The agenda for today’s work session of the Caddo Commission lists an ordinance on first reading to fund $32,500 for the local arena football team, the Louisiana Rouxgaroux. The vote is to move this item for first reading to Thursday’s Commission regular meeting.
This Rouxgaroux is a FOR-PROFIT entity.
If funded this will be first FOR-PROFIT entity funded by the Commission in years, as in many years. This proposed funding may set a precedent, in a bad way.
The Louisiana Supreme Court addressed the issue of public funding of a FOR PROFIT entity in the CABELLA’s case.
The Louisiana Legislative Auditor has posted a detailed 34- page “Legislative Auditor’s CABELA’s test and Cooperative Endeavor Agreements” Memo and Sample Form that addresses the funding of FOR PROFIT entities by public agencies.
The three-prong test developed by the Louisiana Attorney General following CABELA’s decision provides that all three of these elements must be met for a public entity to properly expend public funds:
1. The expenditure must be for a public purpose that comports with the governmental purpose which the entity has legal authority to pursue
2. The expenditure of public funds, taken as a whole, does not appear to be gratuitous, and
3. Evidence must demonstrate that the public entity has a demonstrable, objective, and reasonable expectation of receiving a benefit or value at least equivalent to the amount of expended.
This ordinance was advanced by the Commission’s Economic Development Committee, which is chaired by mayoral candidate Stormy Gage-Watts.
Former commissioner Lyndon B. Johnson, who is a member of the Shreveport Bossier Sports Commission, is an independent consultant for the Rouxgaroux. Johnson proposed donation to the Economic Development Committee.
If this donation is approved, one can expect the Shreveport Mudbugs to request Commission funding, and potentially other local FOR PROFIT organizations. In additon, litigation may be filed to challenge this proposal.
John came to Shreveport in January of 1977 when he was transferred to Barksdale AFB.
He’s been active in Shreveport politics since deciding to make Shreveport his home.
John practiced law for 40 years and he now monitors local politics. He regularly attends Shreveport City Council and Caddo Parish Commission meetings.
John is published weekly in The Inquisitor, bi-monthly in The Forum News, and frequently in the Shreveport Times.
He enjoys addressing civic groups on local government issues and elections.