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>>> SUPPORT FOR THIS PROGRAM IS

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PROVIDED BY THE FOUNDATION FOR

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EXCELLENCE IN LOUISIANA PUBLIC

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BROADCASTING AND FROM VIEWERS

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LIKE YOU.

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**

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>>> HELLO AND WELCOME TO

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"LOUISIANA PUBLIC SQUARE," I'M

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BETH COURTNEY, PRESIDENT OF THE

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LPB.

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>> GOOD EVENING, I'M CARL

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REDMAN, RETIRED EXECUTIVE EDITOR

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OF THE "ADVOCATE" NEWSPAPER.

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>>> IF YOU'VE BEEN TO THE GAS

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STATION ANY TIME IN THE LAST SIX

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MONTHS, FEWER DOLLARS PER GALLON

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TO TREND YOUR TANK.

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THIS IS DUE TO SUBSTANTIAL DROPS

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IN THE PRICE OF A BARREL OF OIL.

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TONIGHT WE'LL LOOK AT SOME OF

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THE FACTORS CAUSING THAT DROP

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AND WHAT THESE PRICE COULD SAY

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MEAN FOR LOUISIANA.

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>>> THE OIL AND GAS INDUSTRY

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ACCOUNTS FOR NEARLY 290,000 JOBS

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IN THE STATE.

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THE STATE BUDGET STILL RELIES ON

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12% OF ITS INCOME FROM OIL AND

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GAS DOLLARS.

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>>> FOR LOSE RESIDENTS GRATEFUL

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TO BE PAYING LESS AT THE

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GASOLINE PUMP, ECONOMIST LOREN

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SCOTT SAYS HE KNOWS WHO TO

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THANK.

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>> ANY TIME I SEE THE PRICE OF

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OIL DROP FAST, THE WAY IT HAS

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NOW, I'LL LOOK ONE PLACE, TO THE

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SAUDIS.

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>> SCOTT SAYS THE LAST BIG DROP

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WAS IN THE EARLY EIGHTIES BY

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SAUDI ARABIA.

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TO REESTABLISH DISCIPLINE IN THE

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ORGANIZATION OF PETROLEUM

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EXPORTING COUNTRIES OR OPEC.

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THE MOST RECENT PRICE DECREASE

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WAS TRIGGERED BY FALLING DEMAND

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BY THE U.S. FOR INTERNATIONAL

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CRUDE.

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>> THIS TRACKING PHENOMENON ON

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THE OIL SAID CAUSED U.S.

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PRODUCTION TO RISE SINCE 2008,

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70%.

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WHAT THAT MEANT WAS, INSTEAD OF

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US EXPORTING 66% OF THE CRUDE

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THAT WE BRING IN, WE'RE ONLY

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IMPORTS 44% OF THE CRUDE WE

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BROUGHT IN.

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>> IN THE SUMMER THE DEPARTMENT

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OF COMMERCE RULES U.S. COMPANIES

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COULD GUN EXPORT U.S. OIL AND

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DIESEL AND GASOLINE.

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>> FIRST OF ALL, YOU TOOK AWAY A

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BIG SHARE OF OUR U.S. MARKET,

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YOUR APARTMENTING ONLY 40% NOW

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INSTEAD OF 60%.

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NOW-YEAR GOING AFTER THE

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INTERNATIONAL MARKET?

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I DON'T THINK SO.

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THEY DROPPED THE PRICE OF OIL.

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>> CRUDE OIL PRICE VS. DROPPED

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FROM A HIVE NEARLY $110 A BARREL

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LAST YEAR TO THE LOW 50s THIS

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MONTH.

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I'LLFIELD SERVICE PROVIDE BAKER

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HUGHES HAS ANNOUNCED IT'LL CUT

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7,000 POSITIONS NATIONWIDE

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INCLUDING LAYOFFS IN HOUMA AND

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LAFAYETTE.

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>> THE GOOD NEWS FOR US IS NOT

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HAPPENING HERE NEARLY IN THE

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SAME ORDER FOR TWO REASONS.

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NUMBER ONE, OUR MAIN OIL SHALE

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IS TUSCALOOSA, THERE WEREN'T

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VERY MANY RIGS OPERATING THERE

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IN THE FIRST PLACE, TALKING IN

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THE TEENS PROBABLY.

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EVEN 92 SHUT IT TOTALLY DOWN

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YOU'RE NOT TALKING ABOUT THAT

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BIG A HIT.

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>> SECONDLY, SCOTT SAYS THE

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RECENT PRICE CUT WON'T AFFECT

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LOUISIANA'S OFFSHORE DRILLING

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ACTIVITY.

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>> THOSE BIG COMPANIES THAT

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OPERATE OUT THERE LIKE B.P.,

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EXXON AND SHELL, THEY HAVE A

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10-YEAR PLANNING HORIZON.

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THEY ARE NOT GONNA CHANGE THEIR

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PLANS BASED ON WHAT HAPPENS IN A

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SIX-MONTH TIME PERIOD.

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>> BUT TO FULLY UNDERSTAND THE

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IMPACT OF DROPPING OIL PRICES ON

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LOUISIANA'S ECONOMY, YOU HAVE TO

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CONSIDER THE NATURAL GAS

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DYNAMIC.

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OVER THE LAST FIVE YEARS THE

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PRICE OF NATURAL GAS HAS

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DECLINED FROM $12 PER UNIT TO

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THREE, A BOON TO THE STATEST

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LARGEST CONSUMERS OF NATURAL

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GAS, CHEMICAL COMPANIES.

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DAN BORNE IS PRESIDENT OF THE

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LOUISIANA CHEMICAL ASSOCIATION.

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>> THE CHEMICAL INDUSTRY IN

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LOUISIANA USES NATURAL GAS LIKE

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A BAKERY SHOP USES FLOUR.

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WE USE TO IT CREATE ELECTRICITY

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IN OUR PLANTS.

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WE USE TO IT GENERATE STEAM AND

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HEAT FOR OUR PROCESSES.

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BUT MORE IMPORTANTLY THAN THAT

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WE USE IT AS RAW MATERIAL, A

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BASIC FEEDSTOCK FROM WHICH OTHER

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PRODUCTS FLOW.

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>>> BUT THE PRICE OF NATURAL GAS

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HASN'T DROPPED IN EUROPE SO

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CHEAPER AMERICAN CHEMICAL

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PRODUCTS HAVE GAINED MARKET

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SHARE OVERSEAS.

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LOW NATURAL GAS PRICE VS. ALSO

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ATTRACTED TREMENDOUS INVESTMENT

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INTO THE STATE, SCOTT SAYS.

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>> THIS HAS JUST SUDDENLY CAUSED

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US TO GO FROM A SITUATION WHERE

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IN A REEEALLY GOOD YEAR, IF WE

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HAD $5 BILLION IN INDUSTRIAL

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ANNOUNCEMENTS THAT WOULD HAVE

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REALLY BEEN GREAT.

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IT WOULDN'T BEEN A GREAT YEAR.

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WE HAVE HAD $120 BILLION OF

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ANNOUNCEMENTS IN OUR STATE, JUST

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UNHEARD OF.

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>> THIS INCLUDES SIX LIQUID TO

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GAS EXPORT FACILITIES IN CAL IS

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A SUE PARISH ALONE.

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A HEALTHY RATIO WOULD BE IF THE

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PRICE OF A BARREL OF OIL IS AT

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LEAST SEVEN TIMES GREATER THAN

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THE PRICE OF WHAT WE CALL AN

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MMBTU OF NATURAL GAS.

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THAT'S ONE UNIT OF NATURAL GAS.

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IF OIL IS AT $60 A BARREL AND AN

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MMBTU OF NATURAL GAS IS AT $3 AN

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MCF, THAT'S A 20 TO 1 RATIO.

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SO ANYTHING SEVEN TO ONE OR

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GREATER IS GOOD FOR LOUISIANA

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AND GOOD FOR THE GULF COAST.

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>> WITH THE RATIO DROPPING THIS

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MONTH TO AROUND 18 TO ONE, SOUTH

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AFRICAN ENERGY SASOL PUT ITS

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ENERGY PLANTS ON HOLD.

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>> IT'S CAUSED THEM TO TAKE IT

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FROM THE FOOD AND PUT IT ON THE

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SELLLARITY AND THEY ARE TAPPING

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ON THE BRAKE.

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>> LOUISIANA OFFERED SASOL $257

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MILLION IN SUBSIDIES TO RECRUIT

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THEM TO THE STATE.

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FOR STEVE SPIRES WITH LOUISIANA

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BUDGET PROJECT, THE PLANT DELAY

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SERVES AS A TEACHING MOMENT.

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>> THERE'S NO TAX INCENTIVE

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THAT'S MORE POWERFUL THAN MARKET

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FORCES.

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WHAT WE THINK STATE GOVERNMENT

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SHOULD LOOK AT IS HOW TO INVEST

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AND FURTHER DIVERSIFY THE

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ECONOMY.

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EVERY TIME WE GIVE A BUSINESS

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TAX BREAK WE HAVE LESS DOLLARS

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TO INVEST IN THOSE THINGS.

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>> AT THIS POINT I THINK WE

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SHOULD PUT EVERYTHING ON THE

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TABLE.

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>> REPRESENTATIVE BRETT GEYMANN

186
00:07:13,100 --> 00:07:14,267
IS A REPUBLICAN MEMBER OF THE

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APPROPRIATIONS COMMITTEE.

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HE SAYS WITH THE LEGISLATURE

189
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FACING A KANSAS CITY 1.6 BILLION

190
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BUDGET GAP IT'LL NEED TO MAKE

191
00:07:22,267 --> 00:07:24,133
SOME TOUGH POLITICAL DECISIONS,

192
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INCLUDING POSSIBLY SCALING BACK

193
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TAX INCENTIVES.

194
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STATE GOVERNMENT DEPENDS ON 13%

195
00:07:29,633 --> 00:07:32,200
OF ITS REVENUE FROM OIL AND GAS.

196
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DROPPING OIL PRICES, GEYMANN

197
00:07:34,333 --> 00:07:36,767
SAYS, DON'T MAKE THINGS ANY

198
00:07:36,767 --> 00:07:37,400
EASIER.

199
00:07:37,400 --> 00:07:39,800
>> OUR BUDGET WAS ORIGINALLY

200
00:07:39,800 --> 00:07:41,900
FORECASTED ON $94 A BARREL.

201
00:07:41,900 --> 00:07:43,600
AND OF COURSE AS WE KNOW IT'S

202
00:07:43,600 --> 00:07:45,900
AROUND 50 OR IN THE 40s

203
00:07:45,900 --> 00:07:46,600
CURRENTLY.

204
00:07:46,600 --> 00:07:49,867
THAT'S CAUSED A SEVERE PATROL.

205
00:07:49,867 --> 00:07:52,033
WE'VE DONE THAT BY USING

206
00:07:52,033 --> 00:07:53,867
ONE-TIME FUNDS TO PAY FOR THE

207
00:07:53,867 --> 00:07:54,767
ONGOING EXPENSES.

208
00:07:54,767 --> 00:07:55,933
THE PROBLEM IS THE FOLLOWING

209
00:07:55,933 --> 00:07:57,900
YEAR WE FACE THE SAME CHALLENGE

210
00:07:57,900 --> 00:07:58,967
AGAIN.

211
00:07:58,967 --> 00:08:00,200
WHAT WE NEED TO DO IS ONLY SPEND

212
00:08:00,200 --> 00:08:01,933
WHAT WE HAVE COMING IN, IN ORDER

213
00:08:01,933 --> 00:08:03,633
TO BALANCE THE BUDGET.

214
00:08:03,633 --> 00:08:04,967
>> JOINING US TO EXPLORE THE

215
00:08:04,967 --> 00:08:06,400
AFFECT THE DROPPING OIL PRICES

216
00:08:06,400 --> 00:08:08,100
ON THE STATE IS OUR STUDIO

217
00:08:08,100 --> 00:08:09,533
AUDIENCE.

218
00:08:09,533 --> 00:08:12,600
IT INCLUDES BRANCH AREA

219
00:08:12,600 --> 00:08:13,300
RESIDENTS, FORM REFINERY

220
00:08:13,300 --> 00:08:14,333
EMPLOYEES, UNIVERSITY OFFICIALS

221
00:08:14,333 --> 00:08:17,633
AND MEMBERS OF LOUISIANA'S

222
00:08:17,633 --> 00:08:18,600
LEGISLATIVE YOUTH ADVISORY

223
00:08:18,600 --> 00:08:22,767
COUNCIL FROM JENA, WINNFIELD AND

224
00:08:22,767 --> 00:08:23,200
SLIDELL.

225
00:08:23,200 --> 00:08:24,333
WE THANK EVERYONE FOR BEING HERE

226
00:08:24,333 --> 00:08:28,900
AND ALL OF YOU FOR TUNING IN.

227
00:08:28,900 --> 00:08:30,233
LSU'S PUBLIC POLICY RESEARCH LAB

228
00:08:30,233 --> 00:08:31,533
SURVEYED LOUISIANA CITIZENS ON

229
00:08:31,533 --> 00:08:36,233
TONIGHT'S TOPIC.

230
00:08:36,233 --> 00:08:38,733
58% SAID THEY WERE SPENDING IT

231
00:08:38,733 --> 00:08:45,533
ON OTHER THINGS.

232
00:08:45,533 --> 00:08:48,633
58% THAT I TER SPENDING IT, 33%

233
00:08:48,633 --> 00:08:50,900
SAY THEY ARE SAVING THE OF EXTRA

234
00:08:50,900 --> 00:08:55,233
MONEY.

235
00:08:55,233 --> 00:09:00,500
IN LIGHT OF LOWER PRICES AT THE

236
00:09:00,500 --> 00:09:02,100
PUMP, THOSE SURVEYED WERE ASKED

237
00:09:02,100 --> 00:09:03,267
ABOUT THEIR SUPPORT FOR AN

238
00:09:03,267 --> 00:09:05,467
INCREASE IN THE STATE'S TAX ON

239
00:09:05,467 --> 00:09:07,067
GASOLINE WITH MONEY DEDICATED TO

240
00:09:07,067 --> 00:09:08,633
IMPROVING THE STATE'S

241
00:09:08,633 --> 00:09:09,500
INFRASTRUCTURE.

242
00:09:09,500 --> 00:09:11,667
57% OF RESPONDENTS FAVOR THE

243
00:09:11,667 --> 00:09:14,733
IDEA, 36% OPPOSE IT.

244
00:09:14,733 --> 00:09:16,867
7% WERE UNSURE.

245
00:09:16,867 --> 00:09:18,867
WHEN ASKED WHAT EFFECT GASOLINE

246
00:09:18,867 --> 00:09:21,567
PRICES DROPPING BY OWN A DOLLAR

247
00:09:21,567 --> 00:09:23,733
A GALLON SINCE LAST YEAR HAS HAD

248
00:09:23,733 --> 00:09:25,033
ON LOUISIANA'S ECONOMY, A TOTAL

249
00:09:25,033 --> 00:09:28,267
OF 45% SAID VERY OR SOMEWHAT

250
00:09:28,267 --> 00:09:30,600
POSITIVE, 10% SAID NEITHER

251
00:09:30,600 --> 00:09:32,267
POSITIVE NOR NEGATIVE, AND A

252
00:09:32,267 --> 00:09:37,833
TOTAL OF 38% SAID VERY OR

253
00:09:37,833 --> 00:09:40,467
SOMEWHAT POSITIVE, 8% WERE

254
00:09:40,467 --> 00:09:41,167
UNSURE.

255
00:09:41,167 --> 00:09:43,467
SO LET'S START THERE, IN

256
00:09:43,467 --> 00:09:45,567
LOUISIANA DO THE WINNERS

257
00:09:45,567 --> 00:09:46,867
OUTNUMBER THE ALLUDESSERS FROM

258
00:09:46,867 --> 00:09:47,967
DROPPING OIL PRICES?

259
00:09:47,967 --> 00:09:49,533
AND IS THIS JUST A BUMP IN THE

260
00:09:49,533 --> 00:09:52,233
ROAD OR A MAJOR BLOW TO OUR

261
00:09:52,233 --> 00:09:52,833
STATE'S ECONOMY?

262
00:09:52,833 --> 00:09:53,467
>>  M.

263
00:09:53,467 --> 00:09:55,667
>> I THINK IT'S A MAJOR BUMP IN

264
00:09:55,667 --> 00:09:57,467
THE ROAD.

265
00:09:57,467 --> 00:10:00,100
HIGHER EDUCATION WILL SEE ABOUT

266
00:10:00,100 --> 00:10:01,433
$500 BILLION ACCORDING TO WHAT

267
00:10:01,433 --> 00:10:02,900
WE EXPECT TO SEE IN THE BUDGET

268
00:10:02,900 --> 00:10:03,867
ON FRIDAY.

269
00:10:03,867 --> 00:10:04,967
THAT'S HUGE.

270
00:10:04,967 --> 00:10:06,333
IT'S NOT SOMETHING THAT IS GOING

271
00:10:06,333 --> 00:10:08,267
HAPPEN JUST ONCE, IT'S HAPPENING

272
00:10:08,267 --> 00:10:10,733
YEAR AFTER YEAR, OR AT LEAST

273
00:10:10,733 --> 00:10:12,300
OVER A LONG PERIOD OF TIME.

274
00:10:12,300 --> 00:10:13,433
SOMETHING WE CAN EXPECT THAT

275
00:10:13,433 --> 00:10:15,667
WHEN OIL PRICES DROP WE'RE GOING

276
00:10:15,667 --> 00:10:16,800
TO BE HURT.

277
00:10:16,800 --> 00:10:18,900
WE'LL PROBABLY BE DEVASTATED AS

278
00:10:18,900 --> 00:10:19,867
A RESULT.

279
00:10:19,867 --> 00:10:22,033
>> HIGHER EDUCATION HAS BEEN HIT

280
00:10:22,033 --> 00:10:23,533
WITH BUDGET CUTS OVER THE LAST

281
00:10:23,533 --> 00:10:29,033
FEW YEARS, FUNDING HAS BEEN VERY

282
00:10:29,033 --> 00:10:29,400
SPARSE.

283
00:10:29,400 --> 00:10:30,700
HOW LONG DO YOU THINK THIS IS

284
00:10:30,700 --> 00:10:31,733
GOING LAST?

285
00:10:31,733 --> 00:10:33,867
>> SO WE COME UP WITH A SOLUTION

286
00:10:33,867 --> 00:10:35,133
THAT'S GOING FIX THE PROBLEM.

287
00:10:35,133 --> 00:10:36,800
OIL PRICE GOES UP, THEY GO DOWN.

288
00:10:36,800 --> 00:10:38,800
I THINK OUR LEGISLATURE, OUR

289
00:10:38,800 --> 00:10:40,933
GOVERNOR NEED TO COME UP WITH A

290
00:10:40,933 --> 00:10:42,367
SOLUTION THAT'S LONG TERM,

291
00:10:42,367 --> 00:10:43,633
THAT'S SUSTAINABLE AND IT'S

292
00:10:43,633 --> 00:10:45,500
GOING WITH STAND WHEN WE HAVE

293
00:10:45,500 --> 00:10:47,633
THESE HUGE DROPS IN OIL PRICES.

