Daily Report

Yet another legislative effort to mandate the expansion of Medicaid failed today when the state Senate Finance Committee turned aside a bill by Sen. Karen Carter Peterson, D-New Orleans. Her Senate Bill 125 would have the state adopt the Arkansas model, whereby Medicaid dollars are used to help low-income citizens purchase private health insurance. An earlier Senate bill and House resolution have failed to get through committee in face of opposition from the Jindal administration. Though the first three years of the expansion would be paid for by the federal government, the administration contends it will cost the state in the long run. The last such bill standing is scheduled for debate Tuesday on the House floor, as House Bill 233 by Rep. Pat Smith, D-Baton Rouge, squeaked through the House Health Committee.

—With hopes of raising an extra $23 million to $36 million over the next year, a state Senate panel advanced a bill today to set up a debt collection office within the Department of Revenue. House Bill 629 by Rep. Chris Broadwater, R-Hammond, would establish the Office of Debt Recovery to assume debt collections from state agencies that do not already have contracts with the attorney general. State Treasurer John Kennedy joins with the Jindal administration in support of the bill. It was initially opposed by Attorney General Buddy Caldwell, who removed his objections after the author agreed to maintain the AG's current contracts. The fiscal note calls for Revenue to add 23 new positions and total administrative costs of $4.4 million in the next fiscal year and $7.6 million in fiscal year 2015. Broadwater says the new office would pursue more robust collection efforts than are currently used by agencies to collect debts before they age, resulting in the estimated revenue increase.

(John Maginnis will publish a daily update throughout the legislative session on Daily Report PM. The report is also available to LaPolitics Weekly subscribers on the Subscribers Only page at LaPolitics.com. Registration is available on the homepage.)

Louisiana Public Broadcasting is providing a daily video update featuring highlights of the session, which you can see beginning at 6 p.m. here.

Sen. Ben Nevers, D-Bogalusa, spoke today in support of a bill that would allow low-income Louisiana residents to buy health insurance with federal Medicaid money. Meanwhile, a few blocks away at the Capitol, lawmakers voted to defer the bill, potentially killing it for the session. However, a similar bill, which Nevers promises to support, is expected to be heard on the House side Tuesday. The basic idea, modeled on a bipartisan proposal created in Arkansas, is to take federal dollars available to states to expand Medicaid under the Affordable Care Act, or "Obamacare," and instead use that money to pay premiums and supplemental cost sharing for private policies purchased through the federal exchange. "To turn down this opportunity for 290,000 people [to get insurance] is almost insane" and amounts to "raw politics," Nevers says. The fiscal note to the Senate bill projects up to $323 million in state savings over four years until the law sunsets on July 1, 2017. The Jindal administration, which opposes Medicaid expansion, also has issues with the Arkansas model. The feds have "made it clear that they will not provide states with any real flexibility in implementing Medicaid expansion," says interim DHH Secretary Kathy Kliebert. She says any Medicaid expansion approved by the Legislature will "increase costs to the state, crowd out private insurance and diminish services for existing Medicaid beneficiaries." —David Jacobs

Plans for a new 34-lot residential development at the intersection of Pecue Lane and Perkins Road is up for consideration at today's meeting of the Planning and Zoning Commission. Audubon Parc, a development by Spear Contractors, is one of several proposals before the commission. Another is for a second 13th Gate Park location, planned as a 75-acre haunted house and recreational park complete with a corn maze, outdoor laser tag field, a zombie run and cemetery, near Joor and Mickens roads. Here's a look at some of the other items up for consideration:
• Plans for 100 new homes at The Settlement at Willow Grove
• A second filing at Hoo Shoo Too Lakes, proposing to create 41 single-family, residential lots
• A zoning change to the old Stella Boutique, at 3033 Perkins Road, to allow alcohol to be sold at the location, which is slated to become a new pizza joint
• Plans to add and renovate residential housing at Heritage Ranch, a Christian children's home that serves boys ages 13-17, providing family-style housing, counseling and comprehensive case management, with the goal of family reunification
• Plans for Burbank Apartments, a 235-unit complex at Nicholson and Burbank
• Final development plan approval for the Greens at Millerville
• A zoning revision to the Harveston concept plan at Nicholson Drive and Bluebonnet Boulevard.
The meeting begins at 5 p.m. on the third floor of City Hall, 222 St. Louis St. You can see the full agenda here. —April Castro

