOR THE PAST SEVEN
YEARS.
EVERY TIME WE'VE BEEN FACED WITH
A BUDGET SHORTFALL -- AND WE'VE
HAD BUDGET SHORTFALLS SEVEN
YEARS IN A ROW KNOW, I BELIEVE,
WE'VE ONLY LOOKED TO CUT.
WHEN WE WERE FINISHED CUTTING
AND THERE WAS NOTHING MORE TO
CUT WE'VE USED ONE-TIME REVENUES
TO PATCH THE REMAINDER OF THE
GAP.
WE RAIDED TRUST FUNDS, USED
MONEY FROM LEGAL SETTLEMENTS,
EVERY TRICK IN THE BOOK.
THAT'S BEEN THE ONLY SOLUTION
AND WE HAVEN'T LOOKED AT ALL AT
THE REVENUE SIDE.
I DON'T THINK ANY POLITICIAN
RUNS FOR OFFICE TRYING TO RAISE
TAXES BUT THAT'S A CONVERSATION
THAT'S COMING.
IT MAY NOT COME THIS SESSION
BECAUSE THIS COVER HAS SET THE
RULES OF ROAD AND THE
LEGISLATURE HAS ABIDED BY THOSE
RULES.
THE NEXT GOVERNOR IS GOING TO
RAISE TAXES.
THE ONLY QUESTION IS HOW MUCH
AND FROM WHOM IS IT GOING TO BE
RAISED.
WE CAN'T KEEP KICK, THE CAN DOWN
THE ROAD WITH THIS BUDGE AS WE
HAVE BEEN DOING FOR THE LAST
SEVERAL YEARS.
>> JUST UTTERING THE WORDS
RAISING TAXES, IT GETS A
RESPONSE OUT OF PEOPLE WHERE
THEY AUTOMATICALLY CRINGE.
IF YOU JUST THINK ABOUT
SPREADING IT OUT, OKAY?
WE HAVE ALMOST THE SEVENTH
LOWEST DIESEL TAX, THE LOE
CIGARETTE TAX IN THE SOUTH.
>> IN THE COUNTRY.
>> YOU KNOW, IT'S NOT ABOUT
POINTING AT ONE PARTICULAR
SECTOR, BUSINESS ENTITY AND
SAYING, WE ARE GOING RAISE YOUR
TAXES BY 30%.
YOU CAN'T DO THAT.
A, IT'S POLITICALLY IMPOSSIBLE
TO DO.
THE OUTCRY, REGARDLESS OF THE
TYPE OF REVENUE IT WOULD
GENERATE WOULD BE FROWNED UPON
BY MANY PUBLIC INTEREST GROUPS
AND WHATNOT.
BUT I THINK THAT BECAUSE THE
LOUISIANA TAX BURDEN ON THE
ORDINARY CITIZEN IS SO LOW, WE
COULD COME UP WITH A
RESTRUCTURING THAT WOULD HAVE TO
INCLUDE ELIMINATING A LOT OF TAX
CREDITS ON THINGS.
>> FROM WHAT I UNDERSTAND ABOUT
38 CENTS OF EVERY GALLON OF GAD
WE BUY IN LOUISIANA, ABOUT 38
CENTS OF THAT IS TAXES.
STATE AND FEDERAL.
>> STATE AND FEDERAL.
>> YES.
>> THE STATE ASPECT IS AROUND
AROUND 20 CENTS.
>> DO YOU SEE IN THE FORESEEABLE
FUTURE THAT INCREASING
SUBSTANTIALLY?
BECAUSE OF THE SHORTFALL IN THE
BUDGET?
>> IF YOU LOOK FROM AN
INFRASTRUCTURE STANDPOINT -- AND
CORRECT ME WHERE I NEED TO BE
CORRECTED, GREG -- WE'VE GOT A
$12 BILLION INFRASTRUCTURE
BACKLOG, $12 BILLION.
WHEN WE PASSED, NOT SOME OF YOU
YOUNGER FOLKS BUT WHEN WE VOTED
IN THOSE GAS TAXES, THE FOUR
CENTS TIMES PROGRAM, THAT WAS
SAYING WE'RE GOING TO RAISE X A.
