Editing Edwin Edwards (section)

==Third term as governor, 1984–1988==
State finances nosedived during the third Edwards administration. Money from petroleum [[severance tax]]es decreased sharply in the middle 1980s because of plummeting oil prices. In 1984, Edwards attempted to deal with the erosion of state revenue by approving $730 million—Edwards had requested $1.1 billion—in new personal taxes, including a 1 percentage point increase in the state [[sales tax]], $61 million in higher [[corporate income tax]]es, and $190 million in additional [[gasoline tax]]es.<ref name=taxes>"Legislators buckle under EWE threat", ''Minden Press-Herald'', March 23, 1984, p. 1</ref> The legislature, overwhelmingly dominated by lawmakers beholden to Edwards, passed these taxes into law, but the taxes were highly unpopular and damaged Edwards' level of public support. Republican state representative [[Terry W. Gee]] of New Orleans said at the time, "Nobody realized the magnitude of what's going on; I've had 180 phone calls in two days against the higher taxes."<ref name=taxes/>

Much of Edwards' support in the 1970s had been fueled by high levels of social spending during times of economic prosperity; with economic conditions worsening, his popularity waned. To obtain passage of the higher taxes, Edwards first submitted Treen's 1984–1985 proposed budget as a warning to lawmakers. The Treen budget, he claimed, would cut state spending too drastically and cause roads to fall apart, bridges to collapse, and insurance premiums to skyrocket. Edwards predicted that if lawmakers passed Treen's budget instead of the higher taxes the voters would rebel and blame the legislature itself for the results.<ref>"Edwards submits Treen's budget in attempt to force legislators' hands", ''Minden Press-Herald'', April 17, 1984, p. 1</ref> In the end, Edwards got most of what he wanted and was able to use the excuse of teacher pay increases to put pressure on lawmakers.<ref>"Edwards wins tax battle", ''Minden Press-Herald'', June 30, 1984, p. 1</ref>

===John Volz indictment and trials===
In February 1985, soon after his third term began, Edwards was forced to stand trial on charges of [[mail fraud]], [[obstruction of justice]], and bribery, brought by U.S. Attorney [[John Volz]]. The charges were centered around an alleged scheme in which Edwards and his associates received almost $2 million in exchange for granting preferential treatment to companies dealing with state hospitals. Edwards proclaimed his innocence and insisted that the charges were politically motivated by Volz and the Republican Party. The first trial resulted in a mistrial in December 1985, while a second trial in 1986 resulted in an acquittal. After Edwards and his four co-defendants were acquitted, the hotel where the jurors had been sequestered revealed that half of the jurors had stolen towels as they left.<ref>{{cite web|url=https://apnews.com/6f5ac09e80c78785988072ee896ed40d |title=Jurors Accused Of Swiping Hotel Towels |publisher=Apnewsarchive.com |date=1986-05-22 |access-date=2014-08-18}}</ref> Edwards quipped that he had been judged by a "jury of my peers".<ref>{{cite news| url=https://www.nytimes.com/2010/06/21/us/21iht-letter.html | work=The New York Times | first=Albert R. | last=Hunt | title=Kooky Politics Make for Entertaining Races | date=June 20, 2010}}</ref>

[[Russell B. Long]] had correctly predicted in March 1985 that Edwards would indeed be acquitted by a Louisiana jury and that the ensuing trial would not disrupt state government.<ref>"Long predicts EWE acquittal", ''Minden Press-Herald'', March 14, 1985, p. 1</ref> When Long announced his retirement from the U.S. Senate seat that he had held since 1948, he indicated his preference for Edwards as his senatorial successor but added, correctly, that he did not think Edwards would enter the 1986 Senate election. Long's successor would be U.S. Representative [[John Breaux]], Edwards' successor for the [[Louisiana's 7th congressional district|7th District]] seat 14 years earlier.<ref>"Sen. Long doesn't think Edwards will run (for U.S. Senate)", ''Minden Press-Herald'', March 29, 1985, p. 7A</ref>

Prosecutors referred to Marion Edwards, also indicted in the alleged health care scheme, as a "bag man" for his brother. Marion ridiculed this characterization at a [[French Quarter]] bar in New Orleans, when media representatives were present. He placed a shopping bag on his head to resemble a crown and tossed about phony $100 bills.<ref name=marion/>

Edwards later recited during a toast at a French Quarter bar, though his beverage was non-alcoholic as he was a [[teetotaler]], a rhyming invitation for Volz to "kiss my ass". The trials were rather lengthy, and at one point during the first trial but before the mistrial Edwards rode to the Hale Boggs U.S. Courthouse on a [[mule]] from his hotel. When asked by reporters why he did so, he replied something to the effect that it was symbolic of the speed and intellect of the federal judicial system, but also that he supported "tradition". Marion Edwards, an attorney, often wore a pinstripe suit with a top hat and cane and held comedic press briefings at the end of each court session on the steps of the courthouse. Marion Edwards mocked the U.S. Department of Justice, U.S. Attorney Volz, and United States Judge [[Marcel Livaudais]], who presided over the trials.

Even after beating the Volz indictment, Edwin Edwards' popularity was in decline. Despite his acquittal, the trial brought many sordid details of Edwards's conduct under public scrutiny. It was revealed that during frequent gambling trips to Las Vegas, Edwards lost hundreds of thousands of dollars under aliases such as T. Wong, E. Lee, B. True and Ed Neff (Edwards said he signed E. Nuff (enough), but computers read the name as "Ed Neff"), later paying these gambling debts using suitcases stuffed with cash of unknown origin.<ref name=laststand/>

After the trial, Edwards' support for the legalization of gambling as a solution to the state's severe revenue shortages contributed to a further decline in his popularity. He had made unpopular budget cuts to education and other social programs earlier in his term. Beginning in January 1986, he argued that legalizing casino gambling in up to fifteen locations and creating a [[Louisiana Lottery (modern)|state lottery]] would be a way to restore the programs, but the state legislature rejected his gambling proposals. Entering a tough re-election campaign in 1987, Edwards seemed vulnerable. Going into the election, his disapproval ratings ranged from 52 to 71 percent.

At first Edwards had predicted that a casino and a state lottery would net the state $600 million; then he lowered the expectations to $150 million.<ref>"Edwards hedges on gambling expectations", ''Minden Press-Herald'', February 14, 1986, p. 8B</ref> Both gambling measures would eventually be implemented, but not during Edwards' third term.