Are megaprojects' juice worth the squeeze? • Invest in Louisiana

Gov. Jeff Landry is hoping a slew of megaprojects, promising hundreds of billions of dollars in new private investment, can reverse decades of economic stagnation and population outmigration in Louisiana. But those deals have come at the cost of foregone tax revenue, secret negotiations and questions about who the projects will benefit. The Times-Picayune | Baton Rouge Advocate's Stephanie Riegel reports: The Landry administration has changed laws and offered billions in tax incentives to lure the companies. Data centers, in particular, are starting to create a backlash in some areas, echoing broader national concerns about artificial intelligence. Secrecy about the deals has become a hot topic, too, along with debates about whether large industrial investments can change the trajectory of a state that has been outflanked by its peers for the past half century Louisiana is projecting significant budget shortfalls starting next year, which will make it harder to fund basic needs. That hasn't stopped state leaders from doling out historic tax breaks: The value of the incentives offered to SpaceX totals more than $27.5 billion, according to a letter from Louisiana Economic Development in July to SpaceX executive Ben Lancaster. The incentives, the largest in state history, include a property tax break worth $23.5 billion and $3.6 billion in a sales tax rebate. The Meta deal, which will bring an estimated 1,000 full-time jobs to Richland Parish, includes an incentive package that was valued at more than $3 billion earlier this year, before the recent expansion. To lure Hyundai to Donaldsonville, the state agreed to a $2.6 billion incentive package. State leaders must ensure that newly created jobs are filled by Louisianans and downstream economic benefits stay in our communities: Jan Moeller (sic), … of Invest in Louisiana, a research group that advocates for equitable economic policies, has said that tax incentives aren't necessarily bad, but they need to provide a return on investment that justifies what is given away. 'We have all these needs in state government and a budget shortfall,' said Moller. 'That is why it is important when the richest man in the world comes to Louisiana and spends money and creates jobs, that his company also pays taxes.' Childcare is broken, but it could get worse Last spring, more than 7,700 Louisiana kids were on a state waitlist that helps families pay for childcare. Pandemic-era funding buoyed childcare assistance, a joint federal-state effort that supports working parents with low incomes. But now Washington and states are retreating from their role in childcare assistance. The Times-Picayune | Baton Rouge Advocate and Associated Press: As the pandemic money ran out, Louisiana kicked in more. In 2023, state lawmakers allocated nearly $88 million for CCAP, more than triple what the state spent in 2020. But the boost was short-lived. This year, the Legislature allocated about $79 million for the program, and federal funding is about $66 million below its pandemic peak. In June, the program served about 10,000 fewer children than it did four years ago. The Trump administration is considering a plan to strip childcare assistance from low-income working parents and give it to married couples with stay-at-home spouses. Coral Davenport of the New York Times reports: The move could end up redirecting money away from working parents and their child care providers, causing some to raise their rates or even close, critics said, potentially worsening what many experts say is a child care crisis in the country. … The policy change would effectively create a government incentive for parents to stay home with their children, an idea embraced as part of a broader conservative effort to advance policies that promote more mothers staying at home. The move raises legal and ethical concerns: Some department lawyers working on the plan have questioned the legality of requiring recipients to be married, according to the people familiar with the matter. Some have also raised concerns about whether the change could increase the risk of fraud, since the money would be going to individuals rather than businesses. The administration has sought to crack down on fraud in social services programs, particularly child care. Raising taxes to save Social Security Social Security faces insolvency by 2032 unless tax increases or benefit cuts are used to address its shortfall. The Washington Post's Steve Thompson explains how some congressional Republicans, a historically anti-tax bloc, are considering lifting the 'earnings cap' to shore up the popular program: This summer, Sen. Bernie Moreno (R-Ohio) joined Sen. Elizabeth Warren (D-Massachusetts) in proposing to raise the payroll tax cap so people with higher incomes pay more into the program. Now the idea is emerging as an acceptable fix among other GOP lawmakers, including Rep. Tom Cole, the influential chair of the House Appropriations Committee. 'We've got too many people who say, 'Well, we have to stay within the current income level or stay at the current tax rate,'' Cole (Oklahoma) said in an interview. 'I'm willing to look at the tax rate. I am willing to raise the amount of income through tax.' Nearly 1 million Louisiana seniors will have their Social Security benefits cut in six years unless Congress acts. Federal disaster aid is a guessing game The Trump administration no longer plans to dismantle FEMA, which was the preference of former Secretary of Homeland Security Kristi Noem. Stateline's Alex Brown explains how the agency's new leadership is alleviating anxiety of natural-disaster experts: 'It's basically a return to regular order,' said Craig Fugate, who served as FEMA's administrator under President Barack Obama. 'They're filling positions and reestablishing programs that got cut during the purge.' State emergency managers say the leadership changes are welcome developments. '(Hamilton) he has the right attitude as far as supporting his employees and supporting the states,' said Lynn Budd, director of the Wyoming Office of Homeland Security. 'I have a positive feel for that.' Concerns remain with how President Donald Trump issues major disaster declarations, which provide more substantial, longer-term federal aid: While FEMA has clear thresholds that determine which disasters qualify for federal aid, the president has full discretion to approve or deny those requests for help. Trump has been far more willing to grant disaster declarations for Republican-led states, at 89%, while Democratic-led states have seen only 23% of their requests approved, a Politico analysis found in March. Trump overruled the recommendations of his own agencies when he rejected federal aid for four Democratic-led states in July, Politico reported. Number of the Day 988 – The 988 Suicide & Crisis Lifeline is a national lifeline that gives everyone a simple three-digit number to reach a skilled, compassionate counselor 24/7 via call, text, or online chat. People can contact 988 for themselves or others for any mental health reason. (Source: 988lifeline.org)