In December, House Speaker Clay Schexnayder, Gov. John Bel Edwards and Port of New Orleans leaders touted the state and federal money headed to the $1.8 billion international container terminal in St. Bernard — a project the port sees as its crown jewel.
But in the span of a few hours on the last day of the legislative session last week, that bipartisan support for the terminal took a significant hit.
Edwards, a Democrat, had recommended that lawmakers approve $130 million in future construction funding for roadway improvements, site preparations and mitigation for the container terminal, which is slated for the town of Violet downriver from New Orleans. About $4 million of that money would have come in the near-term.
His request stayed in the state's construction budget, House Bill 2, throughout the two-month session. But on Thursday, House leaders worked behind closed doors to make a slew of changes to HB 2, in part to retaliate against conservative Republicans who voted against Schexnayder on a key vote to raise the state's spending limit.
When lawmakers voted on the bill, seven minutes before session adjourned, the funding for the terminal was gone. Legislators and port leaders found out about the cut only after the session had ended. The move has infuriated some lawmakers and economic development leaders who have touted the controversial project as the only way to keep Louisiana ports competitive with places such as Mobile.
Several supporters complained that the project got caught up in what they see as political backstabbing, and said the move to defund it sends the wrong message to the shipping industry worldwide.
"I think it's absolutely disgraceful," said Greg Rusovich, CEO of Transoceanic Development and a former chair of the Port of New Orleans. "It frankly is indicative of why the state is having such a problem in terms of growing our economy and growing jobs, and why we continue to take steps back instead of steps forward."
Port Nola CEO Brandy Christian said in a statement the terminal project has had "widespread support" from across the state throughout the session.
"So, it was surprising and disappointing that the largest public economic development project for the state got caught up in politics at the last minute," she said. "But to be clear, this project remains on track, and we will continue to move forward to deliver this vital infrastructure necessary for Louisiana to remain competitive in the global economy."
A spokesperson for Schexnayder, a Gonzales Republican who is term-limited and is running for secretary of state, didn't immediately respond to questions Monday. Schexnayder said at a press conference Thursday evening that he believes House members had enough time to review the hundreds of amendments to the bills, which were given to lawmakers a few minutes before the votes were taken.
That timeframe, however, prompted a firestorm of chaos and yelling as conservatives protested Schexnayder's tactics. Several lawmakers said that they had no idea what they were voting on when they approved the budget bills with minutes to spare.
After the rushed vote, House GOP Chair Blake Miguez, R-New Iberia, accused Schexnayder of breaking the House rules by refusing to acknowledge members who were asking to be recognized. In the days since, several conservatives have excoriated the speaker and other House leaders on radio shows and social media.
The bulk of the $130 million for the container terminal would only be allocated after other, higher-priority state projects have been funded; that process can take years. But $4 million of that money could have been spent sooner.
Supporters of the project hope Edwards can find a way to mitigate the cut through executive powers. It's unlikely he would call a special session, as it would require three-quarters of lawmakers agreeing on any spending items, which is nearly impossible in the divided House. Legislators left in another $50 million for a transportation corridor project in St. Bernard aimed at supporting the project; about $2 million of that funding will be provided in the short term.
Edwards, a key supporter of the project, didn't immediately answer questions about the cut. He has expressed concerns about some of the last-minute adjustments to the budget, including a $100 million reduction to the Louisiana Department of Health.
The 11th-hour amendment appears to be aimed at exacting retribution on Rep. Ray Garofalo, a Chalmette Republican whose district includes the proposed terminal.
Garofalo has been on the wrong side of Schexnayder ever since the speaker stripped him of his chairmanship of the House Education Committee in 2021, after Garofalo said during a committee meeting that he'd like the state's educators to teach "the good, the bad, the ugly" of slavery. Garofalo quickly corrected himself and said he misspoke.
He also was among 19 members who voted against raising the expenditure limit this session, a move Schexnayder supported.
Speaker Pro Tem Tanner Magee, R-Houma, said it's "unfair" for lawmakers to vote for raising the expenditure limit —a fraught political issue — and then "go spend it in Ray Garofalo's district." He argued Garofalo's vote against raising the limit is tantamount to Garofalo indicating he doesn't want infrastructure spending.
"I'm sure there is broader support for it, but that's the way this works," Magee said.
Garofalo said he learned about the cut the morning after the session ended, and that there's "no doubt" it was done to punish him.
"They're not looking at the good of the district, what's good for the residents of the area and what's good for the state of Louisiana," he said. "They're just looking for what's good for them and to send a message to legislators who don't do what they want them to do."
He also noted that while he supports the container terminal, it's controversial in St. Bernard and he wants to make sure it's done "the right way" to alleviate its impact on residents.
Rep. Stuart Bishop, R-Lafayette, who sponsored HB 2, didn't respond to messages seeking comment.
But the House's handling of the budget bills has upset some Senate leaders.
Senate President Page Cortez, R-Lafayette, didn't know the Port of New Orleans terminal got cut out of HB 2 until contacted by a reporter Monday. He said when the final version of the bill came to his office, about 40 minutes before the session had to end Thursday, his staff were working with Sen. Bret Allain, R-Franklin, and Sen. Mike Reese, R-Leesville, to "frantically" find out what changes were made to the Senate's amendments.
"Given the fact we were putting more money into the port priority program, and then to have a port project pulled out, seems counterproductive," Cortez said in an interview.
The cut inadvertently delivered a rare win for St. Bernard residents and leaders who have cried foul about the container terminal, warning it will disrupt traffic and cause environmental damage.
Jack Stephens, a former St. Bernard Parish sheriff who opposes the container terminal, said if the cut winds up disrupting the port's ability to alleviate traffic issues, it could make the project more vulnerable to court challenges.
"I'm encouraged by the fact the Legislature didn't see fit to do a full funding request on it," he said.
