Walsworth proposes plan for economic development by Sam Hanna, Jr. - posted Tuesday, January 30th, 2007 @ 10:36 pm  E-mail Story |  Print Story  In light of the Revenue Estimating Conference officially recognizing an $827 million state budget surplus from last year, the Legislature should spend roughly one half of that money, or $400 million, on highway construction projects and another $50 million on ports. That's according to a proposal unveiled Tuesday by state Rep. Mike Walsworth, R-West Monroe. Walsworth also wants the Legislature to spend another $300 million in excess revenues from the current fiscal year on highway work as well, while allocating another $300 million for economic incentives to entice a German steel maker to locate in Louisiana, creating an estimated 3,000 jobs, according to state economic development officials. If the German steel maker opts not to locate in Louisiana, Walsworth believes the $300 million earmarked for the prospective employer should be split among highway, port and economic development endeavors.  That spending proposal would entail $200 million for highway construction, $50 million for ports and $50 million for economic development concerns. According to Walsworth, his plan overall would be a one-time expenditure of state funds. "Roughly two months ago we witnessed the governor and many of her allies in the Legislature saying over and over that we needed to spend, spend and spend, but they didn't have a sound plan on how to appropriate the money," Walsworth said.  "Many of us in the Legislature were criticized for even questioning the governor about her spending proposals." "She (Gov. Kathleen Blanco) said we lacked vision," Walsworth noted. "Well, today, I'm offering a plan to give back money to the people of Louisiana by spending some of the budget surplus from last year and some of the excess revenues in the current fiscal year on much-needed road construction projects and port work and economic development projects," Walsworth continued.  "My proposal would help pay for many worthy projects which will benefit people from one end of Louisiana to the other." Walsworth went public with his proposal the same day, Tuesday, that the Revenue Estimating Conference certified that the $800 million-plus budget surplus from the 2005-06 fiscal year existed.  He said he also offered his plan for road, port and economic development work in preparation for a special session that's expected to be called prior to the Legislature's regular session this spring. Because of constitutional constraints, the budget surplus from last year can only be spent on non-recurring expenses, such as roads and bridges and ports. Meanwhile, revenue officials say the state is looking at least $1.6 billion in excess revenues over expenditures in the current fiscal year, which ends July 1.  That money, if deemed recurring revenue, can be spent on recurring expenses, such as teacher pay raises. "I have an idea that we (Legislature) will meet in a special session in late March or early April, just prior to the regular session beginning in late April" Walsworth said.  "I anticipate the governor will propose some insurance reform measures in the special session, as well a plan to spend the $800 million surplus from the 2005-06 fiscal year." "That's the surplus the Revenue Estimating Conference recognized today (Tuesday)," he added. Walsworth also said he wouldn't rule out introducing another proposal of his own. That one would deal with tax cuts and a reduction in overall state spending.  "As I continue to talk to and listen to my constituents more proposals for taxing and spending cuts will be proposed," Walsworth said.  "I'm very mindful of the state of our economy," he added. In a special session in December, the Legislature balked at going along with Blanco's plan to spend some $2.4 billion on one-time expenditures for road and bridge work and on recurring expenses, such as teacher pay raises.  Blanco also advocated spending roughly $300 million on economic incentives to convince the German steel maker to build its plant along the Mississippi River south of Baton Rouge. Blanco's proposal ran into trouble when the Revenue Estimating Conference refused to recognize the roughly $800 million budget surplus from the 2005-06 fiscal year. Meanwhile, Republicans in the House stopped lawmakers close to the governor from lifting the state's constitutional cap on spending. That prevented the Legislature from acting on much of Blanco's plan to spend excess revenues in the current fiscal year.