And That's Not Counting All the Money Seized from Congressmen's Freezers

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According to Leslie Eaton at the New York Times, Louisiana was girding itself for a huge revenue gap this year. It seemed impossible that enough taxes would be paid back to pay the state's expenses, since so many had fled after Hurricane Katrina.

Surprise surprise: Revenues are way up.

The state predicted that tax collections would plunge by almost $900 million this year, and it slashed spending to match. Instead, a record $9.2 billion is on track to be collected by the time the budget year ends on June 30, and at least some of that tax flow looks as if it is likely to continue.

Part of the upswing has come from gamblers dropping more dollars at casinos and video poker machines. Another part has come from higher oil and gas prices, which not only increase the state's taxes and royalties, but also increase profits in the petrochemical industry, which is a vital part of the Louisiana economy.

Of course, this is Louisiana; anyone want to guess where that revenue will actually end up?

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  1. So what’s your point, Weigel?

  2. A freezer someplace in Houston.

  3. “…anyone want to guess where that revenue will actually end up?”

    They’ll send a big check the federal government to reimburse FEMA.

    What? Stop laughing, I’m serious.

  4. Golly, the conventional wisdomers got it wrong again?

    Whodathunk?

    Maybe I should lend them my stopped clock to decrease their hits to misses ratio.

  5. “…a big check TO….”

    stupid keyboard

  6. We already know where all that money went. Our leges happily found out they didn;t really need to fight over the budget and were able to just let their pork roll on. It never ceases to amaze me how so many voters in this state, despite this kind of nonsense, will just keep voting for the incumbent anyway. “Better the evil you know” seems to ahve always been the order of the day in Louisiana.

  7. Profits are up? This calls for a Windfall Tax!! Obviously, the gov’t. is gouging!

    (sorry, today I’m apparently only going for the obvious jokes)

  8. While I generally agree with you, this is dumb. The contrapositive would be that of course LA didn’t make up the shortfall, just lookit!

    Being the supporter of a falsifiable notion isn’t required in the debate, but it does, you know, get people’s attention.

  9. So, you’ll be buillding the sort of levee system you need with all that money, right? No? Just going to leave it as it has been for decades, and then blame anyone who isn’t you when it goes wrong? Good plan.

  10. 🙁

    Louisiana, what a state, huh?

    I think I’m going to cry after I stop being stunned that people in NO voted for Nagin just so Landrieu wouldn’t get elected
    🙁

    Or that people wouldn’t vote for Jindal because he’s so…dark 🙁

    Well, at least we’re not Mississippi, oh snap!

    High Five anyone?!?!

    🙁
    I’m going to sulk now…

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