Louisiana’s higher education institutions and the Department of Health and Hospitals are both bracing for what could be deep cuts over the next three and a half months. Even after a special session that hosted several tax increases, lawmakers learned this morning that the state is still facing a $70 million shortfall for the current budget year.
Gov. John Bel Edwards had thought the figure would be closer to $30 million, but the Revenue Estimating Conference, which is charged with forecasting how much revenue the state will receive, increased that figure at its meeting today.
Commissioner of Administration Jay Dardenne, Edwards’ chief budget adviser, says reductions will have to be made to higher education and health care, primarily, before the fiscal year ends June 30.
“It’ll be pretty soon,” says Dardenne, on when he’ll announce the reductions, adding, “I don’t expect any institutions to shut down, but the cuts will be extreme.”
Dardenne says the state wants to be as smart as it can about the cuts, especially for the needs of higher education and DHH.
Edwards, speaking to reporters after giving the keynote speech at the Louisiana Mid-Continent Oil and Gas Association’s regular meeting, said he will meet with state agency and higher education leaders in the coming days and hopes to announce the cuts Monday.
“I can’t tell you how the cuts are going to be allocated. I can only tell you that that’s a big number,” Edwards said.
There was a bit of brighter news in regard to the next fiscal year that begins July 1. Lawmakers were working under the assumption that budget shortfall would be around $800 million, but the REC revised it downward to $750 million.
It’s still a staggering number that the House and Senate will have to handle while drawing up the next budget in the ongoing regular session. The budget is likely to be passed with that shortfall, and lawmakers will have to return in a special session to pass the needed revenue to close the hole.
Jeremy Alford will publish a daily update throughout the legislative regular session on Daily Report PM. Alford reports on Louisiana politics at LaPolitics.com. Follow him on Twitter or on Facebook. He can be reached at JJA@LaPolitics.com.
