Gov. Bobby Jindal is proposing to use $43 million in stopgap funds and nearly $61 million in cuts to close the state’s latest budget deficit this year. The Jindal administration released its budget rebalancing plan today, and lawmakers will consider the recommendations Feb. 20.
As The Associated Press reports, Jindal wants to shift dollars from a gaming enforcement fund to plug budget holes elsewhere, drain the remaining dollars from a nursing home trust fund and tap into other one-time pools of available cash to lessen the depth of cuts. But cuts also will be spread across most agencies. Only public colleges were spared reductions in this latest round of slashing.
The more than $103 million mid-year deficit stems from falling oil prices. The gap must be closed before the fiscal year ends June 30.
“The decline in oil prices means putting everything on the table and making tough decisions about our spending in order to have a balanced budget,” says Commissioner of Administration Kristy Nichols in a press release. “We will continue to make reductions to ensure we are not spending more than we take in. This plan includes strategic reductions that not only balance the current year budget, but put us in a position to create continued savings next year.”
Last week, the Revenue Estimating Conference adopted an updated forecast that lowered revenue projections by $103.5 million for the current year and $203.8 million for fiscal year 2016. Since the start of the fiscal year, the price of a barrel of oil has declined by more than 50%, from $105 per barrel in July to $52 as of this afternoon. That decline has reduced the state’s severance tax and royalty revenue in the current year by $275 million.
