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Letter from LEAN By Marylee Orr For a long time, environmentalists have been stereotyped as wanting to improve and preserve the environment at any cost, even if it means bringing the economy to a screeching halt. Though that's inaccurate and untrue, our opponents were successful over the last 25 years as painting us with this broad, sweeping brush in order to drive a wedge between us, working men and women and small business owners. About two-and-a-half years ago, LEAN started working with LSU professor and former DEQ Secretary Paul Templet on a project that would help Louisianians realize that we can have it all - a clean environment and a strong economy. This campaign is called "Give me the Green!" and the slogan is "A good environment equals a good economy." We produced a brochure that dispels many of the myths used to scare the public about the effects environmentalism has on the economy. An important step in moving to a new way of doing things is to illustrate that the old way doesn't work. The economic system set up by industry for industry is not working for anyone but industry. It's called economic development by its supporters, but in reality it's corporate welfare. The claim has been that by giving industry welfare dollars (they call it tax incentives or tax breaks) industry will hire Louisiana workers and buy goods and services in our state in order to run its operations. The industrial 10-year tax exemption is a perk that allows industry to avoid property taxes. The state constitution requires that these tax breaks be given to industries in the manufacturing sector only. Manufacturing jobs account for only 10 percent of the state's workforce. In the 1990s, we've spent $3.1 billion dollars to chase only 10 percent of the jobs. In fact, between 1982 and 1995, we've actually lost 26,000 permanent jobs. That means that the taxpayers of this state paid $154,000 for each job lost. So much for corporate welfare bringing us more jobs. Since industry buys everything from paper clips to high tech equipment out of state, it often avoids paying sales tax. Small- and medium-sized businesses are never offered the same advantages. Nationally, most new jobs are created by small- and medium-sized businesses. In Louisiana, 97 percent of all businesses have 100 employees or less. Yet, the lion's share of corporate welfare goes to the big corporations with political clout. Last week in a Senate committee hearing, I heard a Department of Economic Development Employee say two things that still ring in my ears. The employee said there is no constitutional requirement that industry create jobs in return for the tax inducements and that the real reason for the welfare program is so that companies will invest in Louisiana. Who cares if there's no constitutional requirement? Why shouldn't industry have to produce something to get the welfare dollars? What happened to the idea that you don't get something for nothing? As far as industry investing in Louisiana, what is the rate of return? Those tax dollars belong to you and me - not to the companies. Industry and state officials admit the tax breaks don't create jobs. Industry doesn't buy much of its supplies here. So, what is the rate of return on our investment? I don't know of a businessperson, stockbroker or CEO that would invest in a losing proposition or continue to put money into something that doesn't perform. The reason we don't know the rate of return is because no one checks. And maybe that's because no one really wants to know. Industries seeking the welfare dollars fill out a one-page form and states how many jobs and how much payroll are expected to be created. DED, or any other state agency, never goes back and verifies how many jobs and how much payroll were actually created. If this were truly a great program you would think that DED would verify the success and then brag about it. You would think ? It's time to go a step farther with our original "Give me the Green!" campaign. I would like to introduce you to The Louisiana Quality of Life Campaign. The three goals of this campaign are: 1) to educate the public about the ineffectiveness of corporate welfare; 2) to demonstrate how companies can positively impact the environment and economy; 3) start a program that will identify these companies that would have a positive effect on the environment and economy and recruit them to Louisiana. Recent events prove to me that this is the perfect time for this new initiative. First, in November 1998, Time Magazine revealed that Louisiana is the number one state per capita in corporate welfare. The series dedicated one entire installment to Louisiana's polluting industries and pointed out that our schools, roads and environment continue to be used up because industry does not pay its fair share in taxes. In other states, corporate welfare is just a failed economic policy. However, in Louisiana corporate welfare fuels polluting industries that damage our environment, our communities, our health and the health of our children. I recently became aware of the heroic efforts on this issue by Senator Mike Robichaux, D-Mathews. Senator Robichaux has taken a common sense approach and wants to hold corporations accountable and responsible for the welfare dollars they receive. He introduced two bills that would put limits on the amount the state would be willing to pay in incentives for jobs. The first bill, SB 529, failed to get out of the Senate Commerce Committee. The second bill, SB 968, could be heard as soon as May 26 by Senate Commerce. Senator Robichaux's measures also require that industry makes good on its promises of permanent jobs and payrolls in the first five years of tax exemptions awarded, otherwise industry doesn't get an additional five years. The cover story in Gambit New Orleans and Gambit Baton Rouge on this issue shows that the real victims of corporate welfare are municipalities that struggle to pay for public services and the working men and women of this state. The abuse by industry of numerous corporate welfare programs exposed in Gambit is nothing less than an outrage. I thought it was important for you to see it, so a copy of the story is enclosed. All the information available on job growth clearly shows that the sector with the most growth, the most new jobs and the highest pay are associated with knowledge-based companies, like Mind Spring, Microsoft and Hewlett Packard and the like. But these companies are going to cities with clean air, clean water, and good schools. Seattle, Austin, the Sierra Nevadas in California and such-n-such Carolina have proven that people can have a clean environment and a strong economy. And so can Louisiana. We will make people aware of The Louisiana Quality of Life Campaign through a statewide public relations push. We hope that will prompt the public to call a toll-free number and request information on this project. Interestingly enough, a task force appointed by the governor recognized the need to attract knowledge-based businesses to Louisiana in its 20/20 Vision Report. But these companies will not come here if the public schools are a shambles, if we continue to have the second highest toxic pollution discharge in the country and if the infrastructure is substandard and our natural resources are used up. But it's not to late to change. I hope you will join me in supporting the Louisiana Qualify of Life Campaign and I hope this special issue of Environmental Watch helps you understand this important subject. |