[StBernard] Governor Kathleen Babineaux Blanco Special Session Address

[Westley Annis]

Mr. President, Mr. Speaker, members of the House and Senate, and people of
the state of Louisiana:

Our state has been through some of its most challenging days.  Our citizens
stood tall and proud as we battled two storms, two floods. In between
storms, we brought 3000 National Guard soldiers home from Iraq and
Afghanistan.  

This coming Friday is Veterans' Day.  I want to take a moment here to
recognize Louisiana veterans of all wars and all services.  And, let me
single out the 256th Brigade of the Louisiana National Guard and its
commander, Gen. John Basilica, just back from Iraq. 

Louisiana is proud of the service and sacrifice the 256th made for our
nation. 

Tonight marks an important step on the road to recovery.  When I last
addressed this body in the immediate aftermath of Katrina, I spoke of the
resilience and heroism of our people.  Little did we know that Rita would
test us again just days later.   Just as we did after Katrina, we rose from
Rita with our spirits intact.   

Katrina and Rita altered the fabric of our society.  They changed our
geography.  They shattered our communities.  They scattered our citizens.
We pulled together to get through Katrina. We pulled together to get through
Rita.  And we are pulling together tonight to expand on our efforts underway
to rebuild our state safer, stronger and better than before.
 
With the eye of history upon us, we owe it to the people of this state to
cast aside our differences and move forward together.  The next few weeks
and months will test what it means to be public servants.  

Katrina and Rita have challenged us to do what is right for our state. I am
confident that we will each do our part to see that a new morning springs
from Louisiana's darkest night.         

We all know that this recovery is not a sprint. It requires endurance and
commitment from all of us. 

Recovery will involve tough choices.  Over the coming months, we will return
time and again to continue to protect, strengthen and improve Louisiana.  

I have outlined an ambitious agenda for us to tackle over the next 17 days.
I urge you to enact key legislative reforms that will accelerate our
recovery.   

As we get to work, it is important to spend a few minutes reflecting on the
huge strides Louisiana has taken to help herself during the days and weeks
since the hurricanes.  

We all know that our businesses and industries need far more than a shot of
adrenaline to rebound and put our people back to work.  We have been working
to provide our businesses with the lifelines they need to return.   

We redirected ten million dollars from our Rapid Response Fund to make
short-term, interest-free loans to businesses struggling to stay on their
feet.

We have placed almost 5,000 trailers at Louisiana plants and Louisiana
businesses as temporary housing for Louisiana employees.  Our people are
taking that first important step to returning home by returning to work. 

We have launched a free bus service to connect evacuees in Baton Rouge with
jobs back home in New Orleans.  I have personally met with people who have
traveled to New Orleans and found jobs, and I am encouraged by the hope
reflected in their faces.  

We are granting the entire 16 million dollars in our Interim Emergency Fund
to local governments trying to keep their vital services going.

School districts across the state have opened their classrooms to welcome
almost 28,000 displaced students.

Louisiana universities have accommodated more than 8,700 students displaced
from public and private colleges.  

Because of the wise fiscal decisions this Legislature has made in the past,
Louisiana has one of most-solvent unemployment funds in the nation, at 1.5
billion dollars. In the last two months, we've paid out almost 300 million
dollars in unemployment benefits to more than 310,000 workers affected by
the storms.

Last month, I created the Louisiana Recovery Authority and charged them with
leading and coordinating the state's efforts.  This diverse group of
talented local, state and national leaders is working with my cabinet to
turn my vision of this recovery into reality.

They are working on major issues from housing and law enforcement ... to
economic development and the environment. I told them to listen to the local
folks and the local leaders. Local needs must drive the plan for our state's
recovery.

We have a long way to go, but Louisiana is coming back.  

And we're here tonight to take another major step forward in our recovery. 

In Louisiana, I am proud that we have united our efforts to restore our
families and rebuild our communities. The nation must see a united front.
Our fellow Americans must know that we are united in purpose and determined
to recover.

With God's help and with his wisdom, I know that Louisiana will prevail.


St. Paul wrote about the importance of unity. He wrote that God composed the
body of many different parts. Those parts must all work together for the
whole to succeed and survive. He wrote: "If one member suffers, all suffer
together. If one member is honored, all rejoice together."

Now, in the toughest of times, we are a people united by a proud history and
common heritage. And, we will be united again in the best of times.  

Here in Louisiana, we live by a rule that many in Washington envy.  We are
required by law to balance our budget every year, and to keep it balanced.  

