When Bobby Jindal exited the governor’s office, he left behind a string of IOUs for his economic development deals.
The Associated Press reports at least $155 million in commitments for incentive payments and construction projects tied to various business deals could come due during the next four years of Gov. John Bel Edwards’ term.
Governors regularly make business commitments beyond their terms, leaving successors to pick up the rest of the tab. But Jindal’s obligations come as Edwards grapples with the state’s deepest financial crisis in nearly 30 years. The state is facing an estimated budget gap of $750 million for the current fiscal year, and a $1.9 billion gap for the next fiscal year.
In the upcoming budget year, which begins July 1, the Edwards administration will owe an estimated $50 million to companies from Jindal’s economic development deals.
Edwards’ chief financial adviser, Jay Dardenne, says the administration will meet the contractual obligations, as long as the companies hit the required performance benchmarks.