294
00:10:47,633 --> 00:10:48,933
>> WHAT KIND OF SOLUTION MIGHT

295
00:10:48,933 --> 00:10:50,933
THAT BE?

296
00:10:50,933 --> 00:10:52,367
HERALD, YOU WERE IN STATE

297
00:10:52,367 --> 00:10:54,433
GOVERNMENT, WHAT DO YOU THINK?

298
00:10:54,433 --> 00:10:58,767
IS A SOLUTION POSSIBLE FOR STATE

299
00:10:58,767 --> 00:10:59,233
GOVERNMENT?

300
00:10:59,233 --> 00:11:00,400
>> I THINK SCIEN THE LONG TERM

301
00:11:00,400 --> 00:11:02,000
BUT IT'S GOING TO TAKE REAL

302
00:11:02,000 --> 00:11:04,400
STRUCTURAL CHANGES, WHICH OUR

303
00:11:04,400 --> 00:11:05,633
COMMISSIONER OF ADMINISTRATION

304
00:11:05,633 --> 00:11:06,700
PROMISED US ON FRIDAY.

305
00:11:06,700 --> 00:11:08,900
>> WE'LL WAIT TO SEE WHAT THOSE

306
00:11:08,900 --> 00:11:09,400
ARE.

307
00:11:09,400 --> 00:11:10,400
I HOPE THEY ARE LONG TERM.

308
00:11:10,400 --> 00:11:11,967
>> IN AN ELECTION YEAR DO YOU

309
00:11:11,967 --> 00:11:13,633
THINK THAT'S POSSIBLE?

310
00:11:13,633 --> 00:11:14,967
>> THAT'S A GOOD GUESS.

311
00:11:14,967 --> 00:11:17,567
LONG TERM PLANNING AND

312
00:11:17,567 --> 00:11:19,500
GOVERNMENT IS FOUR YEARS'

313
00:11:19,500 --> 00:11:20,500
ELECTED OFFICE.

314
00:11:20,500 --> 00:11:22,667
THAT'S ABOUT IT, I DON'T KNOW.

315
00:11:22,667 --> 00:11:23,667
>> DONALD, YOU'RE WITH THE

316
00:11:23,667 --> 00:11:24,533
SOUTHERN BUSINESS SCHOOL.

317
00:11:24,533 --> 00:11:27,267
>> I THINK WE NEED A MORE

318
00:11:27,267 --> 00:11:28,167
ENLIGHTENED APPROACH TO THE

319
00:11:28,167 --> 00:11:29,267
BUDGET, ESPECIALLY WHEN WE TALK

320
00:11:29,267 --> 00:11:30,033
ABOUT OIL.

321
00:11:30,033 --> 00:11:33,967
THIS IS A PERMANENT ASSET AND WE

322
00:11:33,967 --> 00:11:35,567
BASICALLY SHOULDN'T BE SPENDING

323
00:11:35,567 --> 00:11:38,133
IT ON CURRENT USES.

324
00:11:38,133 --> 00:11:41,200
IF WE FOLLOW WHAT SOME OF THE

325
00:11:41,200 --> 00:11:42,533
SCANDINAVIAN COUNTRY VS. DONE,

326
00:11:42,533 --> 00:11:45,267
ESPECIALLY NORWAY, THEY HAVE PUT

327
00:11:45,267 --> 00:11:48,000
THEIR OIL REVENUES IN A

328
00:11:48,000 --> 00:11:49,933
PERMANENT FUND AND ONLY WITHDRAW

329
00:11:49,933 --> 00:11:52,100
CERTAIN AMOUNTS EACH YEAR.

330
00:11:52,100 --> 00:11:53,500
I'M THINKING AN APPROACH LIKE

331
00:11:53,500 --> 00:11:54,033
THAT.

332
00:11:54,033 --> 00:11:56,667
WE NEED TO PRIORITIZE OUR

333
00:11:56,667 --> 00:11:57,700
SPENDING TERMS WHAT IS A

334
00:11:57,700 --> 00:11:58,433
PRIORITY.

335
00:11:58,433 --> 00:12:00,600
EDUCATION, HEALTH, HIGHWAYS,

336
00:12:00,600 --> 00:12:01,667
THINGS OF THAT NATURE THAT NEED

337
00:12:01,667 --> 00:12:03,800
TO BE PAID FOR.

338
00:12:03,800 --> 00:12:06,933
>> I SPENT 16 YEARS COVERING THE

339
00:12:06,933 --> 00:12:08,800
LEGISLATURE AT WHAT WE USED TO

340
00:12:08,800 --> 00:12:11,800
CALL IT BIG POINTY BUILDING, THE

341
00:12:11,800 --> 00:12:12,367
CAPITOL.

342
00:12:12,367 --> 00:12:14,033
THE FIRST YEAR I WENT THERE WAS

343
00:12:14,033 --> 00:12:14,533
1985.

344
00:12:14,533 --> 00:12:18,200
THE BIG THING WAS A $800 MILLION

345
00:12:18,200 --> 00:12:18,700
SHORTFALL.

346
00:12:18,700 --> 00:12:21,333
EVERY YEAR THERE'S A SHORTFALL,

347
00:12:21,333 --> 00:12:23,800
HUNDREDS OF MILLIONS, SOMETIMES

348
00:12:23,800 --> 00:12:25,433
OVER A BILLION DOLLARS.

349
00:12:25,433 --> 00:12:26,967
YOU'D THINK THE PUBLIC WOULDN'T

350
00:12:26,967 --> 00:12:28,767
BELIEVE THERE'S A SHORTFALL OR A

351
00:12:28,767 --> 00:12:31,033
PROBLEM WITH STATE FINANCES.

352
00:12:31,033 --> 00:12:32,733
SOMEHOW OR ANOTHER THEY WILL BE

353
00:12:32,733 --> 00:12:35,700
BAILED OUT.

354
00:12:35,700 --> 00:12:39,500
>> TYRONN LUE IT'S ROBEY.

355
00:12:39,500 --> 00:12:40,800
>> YOU CAN TAKE ME FISHING

356
00:12:40,800 --> 00:12:41,333
SOMETIMES.

357
00:12:41,333 --> 00:12:44,400
>> NO, I THINK THE PROBLEM IS

358
00:12:44,400 --> 00:12:48,200
NOT GOING GET ANY EASIER.

359
00:12:48,200 --> 00:12:49,767
CONDITIONS ARE SUCH THAT CRUDE

360
00:12:49,767 --> 00:12:51,033
PRICES ARE GOING TO BE UP AND

361
00:12:51,033 --> 00:12:52,900
DOWN FOR MANY YEARS TO COME.

362
00:12:52,900 --> 00:12:54,933
YOU LOOK AT THE PULL-OUT OF

363
00:12:54,933 --> 00:12:56,600
CRUDE PRICES OVER THE PAST

364
00:12:56,600 --> 00:12:59,333
SEVERAL DECADES, IT WAS PRETTY

365
00:12:59,333 --> 00:13:00,867
STEADY UNTIL WE HAD THE FIRST

366
00:13:00,867 --> 00:13:03,567
WAR IN THE GULF.

367
00:13:03,567 --> 00:13:05,733
SO I THINK WHATEVER PLAN WE COME

368
00:13:05,733 --> 00:13:08,433
UP WITH, WE'RE GOING TO NEED A

369
00:13:08,433 --> 00:13:10,900
LEVELING FACTOR THAT WILL CARRY

370
00:13:10,900 --> 00:13:15,267
THE GOVERNMENT, WHETHER IT'S

371
00:13:15,267 --> 00:13:16,700
SETTING ASIDE MONEY OR

372
00:13:16,700 --> 00:13:18,300
READJUSTING THE BUDGET, IT'S

373
00:13:18,300 --> 00:13:19,300
HARD TO SAY.

374
00:13:19,300 --> 00:13:20,633
>> THE ANALYST WHOSE HAVE BEEN

375
00:13:20,633 --> 00:13:21,967
LOOKING AT THIS SITUATION AROUND

376
00:13:21,967 --> 00:13:23,867
THE WORLD ARE PRETTY UNIFIED IN

377
00:13:23,867 --> 00:13:25,267
SAYING THAT THE PEOPLE WHO ARE

378
00:13:25,267 --> 00:13:27,300
WINNING AND THE PEOPLE WHO ARE

379
00:13:27,300 --> 00:13:29,333
LOSING, AMONG THE LOSERS ARE THE

380
00:13:29,333 --> 00:13:32,167
BIG OIL PRODUCING COUNTRIES WHO

381
00:13:32,167 --> 00:13:35,500
HAVE UNSTABLE ECONOMIES.

382
00:13:35,500 --> 00:13:37,700
VENEZUELA, RUSSIA, IRAN.

383
00:13:37,700 --> 00:13:39,900
DOES LOUISIANA FIT IN THAT MIX?

384
00:13:39,900 --> 00:13:41,533
IS OUR FUNDAMENTAL ECONOMY SO

385
00:13:41,533 --> 00:13:43,433
UNSOUND THAT WE ARE DOOMED TO

386
00:13:43,433 --> 00:13:50,900
THIS SORT OF YO-YO?

387
00:13:50,900 --> 00:13:52,400
>> I'M FROM JENA.

388
00:13:52,400 --> 00:13:54,267
SOME OF THESE OTHER FOLKS HAVE

389
00:13:54,267 --> 00:13:55,433
GOOD BACKGROUNDS IN OUR STATE

390
00:13:55,433 --> 00:13:56,567
GOVERNMENT AND IN OUR RESEARCH

391
00:13:56,567 --> 00:13:58,733
AND IN OUR EDUCATIONAL SYSTEM.

392
00:13:58,733 --> 00:14:01,500
I COME FROM INDUSTRY AND

393
00:14:01,500 --> 00:14:02,067
ENGINEERING.

394
00:14:02,067 --> 00:14:03,800
SO I MAY HAVE A DIFFERENT

395
00:14:03,800 --> 00:14:05,333
PERSPECTIVE ON CERTAIN ASPECTS.

396
00:14:05,333 --> 00:14:08,467
I VIEW OUR STATE AS BEING

397
00:14:08,467 --> 00:14:09,967
HEAVILY DEPENDENT UPON OIL

398
00:14:09,967 --> 00:14:12,200
PRICING, AND THE OIL AND GAS

399
00:14:12,200 --> 00:14:12,667
INDUSTRY.

400
00:14:12,667 --> 00:14:15,033
AND THEREFORE NOT ONLY THE

401
00:14:15,033 --> 00:14:16,467
STATE'S INCOME TO RUN OUR

402
00:14:16,467 --> 00:14:19,733
GOVERNMENT BUT ALSO THE INCOME

403
00:14:19,733 --> 00:14:21,733
INTO THE PRIVATE AND THE

404
00:14:21,733 --> 00:14:25,067
PERSONAL BUDGETS OF ITS

405
00:14:25,067 --> 00:14:25,600
CITIZENS.

406
00:14:25,600 --> 00:14:27,867
SO THEREFORE THEY ARE VERY

407
00:14:27,867 --> 00:14:29,600
CLOSELY -- BOTH ARE

408
00:14:29,600 --> 00:14:31,633
SIGNIFICANTLY IMPACTED BY THE

409
00:14:31,633 --> 00:14:35,200
PRICE OF PETROLEUM PRODUCTS.

410
00:14:35,200 --> 00:14:36,200
SPECIFICALLY CRUDE OIL.

411
00:14:36,200 --> 00:14:40,200
>> I THINK, THOUGH, INDIVIDUALLY

412
00:14:40,200 --> 00:14:42,067
AND AS PRODUCERS WE HAVE TO

413
00:14:42,067 --> 00:14:44,200
ANTICIPATE THAT THE BOOM DAYS

414
00:14:44,200 --> 00:14:47,467
MAY BE OVER AS FAR AS LONG TERM

415
00:14:47,467 --> 00:14:47,933
PLANNING.

416
00:14:47,933 --> 00:14:50,967
BUT WE MUST ANTICIPATE THAT

417
00:14:50,967 --> 00:14:53,733
SOMEWHERE IN THAT 70, $75 RANGE,

418
00:14:53,733 --> 00:14:56,200
THAT MAY BE WHERE EUPHORIA IS

419
00:14:56,200 --> 00:14:57,767
GOING TO BE FOR THE FORESEEABLE

420
00:14:57,767 --> 00:14:58,233
FUTURE.

421
00:14:58,233 --> 00:15:00,400
>> YOU RAISE A GOOD POINT ABOUT

422
00:15:00,400 --> 00:15:01,800
INDIVIDUAL RESPONSIBILITY AND

423
00:15:01,800 --> 00:15:04,033
INDIVIDUAL APPROACH TO THIS.

424
00:15:04,033 --> 00:15:07,133
HOW IS THIS AFFECTING Y'ALL

425
00:15:07,133 --> 00:15:07,733
INDIVIDUALLY?

426
00:15:07,733 --> 00:15:09,667
BRAD, YOU'RE A DIFFERENT

427
00:15:09,667 --> 00:15:10,733
GENERATION THAN ME, THIS IS

428
00:15:10,733 --> 00:15:12,133
PROBABLY THE FIRST TIME YOU'VE

429
00:15:12,133 --> 00:15:13,233
SEEN THIS KIND OF THING.

430
00:15:13,233 --> 00:15:16,400
WHAT'S YOUR TAKE ON IT?

431
00:15:16,400 --> 00:15:18,900
>> I THINK THAT THE OIL AND GAS

432
00:15:18,900 --> 00:15:21,300
PRICES ARE GOING TO FLUCTUATE

433
00:15:21,300 --> 00:15:22,967
WITHIN THE NEXT CUSTOM DECADES,

434
00:15:22,967 --> 00:15:25,000
I THINK THAT'S JUST WHAT COMES

435
00:15:25,000 --> 00:15:26,133
WITH THE INDUSTRY.

436
00:15:26,133 --> 00:15:30,400
AND I THINK THAT THE LOUISIANA

437
00:15:30,400 --> 00:15:35,633
LEGISLATURE AND THE NATIONAL

438
00:15:35,633 --> 00:15:39,267
GOVERNMENT HAVE TO MAKE

439
00:15:39,267 --> 00:15:41,200
LEGISLATION OR WORK ON A POLICY

440
00:15:41,200 --> 00:15:43,500
THAT ACCOMMODATES THESE SORTS OF

441
00:15:43,500 --> 00:15:44,600
FLUCTUATIONS OVER THE YEARS.

442
00:15:44,600 --> 00:15:47,000
>> YOU THINK THE FLUCTUATIONS

443
00:15:47,000 --> 00:15:49,167
WILL CONTINUE YEAR IN AND YEAR

444
00:15:49,167 --> 00:15:49,633
OUT.

445
00:15:49,633 --> 00:15:50,933
>> YES, SIR, THAT'S WHAT I

446
00:15:50,933 --> 00:15:52,500
THINK.

447
00:15:52,500 --> 00:15:55,033
>> JACOB, YOU'RE ALSO A YOUNGER

448
00:15:55,033 --> 00:15:57,200
GENERATION THAT HASN'T SEEN

449
00:15:57,200 --> 00:15:57,700
THIS.

450
00:15:57,700 --> 00:15:59,100
>> WHAT IS YOUR TAKE?

451
00:15:59,100 --> 00:16:01,800
>> YES, SIR, I AGREE WITH BRAD,

452
00:16:01,800 --> 00:16:04,300
I SEE IT FLUCTUATING, GOING UP

453
00:16:04,300 --> 00:16:07,633
AND DOWN IN THE FUTURE.

454
00:16:07,633 --> 00:16:10,267
OUR STATE SHOULD TRY TO NOT RELY

455
00:16:10,267 --> 00:16:11,800
SO HEAVILY ON THIS OIL AND GAS

456
00:16:11,800 --> 00:16:13,767
INDUSTRY AS A MAIN SOURCE OF

457
00:16:13,767 --> 00:16:16,700
INCOME, AND AS MR. DONALD SAID,

458
00:16:16,700 --> 00:16:18,900
MAYBE USING A DIFFERENT METHOD

459
00:16:18,900 --> 00:16:21,267
OF ACQUIRING THE TAXES AND

460
00:16:21,267 --> 00:16:23,800
STORING THEM AS A FUND.

461
00:16:23,800 --> 00:16:25,067
>> IF YOU DON'T HAVE THE OIL AND

462
00:16:25,067 --> 00:16:27,067
GAS REVENUE, YOU HAVE TO LOOK

463
00:16:27,067 --> 00:16:28,800
SOMEPLACE ELSE FOR A REVENUE.

464
00:16:28,800 --> 00:16:31,533
WE SAW IN THE SURVEY IT'S PRETTY

465
00:16:31,533 --> 00:16:33,633
WIDESPREAD SUPPORT FOR A

466
00:16:33,633 --> 00:16:34,867
GASOLINE TAX IF THE MONEY GOES

467
00:16:34,867 --> 00:16:36,100
TO HIGHWAYS.

468
00:16:36,100 --> 00:16:38,900
WOULD YOU BE WILLING TO PAY MORE

469
00:16:38,900 --> 00:16:41,933
AND HOW MUCH MORE IF YOU KNEW

470
00:16:41,933 --> 00:16:43,333
YOU'D GET BETTER ROADS?

471
00:16:43,333 --> 00:16:44,667
>> I'M A UNIQUE FOREIGN ANSWER

472
00:16:44,667 --> 00:16:46,100
THAT QUESTION.

473
00:16:46,100 --> 00:16:48,067
I TYRONN LUE DON'T DRIVE THAT

474
00:16:48,067 --> 00:16:50,067
MUCH, I TYRONN LUE BICYCLE A

475
00:16:50,067 --> 00:16:50,400
LOT.

476
00:16:50,400 --> 00:16:52,500
I DON'T HAVE A PROBLEM PAYING

477
00:16:52,500 --> 00:16:53,700
ADDITIONAL FUNDS FOR GASOLINE IF

478
00:16:53,700 --> 00:16:55,300
IT'S GOING TO SOMETHING THAT'S

479
00:16:55,300 --> 00:16:55,800
NECESSARY.

480
00:16:55,800 --> 00:16:58,833
I DO HAVE A PROBLEM SPENDING IT

481
00:16:58,833 --> 00:17:01,867
JUST TO GIVE EXTRA MONEY FOR NO

482
00:17:01,867 --> 00:17:02,767
GOOD REASON.

483
00:17:02,767 --> 00:17:04,533
BUT I DON'T HAVE A PROBLEM

484
00:17:04,533 --> 00:17:06,633
PAYING MORE FOR GAS IF IT'S

485
00:17:06,633 --> 00:17:08,400
GOING TO ASSIST THE RESIDENTS OF

486
00:17:08,400 --> 00:17:11,033
THE STATE OF LOUISIANA, NO.

487
00:17:11,033 --> 00:17:12,433
>> DOES ANYBODY HAVE ANY FAITH

488
00:17:12,433 --> 00:17:14,167
THAT THE LEGISLATURE IS GOING

489
00:17:14,167 --> 00:17:16,033
RAISE TAXES THIS YEAR TO CLOSE

490
00:17:16,033 --> 00:17:17,100
THIS GAP?

491
00:17:17,100 --> 00:17:18,667
>> I DON'T THINK YOU HAVE TO

492
00:17:18,667 --> 00:17:20,633
RAISE TAXES TO CLOSE THAT GAP.

