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Legislature approves Jindal's $1 billion spending plan

04:17 PM CDT on Friday, March 14, 2008

Associated Press

BATON ROUGE, La. -- Lawmakers agreed to spend a $1 billion state surplus, give tax breaks to businesses and parents of school-aged children and then wrapped up their work Friday, handing Gov. Bobby Jindal most everything he wanted for his second special legislative session.

The Legislature spent only six days speeding through the governor's 13-item agenda and approving the bills overwhelmingly -- despite some complaints that the proposals were moving too fast and with too little discussion.

Among the tax breaks approved was a bill to eliminate a 1 percent state sales tax on business utilities, starting July 1, that will cost the state about $68 million in lost revenue each year. Jindal and legislators said the tax hurt the state's chances of attracting new businesses and getting existing companies to expand.

Lawmakers also agreed to speed up the removal of the state sales tax on manufacturing machinery and equipment and the corporate franchise tax levied on borrowed capital, two phase-outs started under former Gov. Kathleen Blanco.

Many of the complaints centered on the governor's proposal for spending a surplus of more than $1 billion from the 2006-07 budget year. But lawmakers made few changes from Jindal's recommendations.

(Copyright 2008 by The Associated Press. All Rights Reserved.)