As expected, a revenue forecasting panel delivered some grim budget news to Louisiana’s lawmakers today. As The Associated Press reports, the Revenue Estimating Committee reduced its revenue forecast by $103.5 million this year and $203.8 million next year.
The downward adjustments would put next year’s expected budget shortfall at an estimated $1.6 billion, or about $200 million more than previously was projected. The revenue shortfalls are contributing to another mid-year deficit the state must close before even addressing next year’s problems.
The numbers set by the conference for the year that begins July 1 will be used to craft Gov. Bobby Jindal’s budget proposal, due to lawmakers by the end of February. About 13% of Louisiana’s state general fund this year is tied to severance taxes and mineral royalties from energy production, yields from which have been hurt by the big drop in oil prices.