493
00:17:20,633 --> 00:17:24,067
YOU KNOW THERE'S $7 BILLION

494
00:17:24,067 --> 00:17:25,633
WORTH OF TAX CREDITS LOUISIANA

495
00:17:25,633 --> 00:17:26,900
GIVES TO BUSINESSES AND

496
00:17:26,900 --> 00:17:28,900
INDUSTRIES TO HELP THEM BE

497
00:17:28,900 --> 00:17:30,233
SUCCESSFUL, WHICH IS GREAT.

498
00:17:30,233 --> 00:17:32,567
WE NEED MORE BUSINESS INDUSTRY

499
00:17:32,567 --> 00:17:35,833
TO BE SUCCESSFUL AND COME TO

500
00:17:35,833 --> 00:17:36,467
LOUISIANA.

501
00:17:36,467 --> 00:17:39,767
BUT WHEN YOU'VE GOT A $1.7

502
00:17:39,767 --> 00:17:41,033
BILLION HOLE, DON'T YOU THINK IT

503
00:17:41,033 --> 00:17:42,700
WOULD BE IMPORTANT TO CAREFULLY

504
00:17:42,700 --> 00:17:44,133
LOOK AT THOSE TAX CREDITS AND

505
00:17:44,133 --> 00:17:46,567
FIND A WAY TO ROLL SOME OF THAT

506
00:17:46,567 --> 00:17:48,567
BACK TO FILL THAT HOLE?

507
00:17:48,567 --> 00:17:50,600
SEEMS LIKE WE WOULD BE IN A MUCH

508
00:17:50,600 --> 00:17:52,733
BETTER SHAPE IF WE DID SOMETHING

509
00:17:52,733 --> 00:17:53,367
LIKE THAT.

510
00:17:53,367 --> 00:17:55,333
OUR OTHER ISSUE, JUST FORGET

511
00:17:55,333 --> 00:17:59,567
ABOUT OIL AND GAS AND THE

512
00:17:59,567 --> 00:18:00,067
FLUCTUATION.

513
00:18:00,067 --> 00:18:02,000
OUR OTHER ISSUE IS THE MAJORITY

514
00:18:02,000 --> 00:18:03,767
OF THE STATE BUDGET IS

515
00:18:03,767 --> 00:18:05,400
DEDICATED, ALL BUT HIGHER

516
00:18:05,400 --> 00:18:05,933
EDUCATION.

517
00:18:05,933 --> 00:18:07,067
EVERYBODY ELSE HAS A DEDICATION.

518
00:18:07,067 --> 00:18:09,367
IF YOU DEDICATE THE FUNDS AND

519
00:18:09,367 --> 00:18:12,667
YOU CAN'T CUT BUT FROM ONE SPOT,

520
00:18:12,667 --> 00:18:13,767
WE'RE IN A BAD SITUATION.

521
00:18:13,767 --> 00:18:16,333
WE NEED TO COME BACK FROM THE

522
00:18:16,333 --> 00:18:21,200
1970S LIKE WE DID IN 1973, DO A

523
00:18:21,200 --> 00:18:22,767
CONSTITUTIONAL CONVENTION AND

524
00:18:22,767 --> 00:18:24,400
UNDEDICATE THE FUNDS SO PEOPLE

525
00:18:24,400 --> 00:18:25,367
RUNNING STATE GOVERNMENT CAN

526
00:18:25,367 --> 00:18:28,067
DEAL WITH THE UPS AND DOWNS OF

527
00:18:28,067 --> 00:18:30,267
THE FLUCTUATIONS OF INCOMES AND

528
00:18:30,267 --> 00:18:32,167
LOWER PRICES AND THE HIGHER

529
00:18:32,167 --> 00:18:32,733
PRICES.

530
00:18:32,733 --> 00:18:34,133
>> WE'RE GOING STOP ON THAT

531
00:18:34,133 --> 00:18:34,600
NOTE.

532
00:18:34,600 --> 00:18:35,933
THAT'S ALL THE TIME WE HAVE FOR

533
00:18:35,933 --> 00:18:37,800
THIS PORTION OF OUR SHOW.

534
00:18:37,800 --> 00:18:39,367
WHEN WE RETURN WE WILL BE JOINED

535
00:18:39,367 --> 00:18:43,400
BY A PANEL OF EXPERTS TO FURTHER

536
00:18:43,400 --> 00:18:46,200
EXPLODE OIL PRICES AND

537
00:18:46,200 --> 00:18:50,833
LOUISIANA.

538
00:18:52,300 --> 00:18:53,167
>>> WELCOME BACK TO "LOUISIANA

539
00:18:53,167 --> 00:18:54,067
PUBLIC SQUARE."

540
00:18:54,067 --> 00:18:57,000
TONIGHT WE'RE DISCUSSING

541
00:18:57,000 --> 00:18:57,733
"DOLLARS PER BARREL: OIL PRICES

542
00:18:57,733 --> 00:19:00,433
AND LOUISIANA." OIL

543
00:19:00,433 --> 00:19:02,000
WE JUST HEARD GREAT POINTS FROM

544
00:19:02,000 --> 00:19:03,567
OUR STUDIO AUDIENCE.

545
00:19:03,567 --> 00:19:05,167
NOW OUR PANEL OF THE EXPERTS IS

546
00:19:05,167 --> 00:19:08,000
GOING TO WEIGH IN.

547
00:19:08,000 --> 00:19:08,967
GREG ALBRECHT HAS BEEN CHIEF

548
00:19:08,967 --> 00:19:09,967
ECONOMIST OF THE LEGISLATIVE

549
00:19:09,967 --> 00:19:11,900
FISCAL OFFICE SINCE 1991.

550
00:19:11,900 --> 00:19:13,900
IN THIS ROLE HE IS RESPONSIBLE

551
00:19:13,900 --> 00:19:15,900
FOR FORECASTING THE STATE'S

552
00:19:15,900 --> 00:19:17,533
MAJOR TAX REVENUES ESTIMATING

553
00:19:17,533 --> 00:19:19,767
THE FISCAL IMPACT OF TAX

554
00:19:19,767 --> 00:19:20,567
LEGISLATION.

555
00:19:20,567 --> 00:19:23,400
STATE SENATOR NORBERT CHABERT IS

556
00:19:23,400 --> 00:19:28,667
A REPUBLICAN FROM HOUMA.

557
00:19:28,667 --> 00:19:30,267
HIS AREA INCLUDES ALL OF THE

558
00:19:30,267 --> 00:19:36,133
COAST OF TERREBONNE AND

559
00:19:36,133 --> 00:19:39,067
LAFOURCHE PARISHES, MOST AREAS

560
00:19:39,067 --> 00:19:42,267
OF THE HOUMA-THIBODAUX REGION.

561
00:19:42,267 --> 00:19:44,633
HE HAS WORKED AS STEALSMAN IN

562
00:19:44,633 --> 00:19:47,300
THE OIL AND GAS SERVICES

563
00:19:47,300 --> 00:19:48,367
INDUSTRY.

564
00:19:48,367 --> 00:19:51,100
JAN MOLLER IS DIRECTOR OF THE

565
00:19:51,100 --> 00:19:53,033
LOUISIANA BUDGET PROJECT, WHICH

566
00:19:53,033 --> 00:19:54,533
MONITORS A REPORT ON STATE

567
00:19:54,533 --> 00:19:57,000
GOVERNMENT SPENDING AND HOW IT

568
00:19:57,000 --> 00:19:59,400
AFFECTS LOUISIANA'S LOW TO

569
00:19:59,400 --> 00:20:01,133
MODERATE INCOME FAMILIES.

570
00:20:01,133 --> 00:20:02,933
DAVID DISMUKES IS A PROFESSOR,

571
00:20:02,933 --> 00:20:04,500
EXECUTIVE DIRECTOR AND DIRECTOR

572
00:20:04,500 --> 00:20:08,300
OF POLICY ANALYSIS AT LSU'S

573
00:20:08,300 --> 00:20:09,600
CENTER FOR ENERGY STUDY.

574
00:20:09,600 --> 00:20:11,667
BEFORE WE GO TO OUR AUDIENCE

575
00:20:11,667 --> 00:20:13,033
QUESTIONS, I'D FIRST LIKE TO ASK

576
00:20:13,033 --> 00:20:14,467
EACH MEMBER OF THE PANEL,

577
00:20:14,467 --> 00:20:18,400
BRIEFLY FROM YOUR PERSPECTIVE,

578
00:20:18,400 --> 00:20:20,233
WHO IS HURT THE MOST?

579
00:20:20,233 --> 00:20:21,967
>> ARE THERE JOB LOSSES

580
00:20:21,967 --> 00:20:23,567
OCCURRING, THAT'S THE WORST KIND

581
00:20:23,567 --> 00:20:25,400
OF HURT THERE IS.

582
00:20:25,400 --> 00:20:27,233
BENEFITING THE MOST, JUST THE

583
00:20:27,233 --> 00:20:29,100
AVERAGE HOUSEHOLD, LOWER ENERGY

584
00:20:29,100 --> 00:20:30,967
PRICES AND PARTICULARLY GASOLINE

585
00:20:30,967 --> 00:20:33,100
PRICES IS MONEY IN PEOPLE'S

586
00:20:33,100 --> 00:20:33,500
POCKETS.

587
00:20:33,500 --> 00:20:36,200
A GOOD THING FOR MOST

588
00:20:36,200 --> 00:20:36,867
HOUSEHOLDS.

589
00:20:36,867 --> 00:20:39,067
>> PERSONALLY I THINK THERE

590
00:20:39,067 --> 00:20:40,900
REALLY ARE NO WINNERS IN

591
00:20:40,900 --> 00:20:42,100
LOUISIANA UNFORTUNATELY WHENEVER

592
00:20:42,100 --> 00:20:44,433
THE PRICE DROPS AS LOW AS IT

593
00:20:44,433 --> 00:20:46,733
HAS, AS SUDDENLY AS IT HAS.

594
00:20:46,733 --> 00:20:48,367
WE'RE SO INTERWOVEN IN THIS

595
00:20:48,367 --> 00:20:51,200
STATE FROM AN INDIRECT

596
00:20:51,200 --> 00:20:55,033
STANDPOINT ON A DEPENDENCY ON

597
00:20:55,033 --> 00:20:56,000
OIL AND GAS REVENUE.

598
00:20:56,000 --> 00:20:57,667
THE ECONOMY IS SO DEPENDENT,

599
00:20:57,667 --> 00:21:00,233
WHETHER YOU'RE WORKING AT PUBLIC

600
00:21:00,233 --> 00:21:01,900
UNIVERSITY DEPENDING ON STATE

601
00:21:01,900 --> 00:21:04,067
DOLLARS OR YOU'RE A WAITRESS IN

602
00:21:04,067 --> 00:21:05,933
A RESTAURANT WORKING MAYBE TWO

603
00:21:05,933 --> 00:21:06,433
JOBS.

604
00:21:06,433 --> 00:21:08,033
WHEN THE PRICE OF OIL DROPS IT

605
00:21:08,033 --> 00:21:10,233
HURTS THE ECONOMY AND HURTS

606
00:21:10,233 --> 00:21:10,667
EVERYBODY.

607
00:21:10,667 --> 00:21:12,700
>> I WOULD ECHO WITH A GREG

608
00:21:12,700 --> 00:21:13,333
SAID.

609
00:21:13,333 --> 00:21:14,933
LOSERS ARE THE FOLKS WHO WORK IN

610
00:21:14,933 --> 00:21:16,267
THE OIL AND GAS INDUSTRY.

611
00:21:16,267 --> 00:21:18,800
AND THE WINNERS ARE MOST

612
00:21:18,800 --> 00:21:19,967
HOUSEHOLDS IN LOUISIANA SEEING

613
00:21:19,967 --> 00:21:21,800
MORE MONEY IN THEIR POCKETS.

614
00:21:21,800 --> 00:21:23,867
I WOULD ADD TO THE LIST OF

615
00:21:23,867 --> 00:21:25,433
LOSERS, ARE THERE GOING TO BE

616
00:21:25,433 --> 00:21:26,633
PAINFUL BUDGET CUTS COMING,

617
00:21:26,633 --> 00:21:27,800
WE'LL LEARN ABOUT THEM LATER

618
00:21:27,800 --> 00:21:28,600
THIS WEEK.

619
00:21:28,600 --> 00:21:31,667
WE DON'T KNOW WHO OR HOW IT'S

620
00:21:31,667 --> 00:21:33,000
GOING AFFECT BUT THAT'S ALSO

621
00:21:33,000 --> 00:21:35,000
GOING TO AFFECT PEOPLE WHEN

622
00:21:35,000 --> 00:21:35,700
PRICES DROP.

623
00:21:35,700 --> 00:21:36,833
>> I'D HAVE TO AGREE.

624
00:21:36,833 --> 00:21:38,833
THE LOSERS ARE THOSE EMPLOYED IN

625
00:21:38,833 --> 00:21:40,567
THE SERVICE SECTOR HERE IN

626
00:21:40,567 --> 00:21:41,067
LOUISIANA.

627
00:21:41,067 --> 00:21:42,300
THE WINNERS ARE OBVIOUSLY GOING

628
00:21:42,300 --> 00:21:44,133
TO BE THE CONSUMERS IN THE STATE

629
00:21:44,133 --> 00:21:45,933
IN TERMS OF THE LOWER PRICES FOR

630
00:21:45,933 --> 00:21:49,033
RETAIL GASOLINE.

631
00:21:49,033 --> 00:21:51,133
>> YOU HAD A QUESTION YOU WANTED

632
00:21:51,133 --> 00:21:52,300
TO ASK THE PANEL?

633
00:21:52,300 --> 00:21:56,500
>> I REALLY WANTED TO ASK DR.

634
00:21:56,500 --> 00:21:57,700
DISMUKES, ONE OF THE THINGS THAT

635
00:21:57,700 --> 00:22:00,200
HAS HELPED PROPEL THE OIL

636
00:22:00,200 --> 00:22:01,733
INDUSTRY IN AMERICA IS THE FACT

637
00:22:01,733 --> 00:22:04,800
THAT WE HAVE THE ABILITY TO

638
00:22:04,800 --> 00:22:06,800
EXTRACT NATURAL GAS AND USE IT

639
00:22:06,800 --> 00:22:11,133
IN OUR BOILERS AND OTHER

640
00:22:11,133 --> 00:22:11,733
EQUIPMENT.

641
00:22:11,733 --> 00:22:13,567
WE EXTRACT IT AS A LOWER PRICE

642
00:22:13,567 --> 00:22:15,167
BECAUSE WE CAN USE FRACKING.

643
00:22:15,167 --> 00:22:19,167
THE E.U. HAS STRINGENT LAWS AND

644
00:22:19,167 --> 00:22:21,733
REGULATIONS AGAINST FRACKING.

645
00:22:21,733 --> 00:22:24,800
HOWEVER, IF THEY WERE TO RELAX

646
00:22:24,800 --> 00:22:28,300
THOSE RESTRAINTS, QUITE

647
00:22:28,300 --> 00:22:30,267
DRASTICALLY IMPACT WHAT THEY ARE

648
00:22:30,267 --> 00:22:31,900
ABLE TO SELL OIL FOR.

649
00:22:31,900 --> 00:22:34,400
I'M JUST WONDERING, WHAT WOULD

650
00:22:34,400 --> 00:22:36,633
THAT DO TO OUR STATE AND TO THE

651
00:22:36,633 --> 00:22:38,500
AMERICAN ECONOMY AS A WHOLE?

652
00:22:38,500 --> 00:22:40,733
>> I THINK IT'S A GOOD QUESTION.

653
00:22:40,733 --> 00:22:42,333
ARE THERE A CONSIDERABLE AMOUNT

654
00:22:42,333 --> 00:22:43,967
OF UNCONVENTIONAL RESOURCES NOT

655
00:22:43,967 --> 00:22:46,167
ONLY IN WESTERN AND EASTERN

656
00:22:46,167 --> 00:22:47,600
EUROPE BUT IN CHINA AND OTHER

657
00:22:47,600 --> 00:22:48,600
PLACES IN THE WORLD.

658
00:22:48,600 --> 00:22:51,133
THEY ARE LOOKING VERY CAREFULLY

659
00:22:51,133 --> 00:22:52,967
AT NORTH AMERICA IN TERMS OF

660
00:22:52,967 --> 00:22:55,233
LEARNING HOW TO EXTRACT THESE

661
00:22:55,233 --> 00:22:57,067
APPROPRIATELY AND PRODUCTIVELY.

662
00:22:57,067 --> 00:22:58,933
THE SIMPLE FACT OF THE MATTER IS

663
00:22:58,933 --> 00:23:01,367
NORTH AMERICA IS THE PRIMARY

664
00:23:01,367 --> 00:23:04,233
PLACE YOU CAN FRAC AND EXTRACT

665
00:23:04,233 --> 00:23:06,100
THESE UNCONVENTIONAL RIGHT THE

666
00:23:06,100 --> 00:23:07,267
COST EFFECTIVELY.

667
00:23:07,267 --> 00:23:09,400
WE HAVE A VERY GOOD GEOLOGY FOR

668
00:23:09,400 --> 00:23:10,833
THAT, THE INFRASTRUCTURE AND THE

669
00:23:10,833 --> 00:23:11,333
ROADS.

670
00:23:11,333 --> 00:23:12,667
MOST IMPORTANTLY WE HAVE RULES

671
00:23:12,667 --> 00:23:14,867
AND REGULATIONS IN THE UNITED

672
00:23:14,867 --> 00:23:16,300
STATES AND A SYSTEM OF PROPERTY

673
00:23:16,300 --> 00:23:18,300
RIGHTS YOU DON'T HAVE IN OTHER

674
00:23:18,300 --> 00:23:19,833
PLACES OF THE WORLD.

675
00:23:19,833 --> 00:23:22,300
GOVERNMENT OWNS A LOT OF THOSE

676
00:23:22,300 --> 00:23:23,567
MINERAL RIGHTS AND YOU HAVE TO

677
00:23:23,567 --> 00:23:25,800
NEGOTIATE TO GO IN AND FRACTURE

678
00:23:25,800 --> 00:23:32,800
WELLS IF YOU'RE IN POSSESS LAND POLAND O

679
00:23:32,800 --> 00:23:33,167
EUROPE.

680
00:23:33,167 --> 00:23:34,367
>>> AS THEY MOVE FORWARD IN

681
00:23:34,367 --> 00:23:36,933
TIME, IT'S NOT A DRAMATIC CHANGE

682
00:23:36,933 --> 00:23:37,367
OVERNIGHT.

683
00:23:37,367 --> 00:23:38,667
ARE THERE OTHER COUNTRIES IN

684
00:23:38,667 --> 00:23:40,233
EUROPE LOOKING AT THIS.

685
00:23:40,233 --> 00:23:42,133
I THINK YOU'RE PROBABLY A GOOD

686
00:23:42,133 --> 00:23:44,667
FIVE TO 10 YEARS OFF EVEN IF

687
00:23:44,667 --> 00:23:45,900
PEOPLE WERE TO START TODAY.

