Deficit-closing plan targets education, health care, transportation

Public colleges will lose a slice of state funding, two state-run health facilities will be shuttered, and dozens of state employees could be laid off under the Jindal administration’s deficit-closing plan, which was unveiled today and approved by lawmakers. With a drop in tax forecasts and a shortfall in public school financing, Gov. Bobby Jindal had a $251 million funding gap in the $25 billion budget for the fiscal year that ends June 30. The administration used available state dollars and federal money to close nearly half the gap. An estimated $144 million shortfall remained, which Jindal closed by sweeping dollars from set-aside funds in different agencies, savings from a hiring freeze and agency cuts. “To eliminate the shortfall, we asked departments to identify targeted cost-savings measures to cut spending while protecting critical services. For many departments, these savings came as a result of reducing operational expenses in travel, supplies, acquisitions, operational services and professional services,” the governor said in a statement today. Louisiana’s public colleges are losing $50 million, taking the biggest hit. The state’s higher education board will determine how to divvy up the cuts among campuses by the end of the month. In other areas, the transportation department won’t replace equipment, the Department of Wildlife and Fisheries will delay plans to buy boats and upgrade computer software, dollars will be drained from two economic development incentive programs, and programs for at-risk youth will be slashed. Read a full article on the proposed deficit fix here.