The Chaisson-led Amendment passed the Senate by large numbers.  In his emotional address, Chaisson said that body had previously voted overwhelmingly to pass and send over to the House, Senate Bill 335 and then unanimously passed HB 1 which funds for higher education but which were dependent upon the House passing SB 335 and a resolution by Chaisson concerning the Rainy Day Funds.          

The purpose for this maneuver was stated by Chaisson when he said, “Well Members, SB 335 languishes on the House calendar where it will probably die despite the fact that many House members would like to vote on it.

The Senate President said, “The House didn't vote on SB 335 and because of a procedural move”…it is possible that they might not ever have any debate on the subject.  Chaisson said putting this amendment on a House bill takes away the constitutionality argument that was made against SB 335.

Chaisson said that HB 669 does what “SB 335 would have done. It freezes excess itemized deductions at 65% for the next 3 years and provides a way to save higher education without raising taxes.”

The main issue surrounds what Chaisson described as “excess itemized deduction delay”.  Chaisson said he was making the amendment and that its sole object would be that the deduction freeze money would go to a "Higher Education Restoration Fund" to be used solely for the purpose of providing funding for higher education.

Chaisson said he wanted to set the record straight for “Nay Sayers”:

The President said: “They say that this is a roll back of the Stelly repeal. It is NOT.

They say that this is a tax increase. It is NOT.”

Chaisson then described the history of the itemized deductions.  He said that the excess itemized deductions were at 50% before “Stelly”, went to 0% after the voters approved the Stelly Plan, then were given back to the taxpayers in 2007 as a result of legislation sponsored by Senator Adley with a three-year phase-in provision before they hit 100%.

Chaisson further said that the state is currently at 65%---15% higher than they were BEFORE the Stelly Plan was approved.  Thus, according to Chaisson, two years ago, Senator Adley's repealed the part of the Stelly Plan which dealt with excess itemized deductions.

            Chaisson said “Freezing the deduction at 65% today does NOTHING to change that.”

            The President further referred to the opponents of the bill and said, “These people are distorting the truth by telling people that freezing excess itemized deductions at 65% is a plot to keep the Stelly Plan in place when it absolutely is not”

            Chaisson said, the income tax provisions of the Stelly Plan are gone “and nothing we do this session, including passage of this amendment, will do anything to change that”.

            The Senate President also said that freezing the deduction do not amount to a tax increase and that the people who itemize will get the same deduction next year that they got this year, “and their taxes, absolutely, unequivocally, and without a doubt, will not go up in any way as a result of this freeze.”

            In his speech, Chaisson said that freezing excess itemized deductions at 65% will keep the state from losing $118 million dollars in general fund revenue which he said is needed to reduce the cuts that have been proposed for higher education. “Doing so will leave the cuts at a more manageable level and allow our institutions to properly plan for and transition to what will be harder times ahead,” Chaisson said.

            Chaisson said that that freezing excess itemized deductions at 65% is supported “by every major newspaper editorial board in this state” plus various good government groups, legislative business groups, and many parents.  He also said that four former governors were so concerned that they took a stand at the Capitol.

The Senate President said that some members of the House tried to intimidate the senate into not even taking a vote on the HB335 and that after the Senate passed the lelgislation, some members of the Senate have “effectively killed the bill by refusing to have a committee hearing. This amendment gives the 105 members of the House of Representatives the chance to each have their say.”

Senator Chaisson ended his speech prior to the vote by saying that he hoped that the House would “concur in these amendments, but if the votes aren't there, then at least we can explore any real and responsible alternatives they might have to protect higher education, from what I think we all agree, would be devastating cuts if we were to do nothing. And make no mistake Members, HB 1 in its current posture with the Governor's promised vetoes, does nothing to significantly restore higher education from the $219 Million dollar cut proposed in the Executive Budget.”

In a separate vote, in an action by Republican Senator Michot, the Senate adopted amendments proposed by Michot to House Bill No. 802 by Representative Fannin added language which would allow access to the “Rainy Day Fund”

In Chaisson’s prior message to the Senate during the vote on the Peterson Amendment, the President said, Furthermore, the House has yet to take a vote on tapping the "Rainy Day Fund". I want to give them a chance to cast those votes.”

The GOP responded quickly and said, “Today, Republican Party of Louisiana Chairman Roger F. Villere, Jr. released the following statement regarding the Louisiana State Senate’s attempt to increase taxes: 

“Tax hikes have more lives than cats.  Today, the Louisiana State Senate amended House Bill 689 to include the tax increases previously included in Senate Bill 335 in an attempt to get around the ruling of House Speaker Jim Tucker that bills that raise revenue must originate in the House, but the real problem has never been the process – it’s been the policy.   

“A delay in promised tax relief is no different than a tax increase.  Individuals who itemize their federal deductions will pay more in taxes this year and in subsequent years than they were supposed to pay.  Raising taxes, especially during our current economic challenges is neither fiscally nor economically responsible.  As Louisiana families and small businesses tighten their belts so must government.” 

I strongly encourage the House of Representatives, particularly the 55 members who signed a letter in opposition to Senate Bill 335, to reject Senate Floor Amendment #3447 and to prevent its inclusion in the conference report.”  Additionally, Villere asked that fiscal conservatives call their Representative and tell them to reject HB 689 and kill the tax increase language in conference committee.