State lawmakers consider legislation to help New Orleans fund infrastructure projects

Published: Apr. 22, 2019 at 7:09 PM CDT
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NEW ORLEANS (WVUE) -A key state House committee has begun considering legislation designed to help the city of New Orleans fund major infrastructure projects, including at the struggling Sewerage and Water Board.

Representative Jay Morris, R-Monroe questioned tourism leader Stephen Perry during the committee meeting Monday (April 22), regarding the root of New Orleans’ issue.

“Do you acknowledge that there are infrastructure problems in the city that really need money,” Morris asked. "Or do you think there’s been mismanagement at the city?”

Perry works with New Orleans and Co. -- formerly the New Orleans Convention and Visitors Bureau.

“It’s really two questions. Their infrastructure needs are absolutely real,” Perry said.

Mayor Cantrell’s chief of staff, John Pourciau, repeatedly underscored that point before the state legislators.

But while Perry said the tourism community is willing to provide funds to help city government, he does not favor parts of the legislative package offered by Rep. Neil Abramson, D-New Orleans.

Some of the bills would increase local hotel taxes and redirect some tax revenues tourism entities receive to help with infrastructure needs.

"We feel an obligation to step up and help, and so that’s why we’re putting a lot of money on the table to the city to try to help, but to do it in a way that doesn’t hurt the industry or jobs,” Perry said.

Abramson acknowledged the legislation may need tweaking.

"I realize that the bills as they're proposed in committee may not be what everyone wants at this time, but it's a first step,” Abramson said.

For weeks, a task force created by Governor John Bel Edwards, which includes tourism leaders and representatives of the city, has been trying to reach a deal on funding.

Representative Dodie Horton, R-Haughton, also raised questions regarding the proposals.

"I just don’t know why we’re hearing these [bills], I mean were you not negotiating in good faith?” Horton asked Perry.

A notion which Perry denied.

“Well, we’ve been almost more than good faith," he said. “I’ve never seen an industry come forward with the kind of package and potential taxes on ourselves to help a municipality in the way that we have.”

While no agreement has been reached, Perry said the discussions have involved millions of dollars.

“We see ways that we can come together with close to $25 million of recurring revenues, including some new taxes on ourselves,” Perry said. "What we strongly urge you not to do, is to redirect state resources that pay for the state facilities to a municipal function. That’s not really good policy and it doesn’t make sense for you,” Perry said.

In the end, Abramson decided against calling for a vote on two of his bills. They will be taken up later in the week.

A third measure that Abramson said would “unsuspend” a one-cent, decades old city hotel tax did advance to the full House for consideration.

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