Jindal administration makes budget cuts across agencies

Gov. Bobby Jindal’s chief financial adviser today announced a mix of cuts, one-time patches and hiring-freeze savings to close a nearly $166 million budget gap, with dollars slashed from hospice care, juvenile justice treatment, colleges, and domestic violence and abuse programs. Doctors and hospitals that care for the poor, disabled and elderly in the Medicaid program will be paid less for those services. Dental benefits to pregnant women through Medicaid will be suspended. Money for state parks’ maintenance is being reduced. Public colleges will be hit with a $22 million reduction in state funding. The Jindal administration says the cut to schools should not be a problem because they brought in more tuition than expected and saved millions with a hiring freeze. Commissioner of Administration Kristy Nichols detailed the plans to lawmakers. The cuts and financing changes will rebalance the $25 billion budget for the fiscal year that ends June 30. It was the fifth year in a row that the state has had to close a midyear budget deficit. This year’s budget gap was tied to a $129 million cut in the state’s income forecast, with less revenue expected from sales and individual income taxes. Also, the state’s funding formula for public schools and the state’s free college tuition program, known as TOPS, were short of money needed to cover all students, Nichols says. As many as 63 state government workers are slated for layoffs under the plans.