Now, we face a budgetary crisis that has forced so many of our families -
and now our state - to balance our checkbooks on a very tight budget.  Over
the next 2 weeks, we will address the budgetary shortfall brought on by the
storms.   
    
The combination of 81,000 businesses stilled by the largest natural disaster
in United States history and the loss of economic power of hundreds of
thousands of our citizens spread across the country hit our budget hard. 

We've lost almost one billion dollars - so far.  

Many have said that we should take a business approach to our financial
challenges - that's exactly what we have done.  

Any good business knocked off balance by an event beyond its wildest dreams
would first control its costs, before taking money from its savings.  This
business would turn to bankers and business experts and look for creative
solutions.

That's how I'm tackling our financial challenges.

By executive order, I have cut $500 million in spending from state agencies.
That is just the first part.

The second part of our financial strategy is to use money from our savings.

As with unemployment insurance, wise legislative decisions of the past gave
us a Rainy Day Fund that is now worth $460 million.  Ladies and gentleman,
if this is not the rainiest day ever in Louisiana history, then tell me what
is.  I recommend that we take the justified step of investing one-third of
this fund to help balance our budget.  

The third part of this package involves borrowing funds to meet critical
state needs and provide relief for local governments. 

This three-tiered program is a strong, sound way to move forward ... cutting
deeply, taking a modest amount from our savings and developing a
business-like loan package.  Thousands of large and small businesses are
doing the very same thing.

One thing I am not asking for in this session is new taxes.  

We must position ourselves for recovery.  Our people need their precious
resources to restart and rebuild their own lives and businesses.

Mine is a balanced approach-- a business approach designed to provide
citizens with a basic level of vital services in these extraordinary times.


Some of you will refuse to be satisfied.  You may want to borrow more.  Some
of you may want to cut more.  I invite any critic to look more closely at
the budget, as I have, then offer me reasonable suggestions. 

In addition to the 500 million dollars in cuts, I will present you with a
package of more drastic cuts for your consideration. I promise that there
are plenty of opportunities for you to have your input.  

I believe that you will find the process just as challenging as I have.  I
urge you to adopt a reasonable balanced approach to resolving this budget
crisis.  

I also urge you in the legislative and judicial branches to examine your own
budgets and make similar cuts in your operations.  

The challenges presented by our budget crisis are some of the most difficult
we have ever faced.  We are - very simply put - adjusting to reality. These
times, and our citizens, demand change.

I am cutting some of your favorite programs. Some of you will consider these
cuts too painful and you will try to avoid them. Let me warn you - this is
just the beginning.   

As you have recently heard, I have been presented with a bill for the
state's share of the federal disaster expenditures.  This first estimate
comes to 3.7 billion dollars. I will work to reduce it but, I know it all
won't go away.

Life has changed for us all.  

Like our people, our economy has suffered a grievous injury.  There is only
one way to respond - to cast aside the politics of the old days and make the
tough decisions that will allow this state to heal itself. 

We must put our collective shoulders to the wheel and focus on the
rebuilding efforts that our people need and want. 

Let us agree here tonight that our recovery cannot succeed if we let
partisanship into this chamber. For the next 17 days, let's check our
political agendas at the door.

We will work on a wide range of issues, including five key areas affecting
our recovery:
-- strengthening coastal protection  
-- creating a state building code 
-- revamping troubled schools 
-- enacting tax breaks for businesses and families 
-- all while insisting on a higher ethical standard.

The recovery of any community on our Gulf Coast cannot happen without
knowing that the homes, businesses and schools we rebuild are safe. Families
and employers won't come home unless they feel secure.

Security requires rebuilding the levees stronger than before, but levees
alone are not the answer.  

Louisiana also needs thriving coastal wetlands for hurricane protection. I
am urging you to unify our coastal protection efforts. There is nothing more
urgent for the success of this recovery. We need a strong, coordinated plan
to show Washington that Southeast Louisiana needs Category 5 levees ... and
that Southwest Louisiana must have levee protection too.  

We need other forms of protection. 

Louisiana has never had a statewide building code. 

We must take the bold step of setting a minimum statewide standard to ensure
the homes and businesses we rebuild are prepared to withstand the next
hurricane. We will urge jurisdictions, especially those along the coast, to
set even higher standards. Better building codes will also help home- and
business-owners get the insurance they need to rebuild.  
 
The damage to so many businesses has jeopardized the efforts to rebuild and
normalize our economy.  I have urged Congress to consider a serious tax
relief package in order bring our businesses home and stimulate our economy.


I asked for accelerated depreciation, bridge loans and grants for small
businesses.  I am optimistic that Congress will deliver on some of these
requests.  But we in Louisiana must help ourselves and now is the time to do
it.

