National press lets Bobby Jindal get away with his big lies about Louisiana’s budget

Screenshot of Gov. Bobby Jindal on "Fox News Sunday," July 12, 2015

Screenshot of Gov. Bobby Jindal on “Fox News Sunday,” July 12, 2015

By Robert Mann

Louisiana Gov. Bobby Jindal wants you to know, if elected president, he’s qualified to take on the federal budget because he slashed his state’s taxes and spending during his almost eight years as governor.

Touting his presidential bona fides on Fox News, Jindal fended off host Bret Baier’s skeptical questions about Louisiana’s dreadful fiscal condition by bragging about his budgetary achievements. “We have balanced our budget eight years in a row without raising taxes,” Jindal said. “Largest tax cut in our state’s history. Income tax cut. Secondly, we have cut our state budget 26 percent, $9 billion.”

If you’re a potential GOP caucus-goer in Iowa, or a primary voter in New Hampshire or South Carolina, that probably sounds rather appealing.

The only problem is it’s not within a mile of the truth.

While Jindal did slash income taxes on middle-income and wealth individuals during his first year as governor, those cuts blew an annual $800 million hole in the state’s budget. During almost every year of Jindal’s two terms, the state has careened from one fiscal crisis to another. To close the recurring revenue gap, Jindal also slashed spending on higher education, more than any other state but Arizona.

In truth, Jindal ended most fiscal years with what Moody’s Investors Service called a “structural” budget deficit, meaning that he balanced the books only after raiding various trust funds –   money intended for specific purposes, not for balancing the state’s general fund – and by selling off state assets.

For example, Jindal’s 2014-15 fiscal year budget ended with a $141 million structural deficit and contained almost $1 billion in one-time money. Jindal’s final budget has $636 million in non-recurring revenue.

This from the man who once compared balancing the budget with one-time money to “using your credit card to pay your mortgage.”

All his fiscal mismanagement finally caught up with Jindal during the state’s 2015 legislative session. To close a $1.6 billion revenue shortfall – which would have devastated higher education and health care – Jindal agreed to increase a variety of taxes by about $720 million during this year’s legislative session.

Inexplicably, however, Jindal still clings to the absurd claim that he never increased taxes. His former chief of staff, now head of the state’s major business organization, strongly disagrees, as does the Louisiana Chemical Association, which is suing the state over what it says are Jindal’s unconstitutional utility tax increases.

Perhaps that’s why Jindal constantly throws up his 26 percent budget cut smoke screen. Whatever you can say about his disastrous fiscal stewardship of Louisiana, Jindal will remind you that he slashed state spending by 26 percent.

In November 2014, Jindal appeared on NBC’s “Meet the Press” and said: “Look at what we’ve done in Louisiana. So now, we’ve cut our state budget 26 percent, cut the number of state employees 34 percent.”

March 2015 op-ed in USA Today, Jindal wrote, “Our state budget is nearly $9 billion smaller, with over 30,000 fewer state workers, than when we took office in 2008.”

In March 2015, he told CNBC’s John Harwood: “We’ve cut the size of government 26 percent.” The same month, according to the Memphis Commercial-Appeal, “Jindal touted his conservative credentials Friday, saying he’s cut state government 26 percent, largely by eliminating 30,000 government jobs.”

Continue reading at Salon.com at this link.

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3 Responses to National press lets Bobby Jindal get away with his big lies about Louisiana’s budget

  1. June Butler says:

    Thanks, Bob. I needed your post. In a discussion on Facebook, when I said Jindal had trashed the state, a friend of a friend replied, “Does trashing mean turning Louisiana deficit into a positive cash flow?? It is time for therapy.”

    I said to him, “In Louisiana, there is no positive cash flow. It is all smoke and mirrors and flim-flammery masquerading as a balanced budget. Before you get personal and suggest therapy, perhaps you might read up on Louisiana politics. I live in the state, so it just might be the case that I know a bit more about what’s been going on with Jindal besides his campaign for president, which has been the focus of his activities for the last 7 years and counting.”

    And then I linked to your blog post to support my statement, noting that Moody’s and even Fox News were skeptical. 🙂

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  3. Stephen Winham says:

    “The old saying is that ‘figures will not lie,’ but a new saying is “liars will figure.” It is our duty, as practical statisticians, to prevent the liar from figuring; in other words, to prevent him from perverting the truth, in the interest of some theory he wishes to establish.”
    Carroll D. Wright, Statistician, June 25, 1889

    What Mr. Wright proposed with regard to the old saying attributed to Mark Twain is easier said than done, but we should commend Bob and others for trying.

    There are many ways to attempt to compare Jindal’s budgets to those of Blanco, none of which I was able to make support the 26% cut assertion. The issue of how many state employees there ever were, much less there are today, is very cloudy. When examined closely, the report on which Jindal relies for his assertion of a cut of over 30,000 asks at least as many questions as it answers in addition to the major one about contracts. So are we dealing misrepresentations, lies or both?

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