Fleming: So-called fiscal cliff is not a crisis

METAIRIE, La. ( WGNO ) — State Treasurer John Fleming stopped by the WGNO News studio on Tuesday, July 9, to talk about a variety of topics. First, Fleming addressed what some are calling a fiscal crisis.

“There is a so-called fiscal cliff, not a crisis, but a cliff that with contracting a little bit in areas that are really wasteful spending anyway, we should easily get by without any problems,” Fleming said.

Next year, a 0.45% sales tax will expire in the state that was put in place during the John Bel Edwards administration. By some estimates, the state could lose $400 million in revenue, or more. Renewing the tax would avoid and cuts required to absorb it.

“I feel like that by reducing spending a little bit, contracting government just a little bit, and the governor is taking care of that, we’ll be able to easily get by without having to renew that sales tax,” Fleming told WGNO News.

Fleming also said that the state is making good investments that are generating revenue.

“For instance, we just purchased $10 million of Israeli bonds to help our friends in Israel in their fight against terrorism. We’re getting excellent return on that investment, 5.36% on those bonds,” Fleming said.

Fleming calls the state’s reserve funds “plump” and says that a recent increase in Louisiana’s bond rating from AA- to AA, allowing the state to borrow money at lower interest rates.

Fleming also touted the state’s recent move to gold and silver declared as legal tender in the state. “We know that precious metals can be a hedge against inflation, which hurt the people which are in the lower income stream as well as those on fixed incomes.”

But Fleming says that the most popular program his department runs is Unclaimed Property, which looks to return money owed to people in the state. Fleming says the state has $1 billion or more in unclaimed insurance payments, tax refunds, utility deposits and other monies. This year, he’s returned about $5 million dollars to more than 27,000 people. Fleming is urging everyone to visit the state’s unclaimed money website to see if they’re also owed any money.

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