REVENUE AND IT'LL PAY FOR ALL OF
THESE PROJECTS OVER AND LONG
PERIOD OF TIME.
SOME OF THOSE PRODUCTS ARE STILL
IN THE BOOKS.
THE PROBLEM IS WHEN YOU
INITIALLY PASSED THOSE TAXES,
OKAY, THE 16 CENT GAS TAX WAS
PASSED AND THE ADDITIONAL FOUR
TO THE TIMES PROGRAM, THAT WAS
1990 CENTS.
THE PRICE OF DOING BUSINESS HAS
INCREASED TO GREATLY THAT YOU
REALLY HAVE A 20 CENTS GAS TAX
THAT IS GENERATING YOU WHAT
WOULD HAVE BEEN IN THOSE DAYS,
SEVEN, EIGHT, NINE, 10, CENTS.
>> WE FEEL THAT WE ARE JUST
EXPERIENCING A SMALL HICCUP IN
THE OIL AND GAS INDUSTRY, OR IS
THIS A MAJOR HALTING POINT FOR
LOUISIANA AND FOR I GUESS TEXAS
AND THE OTHER STATES, AS WELL?
>> WELL, I DON'T KNOW IF IT'S A
HALTING POINT BUT I THINK THIS
IS A VERY SIGNIFICANT STRUCTURAL
CHANGE IN THE INDUSTRY, NOT ONLY
HERE IN THE UNITED STATES BUT
GLOBALLY.
WHERE COMMODITY TRADERS ARE
LOOKING AT TRADE FORE CRUDE OIL
MONTHS AND YEARS INTO THE
FUTURE, THEY SEE CRUDE OIL AT
LOW PRICES FOR MANY, MANY YEARS
GOING OUT TO 2020 AND PAST THAT
TIME PERIOD.
CONVENTIONAL WISDOM IS PRICES
WILL STAY RELATIVELY LOW.
AS MOST OF YOU RECOGNIZE THINGS
CAN CHANGE TOMORROW, THERE COULD
BE A WAR IN THE MIDDLE EAST,
THERE COULD BE A CUT-BACK IN
PRODUCTION IN VENEZUELA, A
STRIKE SOMEWHERE.
THEY CHANGE THE DYNAMICS ON A
DAY IN AND DAY OUT BASIS.
ONE OF THE BIG CONSEQUENCES HAS
BEEN DIVERSIFYING THE SUPPLIES
OF CRUDE OIL AND INCREASING
THOSE OUTSIDE OF THE TRADITIONAL
OPEC PRODUCING COUNTRIES AND
THAT'S PUT DOWNWARD PRESSURE ON
PRICES.
IT'S GOING TO CREATE
OPPORTUNITIES FOR OPERATORS HERE
IN NORTH AMERICA TO GO BACK INTO
THOSE RESERVES.
THAT GENIE IS OUT OF THE BOTTLE.
AS SOON AS PRICES START TO RISE
AGAIN, PEOPLE BILL GO BACK INTO
THAT BUSINESS.
GREG WAS TALKING ABOUT THE
DISTRACTION OF UNCONVENTIONAL
GAS IN HAYNSVILLE.
IN THE LAST RECESSION PRICES
FELL BY OVER HALF THEN.
A LOT OF THAT DRILLING ACTIVITY
REDUCED DURING THAT TIME PERIOD.
PRODUCERS GOT MORE EFFICIENT,
AND YOU'LL START TO SEE THAT ON
THE CRUDE SIDE OF THE BUSINESS,
AS WELL.
NOT AS QUICKLY AS ORIGINALLY
ANTICIPATED BUT THEY ARE GOING
CONTINUE TO GROVE.
THERE WILL CONTINUE TO BE
OPPORTUNITIES IN THIS BUSINESS
AND IT'S GOING TO BE A CHANGE
WITH US FOR QUITE SOME TIME.
>> THE PRICE FOR CRUDE AROUND
$60, WHEN IT REACHES THAT LEVEL
THE BALL CAN CRUDE PRODUCTION IS
AT THE BREAK-EVEN POINT, AT
LEAST THAT'S WHAT STATED.
YOU HATE TO SEE THAT GREAT
STREAM BACK OFF.
OUR ENERGY INDEPENDENCE MIGHT BE
SLOWED A BIT MATCH THAT'S TRUE.