688
00:23:45,900 --> 00:23:49,667
I THINK IT WOULD BE MORE

689
00:23:49,667 --> 00:23:50,333
BENEFICIAL IN TERMS OF

690
00:23:50,333 --> 00:23:51,333
DIVERSIFYING ENERGY SOURCES

691
00:23:51,333 --> 00:23:53,900
AROUND THE GLOBE BY HAVING MORE

692
00:23:53,900 --> 00:23:54,867
SELF-SUSTAINING PRODUCERS.

693
00:23:54,867 --> 00:23:56,467
>> I JUST WANTED TO ASK YOU, IN

694
00:23:56,467 --> 00:23:59,033
ADDITION TO THAT, SINCE NOT JUST

695
00:23:59,033 --> 00:24:02,167
THE OIL AND GAS BUT THE

696
00:24:02,167 --> 00:24:05,333
PETROCHEMICAL INDUSTRY, LIGHT

697
00:24:05,333 --> 00:24:08,100
HYDRO CARBONS AND SUCH ALL YEARS

698
00:24:08,100 --> 00:24:11,333
NATURAL GASES IN THEIR FURNACES

699
00:24:11,333 --> 00:24:13,867
TO CRACK LPG, I GUESS MY

700
00:24:13,867 --> 00:24:17,233
QUESTION IS, FIT WERE TO -- IF

701
00:24:17,233 --> 00:24:19,967
THOSE REGULATIONS WERE TO BE

702
00:24:19,967 --> 00:24:21,867
RELAXED, WOULDN'T IT AFFECT MORE

703
00:24:21,867 --> 00:24:24,133
THAN JUST THE GAS PUMP?

704
00:24:24,133 --> 00:24:25,800
WOULDN'T IT AFFECT THE CHEMICAL

705
00:24:25,800 --> 00:24:27,500
INDUSTRY THAT PRODUCES OTHER

706
00:24:27,500 --> 00:24:28,033
THINGS?

707
00:24:28,033 --> 00:24:28,600
>> IT COULD.

708
00:24:28,600 --> 00:24:29,833
BUT I THINK WE'RE IN A POSITION

709
00:24:29,833 --> 00:24:33,933
RIGHT NOW IN I THINK U.S.

710
00:24:33,933 --> 00:24:34,900
MANUFACTURING HISTORY WHERE THE

711
00:24:34,900 --> 00:24:36,300
SCALES ARE STILL TILTED TOWARDS

712
00:24:36,300 --> 00:24:38,000
THE U.S. AND PARTICULARLY

713
00:24:38,000 --> 00:24:38,600
LOUISIANA.

714
00:24:38,600 --> 00:24:39,300
ARE THERE PEOPLE BECOMING

715
00:24:39,300 --> 00:24:41,733
CONCERNED ABOUT THESE BILLIONS

716
00:24:41,733 --> 00:24:43,700
OF DOLLARS OF INVESTMENTS THAT

717
00:24:43,700 --> 00:24:46,133
HAVE BEEN ANNOUNCED, MANY OF

718
00:24:46,133 --> 00:24:48,433
WHICH ARE ALREADY UNDERWAY.

719
00:24:48,433 --> 00:24:50,600
THERE WILL PROBABLY BE SOME

720
00:24:50,600 --> 00:24:53,000
CANCELATIONS, IT HAS TO DO WITH

721
00:24:53,000 --> 00:24:54,233
THE UNIQUE NATURE OF WHAT THEY

722
00:24:54,233 --> 00:24:58,233
ARE TRYING TO DO, ARBITRAGING

723
00:24:58,233 --> 00:24:59,533
HYDRO CARBONS.

724
00:24:59,533 --> 00:25:01,200
I THINK WE'RE WELL POSITIONED TO

725
00:25:01,200 --> 00:25:02,833
TAKE ADVANTAGE OF A LOT OF THAT.

726
00:25:02,833 --> 00:25:04,033
>> I THINK THE QUESTION ALONG

727
00:25:04,033 --> 00:25:06,667
THE LINES OF DIVERSIFYING AND

728
00:25:06,667 --> 00:25:09,000
MAKING FUTURE PLANS.

729
00:25:09,000 --> 00:25:10,300
>> IF IT'S ALREADY KNOWN THAT

730
00:25:10,300 --> 00:25:13,233
THE OIL INDUSTRY IS AN

731
00:25:13,233 --> 00:25:15,167
UP-AND-DOWN INDUSTRY, THEN WHAT

732
00:25:15,167 --> 00:25:19,267
IS THE PLAN FOR ADDRESSING THAT?

733
00:25:19,267 --> 00:25:22,067
I MEAN, IF IT'S SOMETHING THAT'S

734
00:25:22,067 --> 00:25:23,400
FORESEEABLE WHY NOT HAVE A PLAN

735
00:25:23,400 --> 00:25:30,067
TO MAKE THIS WHOLE AVOIDABLE?

736
00:25:30,067 --> 00:25:32,000
>> MAYBE SENATOR CHABERT OUGHT

737
00:25:32,000 --> 00:25:33,567
TO START THAT ONE.

738
00:25:33,567 --> 00:25:35,367
>> IN NATURE, YES, WE ARE AN OIL

739
00:25:35,367 --> 00:25:37,100
AND GAS ECONOMY.

740
00:25:37,100 --> 00:25:39,133
BUT WE ARE MORE AN OIL AND GAS

741
00:25:39,133 --> 00:25:40,433
SERVICE ECONOMY THAN ANYTHING.

742
00:25:40,433 --> 00:25:42,867
IT'S NOT LIKE SHELL OR CHEVRON

743
00:25:42,867 --> 00:25:43,800
HAVE THEIR CORPORATE

744
00:25:43,800 --> 00:25:45,733
HEADQUARTERS IN D'S BATON ROUGE

745
00:25:45,733 --> 00:25:46,867
OR IN DOWNTOWN NEW ORLEANS.

746
00:25:46,867 --> 00:25:48,767
THE MAJORITY OF THE COMPANIES

747
00:25:48,767 --> 00:25:51,033
THAT MAKE UP THE LOUISIANA OIL

748
00:25:51,033 --> 00:25:54,700
AND GAS ECONOMY ARE SERVICE

749
00:25:54,700 --> 00:25:57,000
COMPANIES, WHETHER THEY ARE

750
00:25:57,000 --> 00:25:59,467
SERVICING DEEPWATER DRILLING,

751
00:25:59,467 --> 00:26:01,567
WHETHER THEY ARE IN FABRICATION

752
00:26:01,567 --> 00:26:04,933
OF THE ACTUAL PLATFORMS OR THE

753
00:26:04,933 --> 00:26:07,100
OFFSHORE SUPPLY VESSELS THAT

754
00:26:07,100 --> 00:26:09,500
SERVICE IN DEEP OR SHALLOW

755
00:26:09,500 --> 00:26:10,000
WATER.

756
00:26:10,000 --> 00:26:11,067
THOSE RIGHT PEOPLE THAT ARE

757
00:26:11,067 --> 00:26:11,500
EMPLOYED.

758
00:26:11,500 --> 00:26:13,300
THOSE ARE THE MULTIPLIERS THAT

759
00:26:13,300 --> 00:26:16,367
SAY, OKAY, IF A COMPANY OPENS UP

760
00:26:16,367 --> 00:26:20,300
IN SOUTH HOUMA AND EMPLOYS 50

761
00:26:20,300 --> 00:26:23,133
PEOPLE, RIGHT, THERE'S A

762
00:26:23,133 --> 00:26:24,333
MULTIPLIER THAT'S GOING ATTACH

763
00:26:24,333 --> 00:26:24,833
TO THAT.

764
00:26:24,833 --> 00:26:26,367
MORE PEOPLE AT THE HOSPITAL,

765
00:26:26,367 --> 00:26:29,000
MORE AT THE SCHOOL, AT THE

766
00:26:29,000 --> 00:26:29,800
WAL-MART, EVERWHERE.

767
00:26:29,800 --> 00:26:31,533
THE SAME THING HAPPENS WHENEVER

768
00:26:31,533 --> 00:26:33,100
THAT PARTICULAR COMPANY MAY

769
00:26:33,100 --> 00:26:33,833
CLOSE DOWN.

770
00:26:33,833 --> 00:26:35,767
IT'S DIFFICULT TO SAY, HOW DO

771
00:26:35,767 --> 00:26:39,033
YOU CHANGE YOUR ECONOMY TO DEAL

772
00:26:39,033 --> 00:26:41,467
WITH SOMETHING THAT IS SO

773
00:26:41,467 --> 00:26:44,067
CYCLICAL, LIKE OIL AND GAS IS?

774
00:26:44,067 --> 00:26:45,667
LET'S FACE IT, HALF OF THE

775
00:26:45,667 --> 00:26:49,233
REASON WHY WE DO WHAT WE DO IN

776
00:26:49,233 --> 00:26:50,933
LOUISIANA IS ONE REASON AND ONE

777
00:26:50,933 --> 00:26:54,067
REASON ONLY:  THE GEOGRAPHIC

778
00:26:54,067 --> 00:26:56,000
PROXIMITY TO WHERE THE OILS.

779
00:26:56,000 --> 00:26:58,200
THAT'S A HUGE DERMATO NANT ON

780
00:26:58,200 --> 00:26:59,133
WHAT YOU DO.

781
00:26:59,133 --> 00:27:00,967
IF YOU'RE IN KANSAS YOU'RE GOING

782
00:27:00,967 --> 00:27:02,000
PLANT CORN.

783
00:27:02,000 --> 00:27:03,400
IN SOUTH LOUISIANA YOU SERVICE

784
00:27:03,400 --> 00:27:05,633
THE OIL AND GAS INDUSTRY BECAUSE

785
00:27:05,633 --> 00:27:08,000
THAT'S WHERE THE OIL AND GAS IS.

786
00:27:08,000 --> 00:27:09,533
>> GREG, YOU AND I WERE BOTH

787
00:27:09,533 --> 00:27:11,700
AROUND THE LEGISLATURE IN THE

788
00:27:11,700 --> 00:27:13,967
90s WHEN THEY WERE WRESTLING

789
00:27:13,967 --> 00:27:15,400
ABOUT THIS BEFORE.

790
00:27:15,400 --> 00:27:17,433
HAVE WE DIVERSIFIED FAR ENOUGH

791
00:27:17,433 --> 00:27:19,933
TO WHERE WE'RE NOT GOING TO SEE

792
00:27:19,933 --> 00:27:22,733
AS HUGE AN IMPACT ON LOUISIANA?

793
00:27:22,733 --> 00:27:24,267
>> WE'RE MORE DIVERSIFIED THAN

794
00:27:24,267 --> 00:27:26,533
WE WERE IN THE MID 80s WHEN I

795
00:27:26,533 --> 00:27:27,633
STARTED DOWN THERE, OBVIOUSLY.

796
00:27:27,633 --> 00:27:30,767
WE WILL BE A LARGE OIL AND GAS

797
00:27:30,767 --> 00:27:34,733
BROADLY DEFINED, EXTRACTION TO

798
00:27:34,733 --> 00:27:36,933
PETROCHEMICAL REFINING MONTH

799
00:27:36,933 --> 00:27:38,133
PROBABLY FOREVER.

800
00:27:38,133 --> 00:27:39,733
WE ARE ENDOWED WITH THE RESOURCE

801
00:27:39,733 --> 00:27:43,133
AND WE HAVE GENERATIONS OF

802
00:27:43,133 --> 00:27:44,133
SKILLSETS DEVELOPED HERE.

803
00:27:44,133 --> 00:27:45,233
THAT'S WHAT WE DO.

804
00:27:45,233 --> 00:27:47,767
THE UPS AND DOWNS OF THE OIL

805
00:27:47,767 --> 00:27:49,633
CRISIS USED TO GENERATE MUCH

806
00:27:49,633 --> 00:27:51,267
BIGGER SWINGS IN OUR ECONOMY AND

807
00:27:51,267 --> 00:27:53,567
IN THE STATE'S REVENUE BASE THAN

808
00:27:53,567 --> 00:27:54,800
THEY DO NOW.

809
00:27:54,800 --> 00:27:56,433
NOT THAT THEY ARE IMMATERIAL BUT

810
00:27:56,433 --> 00:27:58,333
IT'S NOT LIKE THE MID 80s WHEN

811
00:27:58,333 --> 00:28:00,467
WE LOST HALF THE INDUSTRY IN

812
00:28:00,467 --> 00:28:01,233
THAT DOWNTURN.

813
00:28:01,233 --> 00:28:02,900
AND MUCH THE OTHER INDUSTRIES.

814
00:28:02,900 --> 00:28:05,167
THAT'S NOT WHAT'S HAPPENING

815
00:28:05,167 --> 00:28:05,867
TODAY.

816
00:28:05,867 --> 00:28:07,433
NOT TO BELITTLE THE LOSSES THAT

817
00:28:07,433 --> 00:28:09,100
ARE OCCURRING IN COMMUNITIES AND

818
00:28:09,100 --> 00:28:10,933
COMPANIES AND HOUSEHOLDS TODAY.

819
00:28:10,933 --> 00:28:12,533
WE'RE NOT NEARLY AS AFFECTED AS

820
00:28:12,533 --> 00:28:13,333
WE WERE.

821
00:28:13,333 --> 00:28:16,000
THAT'S A SIGN OF OUR DIVERSITY.

822
00:28:16,000 --> 00:28:17,500
>> YOU HAD A QUESTION ABOUT

823
00:28:17,500 --> 00:28:18,067
INDIVIDUALS.

824
00:28:18,067 --> 00:28:22,467
>> WHAT CAN WE DO SO THAT THE

825
00:28:22,467 --> 00:28:25,333
PRICE OF OIL DOES NOT NEGATIVELY

826
00:28:25,333 --> 00:28:26,533
AFFECT THE STATE BUDGET AND THE

827
00:28:26,533 --> 00:28:28,833
STATE -- I DON'T KNOW, LIKE

828
00:28:28,833 --> 00:28:30,200
PROGRAMS?

829
00:28:30,200 --> 00:28:31,967
>> I THINK THE STATE BUDGET'S

830
00:28:31,967 --> 00:28:33,467
ALWAYS GOING TO BE AFFECTED BY

831
00:28:33,467 --> 00:28:36,133
OIL PRICES IN SOME WAYS.

832
00:28:36,133 --> 00:28:38,067
BUT LIKE GREG SAID, IN THE MID

833
00:28:38,067 --> 00:28:39,667
80s 40% OF THE STATE BUDGET

834
00:28:39,667 --> 00:28:42,967
WAS MADE UP OF OIL AND GAS

835
00:28:42,967 --> 00:28:43,400
REVENUES.

836
00:28:43,400 --> 00:28:47,067
NOW IT'S DOWN TO 13%, WE'RE NOT

837
00:28:47,067 --> 00:28:50,133
NEARLY AS DEPENDENT ON OIL AS WE

838
00:28:50,133 --> 00:28:50,900
ONCE WERE.

839
00:28:50,900 --> 00:28:52,600
THAT SPEAKS TO THE

840
00:28:52,600 --> 00:28:53,700
DIVERSIFICATION THAT'S HAPPENED

841
00:28:53,700 --> 00:28:56,067
AND WE NEED TO CONTINUE TO DERS

842
00:28:56,067 --> 00:28:58,633
FYE AND FOCUS ON THE

843
00:28:58,633 --> 00:28:59,167
FUNDAMENTALS.

844
00:28:59,167 --> 00:29:00,933
IF STATE GOVERNMENT CAN DO A

845
00:29:00,933 --> 00:29:03,767
GOOD JOB OF EDUCATING ITS PEOPLE

846
00:29:03,767 --> 00:29:05,500
AND BUILD STRONG ROAD AND SAFE

847
00:29:05,500 --> 00:29:06,767
COMMUNITIES, BUSINESSES OF ALL

848
00:29:06,767 --> 00:29:08,600
KINDS WILL WANT TO COME TO

849
00:29:08,600 --> 00:29:10,700
LOUISIANA AND BUILD AND GROW.

850
00:29:10,700 --> 00:29:13,000
I THINK IN THE LAST FEW YEARS

851
00:29:13,000 --> 00:29:14,267
WE'VE MAYBE GOTTEN AWAY FROM

852
00:29:14,267 --> 00:29:14,933
SOME OF THAT.

853
00:29:14,933 --> 00:29:16,500
WE'VE BEEN CUTTING HIGHER

854
00:29:16,500 --> 00:29:18,600
EDUCATION AND MONEY THAT GOES TO

855
00:29:18,600 --> 00:29:20,400
ROADS AND BASIC INFRASTRUCTURE.

856
00:29:20,400 --> 00:29:22,300
IF WE CAN KEEP GETTING BACK TO

857
00:29:22,300 --> 00:29:24,267
FOCUSING ON THE FUNDAMENTALS WE

858
00:29:24,267 --> 00:29:26,267
WILL GROW OUR ECONOMY, AN

859
00:29:26,267 --> 00:29:27,900
ECONOMY THAT WORKS NOT GROW OIL

860
00:29:27,900 --> 00:29:30,367
AND GAS INDUSTRIES BUT FOR

861
00:29:30,367 --> 00:29:30,933
EVERYBODY.

862
00:29:30,933 --> 00:29:32,333
INCLUDING FOLKS IN LOUISIANA WHO

863
00:29:32,333 --> 00:29:34,033
DON'T DEPEND ON THAT INDUSTRY.

864
00:29:34,033 --> 00:29:36,067
>> OTHER STATES AROUND US HAVE

865
00:29:36,067 --> 00:29:38,267
HEAVY OIL AND GAS PRODUCTION AND

866
00:29:38,267 --> 00:29:39,933
EXPLORATION AND SERVICES.

867
00:29:39,933 --> 00:29:41,533
TEXAS, THEY DON'T SEEM TO BE HIT

868
00:29:41,533 --> 00:29:42,267
AS HARD.

869
00:29:42,267 --> 00:29:44,500
IS IT BECAUSE THEY ARE BIGGER OR

870
00:29:44,500 --> 00:29:47,967
HAVE THEY DONE A BETTER JOB

871
00:29:47,967 --> 00:29:48,533
DIVERSIFYING?

872
00:29:48,533 --> 00:29:51,367
>> THEY ARE BEING HIT AS HARD.

873
00:29:51,367 --> 00:29:53,933
>> PRETTY DOGGONE HARD.

874
00:29:53,933 --> 00:29:55,933
THE THING THAT SEPARATES FROM US

875
00:29:55,933 --> 00:30:00,000
TEXAS IS THAT THE MAJORITY OF

876
00:30:00,000 --> 00:30:02,200
OUR EXTRACTION OCCURS OFFSHORE.

877
00:30:02,200 --> 00:30:04,667
TEXAS WAS REALLY HIT FROM THE

878
00:30:04,667 --> 00:30:06,700
FRACKING SIDE, INITIALLY WITH

879
00:30:06,700 --> 00:30:08,067
THE LOW PRICE OF NATURAL GAS.

880
00:30:08,067 --> 00:30:17,800
NOW WITH THE COST OF TYRONN LUE COSTS OF

881
00:30:17,800 --> 00:30:20,733
COST OF THE TYRONN LUE FRAC,

882
00:30:20,733 --> 00:30:22,900
EXTRACTION, THE RETURN ON

883
00:30:22,900 --> 00:30:29,467
INVESTMENT IS NOT THERE THEY ARE

884
00:30:29,467 --> 00:30:32,633
FEELING IT, THEIR ECONOMIC

885
00:30:32,633 --> 00:30:33,967
IMPACTS ARE GOING TO BE

886
00:30:33,967 --> 00:30:34,400
STRONGER.

