Greater Baton Rouge Business Report: The effects of liquor

With state Rep. Sharon Weston Broome the apparent new speaker pro-tem of the Louisiana House, the liquor industry may have to have some tax increases in order to help fired substance abuse treatment.

On any given day, there are 8,000 to 10,000 people on waiting lists to get into treatment or halfway houses, according to Michael Duffy, head of the State Office of Addictive Disorders.

Yet there has not been a beer tax increase since 1948 nor any liquor tax increases since 1970, and no hike in wine taxes since 1956.

The reason? The state has a very strong liquor lobby that has been buying drinks--sometimes by the case--for legislators for decades. Want to sponsor a party? The liquor industry will supply the booze. They are ready to serve--and then they can call on you as their friend when liquor taxes are proposed.

Broome, an advocate for treatment for addictive disorders, wanted a tax increase that amounted to a nickel a drink two years ago. It died quickly.

Duffy's office has conducted needs assessment studies since 1996 that have shown Louisiana reaches only about 8 percent of those needing treatment. The Office of Addictive Disorders has a $69 million annual budget that includes federal funds. The taxes Broome suggested would have raised $83 million and would have put Louisiana up to the national average of reaching 20 percent of those needing treatment.

Incidentally, the $2 million the office gets for gambling addiction services from the gambling industry only helps it reach 1 percent of those identified as pathologically addicted gamblers.

They can say whatever they want, but the facts show that the Legislature takes good care of the booze sellers and gambling interests but not the people who are victims of the disease of addiction, either chemical or pathological.

Gov.-elect Kathleen Blanco is a very data-driven person. She owned and operated a marketing research firm until she was elected lieutenant governor, something her critics who vastly underestimate her forget.

During the campaign, Blanco said she generally opposed increasing any taxes but left the door open. She said the needs for addictive disorder treatment will be on the table at her health care summit and "it is possible, after we implement efficiencies, that we will have to provide more funding."

Broome has already said she will continue to work for liquor, wine and beer tax increases to fund more substance abuse treatment.

One new argument could be that there would be long-term savings in prison budgets.

"Our studies show that 77 percent of the people in state prisons are in need of treatment," Duffy said. "Of that 77 percent, 82 percent are non-violent offenders. If untreated, those folks go out and come right back into prison."

Regarding other taxes, Blanco has business on her mind. She plans to move to make Louisiana more attractive to investment by both large manufacturing and small businesses, which provide the most jobs.

She knows those temporary taxes on business need to be phased out as well, even if they have to be renewed in the short term this next spring.

"I think about the thousands of men and women out there who are fighting to keep a business afloat," Blanco said. "They are the ones running small businesses. They are the backbone of Louisiana's economy. This state needs to figure out how to strengthen our businesses, how to create a growth environment."

That will happen in her administration, Blanco promises.

"Small business provides most of the jobs," she said. "But we also need to supplement our retail and service establishments who would greatly benefit by having a large manufacturer come into their community."

The bottom line, Blanco said, is "we must think locally but also think regionally."

JOHN HILL is a Capitol reporter for Gannett newspapers. He can he reached at hillsails@aol.com.