THERE WERE THE SAME
CONVERSATIONS GOING ON IN 2008,
2009, 2010, WHEN PEOPLE WERE
SAYING THE NATURAL GAS BUSINESS
COULDN'T SURVIVE ANYTHING LESS
THAN $4.50.
PRICE RESOURCE $2.50 TODAY,
NATURAL GAS PRICES TON INCREASE.
ONE OF THE THINGS WE'VE FOUND IN
THIS BUSINESS IS THAT BECAUSE
IT'S VERY COMPETITIVE PEOPLE ARE
SCRAMBLING AROUND TO FIND WAYS
TO BE MORE PRODUCTIVE.
THEY HAVE FINDING WAYS TO
IMPROVE THE TECHNOLOGY OF THIS
FRACKING.
IT'S ONE OF THOSE RARE AREAS IN
THE ENERGY BUSINESS WHERE UNIT
COSTS ARE GOING DOWN, NOT UP
BECAUSE OF INCREASED
EFFICIENCIES.
IT'S A MORE REPETITIVE TASK.
IT'S NOT LIKE TRADITIONAL
VERTICAL OIL AND GAS DRILLING.
IT'S MORE LIKE MINING.
ONCE YOU'RE IN A PARTICULAR
PLACE LIKE AND YOU START TO
INFILL DRILL U START TO GAIN
SUBSTANTIAL COMMIS AND
EFFICIENCIES.
YOU'VE GOT THE INFRASTRUCTURE
AND WORKFORCE IN PLACE, ALL OF
THOSE OPPORTUNITIES.
PEOPLE WILL FIND IT'S PROBABLY A
LITTLE LOWER THAN WHAT PEOPLE
ARE SAYING RIGHT NOW.
>> KARL, IF WE HAVE $7 BILLION
WORTH OF TAX CREDITS SITTING ON
THE TABLE THAT WE'RE NOT
COLLECTING NOW, AND WE HAVE A
$1.6 BILLION HOLE, WOULDN'T IT
MAKE SENSE THAT WE ROLL SOME OF
THOSE BACK, COLLECT SOME OF
THOSE TAXES THAT WERE SUPPOSED
TO HAVE BEEN USED ANYWAY, AND
FILL THAT HOLE?
DOESN'T THAT MAKE SENSE?
>> YOU'VE GOT $7 BILLION IN
TAXES ON THE TABLE RIGHT NOW NOT
BEING COLLECTED TO INCENTIVIZE
BUSINESS.
WHICH MAKES SENSE, I UNDERSTAND
THAT.
EVERY OTHER STATE DOES IT.
WHEN YOU'VE GOT A $1.6 BILLION
HOLE AND YOU LOOK AT CUTTING AND
GUTTING HIGHER EDUCATION, WE'VE
GOT FIND ANOTHER TWI SOLVE THAT
PROBLEM.
SEEMS TO ME WE NEED TO ROLL BACK
SOME OF THOSE TAXES AND
GIVEAWAYS.
>> YOU KNOW, THAT'S --
>> CAN'T DO IT ALL BUT YOU CAN
DO SOME.
>> CORRECT.
THERE'S A PREVAILING ATTITUDE
THAT A ROLLBACK OF THE TAX
CREDITS EQUATES TO AN INDIRECT
TAX INCREASE ON THE RECIPIENT ON
THAT TAX CREDIT.
THERE'S A LOT OF CREDENCE TO
THAT.
A COMPANY MAY SAY, THIS
INCENTIVE WAS THE ONLY REASON
WHY I CAME HERE.
I THINK THERE WOULD BE A
CONSTANTLY AMOUNT OF STIG AND
RESEARCH BY LED, LEGISLATIVE
FISCAL OFFICE TO GO IN AND SAY,
OKAY, THIS IS REALLY JUST
LAGNIAPPE, OF COURSE IT'S GOING
TO AFFECT THE COMPANY'S BOTTOM
LINE BUT IT'S NOT GOING TO BREAK
DOWN THE BOTTOM LINE.
WE DECIDED THE STATE'S OVERTAX
CREDIT WAS JUST TOO MUCH AND WE
IN EFFECT GUILLOTINED IT.
