Solons hold out hope for tax cuts by Scott Rogers - posted Wednesday, June 27th, 2007 @ 11:08 pm  E-mail Story |  Print Story  Local legislators are holding out hope that Gov. Kathleen Blanco will be lenient with her veto powers when she reviews tax cut measures after the Regular Session ends Thursday evening. On Wednesday, Blanco advised lawmakers not to pass tax breaks of more than $180 million. She said doing so may cripple the state with an unbalanced budget. Republicans in the House and Senate had hopes of passing some $300 million in tax relief for Louisiana's citizens and businesses. However, Blanco warned the Legislature on Tuesday that unless it sent her a tax-relief package that keeps the budget balanced, she would cut out programs in the districts of legislators who insisted upon the tax cuts. Rep. Mike Walsworth said Wednesday that he believes the governor's remarks were "in the heat of the moment." "I don't think she really meant it," he said of Blanco's remarks that she would cut out certain legislator's projects. "I think they were off the cuff remarks, and I believe she will do whatever is best for the state." He said the Legislature will continue the debate on the proposed tax breaks until a resolution is reached. "We're still in the middle of it, and right now we're hoping to get these tax cuts," Walsworth said. "I'm hopeful they (tax cuts) will come through because our people deserve them and need them." "If they do come through, we will obviously come out with a lot better session than what we thought we'd have about three weeks ago," he added. Sen. Robert Kostelka said all of the tax-relief measures will be in the governor's hands. "The next step will be up to her … whether she vetoes bills or doesn't veto bills," Kostelka said. "Right now, we just have to wait and see." The main tax-relief measure that Kostelka hopes remains intact is the $157 million in tax cuts from the bill to roll back part of the so-called "Stelly Plan." The bill calls for the return of itemized tax deductions prior to the Stelly tax plan, which was implemented five years ago. "That's one of the biggest tax cut bills that was passed," Kostelka said. Kostelka also hopes the measure to provide tax deductions for private school tuition will remain intact. "Those are the kind of bills that the governor might veto," Kostelka said. Kostelka had a bill that would have taken all sales tax off utilities for all businesses - big and small - in the state, which failed to pass. "That would have been a large tax cut, but it got killed," he said. Walsworth believes the session has been a productive one. He is pleased with several aspects, especially the creation of a project he championed, the Ouachita Expressway Authority. The authority, which will be composed of a board of commissioners appointed by local governmental bodies and the state and federal delegation, will focus on funding for the proposed fourth Ouachita River bridge. The board of commissioners would have the power to obtain state and federal funding, as well as sell revenue bonds to pay for the cost of the bridge's engineering and construction work. The project could cost some $200 million and take several years to complete. Kostelka also believes the session has been productive. He's proud that the Legislature approved one of the biggest pay raises in the history of the state for teachers. The measure, which was passed by the House and Senate last week, calls for a $2,375 average pay raise for teachers. Also, school support workers would get an extra $750. The plan calls for $158 million to go toward the teacher pay raises and $35 million toward the support workers' salaries. "We've been successful in about everything but tax cut measures," Kostelka said. "We didn't get as many (tax cuts) as we wanted, and those we got might not survive."