The Louisiana House unanimously agreed Wednesday to a $34 billion operating budget for next year that includes hundreds of millions in federal coronavirus aid, with lawmakers cautioning about future financial uncertainties and disagreeing over hospital payments.
The spending plan for the financial year that begins July 1 would keep most programs and services from cuts, by plugging gaps with temporary federal dollars that Louisiana, like other states, is receiving to respond to COVID-19.
But lawmakers acknowledge they have concerns about what happens a year later, when the temporary federal stopgap aid disappears. If the state’s tax collections don’t rebound from the deep dive caused by the coronavirus, lawmakers would be left considering steep cuts or tax hikes.
Rep. Lance Harris, R-Alexandria, defended the use of the federal dollars ahead of the House’s 100-0 vote for the budget.
“Any sensible person would not send that money back to Washington. They would use it to fill the gap,” Harris said. But he also cautioned that House lawmakers “need to get ready for next year” when that money falls away.
The budget, sponsored by Appropriations Chairman Jerome “Zee” Zeringue, R-Houma, heads next to the Senate for debate.
Much of the House debate involved Gov. John Bel Edwards’ administration’s new Medicaid payment plan for hospitals. The new payment model, which still needs federal approval, is estimated to draw down an extra $745 million to $1 billion annually in federal cash for the state’s hospitals.
Rep. Rick Edmonds, R-Baton Rouge, sought to require approval from the joint House and Senate budget committee before the new payment plan could take effect, if it wins federal backing.
“This is about holding folks accountable,” Edmonds said.
But he drew only 20 votes from conservative Republicans to include that language in the budget, while 80 lawmakers voted against it.
Instead, the spending plan headed to the Senate gives the joint House and Senate budget committee the ability to reject the hospital payment changes within 30 days of federal approval if it chooses. Supporters of the provision said that ensured that if lawmakers had a problem, they could raise objections later.
“We’re going to be watching this money,” said Rep. C. Denise Marcelle, D-Baton Rouge, who opposed Edmonds’ proposal to require prior approval.
Beyond the hospitals, Louisiana’s child welfare and food stamp agency, K-12 public school financing formula and the TOPS college tuition program would avoid reductions. College campuses, health programs and some other agencies would take some cuts.
The proposal doesn’t account for millions of dollars in business tax breaks being considered in the ongoing special session, however. Additional cuts might have to be made to keep the budget in balance if those tax breaks appear likely to pass. Read the full story.
