Lafayette’s real estate market is ice cold, and it may get worse before it gets better.
The gist: Recent employment numbers from the state workforce commission show an increase in jobs in the Lafayette area. But those same numbers show continued job losses in Lafayette’s oil and gas industry. It doesn’t appear to have bottomed out yet.
2,400 is the number of jobs added in June 2019. The biggest gainer was Leisure and Hospitality jobs — the service industry, essentially — which added 1,100 jobs. Education and Health Services added 500, the next biggest growth sector.
200 is the number of jobs lost in Mining and Logging, the segment that accounts for the oil industry. Construction took the most losses with a reduction of 300.
Roughly 12,000 mining jobs have been lost since 2014 — a 50% decline. That means Lafayette has lost more than 10,000 oil and gas jobs in the last five years. The oil and gas industry used to directly account for 10.6% of all jobs in Lafayette, but now that total is down to 6.6%.
The national oil and gas industry is growing while Lafayette’s is shrinking. While nationally the industry still hasn’t recovered all the jobs lost during the crash, oil and gas employment nationally has increased every year since 2016. Even though the losses have slowed, Lafayette’s oil and gas industry has shrunk every year since 2014.
Jobs are growing in Lafayette, but employees are making less money. High paying oil and gas jobs are often replaced by lower paying jobs in restaurants, hotels and schools — exactly where recent growth sectors are. Per capita personal income in Lafayette Parish has fallen from approximately $51,000 in 2014 to under $46,000 in 2017. During that same period, per capita personal income in the state rose from $41,811 to $43,660.
Why this matters: Clearly, Lafayette’s oil and gas industry hasn’t hit bottom. Just because the crash has slowed doesn’t mean it’s over. What we’re seeing is further evidence of the establishment of a new normal, not just a downturn based on temporary market conditions.
The gist: On Thursday, the Federal Communications Commission voted to change the way franchise fees work, threatening to eliminate up to two-thirds of AOC Community Media’s annual funding.
Franchise fees are what cable companies pay to use the public’s rights of way. Typically cable companies pay 5% of their gross cable revenue to local franchising authorities.
Franchise fees account for about two-thirds of the public access media organization’s annual budget, which is a hair under $900,000. The other third comes primarily from contracts it has with LCG to record and webcast council meetings and other events.
Changes would threaten that revenue for AOC. The changes will allow cable companies to count a variety of in-kind contributions against that 5% franchise fee, rather than pay the entire fee in cash. Contributions could include courtesy equipment, network capacity, channels, grants, sponsorships, specially created programming, local retail facilities, and free advertising, according to the The Internet and Television Association, a trade organization that represents cable companies and supports the new rules.
Full disclosure: AOC Community serves as The Current’s fiscal sponsor for tax-exempt contributions.
The budgets of the city and parish of Lafayette could also take a haircut. Only one-third of the franchise fee revenue goes to AOC, with the rest split between the city and parish general funds. In other words, LCG could lose $1.8 million in general fund revenues.
Th next step will likely be the courts. Local public access channels and city officials have already started to band together in opposition, with more than 200 mayors voting in opposition of these new rules. Assuming it passes, it will almost certainly be challenged in court.
If this rule survives legal challenge, AOC could be significantly diminished. According to AOC Executive Director Ed Bowie, some version of his organization should be able to continue operations, but it will obviously have to be at a reduced scale if it loses two-thirds of its revenue.
The legal process could take a year or two to work through the courts. So even if this rule passes the FCC, it should be a while before its impacts are felt.
The general assumption has been that the parish is broke but the city is doing fine. When you dig into the latest budget, a more troubling reality emerges.
LUS Fiber has recently been accused of receiving millions in illegal subsidies from LUS. This is a complex issue with a lot at stake. An explainer is in order.
The gist: Last week, the mayor-president alleged that LUS Fiber charged LUS millions in fraudulent payments for a power outage monitoring system that wasn’t useful. He asked for the Public Service Commission to investigate, swirling controversy around Fiber and its former director. Regardless of the episode’s outcome, it’s clear Fiber faces significant financial risk moving forward.
When the Buchanan Street parking garage was condemned last October, it caused a series of problems Downtown. There have been complaints on social media of courthouse employees feeling unsafe walking longer distances to their cars at night, of defendants being late for trials because it takes so much time to find parking, and of businesses losing patrons who don’t have easy access to street parking now that a couple hundred extra cars are competing for spots.
The gist: Waitr started the year on a high, buying up equal-sized competitor Bite Squad and hitting $14 a share in March. Since then, the nascent public company hit the rocks, facing lawsuits, potential restaurant strikes and a stock that’s fallen below $7.
The gist: The Daily Advertiser broke a story late Monday that Lafayette Mayor-President Joel Robideaux has self-reported a second potential violation of state law regulating LUS Fiber. In his Monday letter to the Louisiana Public Service Commission, Robideaux claims LUS may have made illegal payments totaling $8 million to LUS Fiber over an eight-year period. If the PSC agrees, this could create a significant financial burden for LUS Fiber’s operations moving forward.
The gist: A new study out this year highlights housing challenges in Lafayette for low-income families. A big concern: It would take the equivalent of more than two full-time, minimum-wage jobs to afford a two-bedroom apartment in Lafayette Parish at fair market value. The study, called Out of Reach 2019, was produced by the National Low Income Housing Coalition.
Everyone knows Lafayette’s roads are bad. But some roads are so bad they’re a public safety hazard. Unfortunately there’s just not enough money to fix them, and the problem is getting worse every year.