Whitney Bank has approximately $80 million in pent-up loan demand in the Capital Region, according to Troy Hebert, Baton Rouge market president. That represents about 25% more loan requests than the bank had in its pipeline last year at this time, which suggests the economy is continuing to improve, albeit slowly. "We are starting to see more and more demand," says Hebert, adding that the requests for financing are coming from all sectors—industrial and petrochemical, real estate, and a variety of small and medium-size businesses. "A lot of companies are coming into this market or expanding into this market." Between 60% and 75% of deals in Whitney's pipeline, on average, will receive approval, says Hebert. Included among them will be a small amount of loans for speculative building, something this market hasn't seen in a long time. "We aren't telling builders to go out and build 50 spec homes," Hebert says. "But there are some select projects where it makes sense." In 2011 Whitney was acquired by Hancock Holding Co., thus creating the 32nd-largest bank in the U.S. Branches of the merged banks continue to operate under the Whitney brand name in Louisiana. Earlier this month, the bank announced plans to close 45 branches across its five-state region. Hebert says the move is designed to reduce expenditures by some $50 million and increase efficiencies. Three branches in Baton Rouge are among those slated for closure, pending FDIC approval. —Stephanie Riegel

The state Department of Education had gaps in its monitoring of the academic and contractual performance of Louisiana charter schools last year, according to a legislative audit released today. The review by Louisiana Legislative Auditor Daryl Purpera's office says the department didn't verify that school-reported data used to grade performance was reliable, couldn't prove it tracked the legal obligations required of charter schools, and didn't make sure eight charter schools put on probation in 2010 met the standards to remain open in 2012. The audit looked at charter school monitoring activities during the 2011-12 budget year that ended June 30. Auditors say the education department complied with state requirements for monitoring the schools' financial performance. "However, LDOE did not perform all required academic monitoring activities. … In addition, we found that LDOE could not provide evidence that it comprehensively monitored the legal/contractual performance of these charter schools," the audit says. In a written response submitted by Superintendent of Education John White, the education department says it uses the same data verification process for traditional public and charter schools. White disagrees with the need for data audits of charter schools to double-check school performance scores, saying that would be an ineffective use of resources. Nonetheless, he says the agency will "continue to revisit and improve [its] data validation processes year after year." White's response says the department has updated its method this year for ensuring that legal obligations of the charter schools are met. You can find the full audit here.

Wednesday — The Louisiana Small Business Development Center hosts a workshop on starting and financing a business idea. The free workshop takes place at the Denham Springs/Walker branch of the Livingston Parish Library, 8101 U.S. 190 in Denham Springs, from 9 a.m. to noon. Register here.

Thursday — The Better Business Bureau presents the
B2B 2013 Small Business Trade Show, to be held at the Belle of Baton Rouge Atrium, 103 France St., from 10 a.m. to 6 p.m. Complete details for those wishing to host a booth or attend can be found here.

Thursday — The LSU AgCenter LaHouse Resource Center will host a Lead Certified Renovator Training course Thursday, May 23, from 8:30 a.m. to 5:30 p.m. After completing this course, attendees will take the RRP certification test, administered through the National Center for Healthy Housing, a nationwide EPA-accredited RRP training provider. Louisiana residential contractors also can earn eight continuing education units (CEUs) for participating. The event will take place at the resource center, 2858 Gourrier Ave. Cost is $200. Get complete details and a registration application here.

The Business Report planner is open to events of general interest to the Capital Region business community. Items must be submitted no later than noon Friday before the event occurs. Email ssanoski@businessreport.com with information.

For the full list of upcoming events, click here.

That sinking feeling: Gov. Bobby Jindal issued an executive order today instructing the Commissioner of Conservation to conduct a complete review of the permits issued to Texas Brine in connection with its operations of salt cavern wells in Assumption Parish, as well as all permits issued to Texas Brine throughout the state. Jindal issued the order because he says the company has not yet offered buyouts to homeowners in Assumption Parish affected by a sinkhole as it agreed to do in mid-March. The governor has more on the situation at his website here.

When you drill down to it: As many as 46,000 permanent jobs in the chemical industry will be created if all of the chemical and plastics projects that have been announced to take advantage of plentiful and low-cost supplies of natural gas are built, according to a study released today by the American Chemistry Council. The report examined 97 announced chemical and plastics projects, totaling $71.7 billion in potential investment in the United States. The Houston Chronicle has the full story here.

Up in the tower: The Supreme Court has affirmed the authority of federal regulators to try to speed local government decisions on proposals to build or expand cell phone towers. The court voted 6-3 today to uphold an appeals court ruling in favor the Federal Communications Commission. The case involves complaints to the FCC by telecommunications companies and the wireless industry that local authorities are delaying the placement and construction of wireless service facilities. The FCC said that local jurisdictions generally should act on applications within three months for existing structures and within five months for new towers. Several cities challenged the FCC's authority.