887
00:30:34,400 --> 00:30:39,400
THEY HAVE A FRACKING INDUSTRY.

888
00:30:39,400 --> 00:30:42,067
THE VERTICAL OIL IS SELLING FOR

889
00:30:42,067 --> 00:30:43,967
LESS, AND SOME PRIVATE SECTOR IS

890
00:30:43,967 --> 00:30:45,367
HIT BUT WE'RE NOT.

891
00:30:45,367 --> 00:30:47,933
WE HAVEN'T DEVELOPED A BIG OIL

892
00:30:47,933 --> 00:30:50,700
FRACKING INDUSTRY AND OUR BIG

893
00:30:50,700 --> 00:30:53,200
FRACKING INDUSTRY WAS IN

894
00:30:53,200 --> 00:30:55,000
HAYNSVILLE AND THAT RELATIVELY

895
00:30:55,000 --> 00:30:57,233
SHUT DOWN AFTER GAS PRICES FELL.

896
00:30:57,233 --> 00:30:59,800
THERE'S NOT A LOT TO LOSE IN

897
00:30:59,800 --> 00:31:01,900
TERMS OF TYRONN LUE ECONOMIC

898
00:31:01,900 --> 00:31:02,400
IMPACT.

899
00:31:02,400 --> 00:31:03,700
WE'RE NOT NEARLY AS RELIABILITY

900
00:31:03,700 --> 00:31:05,433
ON THIS PARTICULAR KIND OF OIL

901
00:31:05,433 --> 00:31:09,633
AND GAS EXTRACTION AS THE BIG

902
00:31:09,633 --> 00:31:11,400
FRACKING STATES ARE, TEXAS,

903
00:31:11,400 --> 00:31:12,867
NORTH DAKOTA PRIMARILY.

904
00:31:12,867 --> 00:31:14,600
>> YOU HAD A QUESTION ABOUT

905
00:31:14,600 --> 00:31:17,900
REGULATION.

906
00:31:17,900 --> 00:31:21,433
>> DO OIL AND GAS REGULATORY

907
00:31:21,433 --> 00:31:24,600
SERVICES FOR THE

908
00:31:24,600 --> 00:31:26,233
PRODUCERS-OPERATORS IN CENTRAL

909
00:31:26,233 --> 00:31:28,967
LOUISIANA, I'VE BEEN HIT

910
00:31:28,967 --> 00:31:29,633
ECONOMICALLY.

911
00:31:29,633 --> 00:31:33,233
MY HOUSEHOLD INCOME DECREASED AS

912
00:31:33,233 --> 00:31:37,533
PRODUCERS STARTED SHUTTING WELLS

913
00:31:37,533 --> 00:31:39,700
AND ONLY OPERATING THE ONES THAT

914
00:31:39,700 --> 00:31:42,900
WERE THE MOST PROFITABLE IN OUR

915
00:31:42,900 --> 00:31:43,700
AREA.

916
00:31:43,700 --> 00:31:47,667
MY QUESTION, OBVIOUSLY I KNOW

917
00:31:47,667 --> 00:31:50,033
HOW THE INDIVIDUAL FAMILY IS

918
00:31:50,033 --> 00:31:50,567
IMPACTED.

919
00:31:50,567 --> 00:31:55,233
BUT I WONDER FROM THE STATE'S

920
00:31:55,233 --> 00:31:58,300
VIEWPOINT, IS THERE -- ARE THERE

921
00:31:58,300 --> 00:32:00,433
STUDIES THE STATE HAS DONE THAT

922
00:32:00,433 --> 00:32:02,500
-- YOU KNOW, THE AVERAGE CITIZEN

923
00:32:02,500 --> 00:32:04,333
COULD GO LOOK AT THE WEBSITE AND

924
00:32:04,333 --> 00:32:06,500
SEE HOW THE STATE LEGISLATURE

925
00:32:06,500 --> 00:32:10,267
HAS TAKEN ACTION TO SHIFT OUR

926
00:32:10,267 --> 00:32:15,800
TAX BASE FROM OIL REVENUE, THE

927
00:32:15,800 --> 00:32:18,733
STATE'S ROYALTIES, STATE FEES,

928
00:32:18,733 --> 00:32:20,967
STATE SEVERANCE TAXES AND OF

929
00:32:20,967 --> 00:32:23,133
COURSE INCOME TAXES FROM PEOPLE

930
00:32:23,133 --> 00:32:26,000
THAT WORK IN THE INDUSTRY, ABOUT

931
00:32:26,000 --> 00:32:28,333
TO YOU SAFETY 13% TO OTHER

932
00:32:28,333 --> 00:32:29,833
SOURCES OF REF   NEW.

933
00:32:29,833 --> 00:32:33,633
>> DO YOU WANT TO TAKE THIS ONE?

934
00:32:33,633 --> 00:32:34,933
[LAUGHTER]

935
00:32:34,933 --> 00:32:36,267
>> MUCH OF THE SHIFT IN THE

936
00:32:36,267 --> 00:32:39,400
STATE'S REVENUE MIX HAS BEEN A

937
00:32:39,400 --> 00:32:43,533
RESULT OF AN ACTION 18 TEA AFTER

938
00:32:43,533 --> 00:32:46,567
THE EARLY EIGHTIES OR MID 80s

939
00:32:46,567 --> 00:32:47,367
OIL BUST.

940
00:32:47,367 --> 00:32:49,933
WE BROUGHT IN GAMING REVENUE.

941
00:32:49,933 --> 00:32:52,567
WE RAISED INCOME TAXES, RAISED

942
00:32:52,567 --> 00:32:55,033
SALES TAXES, RAISED CORPORATE

943
00:32:55,033 --> 00:32:55,500
TAXES.

944
00:32:55,500 --> 00:32:57,933
THAT'S THE STRUCTURE WE'RE STILL

945
00:32:57,933 --> 00:33:00,167
LIVING ON TODAY.

946
00:33:00,167 --> 00:33:02,367
THIS OIL BUST HAS NOT BEEN

947
00:33:02,367 --> 00:33:05,267
REACTED TO IN THAT WAY.

948
00:33:05,267 --> 00:33:05,600
YET.

949
00:33:05,600 --> 00:33:07,200
I DON'T KNOW THAT IT WILL BE

950
00:33:07,200 --> 00:33:09,867
EITHER, BUT WE HAVE A MIX WE

951
00:33:09,867 --> 00:33:11,100
HAVE TODAY.

952
00:33:11,100 --> 00:33:13,333
IT TOOK 10 YEARS OR MORE OF

953
00:33:13,333 --> 00:33:14,900
CHANGES TO GET TO THE MIX WE'VE

954
00:33:14,900 --> 00:33:16,100
GOT NOW.

955
00:33:16,100 --> 00:33:19,067
IT STILL LEAVES US WITH 13% AND

956
00:33:19,067 --> 00:33:24,200
THAT'S TYPICALLY ABOUT $1.4

957
00:33:24,200 --> 00:33:24,667
BILLION.

958
00:33:24,667 --> 00:33:26,667
YOU LOSE THREE OR $400 MILLION

959
00:33:26,667 --> 00:33:30,767
OF THAT, THAT'S REAL MONEY.

960
00:33:30,767 --> 00:33:33,933
>> AND AS A RESULT OF THE BIG

961
00:33:33,933 --> 00:33:37,200
POST KATRINA, RITA BOOM, JUST

962
00:33:37,200 --> 00:33:39,067
BEFORE THE RECESSION WE CUT

963
00:33:39,067 --> 00:33:40,567
TAXES SUBSTANTIALLY.

964
00:33:40,567 --> 00:33:41,967
SOME OF THOSE INCOME TAXES AND

965
00:33:41,967 --> 00:33:43,200
SALES TAX.

966
00:33:43,200 --> 00:33:45,667
AND WE NOW HAVE A REVENUE

967
00:33:45,667 --> 00:33:47,833
BASELINE RUNNING BELOW THE PRE

968
00:33:47,833 --> 00:33:49,567
STORM PATH.

969
00:33:49,567 --> 00:33:52,067
BUT THE FUNDAMENTAL MIX, PIE

970
00:33:52,067 --> 00:33:54,067
CHART MIX TODAY, IS REALLY A

971
00:33:54,067 --> 00:33:56,067
REACTION TO THINGS WE DID IN THE

972
00:33:56,067 --> 00:33:56,833
MID 80s.

973
00:33:56,833 --> 00:33:59,100
AND MAYBE WE'LL CHANGE THAT MIX

974
00:33:59,100 --> 00:34:01,400
GOING FORWARD.

975
00:34:01,400 --> 00:34:03,633
BUT QUITE FRANKLY WE HAVEN'T

976
00:34:03,633 --> 00:34:05,500
EVEN HAD A SESSION YET IN

977
00:34:05,500 --> 00:34:07,000
RESPONSE TO THIS PARTICULAR

978
00:34:07,000 --> 00:34:08,600
WEAKNESS IN OIL PRICES.

979
00:34:08,600 --> 00:34:11,000
>> IN TERMS OF WHERE YOU CAN GO

980
00:34:11,000 --> 00:34:12,067
TO, TO FIND INFORMATION ABOUT

981
00:34:12,067 --> 00:34:14,900
THE STUDIES YOU'RE TALKING

982
00:34:14,900 --> 00:34:18,433
ABOUT, I'D STEER YOU TO THE

983
00:34:18,433 --> 00:34:19,567
LOUISIANA ECONOMIC DEVELOPMENT

984
00:34:19,567 --> 00:34:21,500
WINDOW, THE WORKFORCE COMMISSION

985
00:34:21,500 --> 00:34:23,633
WEBSITE, AND LOOK AT A CUSTOM

986
00:34:23,633 --> 00:34:24,833
DIFFERENT UNIVERSITIES.

987
00:34:24,833 --> 00:34:27,033
CERTAINLY LSU, U.L., LOUISIANA

988
00:34:27,033 --> 00:34:31,033
TECH, NICHOLS, THOSE WILL BE

989
00:34:31,033 --> 00:34:32,767
YOUR UNIVERSITIES THAT HAVE

990
00:34:32,767 --> 00:34:35,033
STUDIES FOCUSED ON OIL AND GAS

991
00:34:35,033 --> 00:34:37,000
EXPLORATION AND THE COMMIS

992
00:34:37,000 --> 00:34:38,500
AROUND IT.

993
00:34:38,500 --> 00:34:40,600
>> AND GREG'S WEBSITE IS VERY

994
00:34:40,600 --> 00:34:41,100
GOOD.

995
00:34:41,100 --> 00:34:42,300
THE LEGISLATIVE FISCAL OFFICE

996
00:34:42,300 --> 00:34:44,233
KEEP AS LOT OF GREAT INFORMATION

997
00:34:44,233 --> 00:34:45,600
ABOUT WHAT'S IN THE BUDGET.

998
00:34:45,600 --> 00:34:47,000
IF YOU GO THERE AND LOOK THEY

999
00:34:47,000 --> 00:34:50,033
PUT A LOT ON THEIR WEBSITE.

1000
00:34:50,033 --> 00:34:52,867
>> MY FRIENDS MELINDA WITH THE

1001
00:34:52,867 --> 00:34:55,367
ASSOCIATED PRESS AND MARK

1002
00:34:55,367 --> 00:34:57,233
BALLARD FROM THE "ADVOCATE" HAVE

1003
00:34:57,233 --> 00:34:58,733
POINTED OUT THE CURRENT STATE

1004
00:34:58,733 --> 00:35:00,100
BUDGET PROBLEMS ARE NOT ALL OIL

1005
00:35:00,100 --> 00:35:01,533
AND GAS RELATED.

1006
00:35:01,533 --> 00:35:03,633
OVER A BILLION DOLLARS OF IT IS

1007
00:35:03,633 --> 00:35:05,333
RELATED TO THE WAY SPENDING

1008
00:35:05,333 --> 00:35:06,733
PATTERNS HAVE BEEN OVER THE PAST

1009
00:35:06,733 --> 00:35:08,667
FEW YEARS TO TAX CUTS, USING A

1010
00:35:08,667 --> 00:35:11,500
BUNCH OF ONE-TIME MONEY TO PLUG

1011
00:35:11,500 --> 00:35:21,067
INTO RECURRING EXPENSES.

1012
00:35:21,067 --> 00:35:22,100
WE'LL

1013
00:35:22,100 --> 00:35:23,367
START WITH SENATOR CHABERT.

1014
00:35:23,367 --> 00:35:24,967
>> MAYBE IT'S TIME TO BRING BACK

1015
00:35:24,967 --> 00:35:27,133
THE SPELLING PLAN, AT LEAST THE

1016
00:35:27,133 --> 00:35:29,033
REVENUE SIDE OF IT, AND LEVEL

1017
00:35:29,033 --> 00:35:31,767
OUT OUR TAXES SO THAT THEY ARE

1018
00:35:31,767 --> 00:35:34,267
NOT AT THE MERCY OF THE

1019
00:35:34,267 --> 00:35:36,333
VOLATILITY OF THE OIL AND GAS

1020
00:35:36,333 --> 00:35:37,667
INDUSTRY.

1021
00:35:37,667 --> 00:35:39,300
WE HAD AT ONE TIME WHEN

1022
00:35:39,300 --> 00:35:41,767
SOMEBODY, A FRIEND OF MINE

1023
00:35:41,767 --> 00:35:43,400
CALLED AN EMBARRASSMENT OF

1024
00:35:43,400 --> 00:35:43,933
RICHES.

1025
00:35:43,933 --> 00:35:46,233
NOW WE'RE JUST EMBARRASSED.

1026
00:35:46,233 --> 00:35:54,033
WE HAVE THIS $1.WHATEVER BILLION

1027
00:35:54,033 --> 00:35:56,567
HOLE TO FILL.

1028
00:35:56,567 --> 00:35:58,000
>> WHY DON'T YOU TELL US ABOUT

1029
00:35:58,000 --> 00:35:58,867
THIS PLAN.

1030
00:35:58,867 --> 00:36:01,900
THE PLAN GOT RID OF SALES TAXES

1031
00:36:01,900 --> 00:36:04,233
ON HOUSEHOLD FOOD FOR HOME

1032
00:36:04,233 --> 00:36:06,367
CONSUMPTION, HOUSEHOLD

1033
00:36:06,367 --> 00:36:06,867
UTILITIES.

1034
00:36:06,867 --> 00:36:09,733
TYRONN LUE PUT THAT TAX BASE IN

1035
00:36:09,733 --> 00:36:11,533
THE CONSTITUTION NEVER AGAIN

1036
00:36:11,533 --> 00:36:13,667
UNLESS THE PEOPLE VOTE THOSE

1037
00:36:13,667 --> 00:36:14,100
ITEMS.

1038
00:36:14,100 --> 00:36:16,100
IT TRADED THAT REVENUE OFF WITH

1039
00:36:16,100 --> 00:36:17,367
AN INCREASE IN THE PERSONAL

1040
00:36:17,367 --> 00:36:19,433
INCOME TAX, WHICH NOT ONLY

1041
00:36:19,433 --> 00:36:21,067
INCREASED THE OVERALL INCOME

1042
00:36:21,067 --> 00:36:23,167
TAX, IT SHIFTED THE BURDEN TO

1043
00:36:23,167 --> 00:36:25,767
THE UPPER HALF OF THE INCOME

1044
00:36:25,767 --> 00:36:26,267
SPECTRUM.

1045
00:36:26,267 --> 00:36:28,700
IT HAD A VARIETY OF GOALS IN

1046
00:36:28,700 --> 00:36:29,100
MIND.

1047
00:36:29,100 --> 00:36:31,400
IT WAS REVENUE NEUTRAL, WE LOST

1048
00:36:31,400 --> 00:36:33,100
MONEY IN THE FIRST YEAR OR TWO

1049
00:36:33,100 --> 00:36:33,700
OF THAT.

1050
00:36:33,700 --> 00:36:35,533
IT WAS DESIGNED TO GROW BECAUSE

1051
00:36:35,533 --> 00:36:39,200
IT WOULD BE DESIGNED TO GROW

1052
00:36:39,200 --> 00:36:40,100
WITH INCOME.

1053
00:36:40,100 --> 00:36:41,867
IT DID THAT FOR SEVERAL YEARS.

1054
00:36:41,867 --> 00:36:44,267
AS THE ECONOMY HEATED UP IN THE

1055
00:36:44,267 --> 00:36:47,600
MID 2000s AND THEN IN THE POST

1056
00:36:47,600 --> 00:36:50,400
KATRINA, AFTER KATRINA AND RITA

1057
00:36:50,400 --> 00:36:53,033
HIT IN THE SUMMER OF 2005, WE

1058
00:36:53,033 --> 00:36:54,667
ULTIMATELY HAD MORE MONEY COMING

1059
00:36:54,667 --> 00:36:56,933
IN THAN WE KNEW WHAT TO DO WITH.

1060
00:36:56,933 --> 00:36:59,467
THE REVENUE BASE EXPLODED ON US

1061
00:36:59,467 --> 00:37:00,800
AND WE COULDN'T RESIST.

1062
00:37:00,800 --> 00:37:03,367
WE STARTED TO GIVE SOME OF THAT

1063
00:37:03,367 --> 00:37:04,533
BACK.

1064
00:37:04,533 --> 00:37:06,167
THE INCOME TAX COMPONENT WAS THE

1065
00:37:06,167 --> 00:37:08,067
PART WE GAVE BACK.

1066
00:37:08,067 --> 00:37:09,533
>> WHAT WOULD OUR BUDGET HOLE

1067
00:37:09,533 --> 00:37:11,933
LOOK LIKE TODAY IF WE'D KEPT

1068
00:37:11,933 --> 00:37:15,333
THAT, JUST A WILD GUESS ON THAT?

1069
00:37:15,333 --> 00:37:18,167
>> THE INCOME TAXES WOULD BE

1070
00:37:18,167 --> 00:37:21,600
ROUGHLY AT LEAST $800 MILLION

1071
00:37:21,600 --> 00:37:24,100
HIGHER TODAY THAN THEY OTHERWISE

1072
00:37:24,100 --> 00:37:24,533
ARE.

1073
00:37:24,533 --> 00:37:26,900
>> AND SENATOR CHABERT, IN AN

1074
00:37:26,900 --> 00:37:30,333
ELECTION YEAR HOW LIKELY IS IT

1075
00:37:30,333 --> 00:37:32,233
THAT ANY WOOD WOULD TOUCH THAT

1076
00:37:32,233 --> 00:37:34,133
THIRD RAIL?

1077
00:37:34,133 --> 00:37:35,800
>> YOU HEAR THE LEGISLATURE IS

1078
00:37:35,800 --> 00:37:37,933
GOING TO BE PARALYZED.

1079
00:37:37,933 --> 00:37:39,400
I WOULD ARGUE THAT WE ARE CALLED

1080
00:37:39,400 --> 00:37:40,167
TO SERVICE.

1081
00:37:40,167 --> 00:37:42,800
YOU HAVE TO RESPOND TO A CRISIS

1082
00:37:42,800 --> 00:37:43,800
WITH BOLD ACTION.

