State’s budget deficit for current year increased by $9 million

Louisiana’s budget deficit has edged higher than initially estimated because lawmakers and the Jindal administration didn’t provide enough money for election expenses and the state’s free college tuition program when they crafted this year’s budget. The deficit now stands at $220 million, up $9 million from last month’s estimate of $211 million from the state’s revenue forecasting panel. The secretary of state’s office says it needs $2.5 million more than was budgeted for election costs, which are required to be funded. In addition, the budget did not set aside enough money for the free tuition program called TOPS. The governor’s Division of Administration outlined the figure this morning to lawmakers on the House and Senate budget committee. Gov. Bobby Jindal and legislative leaders haven’t devised a plan for coping with the gap for the fiscal year that ends June 30. Lawmakers continue to discuss using part of the state’s so-called rainy day fund, which currently stands at $647 million. Only one-third of the fund—approximately $215 million—can be withdrawn, and that takes a two-thirds vote of the Legislature. No detailed plan for budget cuts has emerged from lawmakers to otherwise fill the budgetary gap. The last time lawmakers used the rainy day fund was in 2010, when they withdrew approximately $198 million.