Louisiana’s budget shortfall dropped today to $648 million, an improvement from previous estimates but still a sizable gap that threatens health and education programs with steep spending reductions.
The state income forecasting panel revised revenue projections for the upcoming budget year that begins July 1, accounting for expected tax collection improvements, largely tied to the federal tax overhaul passed by Congress.
Action by the Revenue Estimating Conference gives lawmakers trying to craft next year’s spending plans the official numbers they’ll use—and the depth of the state financing cuts they’ll have to make to keep things in balance.
The House Appropriations Committee will unveil its budget proposal Monday, with plans for the full House to consider the measure three days later.
Whatever emerges from the committee will look better than the worst-case-scenario spending plan released by Gov. John Bel Edwards in January, when the numbers were worse and the budget hole was larger.
House Speaker Taylor Barras said the revised shortfall figure is “still significant.”
A “high priority for lots of folks” in the House is trying to spare public colleges and the TOPS tuition program from cuts, he said. That would leave health services to take the brunt of any slashing, since higher education and health care are the least protected areas of the budget.
Legislative leaders and Edwards have raised questions about whether lawmakers would support a budget with steep cuts, but Barras said he thinks it’s possible to get enough House votes for a spending plan that makes the reductions.
The shortfall is caused by expiring temporary taxes.