1083
00:37:43,800 --> 00:37:46,533
IF YOU'RE WORRIED ABOUT GETTING

1084
00:37:46,533 --> 00:37:48,467
REELECTED, MYSELF INCLUDED, AND

1085
00:37:48,467 --> 00:37:51,367
YOU'RE GOING TO SACRIFICE WHAT'S

1086
00:37:51,367 --> 00:37:53,900
TO BE DONE RIGHT, WE SHOULD

1087
00:37:53,900 --> 00:37:56,267
THROW THE BUMS OUT, MYSELF

1088
00:37:56,267 --> 00:37:56,833
INCLUDED.

1089
00:37:56,833 --> 00:37:58,400
THE PROBLEM IS THAT THE

1090
00:37:58,400 --> 00:37:59,767
STRUCTURAL TAX GATHERING

1091
00:37:59,767 --> 00:38:02,433
APPARATUS IN THIS STATE AND THE

1092
00:38:02,433 --> 00:38:06,300
SPENDING DEDICATIONS THAT WE

1093
00:38:06,300 --> 00:38:10,267
HAVE ARE A COMPLEX PROBLEM TO

1094
00:38:10,267 --> 00:38:10,733
SOLVE.

1095
00:38:10,733 --> 00:38:12,567
OUR FISCAL SESSION THIS YEAR IS

1096
00:38:12,567 --> 00:38:15,067
ROUGHLY 60 DAYS.

1097
00:38:15,067 --> 00:38:16,733
WE'VE BEEN WORKING ON THIS

1098
00:38:16,733 --> 00:38:19,467
PROBLEM FOR A LONG TIME.

1099
00:38:19,467 --> 00:38:22,833
WITH REF NEWF ESTIMATING WE CAN

1100
00:38:22,833 --> 00:38:24,133
HAPPY A BUDGET SHORTFALL IS

1101
00:38:24,133 --> 00:38:26,033
GOING TO BE, AS YOU KNOW.

1102
00:38:26,033 --> 00:38:29,467
IT'S NOT AN EASY FIX.

1103
00:38:29,467 --> 00:38:31,333
WHAT I FORESEE HAPPENING IS

1104
00:38:31,333 --> 00:38:32,567
WE'RE GOING UNFORTUNATELY HAVE

1105
00:38:32,567 --> 00:38:35,733
TO BEAR THE BRUNT OF THIS

1106
00:38:35,733 --> 00:38:38,367
MASSIVE BUDGET DEFICIT AND AFTER

1107
00:38:38,367 --> 00:38:39,733
THIS NEXT ELECTION CYCLE WITH A

1108
00:38:39,733 --> 00:38:41,567
NEW ADMINISTRATION, AS WE ALL

1109
00:38:41,567 --> 00:38:43,567
KNOW WE HAVE A VERY POWERFUL

1110
00:38:43,567 --> 00:38:45,467
EXECUTIVE BRANCH IN THIS STATE,

1111
00:38:45,467 --> 00:38:47,400
YOU'LL PROBABLY SEE SOME BOLD

1112
00:38:47,400 --> 00:38:49,333
ACTION HAVE TO BE TAKEN BY THE

1113
00:38:49,333 --> 00:38:51,633
NEXT LEGISLATURE AND CERTAINLY

1114
00:38:51,633 --> 00:38:53,500
THE NEXT GOVERNOR.

1115
00:38:53,500 --> 00:38:54,900
>> JAN, DO YOU THINK THE AVERAGE

1116
00:38:54,900 --> 00:38:56,967
CITIZEN IS READY FOR TAXES?

1117
00:38:56,967 --> 00:38:58,667
>> THEY ARE GOING TO HAVE TO BE

1118
00:38:58,667 --> 00:39:00,467
WHETHER THEY ARE READY OR NOT.

1119
00:39:00,467 --> 00:39:02,100
THE ELEPHANT IN THE ROOM IS WE

1120
00:39:02,100 --> 00:39:04,267
HAVE A GOVERNOR WHO HAS REFUSED

1121
00:39:04,267 --> 00:39:06,167
TO LOOK AT THE REVENUE SIDE OF

1122
00:39:06,167 --> 00:39:09,000
THE LEDGER FOR THE PAST SEVEN

1123
00:39:09,000 --> 00:39:09,467
YEARS.

1124
00:39:09,467 --> 00:39:11,100
EVERY TIME WE'VE BEEN FACED WITH

1125
00:39:11,100 --> 00:39:13,367
A BUDGET SHORTFALL -- AND WE'VE

1126
00:39:13,367 --> 00:39:15,200
HAD BUDGET SHORTFALLS SEVEN

1127
00:39:15,200 --> 00:39:16,900
YEARS IN A ROW KNOW, I BELIEVE,

1128
00:39:16,900 --> 00:39:18,300
WE'VE ONLY LOOKED TO CUT.

1129
00:39:18,300 --> 00:39:20,033
WHEN WE WERE FINISHED CUTTING

1130
00:39:20,033 --> 00:39:21,300
AND THERE WAS NOTHING MORE TO

1131
00:39:21,300 --> 00:39:24,067
CUT WE'VE USED ONE-TIME REVENUES

1132
00:39:24,067 --> 00:39:26,433
TO PATCH THE REMAINDER OF THE

1133
00:39:26,433 --> 00:39:26,900
GAP.

1134
00:39:26,900 --> 00:39:29,867
WE RAIDED TRUST FUNDS, USED

1135
00:39:29,867 --> 00:39:33,300
MONEY FROM LEGAL SETTLEMENTS,

1136
00:39:33,300 --> 00:39:34,333
EVERY TRICK IN THE BOOK.

1137
00:39:34,333 --> 00:39:35,667
THAT'S BEEN THE ONLY SOLUTION

1138
00:39:35,667 --> 00:39:38,533
AND WE HAVEN'T LOOKED AT ALL AT

1139
00:39:38,533 --> 00:39:40,133
THE REVENUE SIDE.

1140
00:39:40,133 --> 00:39:41,267
I DON'T THINK ANY POLITICIAN

1141
00:39:41,267 --> 00:39:43,300
RUNS FOR OFFICE TRYING TO RAISE

1142
00:39:43,300 --> 00:39:44,733
TAXES BUT THAT'S A CONVERSATION

1143
00:39:44,733 --> 00:39:46,367
THAT'S COMING.

1144
00:39:46,367 --> 00:39:48,400
IT MAY NOT COME THIS SESSION

1145
00:39:48,400 --> 00:39:50,867
BECAUSE THIS COVER HAS SET THE

1146
00:39:50,867 --> 00:39:52,033
RULES OF ROAD AND THE

1147
00:39:52,033 --> 00:39:55,667
LEGISLATURE HAS ABIDED BY THOSE

1148
00:39:55,667 --> 00:39:56,233
RULES.

1149
00:39:56,233 --> 00:39:57,467
THE NEXT GOVERNOR IS GOING TO

1150
00:39:57,467 --> 00:39:58,267
RAISE TAXES.

1151
00:39:58,267 --> 00:39:59,933
THE ONLY QUESTION IS HOW MUCH

1152
00:39:59,933 --> 00:40:02,667
AND FROM WHOM IS IT GOING TO BE

1153
00:40:02,667 --> 00:40:03,567
RAISED.

1154
00:40:03,567 --> 00:40:05,767
WE CAN'T KEEP KICK, THE CAN DOWN

1155
00:40:05,767 --> 00:40:08,267
THE ROAD WITH THIS BUDGE AS WE

1156
00:40:08,267 --> 00:40:10,533
HAVE BEEN DOING FOR THE LAST

1157
00:40:10,533 --> 00:40:11,367
SEVERAL YEARS.

1158
00:40:11,367 --> 00:40:13,067
>> JUST UTTERING THE WORDS

1159
00:40:13,067 --> 00:40:15,700
RAISING TAXES, IT GETS A

1160
00:40:15,700 --> 00:40:18,600
RESPONSE OUT OF PEOPLE WHERE

1161
00:40:18,600 --> 00:40:19,633
THEY AUTOMATICALLY CRINGE.

1162
00:40:19,633 --> 00:40:21,000
IF YOU JUST THINK ABOUT

1163
00:40:21,000 --> 00:40:23,300
SPREADING IT OUT, OKAY?

1164
00:40:23,300 --> 00:40:26,733
WE HAVE ALMOST THE SEVENTH

1165
00:40:26,733 --> 00:40:31,100
LOWEST DIESEL TAX, THE LOE

1166
00:40:31,100 --> 00:40:32,967
CIGARETTE TAX IN THE SOUTH.

1167
00:40:32,967 --> 00:40:34,033
>> IN THE COUNTRY.

1168
00:40:34,033 --> 00:40:37,467
>> YOU KNOW, IT'S NOT ABOUT

1169
00:40:37,467 --> 00:40:41,433
POINTING AT ONE PARTICULAR

1170
00:40:41,433 --> 00:40:42,833
SECTOR, BUSINESS ENTITY AND

1171
00:40:42,833 --> 00:40:44,533
SAYING, WE ARE GOING RAISE YOUR

1172
00:40:44,533 --> 00:40:46,067
TAXES BY 30%.

1173
00:40:46,067 --> 00:40:48,567
YOU CAN'T DO THAT.

1174
00:40:48,567 --> 00:40:50,300
A, IT'S POLITICALLY IMPOSSIBLE

1175
00:40:50,300 --> 00:40:51,867
TO DO.

1176
00:40:51,867 --> 00:40:53,433
THE OUTCRY, REGARDLESS OF THE

1177
00:40:53,433 --> 00:40:55,200
TYPE OF REVENUE IT WOULD

1178
00:40:55,200 --> 00:40:57,433
GENERATE WOULD BE FROWNED UPON

1179
00:40:57,433 --> 00:40:59,333
BY MANY PUBLIC INTEREST GROUPS

1180
00:40:59,333 --> 00:41:00,067
AND WHATNOT.

1181
00:41:00,067 --> 00:41:02,600
BUT I THINK THAT BECAUSE THE

1182
00:41:02,600 --> 00:41:05,500
LOUISIANA TAX BURDEN ON THE

1183
00:41:05,500 --> 00:41:07,400
ORDINARY CITIZEN IS SO LOW, WE

1184
00:41:07,400 --> 00:41:08,967
COULD COME UP WITH A

1185
00:41:08,967 --> 00:41:10,600
RESTRUCTURING THAT WOULD HAVE TO

1186
00:41:10,600 --> 00:41:13,200
INCLUDE ELIMINATING A LOT OF TAX

1187
00:41:13,200 --> 00:41:14,933
CREDITS ON THINGS.

1188
00:41:14,933 --> 00:41:16,967
>> FROM WHAT I UNDERSTAND ABOUT

1189
00:41:16,967 --> 00:41:21,300
38 CENTS OF EVERY GALLON OF GAD

1190
00:41:21,300 --> 00:41:23,233
WE BUY IN LOUISIANA, ABOUT 38

1191
00:41:23,233 --> 00:41:26,100
CENTS OF THAT IS TAXES.

1192
00:41:26,100 --> 00:41:27,433
STATE AND FEDERAL.

1193
00:41:27,433 --> 00:41:29,300
>> STATE AND FEDERAL.

1194
00:41:29,300 --> 00:41:29,767
>> YES.

1195
00:41:29,767 --> 00:41:31,600
>> THE STATE ASPECT IS AROUND

1196
00:41:31,600 --> 00:41:33,600
AROUND 20 CENTS.

1197
00:41:33,600 --> 00:41:36,300
>> DO YOU SEE IN THE FORESEEABLE

1198
00:41:36,300 --> 00:41:39,433
FUTURE THAT INCREASING

1199
00:41:39,433 --> 00:41:40,200
SUBSTANTIALLY?

1200
00:41:40,200 --> 00:41:42,000
BECAUSE OF THE SHORTFALL IN THE

1201
00:41:42,000 --> 00:41:42,467
BUDGET?

1202
00:41:42,467 --> 00:41:43,900
>> IF YOU LOOK FROM AN

1203
00:41:43,900 --> 00:41:45,500
INFRASTRUCTURE STANDPOINT -- AND

1204
00:41:45,500 --> 00:41:48,633
CORRECT ME WHERE I NEED TO BE

1205
00:41:48,633 --> 00:41:52,300
CORRECTED, GREG -- WE'VE GOT A

1206
00:41:52,300 --> 00:41:54,600
$12 BILLION INFRASTRUCTURE

1207
00:41:54,600 --> 00:41:57,000
BACKLOG, $12 BILLION.

1208
00:41:57,000 --> 00:41:59,800
WHEN WE PASSED, NOT SOME OF YOU

1209
00:41:59,800 --> 00:42:01,833
YOUNGER FOLKS BUT WHEN WE VOTED

1210
00:42:01,833 --> 00:42:04,767
IN THOSE GAS TAXES, THE FOUR

1211
00:42:04,767 --> 00:42:06,933
CENTS TIMES PROGRAM, THAT WAS

1212
00:42:06,933 --> 00:42:10,733
SAYING WE'RE GOING TO RAISE X A.

1213
00:42:10,733 --> 00:42:15,000
REVENUE AND IT'LL PAY FOR ALL OF

1214
00:42:15,000 --> 00:42:15,867
THESE PROJECTS OVER AND LONG

1215
00:42:15,867 --> 00:42:16,700
PERIOD OF TIME.

1216
00:42:16,700 --> 00:42:19,033
SOME OF THOSE PRODUCTS ARE STILL

1217
00:42:19,033 --> 00:42:20,167
IN THE BOOKS.

1218
00:42:20,167 --> 00:42:22,167
THE PROBLEM IS WHEN YOU

1219
00:42:22,167 --> 00:42:24,933
INITIALLY PASSED THOSE TAXES,

1220
00:42:24,933 --> 00:42:28,233
OKAY, THE 16 CENT GAS TAX WAS

1221
00:42:28,233 --> 00:42:30,333
PASSED AND THE ADDITIONAL FOUR

1222
00:42:30,333 --> 00:42:34,333
TO THE TIMES PROGRAM, THAT WAS

1223
00:42:34,333 --> 00:42:38,233
1990 CENTS.

1224
00:42:38,233 --> 00:42:40,067
THE PRICE OF DOING BUSINESS HAS

1225
00:42:40,067 --> 00:42:42,000
INCREASED TO GREATLY THAT YOU

1226
00:42:42,000 --> 00:42:44,767
REALLY HAVE A 20 CENTS GAS TAX

1227
00:42:44,767 --> 00:42:46,000
THAT IS GENERATING YOU WHAT

1228
00:42:46,000 --> 00:42:49,167
WOULD HAVE BEEN IN THOSE DAYS,

1229
00:42:49,167 --> 00:42:54,333
SEVEN, EIGHT, NINE, 10, CENTS.

1230
00:42:54,333 --> 00:42:56,133
>> WE FEEL THAT WE ARE JUST

1231
00:42:56,133 --> 00:42:58,467
EXPERIENCING A SMALL HICCUP IN

1232
00:42:58,467 --> 00:43:00,633
THE OIL AND GAS INDUSTRY, OR IS

1233
00:43:00,633 --> 00:43:03,800
THIS A MAJOR HALTING POINT FOR

1234
00:43:03,800 --> 00:43:05,833
LOUISIANA AND FOR I GUESS TEXAS

1235
00:43:05,833 --> 00:43:09,467
AND THE OTHER STATES, AS WELL?

1236
00:43:09,467 --> 00:43:10,567
>> WELL, I DON'T KNOW IF IT'S A

1237
00:43:10,567 --> 00:43:12,067
HALTING POINT BUT I THINK THIS

1238
00:43:12,067 --> 00:43:14,467
IS A VERY SIGNIFICANT STRUCTURAL

1239
00:43:14,467 --> 00:43:16,633
CHANGE IN THE INDUSTRY, NOT ONLY

1240
00:43:16,633 --> 00:43:19,133
HERE IN THE UNITED STATES BUT

1241
00:43:19,133 --> 00:43:20,067
GLOBALLY.

1242
00:43:20,067 --> 00:43:21,133
WHERE COMMODITY TRADERS ARE

1243
00:43:21,133 --> 00:43:24,000
LOOKING AT TRADE FORE CRUDE OIL

1244
00:43:24,000 --> 00:43:25,733
MONTHS AND YEARS INTO THE

1245
00:43:25,733 --> 00:43:27,333
FUTURE, THEY SEE CRUDE OIL AT

1246
00:43:27,333 --> 00:43:31,033
LOW PRICES FOR MANY, MANY YEARS

1247
00:43:31,033 --> 00:43:36,567
GOING OUT TO 2020 AND PAST THAT

1248
00:43:36,567 --> 00:43:37,900
TIME PERIOD.

1249
00:43:37,900 --> 00:43:39,800
CONVENTIONAL WISDOM IS PRICES

1250
00:43:39,800 --> 00:43:42,300
WILL STAY RELATIVELY LOW.

1251
00:43:42,300 --> 00:43:44,267
AS MOST OF YOU RECOGNIZE THINGS

1252
00:43:44,267 --> 00:43:45,767
CAN CHANGE TOMORROW, THERE COULD

1253
00:43:45,767 --> 00:43:48,100
BE A WAR IN THE MIDDLE EAST,

1254
00:43:48,100 --> 00:43:50,733
THERE COULD BE A CUT-BACK IN

1255
00:43:50,733 --> 00:43:52,367
PRODUCTION IN VENEZUELA, A

1256
00:43:52,367 --> 00:43:53,200
STRIKE SOMEWHERE.

1257
00:43:53,200 --> 00:43:55,667
THEY CHANGE THE DYNAMICS ON A

1258
00:43:55,667 --> 00:43:57,867
DAY IN AND DAY OUT BASIS.

1259
00:43:57,867 --> 00:43:59,667
ONE OF THE BIG CONSEQUENCES HAS

1260
00:43:59,667 --> 00:44:01,500
BEEN DIVERSIFYING THE SUPPLIES

1261
00:44:01,500 --> 00:44:03,667
OF CRUDE OIL AND INCREASING

1262
00:44:03,667 --> 00:44:06,067
THOSE OUTSIDE OF THE TRADITIONAL

1263
00:44:06,067 --> 00:44:08,500
OPEC PRODUCING COUNTRIES AND

1264
00:44:08,500 --> 00:44:12,267
THAT'S PUT DOWNWARD PRESSURE ON

1265
00:44:12,267 --> 00:44:12,733
PRICES.

1266
00:44:12,733 --> 00:44:14,133
IT'S GOING TO CREATE

1267
00:44:14,133 --> 00:44:15,867
OPPORTUNITIES FOR OPERATORS HERE

1268
00:44:15,867 --> 00:44:17,733
IN NORTH AMERICA TO GO BACK INTO

1269
00:44:17,733 --> 00:44:19,867
THOSE RESERVES.

1270
00:44:19,867 --> 00:44:24,000
THAT GENIE IS OUT OF THE BOTTLE.

1271
00:44:24,000 --> 00:44:25,467
AS SOON AS PRICES START TO RISE

1272
00:44:25,467 --> 00:44:27,600
AGAIN, PEOPLE BILL GO BACK INTO

1273
00:44:27,600 --> 00:44:28,467
THAT BUSINESS.