WHEN WE WALKED IN AND MADE THE
VIDEO VOTE WE WERE GOING TO CUT
THE HEAD OFF THE TAX CREDITS IN
THIS STATE.
BASICALLY WE ARE SUBSIDIZING
PAYING 75% OF THE INSTALLATION
OF THESE THINGS.
TOO MUCH.
OKAY?
THE PROBLEM WAS THAT HERE ALL
THESE LOUISIANA COMPANIES --
WEAVER NOT TALKING ABOUT FOREIGN
INVESTORS OR PEOPLE FROM THE
FOREIGN STATE OF TEXAS.
THESE ARE LOUISIANA COMPANIES
THAT HAD LOUISIANA INVENTORY AND
LOUISIANA PARISHES, PAYING
LOUISIANA TAXES.
IT DIDN'T MAKE ANY SENSE FOR US
TO IN FACT GUILLOTINE THEM.
WE'RE GOING ELIMINATE THE TAX
CREDIT BUT IT'S GOING TO BE A
GRADUAL ELIMINATION OF THEM.
IF YOU DID THAT, THERE WOULD BE
VERY FEW INSTANCES WHERE YOU GET
THE MONEY BACK ON THE TABLE.
WE DO HAVE TO RESTRUCTURE.
>> GREG, WHAT ABOUT IT?
COULD YOU FIND SOME TAX CREDITS
THAT YOU COULD DO THAT TO AND
GENERATE SOME REVENUE?
>> ARE THERE THINGS WE HAVE DONE
IN THE PAST WHERE CERTAIN TYPES
OF CREDITS OR DEDUCTIONS WE HAVE
SAID, FOR THE TAX PERIOD
STARTING JANUARY 2015, THIS TAX
YEAR RIGHT NOW, FROM THAT TAX
YEAR IT'S NOT EFFECTIVE.
WHEN YOU FILE YOUR TAXES IN THE
SPRING OF 2016 LIABILITIES WILL
GO UP.
WE HAVE DONE THAT BEFORE.
THAT'S NOT SOMETHING WE'VE
TYPICALLY DONE AND IT'S NOT
APPLICABLE TO A LOT OF PROGRAMS
THAT HAVE CERTIFICATIONS,
APPLICATIONS, CONTRACTUAL
ARRANGEMENTS.
>> HOW MANY OF THOSE REALLY ARE
OBLIGATIONS YOU CAN'T DO
ANYTHING ABOUT AT THIS POINT?
>> HUNDREDS OF -- WELL, I'M
GOING TO SAY FOUR TO 500 MILLION
EASY, THE EASY LIST NO ONE WOULD
ARGUE ABOUT.
THEN THERE WOULD BE A VARIETY OF
OTHER PEOPLE WHO SAY I MAY NOT
HAVE A CONTRACT BUT I CARRIED
OUT CERTAINLY ACTIVITIES, YOU
OWE ME.
THERE WOULD BE A MORAL
OBLIGATION AT A MINIMUM.
WE HAVE REVERSED SOME OF THOSE
THINGS IN THE PAST.
WE WERE DOING THAT FOR EXCESS
ITEMIZED DEDUCTIONS ON PERSONAL
INCOME TAX FOR THREE YEARS
BEFORE THE BREAKS EVER CAME
ALONG.
YOU CAN DO THAT, YOU DON'T HAVE
BILLIONS OF DOLLARS LIKE THAT.
THINGS LIKE THAT CAN BE DONE BUT
THEY ARE TOUGH VOTES, NOT EASY
TO DO.
>> WE HAVEN'T HEARD FROM YOU.
>> YES.
WITH THE LOW PRICES IN THE OIL
AND GAS, THE RIPPLE EFFECT IS
VERY IMPORTANT AND SIGNIFICANT
RIGHT NOW, BECAUSE I HAVE A
CONCERN OR THE COMMUNITY HAS A
EXPERIENCE FOR CUTS IN HEALTH
CARE AND HUMAN SERVICES.
AND TO THIS EXAMPLE, THE RECENT
ANNOUNCEMENT OF CLOSING THE
EMERGENCY ROOMS AT OUR LOCAL
HOSPITAL, AND SO THE RIPPING
AFFECT CONTINUES TO MAKE CUTS.
