The fight over accepting federal stimulus dollars aimed at expanding unemployment benefits is another chapter in what many political observers characterize as Gov. Bobby Jindal’s rocky relationship with the state Legislature.In a letter sent to Sen. Mary Landrieu’s, D-La., office last Wednesday, Douglas Small, deputy assistant secretary for the U.S. Department of Labor, specified Louisiana would not be required to make a permanent change in state law by accepting the federal dollars expanding unemployment benefits — allaying one of Jindal’s primary concerns about accepting the $98 million.”As a result, if a state eventually decides to repeal or modify any of these provisions, it may do so, and it will not be required to return any incentive payments,” Small wrote.Jindal based his reluctance on the interpretation that taking the $98 million would force businesses to pay higher unemployment taxes once the federal money runs out in a few years.State Sen. Eric Lafleur, D-Ville Platte, said while Jindal’s concern about what the state will be obligated to do in the future was legitimate, “you won’t find anyone who had the same interpretation they had.”Lafleur said it was always clear to him the state would have the ability to repeal the law in two or three years time when the federal money runs out. The letter from the Labor Department confirmed that in writing, he said.”I feel comfortable with myself knowing we could change the law two years from now, three years from now,” Lafleur said.It’s still unclear whether Jindal will accept the money, as he still has fears that doing so may result in higher taxes.”Our position remains the same. We’re certainly not going to take federal dollars if they cause a tax increase on Louisiana businesses,” Jindal said in an interview with The Associated Press.A ROCKY RELATIONSHIPTalk of overriding the governor — should he not accept the money — has swirled since he announced his intention to reject that portion of the stimulus funds.Lafleur is pushing for a resolution to notify the federal government Louisiana intends to take the $98 million.Bob Mann, mass communication professor and former communication director for Kathleen Blanco, said Jindal “found himself out on a limb” while he was deriding the stimulus on a national platform, and he needed to turn some part of the stimulus down to gain credibility with his conservative base.Kirby Goidel, director of public policy research for the Manship School of Mass Communication, said it was also part of a political calculation — timed to increase interest in his national speech — and that the federal money’s impact on the state budget was never a primary concern.His new role as a representative for the national Republican Party, Goidel said, has made him a more partisan figure — a transformation exacerbated by the fight over the federal stimulus dollars, which, both Goidel and Mann acknowledged, is an issue that has been breaking down party lines in the Legislature.Lafleur didn’t know whether there was enough support in the Legislature to potentially override Jindal’s decision.”He may win the battles,” mass communication and political science professor Goidel said. “But there will be more criticism.”It’s part of a long-term political problem, Mann said, that began when Jindal vetoed a legislative pay raise last year — a “flagrant betrayal of trust” to many legislators — and continued through the new year when he decided to endorse Lee Domingue, a candidate for the special election to replace the District 16 Senate seat vacated by Bill Cassidy. Jindal promised legislators he would stay out of local races like District 16, where all three candidates are Republicans.If Domingue doesn’t win, Mann said legislators will be less afraid to publicly criticize him in the future. Mann was unsure if Jindal would eventually accept the money. He said Jindal is torn: Jindal could quietly signal to the legislature to push the money through or ultimately reject it to avoid the appearance of caving to the Legislature.”I don’t think he’ll back off on it now,” Goidel said.- – – -Contact Nate Monroe at [email protected]
Stimulus argument creates partisan battle for Jindal
March 24, 2009