1274
00:44:28,467 --> 00:44:31,067
GREG WAS TALKING ABOUT THE

1275
00:44:31,067 --> 00:44:33,067
DISTRACTION OF UNCONVENTIONAL

1276
00:44:33,067 --> 00:44:35,567
GAS IN HAYNSVILLE.

1277
00:44:35,567 --> 00:44:38,700
IN THE LAST RECESSION PRICES

1278
00:44:38,700 --> 00:44:40,933
FELL BY OVER HALF THEN.

1279
00:44:40,933 --> 00:44:45,800
A LOT OF THAT DRILLING ACTIVITY

1280
00:44:45,800 --> 00:44:48,800
REDUCED DURING THAT TIME PERIOD.

1281
00:44:48,800 --> 00:44:51,767
PRODUCERS GOT MORE EFFICIENT,

1282
00:44:51,767 --> 00:44:53,567
AND YOU'LL START TO SEE THAT ON

1283
00:44:53,567 --> 00:44:55,267
THE CRUDE SIDE OF THE BUSINESS,

1284
00:44:55,267 --> 00:44:56,167
AS WELL.

1285
00:44:56,167 --> 00:44:58,600
NOT AS QUICKLY AS ORIGINALLY

1286
00:44:58,600 --> 00:44:59,900
ANTICIPATED BUT THEY ARE GOING

1287
00:44:59,900 --> 00:45:00,933
CONTINUE TO GROVE.

1288
00:45:00,933 --> 00:45:02,533
THERE WILL CONTINUE TO BE

1289
00:45:02,533 --> 00:45:03,333
OPPORTUNITIES IN THIS BUSINESS

1290
00:45:03,333 --> 00:45:04,100
AND IT'S GOING TO BE A CHANGE

1291
00:45:04,100 --> 00:45:09,833
WITH US FOR QUITE SOME TIME.

1292
00:45:09,833 --> 00:45:13,500
>> THE PRICE FOR CRUDE AROUND

1293
00:45:13,500 --> 00:45:16,500
$60, WHEN IT REACHES THAT LEVEL

1294
00:45:16,500 --> 00:45:19,400
THE BALL CAN CRUDE PRODUCTION IS

1295
00:45:19,400 --> 00:45:22,433
AT THE BREAK-EVEN POINT, AT

1296
00:45:22,433 --> 00:45:23,867
LEAST THAT'S WHAT STATED.

1297
00:45:23,867 --> 00:45:26,500
YOU HATE TO SEE THAT GREAT

1298
00:45:26,500 --> 00:45:28,533
STREAM BACK OFF.

1299
00:45:28,533 --> 00:45:30,433
OUR ENERGY INDEPENDENCE MIGHT BE

1300
00:45:30,433 --> 00:45:32,367
SLOWED A BIT MATCH THAT'S TRUE.

1301
00:45:32,367 --> 00:45:33,500
THERE WERE THE SAME

1302
00:45:33,500 --> 00:45:36,633
CONVERSATIONS GOING ON IN 2008,

1303
00:45:36,633 --> 00:45:38,833
2009, 2010, WHEN PEOPLE WERE

1304
00:45:38,833 --> 00:45:41,600
SAYING THE NATURAL GAS BUSINESS

1305
00:45:41,600 --> 00:45:44,000
COULDN'T SURVIVE ANYTHING LESS

1306
00:45:44,000 --> 00:45:46,233
THAN $4.50.

1307
00:45:46,233 --> 00:45:50,733
PRICE RESOURCE $2.50 TODAY,

1308
00:45:50,733 --> 00:45:54,600
NATURAL GAS PRICES TON INCREASE.

1309
00:45:54,600 --> 00:45:56,133
ONE OF THE THINGS WE'VE FOUND IN

1310
00:45:56,133 --> 00:45:57,733
THIS BUSINESS IS THAT BECAUSE

1311
00:45:57,733 --> 00:45:59,633
IT'S VERY COMPETITIVE PEOPLE ARE

1312
00:45:59,633 --> 00:46:01,067
SCRAMBLING AROUND TO FIND WAYS

1313
00:46:01,067 --> 00:46:02,933
TO BE MORE PRODUCTIVE.

1314
00:46:02,933 --> 00:46:04,467
THEY HAVE FINDING WAYS TO

1315
00:46:04,467 --> 00:46:06,767
IMPROVE THE TECHNOLOGY OF THIS

1316
00:46:06,767 --> 00:46:07,333
FRACKING.

1317
00:46:07,333 --> 00:46:09,167
IT'S ONE OF THOSE RARE AREAS IN

1318
00:46:09,167 --> 00:46:11,467
THE ENERGY BUSINESS WHERE UNIT

1319
00:46:11,467 --> 00:46:13,067
COSTS ARE GOING DOWN, NOT UP

1320
00:46:13,067 --> 00:46:15,500
BECAUSE OF INCREASED

1321
00:46:15,500 --> 00:46:16,167
EFFICIENCIES.

1322
00:46:16,167 --> 00:46:18,033
IT'S A MORE REPETITIVE TASK.

1323
00:46:18,033 --> 00:46:19,933
IT'S NOT LIKE TRADITIONAL

1324
00:46:19,933 --> 00:46:22,267
VERTICAL OIL AND GAS DRILLING.

1325
00:46:22,267 --> 00:46:23,500
IT'S MORE LIKE MINING.

1326
00:46:23,500 --> 00:46:25,867
ONCE YOU'RE IN A PARTICULAR

1327
00:46:25,867 --> 00:46:29,867
PLACE LIKE AND YOU START TO

1328
00:46:29,867 --> 00:46:32,867
INFILL DRILL U START TO GAIN

1329
00:46:32,867 --> 00:46:35,033
SUBSTANTIAL COMMIS AND

1330
00:46:35,033 --> 00:46:35,600
EFFICIENCIES.

1331
00:46:35,600 --> 00:46:36,700
YOU'VE GOT THE INFRASTRUCTURE

1332
00:46:36,700 --> 00:46:38,867
AND WORKFORCE IN PLACE, ALL OF

1333
00:46:38,867 --> 00:46:40,933
THOSE OPPORTUNITIES.

1334
00:46:40,933 --> 00:46:42,667
PEOPLE WILL FIND IT'S PROBABLY A

1335
00:46:42,667 --> 00:46:43,967
LITTLE LOWER THAN WHAT PEOPLE

1336
00:46:43,967 --> 00:46:46,000
ARE SAYING RIGHT NOW.

1337
00:46:46,000 --> 00:46:49,033
>> KARL, IF WE HAVE $7 BILLION

1338
00:46:49,033 --> 00:46:51,033
WORTH OF TAX CREDITS SITTING ON

1339
00:46:51,033 --> 00:46:53,533
THE TABLE THAT WE'RE NOT

1340
00:46:53,533 --> 00:46:56,500
COLLECTING NOW, AND WE HAVE A

1341
00:46:56,500 --> 00:46:58,067
$1.6 BILLION HOLE, WOULDN'T IT

1342
00:46:58,067 --> 00:47:00,233
MAKE SENSE THAT WE ROLL SOME OF

1343
00:47:00,233 --> 00:47:01,800
THOSE BACK, COLLECT SOME OF

1344
00:47:01,800 --> 00:47:03,467
THOSE TAXES THAT WERE SUPPOSED

1345
00:47:03,467 --> 00:47:06,600
TO HAVE BEEN USED ANYWAY, AND

1346
00:47:06,600 --> 00:47:08,033
FILL THAT HOLE?

1347
00:47:08,033 --> 00:47:09,933
DOESN'T THAT MAKE SENSE?

1348
00:47:09,933 --> 00:47:12,400
>> YOU'VE GOT $7 BILLION IN

1349
00:47:12,400 --> 00:47:14,300
TAXES ON THE TABLE RIGHT NOW NOT

1350
00:47:14,300 --> 00:47:16,500
BEING COLLECTED TO INCENTIVIZE

1351
00:47:16,500 --> 00:47:17,000
BUSINESS.

1352
00:47:17,000 --> 00:47:18,533
WHICH MAKES SENSE, I UNDERSTAND

1353
00:47:18,533 --> 00:47:19,000
THAT.

1354
00:47:19,000 --> 00:47:20,267
EVERY OTHER STATE DOES IT.

1355
00:47:20,267 --> 00:47:22,933
WHEN YOU'VE GOT A $1.6 BILLION

1356
00:47:22,933 --> 00:47:25,700
HOLE AND YOU LOOK AT CUTTING AND

1357
00:47:25,700 --> 00:47:28,333
GUTTING HIGHER EDUCATION, WE'VE

1358
00:47:28,333 --> 00:47:30,233
GOT FIND ANOTHER TWI SOLVE THAT

1359
00:47:30,233 --> 00:47:30,733
PROBLEM.

1360
00:47:30,733 --> 00:47:32,733
SEEMS TO ME WE NEED TO ROLL BACK

1361
00:47:32,733 --> 00:47:35,800
SOME OF THOSE TAXES AND

1362
00:47:35,800 --> 00:47:36,267
GIVEAWAYS.

1363
00:47:36,267 --> 00:47:37,500
>> YOU KNOW, THAT'S --

1364
00:47:37,500 --> 00:47:39,500
>> CAN'T DO IT ALL BUT YOU CAN

1365
00:47:39,500 --> 00:47:41,700
DO SOME.

1366
00:47:41,700 --> 00:47:42,200
>> CORRECT.

1367
00:47:42,200 --> 00:47:44,667
THERE'S A PREVAILING ATTITUDE

1368
00:47:44,667 --> 00:47:47,500
THAT A ROLLBACK OF THE TAX

1369
00:47:47,500 --> 00:47:52,433
CREDITS EQUATES TO AN INDIRECT

1370
00:47:52,433 --> 00:47:54,667
TAX INCREASE ON THE RECIPIENT ON

1371
00:47:54,667 --> 00:47:55,533
THAT TAX CREDIT.

1372
00:47:55,533 --> 00:47:58,133
THERE'S A LOT OF CREDENCE TO

1373
00:47:58,133 --> 00:47:58,600
THAT.

1374
00:47:58,600 --> 00:47:59,767
A COMPANY MAY SAY, THIS

1375
00:47:59,767 --> 00:48:01,167
INCENTIVE WAS THE ONLY REASON

1376
00:48:01,167 --> 00:48:02,700
WHY I CAME HERE.

1377
00:48:02,700 --> 00:48:04,967
I THINK THERE WOULD BE A

1378
00:48:04,967 --> 00:48:07,200
CONSTANTLY AMOUNT OF STIG AND

1379
00:48:07,200 --> 00:48:10,700
RESEARCH BY LED, LEGISLATIVE

1380
00:48:10,700 --> 00:48:12,833
FISCAL OFFICE TO GO IN AND SAY,

1381
00:48:12,833 --> 00:48:18,167
OKAY, THIS IS REALLY JUST

1382
00:48:18,167 --> 00:48:19,300
LAGNIAPPE, OF COURSE IT'S GOING

1383
00:48:19,300 --> 00:48:20,933
TO AFFECT THE COMPANY'S BOTTOM

1384
00:48:20,933 --> 00:48:23,900
LINE BUT IT'S NOT GOING TO BREAK

1385
00:48:23,900 --> 00:48:25,200
DOWN THE BOTTOM LINE.

1386
00:48:25,200 --> 00:48:27,800
WE DECIDED THE STATE'S OVERTAX

1387
00:48:27,800 --> 00:48:31,233
CREDIT WAS JUST TOO MUCH AND WE

1388
00:48:31,233 --> 00:48:37,000
IN EFFECT GUILLOTINED IT.

1389
00:48:37,000 --> 00:48:40,133
WHEN WE WALKED IN AND MADE THE

1390
00:48:40,133 --> 00:48:42,667
VIDEO VOTE WE WERE GOING TO CUT

1391
00:48:42,667 --> 00:48:44,133
THE HEAD OFF THE TAX CREDITS IN

1392
00:48:44,133 --> 00:48:45,633
THIS STATE.

1393
00:48:45,633 --> 00:48:47,633
BASICALLY WE ARE SUBSIDIZING

1394
00:48:47,633 --> 00:48:50,533
PAYING 75% OF THE INSTALLATION

1395
00:48:50,533 --> 00:48:51,233
OF THESE THINGS.

1396
00:48:51,233 --> 00:48:52,233
TOO MUCH.

1397
00:48:52,233 --> 00:48:52,700
OKAY?

1398
00:48:52,700 --> 00:48:54,333
THE PROBLEM WAS THAT HERE ALL

1399
00:48:54,333 --> 00:48:56,700
THESE LOUISIANA COMPANIES --

1400
00:48:56,700 --> 00:48:59,300
WEAVER NOT TALKING ABOUT FOREIGN

1401
00:48:59,300 --> 00:49:00,600
INVESTORS OR PEOPLE FROM THE

1402
00:49:00,600 --> 00:49:02,133
FOREIGN STATE OF TEXAS.

1403
00:49:02,133 --> 00:49:04,600
THESE ARE LOUISIANA COMPANIES

1404
00:49:04,600 --> 00:49:06,433
THAT HAD LOUISIANA INVENTORY AND

1405
00:49:06,433 --> 00:49:08,067
LOUISIANA PARISHES, PAYING

1406
00:49:08,067 --> 00:49:10,133
LOUISIANA TAXES.

1407
00:49:10,133 --> 00:49:15,100
IT DIDN'T MAKE ANY SENSE FOR US

1408
00:49:15,100 --> 00:49:16,133
TO IN FACT GUILLOTINE THEM.

1409
00:49:16,133 --> 00:49:17,467
WE'RE GOING ELIMINATE THE TAX

1410
00:49:17,467 --> 00:49:19,433
CREDIT BUT IT'S GOING TO BE A

1411
00:49:19,433 --> 00:49:21,167
GRADUAL ELIMINATION OF THEM.

1412
00:49:21,167 --> 00:49:23,067
IF YOU DID THAT, THERE WOULD BE

1413
00:49:23,067 --> 00:49:25,067
VERY FEW INSTANCES WHERE YOU GET

1414
00:49:25,067 --> 00:49:26,833
THE MONEY BACK ON THE TABLE.

1415
00:49:26,833 --> 00:49:30,067
WE DO HAVE TO RESTRUCTURE.

1416
00:49:30,067 --> 00:49:31,167
>> GREG, WHAT ABOUT IT?

1417
00:49:31,167 --> 00:49:33,800
COULD YOU FIND SOME TAX CREDITS

1418
00:49:33,800 --> 00:49:36,133
THAT YOU COULD DO THAT TO AND

1419
00:49:36,133 --> 00:49:38,067
GENERATE SOME REVENUE?

1420
00:49:38,067 --> 00:49:39,333
>> ARE THERE THINGS WE HAVE DONE

1421
00:49:39,333 --> 00:49:42,067
IN THE PAST WHERE CERTAIN TYPES

1422
00:49:42,067 --> 00:49:44,100
OF CREDITS OR DEDUCTIONS WE HAVE

1423
00:49:44,100 --> 00:49:46,067
SAID, FOR THE TAX PERIOD

1424
00:49:46,067 --> 00:49:48,967
STARTING JANUARY 2015, THIS TAX

1425
00:49:48,967 --> 00:49:50,733
YEAR RIGHT NOW, FROM THAT TAX

1426
00:49:50,733 --> 00:49:52,600
YEAR IT'S NOT EFFECTIVE.

1427
00:49:52,600 --> 00:49:55,167
WHEN YOU FILE YOUR TAXES IN THE

1428
00:49:55,167 --> 00:49:57,233
SPRING OF 2016 LIABILITIES WILL

1429
00:49:57,233 --> 00:49:58,067
GO UP.

1430
00:49:58,067 --> 00:50:00,733
WE HAVE DONE THAT BEFORE.

1431
00:50:00,733 --> 00:50:02,367
THAT'S NOT SOMETHING WE'VE

1432
00:50:02,367 --> 00:50:04,533
TYPICALLY DONE AND IT'S NOT

1433
00:50:04,533 --> 00:50:06,800
APPLICABLE TO A LOT OF PROGRAMS

1434
00:50:06,800 --> 00:50:10,967
THAT HAVE CERTIFICATIONS,

1435
00:50:10,967 --> 00:50:13,267
APPLICATIONS, CONTRACTUAL

1436
00:50:13,267 --> 00:50:13,967
ARRANGEMENTS.

1437
00:50:13,967 --> 00:50:14,967
>> HOW MANY OF THOSE REALLY ARE

1438
00:50:14,967 --> 00:50:16,100
OBLIGATIONS YOU CAN'T DO

1439
00:50:16,100 --> 00:50:18,267
ANYTHING ABOUT AT THIS POINT?

1440
00:50:18,267 --> 00:50:19,833
>> HUNDREDS OF -- WELL, I'M

1441
00:50:19,833 --> 00:50:22,700
GOING TO SAY FOUR TO 500 MILLION

1442
00:50:22,700 --> 00:50:24,533
EASY, THE EASY LIST NO ONE WOULD

1443
00:50:24,533 --> 00:50:25,900
ARGUE ABOUT.

1444
00:50:25,900 --> 00:50:26,967
THEN THERE WOULD BE A VARIETY OF

1445
00:50:26,967 --> 00:50:28,367
OTHER PEOPLE WHO SAY I MAY NOT

1446
00:50:28,367 --> 00:50:30,800
HAVE A CONTRACT BUT I CARRIED

1447
00:50:30,800 --> 00:50:32,667
OUT CERTAINLY ACTIVITIES, YOU

1448
00:50:32,667 --> 00:50:33,133
OWE ME.

1449
00:50:33,133 --> 00:50:34,433
THERE WOULD BE A MORAL

1450
00:50:34,433 --> 00:50:35,933
OBLIGATION AT A MINIMUM.

1451
00:50:35,933 --> 00:50:38,333
WE HAVE REVERSED SOME OF THOSE

1452
00:50:38,333 --> 00:50:39,733
THINGS IN THE PAST.

1453
00:50:39,733 --> 00:50:42,167
WE WERE DOING THAT FOR EXCESS

1454
00:50:42,167 --> 00:50:45,367
ITEMIZED DEDUCTIONS ON PERSONAL

1455
00:50:45,367 --> 00:50:48,900
INCOME TAX FOR THREE YEARS

1456
00:50:48,900 --> 00:50:51,100
BEFORE THE BREAKS EVER CAME

1457
00:50:51,100 --> 00:50:52,067
ALONG.

1458
00:50:52,067 --> 00:50:55,800
YOU CAN DO THAT, YOU DON'T HAVE

1459
00:50:55,800 --> 00:50:57,333
BILLIONS OF DOLLARS LIKE THAT.

1460
00:50:57,333 --> 00:50:59,267
THINGS LIKE THAT CAN BE DONE BUT

1461
00:50:59,267 --> 00:51:00,800
THEY ARE TOUGH VOTES, NOT EASY

1462
00:51:00,800 --> 00:51:01,900
TO DO.

1463
00:51:01,900 --> 00:51:04,767
>> WE HAVEN'T HEARD FROM YOU.

1464
00:51:04,767 --> 00:51:05,300
>> YES.