WE'RE JUST CONCERNED ABOUT THE
CUTS THAT WILL OCCUR IN OUR NEXT
LEGISLATIVE SESSION.
HOPEFULLY I NEED TO FIND OUT HOW
WILL THAT AFFECT ADDITIONAL
CUTS, OR WILL THERE BE ANY.
>> THAT'S WHY I SAID VERY EARLY
ON, I DON'T THINK ARE THERE
REALLY ANY WINNERS WHEN THE
PRICE OF OIL DROPS AS LOW AS IT
DID AS FAST AS IT D. BACK TO
THAT SINGLE MOTHER THAT MAY BE
WORKING ONE OR TWO JO, HER JOB
IS ON THE MORE OF A FLOUNDER
SIGHT, IT'S CHEAPER FOR HER TO
DRIVE FROM THE APARTMENT TO THAT
JOB.
THE PROBLEMS, MAYBE WHEN SHE WAS
WORKING THAT FRIDAY NIGHT
LATE-NIGHT SHIFT, THAT'S PINNING
$A COUPLE HUNDRED EVERY NIGHT?
THEY ARE NOT GETTING TIPS, IF
SHE, NOT GETTING HER TIP SHE
CAN'T PAY THE RENT.
WE GO BACK TO THE ACTUAL
LESSENING OF THE REVENUE COMING
IN AND IT'S TOUGH TO REALLY FIND
A WINNER IN SOUTH LOUISIANA,
PARTICULARLY WHEN IT DROPS AS
LOW AS IT HAS, THE INDIRECT
IMPACTS.
>> WITH A CRISIS LIKE WE HAVE IN
TERMS OF THE FINANCIAL CRISIS,
IT WOULD SEEM THAT THERE
CERTAINLY IS AN OPPORTUNITY TO
TAKE ADVANTAGE OF REINVESTING IN
OTHER AREA.
RIGHT NOW WITH $500 MILLION
EXPECTED IN BUDGET CUTS TO
HIGHER EDUCATION, ISN'T THIS
REALLY THE TIME WHILE WE'RE
TALKING ABOUT OIL PRICES TO SAY,
LOOK, WE'RE GOING INVEST IN OUR
FUTURE HE AND IN HIGHER
EDUCATION.
THOSE AREAS THAT WORK FOR
GROWING THE ECONOMY IN DECADES
AND YEARS OH TO COME DOWN THE
ROAD.
THERE'S A LEGISLATURE IN
POSITION TO SAY WE THINK,
INSTEAD OF CUTTING EDUCATION
WE'RE GOING REINVEST IT, PROTECT
IT.
MAYBE SOME CONSTITUTIONAL
MANDATE SO WE'RE NOT DUMBING
DOWN THE STATE OF LOUISIANA BY
CUTTING EDUCATION EVERY TIME
THERE'S A BLIP OR A CUT IN OIL
PRICES.
WE EXPECT HURRICANES, WE SHOULD
BE PREPARED FOR THEM.
I EXPECT THAT WE SHOULD HAVE
DROPPED IN AIL PRICES.
>> I COULDN'T AGREE MORE.
ABSOLUTELY NOW IS THE TIME TO
REININVESTMENT, NOW IS THE TIME
TO DO THAT.
IT'S A VERY DIFFICULT
CONVERSATION ABOUT TAXES, HOW
MUCH MONEY DO WE NEED TO TAKE IN
AS A STATEMENT LOUISIANA
CENTERLINE IS A LOW NEXTED
STATE.
IF LOW SS WAS THE ANSWER, WE
WOULD BE ONE OF THE RICHEST
STATES IN THE COUNTRY.
INSTEAD, WE'RE HAVING BUDGET
PROBLEMS YEAR AFTER YEAR.
IT'S A DIFFICULT QUESTION BUT IT
HAS TO BE ASKED AND IT'S A
DEBATE THAT HAS TO HAPPEN.
AGAIN, THE STATES -- IF YOU LOOK
AROUND THE COUNTRY, THE STATES
WITH THE HIGHEST MEDIAN INCOMES
HAVE THE HIGHEST PERCENTAGE OF
THEIR POPULATION WITH BACHELOR'S
DEGREES.
