MELINDA DESLATTEAssociated Press
BATON ROUGE, La. (AP) - Gov. Bobby Jindal's former labor secretary is returning to the governor's cabinet to take the helm at the Department of Revenue and lead an administration effort to revamp the state's tax system, Jindal's office announced Wednesday.
Tim Barfield will begin his $250,000-a-year job as revenue secretary in October.
"Our top priority next legislative session is to reform Louisiana's tax system so that we can make our tax code fairer, flatter and lower for Louisiana families and businesses. We're excited that Tim is returning to state government to lead our tax reform effort as we continue to move Louisiana forward and make this the best place in the country to raise a family and find a job," Jindal said in a statement.
In an interview after the plans were announced, Jindal said the tax code overhaul effort will include a review of tax breaks and rates, with an eye toward creating a structure that encourages economic development and keeps Louisiana competitive in attracting business.
The proposals will be the centerpiece of Jindal's agenda for the 2013 regular session, which is focused on financial issues.
"We're long overdue as a state for a comprehensive review of our tax code. It's outdated," the Republican governor said.
Jindal had one significant caveat: Any changes he will support for the tax system can't generate more money for the state.
For example, if a tax break no longer makes sense and should be eliminated, Jindal said, the savings might be used to lower individual income tax rates. Anything that would drum up more money for the state is a tax increase in the governor's eyes.
Barfield has been working as chief development officer for home health provider Amedisys Inc. In Jindal's first term, Barfield was head of the Louisiana Workforce Commission, before briefly working as Jindal's executive counsel.
At the revenue department, Cynthia Bridges abruptly resigned as secretary in June after a dispute over a tax break interpretation. The agency's deputy secretary, Jane Smith, is serving as interim secretary and will return to her previous role when Barfield begins his new job, Jindal's office said.
Barfield's annual salary will be more than twice the $124,000 a year that Bridges received.
Jindal didn't say whether Barfield refused to take the job without the boosted pay, but he said Barfield will be paid less than his current salary in the private sector.
"He's taking a significant pay cut to come back, and we're lucky to have someone with his experience and his expertise," the governor said.
Barfield receive a $167,000-a-year salary in his last state job, as executive counsel to the governor.
Jindal's proposal to restructure the state's tax system comes as lawmakers have started their own effort to review the billions of dollars in tax breaks on the state's books, concerned about how much money the exemptions, credits and rebates are siphoning from the treasury.
The legislative review comes after four years of budget cuts that have fallen most heavily on public colleges and health care services. Lawmakers are questioning whether the state gets enough benefit for some of its tax breaks and whether others should be tweaked or discarded.
Jindal said his efforts weren't duplicative and will dovetail with a renewed interest in the subject as lawmakers head into a fiscal legislative session next year.
As labor secretary, Barfield spearheaded a 2008 revamp of his department to coordinate a fragmented system of worker training programs and services around Louisiana. In 2009, Barfield helped beat back lawmakers' attempts to overturn Jindal's rejection of $98 million in federal stimulus money for unemployment benefits.
Before being tapped for Jindal's cabinet, Barfield worked as president and chief operating officer for engineering and construction firm The Shaw Group Inc., a Fortune 500 company based in Baton Rouge. He resigned from the company in 2006.
Barfield worked at Shaw subsidiaries from 1994 to 2003, including work as general counsel for a subsidiary from 1994 to 1999.
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Tim Barfield (photo from parishofcameron.net)