1465
00:51:05,300 --> 00:51:06,567
WITH THE LOW PRICES IN THE OIL

1466
00:51:06,567 --> 00:51:11,900
AND GAS, THE RIPPLE EFFECT IS

1467
00:51:11,900 --> 00:51:13,133
VERY IMPORTANT AND SIGNIFICANT

1468
00:51:13,133 --> 00:51:16,000
RIGHT NOW, BECAUSE I HAVE A

1469
00:51:16,000 --> 00:51:17,700
CONCERN OR THE COMMUNITY HAS A

1470
00:51:17,700 --> 00:51:19,800
EXPERIENCE FOR CUTS IN HEALTH

1471
00:51:19,800 --> 00:51:22,433
CARE AND HUMAN SERVICES.

1472
00:51:22,433 --> 00:51:25,600
AND TO THIS EXAMPLE, THE RECENT

1473
00:51:25,600 --> 00:51:30,033
ANNOUNCEMENT OF CLOSING THE

1474
00:51:30,033 --> 00:51:33,700
EMERGENCY ROOMS AT OUR LOCAL

1475
00:51:33,700 --> 00:51:39,000
HOSPITAL, AND SO THE RIPPING

1476
00:51:39,000 --> 00:51:40,633
AFFECT CONTINUES TO MAKE CUTS.

1477
00:51:40,633 --> 00:51:42,233
WE'RE JUST CONCERNED ABOUT THE

1478
00:51:42,233 --> 00:51:45,300
CUTS THAT WILL OCCUR IN OUR NEXT

1479
00:51:45,300 --> 00:51:46,167
LEGISLATIVE SESSION.

1480
00:51:46,167 --> 00:51:49,267
HOPEFULLY I NEED TO FIND OUT HOW

1481
00:51:49,267 --> 00:51:50,767
WILL THAT AFFECT ADDITIONAL

1482
00:51:50,767 --> 00:51:53,467
CUTS, OR WILL THERE BE ANY.

1483
00:51:53,467 --> 00:51:55,800
>> THAT'S WHY I SAID VERY EARLY

1484
00:51:55,800 --> 00:51:56,933
ON, I DON'T THINK ARE THERE

1485
00:51:56,933 --> 00:51:58,933
REALLY ANY WINNERS WHEN THE

1486
00:51:58,933 --> 00:52:01,633
PRICE OF OIL DROPS AS LOW AS IT

1487
00:52:01,633 --> 00:52:04,567
DID AS FAST AS IT   D. BACK TO

1488
00:52:04,567 --> 00:52:06,300
THAT SINGLE MOTHER THAT MAY BE

1489
00:52:06,300 --> 00:52:10,800
WORKING ONE OR TWO JO, HER JOB

1490
00:52:10,800 --> 00:52:15,067
IS ON THE MORE OF A FLOUNDER

1491
00:52:15,067 --> 00:52:17,000
SIGHT, IT'S CHEAPER FOR HER TO

1492
00:52:17,000 --> 00:52:19,200
DRIVE FROM THE APARTMENT TO THAT

1493
00:52:19,200 --> 00:52:19,700
JOB.

1494
00:52:19,700 --> 00:52:21,367
THE PROBLEMS, MAYBE WHEN SHE WAS

1495
00:52:21,367 --> 00:52:23,367
WORKING THAT FRIDAY NIGHT

1496
00:52:23,367 --> 00:52:31,833
LATE-NIGHT SHIFT, THAT'S PINNING

1497
00:52:31,833 --> 00:52:36,833
$A COUPLE HUNDRED EVERY NIGHT?

1498
00:52:36,833 --> 00:52:40,933
THEY ARE NOT GETTING TIPS, IF

1499
00:52:40,933 --> 00:52:49,067
SHE, NOT GETTING HER TIP SHE

1500
00:52:49,067 --> 00:52:50,933
CAN'T PAY THE RENT.

1501
00:52:50,933 --> 00:52:53,000
WE GO BACK TO THE ACTUAL

1502
00:52:53,000 --> 00:52:56,100
LESSENING OF THE REVENUE COMING

1503
00:52:56,100 --> 00:52:58,133
IN AND IT'S TOUGH TO REALLY FIND

1504
00:52:58,133 --> 00:53:00,867
A WINNER IN SOUTH LOUISIANA,

1505
00:53:00,867 --> 00:53:02,233
PARTICULARLY WHEN IT DROPS AS

1506
00:53:02,233 --> 00:53:05,967
LOW AS IT HAS, THE INDIRECT

1507
00:53:05,967 --> 00:53:06,533
IMPACTS.

1508
00:53:06,533 --> 00:53:07,667
>> WITH A CRISIS LIKE WE HAVE IN

1509
00:53:07,667 --> 00:53:09,267
TERMS OF THE FINANCIAL CRISIS,

1510
00:53:09,267 --> 00:53:10,467
IT WOULD SEEM THAT THERE

1511
00:53:10,467 --> 00:53:12,400
CERTAINLY IS AN OPPORTUNITY TO

1512
00:53:12,400 --> 00:53:16,333
TAKE ADVANTAGE OF REINVESTING IN

1513
00:53:16,333 --> 00:53:16,867
OTHER AREA.

1514
00:53:16,867 --> 00:53:19,100
RIGHT NOW WITH $500 MILLION

1515
00:53:19,100 --> 00:53:20,167
EXPECTED IN BUDGET CUTS TO

1516
00:53:20,167 --> 00:53:21,600
HIGHER EDUCATION, ISN'T THIS

1517
00:53:21,600 --> 00:53:22,967
REALLY THE TIME WHILE WE'RE

1518
00:53:22,967 --> 00:53:25,533
TALKING ABOUT OIL PRICES TO SAY,

1519
00:53:25,533 --> 00:53:27,533
LOOK, WE'RE GOING INVEST IN OUR

1520
00:53:27,533 --> 00:53:30,633
FUTURE HE AND IN HIGHER

1521
00:53:30,633 --> 00:53:31,167
EDUCATION.

1522
00:53:31,167 --> 00:53:32,433
THOSE AREAS THAT WORK FOR

1523
00:53:32,433 --> 00:53:35,033
GROWING THE ECONOMY IN DECADES

1524
00:53:35,033 --> 00:53:37,900
AND YEARS OH TO COME DOWN THE

1525
00:53:37,900 --> 00:53:38,933
ROAD.

1526
00:53:38,933 --> 00:53:41,567
THERE'S A LEGISLATURE IN

1527
00:53:41,567 --> 00:53:46,033
POSITION TO SAY WE THINK,

1528
00:53:46,033 --> 00:53:48,867
INSTEAD OF CUTTING EDUCATION

1529
00:53:48,867 --> 00:53:51,100
WE'RE GOING REINVEST IT, PROTECT

1530
00:53:51,100 --> 00:53:51,700
IT.

1531
00:53:51,700 --> 00:53:52,867
MAYBE SOME CONSTITUTIONAL

1532
00:53:52,867 --> 00:53:54,333
MANDATE SO WE'RE NOT DUMBING

1533
00:53:54,333 --> 00:53:56,833
DOWN THE STATE OF LOUISIANA BY

1534
00:53:56,833 --> 00:53:59,367
CUTTING EDUCATION EVERY TIME

1535
00:53:59,367 --> 00:54:02,333
THERE'S A BLIP OR A CUT IN OIL

1536
00:54:02,333 --> 00:54:02,800
PRICES.

1537
00:54:02,800 --> 00:54:04,367
WE EXPECT HURRICANES, WE SHOULD

1538
00:54:04,367 --> 00:54:05,967
BE PREPARED FOR THEM.

1539
00:54:05,967 --> 00:54:08,567
I EXPECT THAT WE SHOULD HAVE

1540
00:54:08,567 --> 00:54:16,900
DROPPED IN AIL PRICES.

1541
00:54:16,900 --> 00:54:18,333
>> I COULDN'T AGREE MORE.

1542
00:54:18,333 --> 00:54:22,433
ABSOLUTELY NOW IS THE TIME TO

1543
00:54:22,433 --> 00:54:25,067
REININVESTMENT, NOW IS THE TIME

1544
00:54:25,067 --> 00:54:25,800
TO DO THAT.

1545
00:54:25,800 --> 00:54:28,000
IT'S A VERY DIFFICULT

1546
00:54:28,000 --> 00:54:29,667
CONVERSATION ABOUT TAXES, HOW

1547
00:54:29,667 --> 00:54:32,233
MUCH MONEY DO WE NEED TO TAKE IN

1548
00:54:32,233 --> 00:54:35,233
AS A STATEMENT LOUISIANA

1549
00:54:35,233 --> 00:54:40,233
CENTERLINE IS A LOW NEXTED

1550
00:54:40,233 --> 00:54:41,367
STATE.

1551
00:54:41,367 --> 00:54:45,200
IF LOW SS WAS THE ANSWER, WE

1552
00:54:45,200 --> 00:54:46,800
WOULD BE ONE OF THE RICHEST

1553
00:54:46,800 --> 00:54:48,267
STATES IN THE COUNTRY.

1554
00:54:48,267 --> 00:54:49,700
INSTEAD, WE'RE HAVING BUDGET

1555
00:54:49,700 --> 00:54:51,000
PROBLEMS YEAR AFTER YEAR.

1556
00:54:51,000 --> 00:54:52,600
IT'S A DIFFICULT QUESTION BUT IT

1557
00:54:52,600 --> 00:54:54,167
HAS TO BE ASKED AND IT'S A

1558
00:54:54,167 --> 00:54:55,667
DEBATE THAT HAS TO HAPPEN.

1559
00:54:55,667 --> 00:54:57,400
AGAIN, THE STATES -- IF YOU LOOK

1560
00:54:57,400 --> 00:54:58,833
AROUND THE COUNTRY, THE STATES

1561
00:54:58,833 --> 00:55:01,633
WITH THE HIGHEST MEDIAN INCOMES

1562
00:55:01,633 --> 00:55:06,400
HAVE THE HIGHEST PERCENTAGE OF

1563
00:55:06,400 --> 00:55:10,133
THEIR POPULATION WITH BACHELOR'S

1564
00:55:10,133 --> 00:55:10,733
DEGREES.

1565
00:55:10,733 --> 00:55:14,733
HAVING AN EDUCATED POPULATION

1566
00:55:14,733 --> 00:55:15,767
REQUIRES SUSTAINED LONG TERM

1567
00:55:15,767 --> 00:55:16,933
INVESTMENTS WE'VE BEEN LOSING IN

1568
00:55:16,933 --> 00:55:18,733
THE PAST FEW YEARS AND WE NEED

1569
00:55:18,733 --> 00:55:20,100
TO START THINKING ABOUT MAKING

1570
00:55:20,100 --> 00:55:21,100
THEM AGAIN.

1571
00:55:21,100 --> 00:55:23,233
IT DOESN'T MAYBE LEAD TO A

1572
00:55:23,233 --> 00:55:24,933
GROUNDBREAKING OR SOME KIND OF

1573
00:55:24,933 --> 00:55:26,800
RIBBON CUTTING CEREMONY BUT IT'S

1574
00:55:26,800 --> 00:55:28,133
THE KIND OF INVESTMENT THAT IF

1575
00:55:28,133 --> 00:55:30,733
YOU DO IT OVER A ATTEND PERIOD

1576
00:55:30,733 --> 00:55:33,400
OF TIME YOU CAN HAVE THAT

1577
00:55:33,400 --> 00:55:34,800
DIVERSIFIED ECONOMY I THINK

1578
00:55:34,800 --> 00:55:36,767
EVERYBODY WANTS.

1579
00:55:36,767 --> 00:55:39,300
>> WE'VE RUN OUT OF TIME FOR OUR

1580
00:55:39,300 --> 00:55:40,200
QUESTION-AND-ANSWER SEGMENT.

1581
00:55:40,200 --> 00:55:43,900
WE'D LIKE TO THANK OUR

1582
00:55:43,900 --> 00:55:46,467
PANELISTS, MR. ALBRECHT, SENATOR

1583
00:55:46,467 --> 00:55:48,500
CHABERT, MR. MOLLER AND DR.

1584
00:55:48,500 --> 00:55:50,500
DISMUKES FOR THEIR INSIGHTS ON

1585
00:55:50,500 --> 00:55:51,400
THIS TOPIC.

1586
00:55:51,400 --> 00:55:53,233
WHEN WE COME BACK, WE'LL HAVE A

1587
00:55:53,233 --> 00:55:55,733
FEW CLOSING COMMENTS.

1588
00:55:57,133 --> 00:55:59,433
**

1589
00:56:01,033 --> 00:56:02,667
>>> YOU KNOW, CARL, I SUPPOSE

1590
00:56:02,667 --> 00:56:05,333
ARE THERE NO EASY ANSWERS TO

1591
00:56:05,333 --> 00:56:06,733
THIS LARGE BUDGET DEFICIT.

1592
00:56:06,733 --> 00:56:08,200
>> MAYBE NOT TO THE BUDGET

1593
00:56:08,200 --> 00:56:09,667
DEFICIT BUT WE CAN ALL GO OUT

1594
00:56:09,667 --> 00:56:12,733
AND GET MORE GAS WHILE IT'S

1595
00:56:12,733 --> 00:56:13,300
CHEAP.

1596
00:56:13,300 --> 00:56:13,900
>> ABSOLUTELY!

1597
00:56:13,900 --> 00:56:15,100
AND I GUESS ONE OF THE THINGS I

1598
00:56:15,100 --> 00:56:18,233
LOOK BACK ON IS WHEN WE SET UP A

1599
00:56:18,233 --> 00:56:21,200
FUND TO USHER OIL REVENUE WE DID

1600
00:56:21,200 --> 00:56:23,167
PUT IT INTO HIGHER EDUCATION.

1601
00:56:23,167 --> 00:56:25,400
>> WHATEVER HAPPENED TO THAT OLD

1602
00:56:25,400 --> 00:56:27,533
RAINY DAY TRUST?

1603
00:56:27,533 --> 00:56:28,667
>> MAYBE WE'LL LOOK AT IT, I

1604
00:56:28,667 --> 00:56:29,667
DON'T KNOW.

1605
00:56:29,667 --> 00:56:31,367
THAT'S ALL THE TIME WE HAVE FOR

1606
00:56:31,367 --> 00:56:32,500
EDITION OF "LOUISIANA PUBLIC

1607
00:56:32,500 --> 00:56:33,033
SQUARE."

1608
00:56:33,033 --> 00:56:35,133
VISIT OUR WEBSITE AT

1609
00:56:35,133 --> 00:56:36,033
WWW.LPB.ORG/PUBLICSQUARE.

1610
00:56:36,033 --> 00:56:38,367
WHILE YOU'RE THERE TAKE THIS

1611
00:56:38,367 --> 00:56:39,467
MONTH'S SURVEY.

1612
00:56:39,467 --> 00:56:42,367
VIEW ADDITIONAL SOUNDBITES AND

1613
00:56:42,367 --> 00:56:44,300
COMMENTS ON TODAY'S SHOW.

1614
00:56:44,300 --> 00:56:47,067
LIKE YOU DID FOLLOWING LAST

1615
00:56:47,067 --> 00:56:49,533
MONTH'S PROGRAM LOUISIANA AFTER

1616
00:56:49,533 --> 00:56:50,400
FERGUSON."

1617
00:56:50,400 --> 00:56:51,700
POLICE HAVE A LICENSE TO KILL,

1618
00:56:51,700 --> 00:56:54,567
IT'S A BLUE-NONBLUISH.

1619
00:56:54,567 --> 00:56:55,833
>> BILL WROTE TO US, NO MATTER

1620
00:56:55,833 --> 00:57:00,767
OF COLOR, DISOBEY THE POLICE AND

1621
00:57:00,767 --> 00:57:03,933
EXPECT CONSEQUENCES.

1622
00:57:03,933 --> 00:57:04,367
JOSEPH.

1623
00:57:04,367 --> 00:57:05,067
>>> I BELIEVE WE ARE SO

1624
00:57:05,067 --> 00:57:07,767
DESPERATE FOR SECURITY THAT WE

1625
00:57:07,767 --> 00:57:09,967
SACRIFICE FIRST OUR LEGAL

1626
00:57:09,967 --> 00:57:11,400
PROTECTIONS FROM MILITARIZED

1627
00:57:11,400 --> 00:57:13,600
POLICE AND THEN WE SACRIFICE OUR

1628
00:57:13,600 --> 00:57:15,933
DIGNITY AS HUMAN BEINGS.

1629
00:57:15,933 --> 00:57:17,767
THAT WAS COMPLEX TOPIC.

1630
00:57:17,767 --> 00:57:19,600
WE THANK EVERYONE FOR YOUR

1631
00:57:19,600 --> 00:57:20,167
COMMENTS.

1632
00:57:20,167 --> 00:57:21,633
>> NEXT TIME IS GOING TO BE EVEN

1633
00:57:21,633 --> 00:57:22,067
TOUGHER.

1634
00:57:22,067 --> 00:57:23,733
WE'LL BE TALKING ABOUT CANCER.

1635
00:57:23,733 --> 00:57:25,133
>> AND THAT'S A VERY PERSONAL

1636
00:57:25,133 --> 00:57:27,633
TOPIC FOR A LOT OF US.

1637
00:57:27,633 --> 00:57:28,967
>> WHY DOES LOUISIANA HAVE THE

1638
00:57:28,967 --> 00:57:31,033
SECOND HIGHEST CANCER DEATH RATE

1639
00:57:31,033 --> 00:57:31,967
IN AMERICA?

1640
00:57:31,967 --> 00:57:35,200
WHAT ROLE DO LIFESTYLE AND

1641
00:57:35,200 --> 00:57:36,033
GENETICS PLAY IN THE EQUATION?

1642
00:57:36,033 --> 00:57:37,967
JOIN US NEXT MONTH AS "LOUISIANA

1643
00:57:37,967 --> 00:57:41,167
PUBLIC SQUARE" BRINGS TOGETHER

1644
00:57:41,167 --> 00:57:44,833
RESIDENTS LIVING WITH CANCER.

1645
00:57:44,833 --> 00:57:47,633
WE'LL EXPLORE "CANCER IN

1646
00:57:47,633 --> 00:57:48,233
LOUISIANA."

1647
00:57:48,233 --> 00:57:49,633
THANKS FOR WATCHING AND GOOD

1648
00:57:49,633 --> 00:57:50,200
NIGHT.

1649
00:57:50,200 --> 00:57:52,367
>> GOOD NIGHT, EVERYONE.

1650
00:58:02,200 --> 00:58:15,367
**

1651
00:58:18,133 --> 00:58:19,533
>>> FOR A COPY OF THIS PROGRAM

1652
00:58:19,533 --> 00:58:23,667
CALL 1-800-9573-7246.

1653
00:58:23,667 --> 00:58:28,267
OR GO ONLINE TO

1654
00:58:28,267 --> 00:58:29,533
WWW.LPB.ORG/PUBLICSQUARE.

1655
00:58:29,533 --> 00:58:31,033
>>> SUPPORT FOR THIS PROGRAM IS

1656
00:58:31,033 --> 00:58:34,767
PROVIDED BY THE FOUNDATION FOR

1657
00:58:34,767 --> 00:58:38,400
EXCELLENCE IN LOUISIANA PUBLIC

1658
00:58:38,400 --> 00:58:39,533
BROADCASTING AND FROM VIEWERS

1659
00:58:39,533 --> 00:58:41,033
LIKE YOU.