HAVING AN EDUCATED POPULATION
REQUIRES SUSTAINED LONG TERM
INVESTMENTS WE'VE BEEN LOSING IN
THE PAST FEW YEARS AND WE NEED
TO START THINKING ABOUT MAKING
THEM AGAIN.
IT DOESN'T MAYBE LEAD TO A
GROUNDBREAKING OR SOME KIND OF
RIBBON CUTTING CEREMONY BUT IT'S
THE KIND OF INVESTMENT THAT IF
YOU DO IT OVER A ATTEND PERIOD
OF TIME YOU CAN HAVE THAT
DIVERSIFIED ECONOMY I THINK
EVERYBODY WANTS.
>> WE'VE RUN OUT OF TIME FOR OUR
QUESTION-AND-ANSWER SEGMENT.
WE'D LIKE TO THANK OUR
PANELISTS, MR. ALBRECHT, SENATOR
CHABERT, MR. MOLLER AND DR.
DISMUKES FOR THEIR INSIGHTS ON
THIS TOPIC.
WHEN WE COME BACK, WE'LL HAVE A
FEW CLOSING COMMENTS.
**
>>> YOU KNOW, CARL, I SUPPOSE
ARE THERE NO EASY ANSWERS TO
THIS LARGE BUDGET DEFICIT.
>> MAYBE NOT TO THE BUDGET
DEFICIT BUT WE CAN ALL GO OUT
AND GET MORE GAS WHILE IT'S
CHEAP.
>> ABSOLUTELY!
AND I GUESS ONE OF THE THINGS I
LOOK BACK ON IS WHEN WE SET UP A
FUND TO USHER OIL REVENUE WE DID
PUT IT INTO HIGHER EDUCATION.
>> WHATEVER HAPPENED TO THAT OLD
RAINY DAY TRUST?
>> MAYBE WE'LL LOOK AT IT, I
DON'T KNOW.
THAT'S ALL THE TIME WE HAVE FOR
EDITION OF "LOUISIANA PUBLIC
SQUARE."
VISIT OUR WEBSITE AT
WWW.LPB.ORG/PUBLICSQUARE.
WHILE YOU'RE THERE TAKE THIS
MONTH'S SURVEY.
VIEW ADDITIONAL SOUNDBITES AND
COMMENTS ON TODAY'S SHOW.
LIKE YOU DID FOLLOWING LAST
MONTH'S PROGRAM LOUISIANA AFTER
FERGUSON."
POLICE HAVE A LICENSE TO KILL,
IT'S A BLUE-NONBLUISH.
>> BILL WROTE TO US, NO MATTER
OF COLOR, DISOBEY THE POLICE AND
EXPECT CONSEQUENCES.
JOSEPH.
>>> I BELIEVE WE ARE SO
DESPERATE FOR SECURITY THAT WE
SACRIFICE FIRST OUR LEGAL
PROTECTIONS FROM MILITARIZED
POLICE AND THEN WE SACRIFICE OUR
DIGNITY AS HUMAN BEINGS.
THAT WAS COMPLEX TOPIC.
WE THANK EVERYONE FOR YOUR
COMMENTS.
>> NEXT TIME IS GOING TO BE EVEN
TOUGHER.
WE'LL BE TALKING ABOUT CANCER.
>> AND THAT'S A VERY PERSONAL
TOPIC FOR A LOT OF US.
>> WHY DOES LOUISIANA HAVE THE
SECOND HIGHEST CANCER DEATH RATE
IN AMERICA?
WHAT ROLE DO LIFESTYLE AND
GENETICS PLAY IN THE EQUATION?
JOIN US NEXT MONTH AS "LOUISIANA
PUBLIC SQUARE" BRINGS TOGETHER
RESIDENTS LIVING WITH CANCER.
WE'LL EXPLORE "CANCER IN
LOUISIANA."
THANKS FOR WATCHING AND GOOD
NIGHT.
>> GOOD NIGHT, EVERYONE.
**
>>> FOR A COPY OF THIS PROGRAM
CALL 1-800-9573-7246.
OR GO ONLINE TO
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PROVIDED BY THE FOUNDATION FOR
EXCELLENCE IN LOUISIANA PUBLIC
BROADCASTING AND FROM VIEWERS
LIKE YOU.