The budget hits keep on coming in Louisiana, with a new $370 million midyear deficit emerging today and more red ink forecast on the horizon.
The Associated Press reports the state’s income forecasting panel, the Revenue Estimating Conference, downgraded its projections for the fiscal year that began July 1, to account for plummeting oil and gas prices and lower-than-expected business tax collections.
Gov. Bobby Jindal’s administration says it will close the midyear gap quickly, along with a $117 million deficit from last year that has yet to be addressed. Jindal’s top budget architect, Stafford Palmieri, says the administration could release its budget rebalancing plan as early as Tuesday. She wouldn’t say what might be included.
“We’re going to protect critical services and maximize all revenues that we have,” Palmieri says.
Senate President John Alario says he hopes public colleges can be largely shielded from cuts, but he doesn’t expect health care services will escape slashing.
Jindal has had to close midyear budget gaps each of his eight years in office. He’ll make these latest cuts on his way out the door and as he’s running a presidential campaign in which he highlights his management of the state’s finances as a selling point. His term ends in January. His successor will be chosen in an election Saturday.
Lawmakers will discuss Jindal’s latest plan Friday at a meeting of the joint House and Senate budget committee.