Therefore, my package includes several tax breaks for businesses and
families.  

Why, some may ask, would we deepen our budget problems with tax breaks?
Because, getting our businesses back to work will speed our recovery.  

I am proposing five tax breaks, many of which are directed at getting
businesses back into the storm affected areas.   

I suggest we first eliminate the sales tax on manufacturing machinery in the
storm-damaged areas.

Then, we eliminate the corporate franchise tax on new debt incurred by
businesses in the storm zone.  

As you know, residential customers pay no state sales tax on electricity and
natural gas, but business and industries do.  Therefore, I'm asking you to
provide 20 million dollars of relief to our businesses and industries by
reducing the state sales tax on electricity and natural gas.
  
I've asked Congress to help our people in the disaster areas with various
kinds of tax breaks.  If Congress gives our people the Federal disaster tax
credits I have asked for, then we must change our tax code so storm victims
don't pay state taxes on these federal benefits.

We are entering the holiday season and soon Christmas will be upon us.  In
order to make this holiday gift-giving season a little easier on our people
who have been under so much stress, I propose a one-day state sales tax
holiday in December.  This may help to brighten spirits.  

In some ways, these storms have given us opportunities to start anew and
rise above the limitations of the past.

One of the most important things that we can do to stimulate the regrowth of
the city of New Orleans is to totally revamp its public school system. 

I'm determined to do just that.

Katrina left the system crippled, with buildings damaged and students
scattered far and wide.  This presents us with a chance to overhaul the
system in a way that gives every returning child the opportunity to reach
his or her full potential.
 
I propose that the state take charge of the city's failing schools. We will
use innovative thinking, help from proven partners, and look to the charter
school model as one of our options.  

Now is the time for us to turn those schools around and create a system to
benefit every child in that parish.

Quality public education is the measure of strong and healthy communities.
If we really expect a rebirth in the city of New Orleans, a quality public
school system is absolutely essential. Families returning with new education
experiences will come home with higher expectations.
 
We must deliver and the best way is to start anew.

And, as we see billions upon billions of dollars invested in this recovery,
it's important that we meet the highest ethical standards.

With that in mind, I am proposing that legislators and elected officials
disclose whatever income they earn in the recovery effort.  We must assure
our people - and the nation - that this recovery is being conducted
aboveboard. 

At a time when America must continue to stand behind us, we need the nation
to understand what we know to be true.  Louisiana will make wise choices as
we rebuild.  We will engage in sound fiscal practices.  

I've worked hard to improve Louisiana's national image. That effort was
paying off before the storms. Now, with the eyes of the world upon us,
creating a better reputation is more important than ever.

As we go about our work over the next 17 days, we will finish just before
the holiday season.

Thanksgiving has always been a joyous occasion in my family and in families
across our state. We look forward to gathering for good company and good
food.  

In the good years, it is easy to enjoy holiday traditions without stepping
back to truly contemplate what it means to give thanks.  It's the toughest
times - the times of sadness and extreme hardship - that jolt us to remember
what is most important: our families, our friends, our communities, our
faith.  

I am honored that my family is here with me tonight.  My own mother, Lucille
Fremin Babineaux, may be 86 years old, but you wouldn't know it.  

She took in eight evacuees before the storm, and then loved having two Red
Cross volunteers living in her home for several weeks.  Mama, please stand
up.  

She is an example of the countless people who opened their homes and their
hearts. We are proud of the way this state pulled together. 

This year, it weighs heavily on each of us that so many of our families are
displaced and have lost their homes, forced to spend Thanksgiving far from
friends and family.  

Many still mourn the loss of loved ones and we share their pain.

I know that Louisianians everywhere will be explaining to their children
with a renewed clarity the meaning of the uniquely American holiday of
Thanksgiving.

Before returning home to our families, let us come together and enact this
important package.  Let us move forward together on the road to recovery.
Let us make our state stronger, safer and better than before.  

In closing, I extend my hand to each of you: 
Black and white 
Republican, Independent, and Democratic 
North and South 

Together, we must unite to give Louisiana something worthy of thanks.
United leadership focused on rebuilding, recovery and reform.

God bless our state and God bless our nation.

Thank you and let's get to work.

### 

The Louisiana Disaster Recovery Foundation (LDRF), Louisiana's fund for
Louisiana's people, has been established by Governor Kathleen Babineaux
Blanco in order to support long-term family restoration and recovery and
help provide assistance to our citizens in need through a network of
Louisiana charities and non-profit agencies. 

1-877-HELPLA1 (877-435-7521) www.louisianahelp.org