House opens debate on $27 billion budget bill

The Louisiana House opened what was expected to be a lengthy debate today on next year’s $27 billion budget proposal, which would make large cuts to public colleges, health care services and government jobs to cope with a steep drop in state revenue. The spending plan for the fiscal year that begins July 1 uses $1 billion in federal stimulus money. The House budget-crafting committee also nearly drained an expired insurance incentive fund, cut planned pay raises for state employees and tapped into an expected windfall from a proposed tax amnesty program to fill some gaps. But the money doesn’t cover all the shortfalls. Lawmakers are struggling to balance the 2009-10 budget with a projected $1.3 billion drop in state general fund revenue. Louisiana’s coffers are shrinking because of the recession, plummeting oil and gas prices and a slew of large tax breaks approved recently by lawmakers. “It’s an unfortunate situation, but it’s the hand that we’ve been dealt,” says Rep. Jim Fannin, D-Jonesboro, who as chairman of the House Appropriations Committee handles budget bills in the chamber. The House started its debate this morning, slowly going through the 291-page bill department by department. Next, the budget proposal will head to the Senate for debate, where many more changes are expected.