A standoff between Gov. Bobby Jindal’s administration and Treasurer John Kennedy about whether to borrow $200 million has created an atmosphere of uncertainty about whether construction projects from Poverty Point World Heritage Site to the Audubon Nature Institute will proceed, The Advertiser reports.
Kennedy insists none of Louisiana’s approved construction projects are in jeopardy. But Kristy Nichols, Jindal’s commissioner of administration, says the treasurer’s refusal to sign documents that would allow the state to move forward with borrowing does put projects at risk, and she said Friday is the deadline for agreeing to a bond sale.
“I’m not going to sign off on documents that lie,” Kennedy says. “I believe in full disclosure. If you don’t tell the truth on these matters the [U.S. Securities and Exchange Commission] will come in on you. It’s a crime.”
Besides, Kennedy says, the administration has access to $409 million cash in the capital outlay escrow fund and access to another $200 million through interfund borrowing that would keep the projects on track.
“If they want to they can write checks [for the projects] today,” Kennedy says. “The money is available.”
Nichols says the administration isn’t opposed to interfund borrowing, but adds there is only $200 million available for unrestricted use.
“The bottom line is the facility planning account [from which construction projects are funded] runs out of money in January,” Nichols says.
At issue is whether the state ended the fiscal year in June with a $179 million surplus, as the administration contends, or a $141 million deficit, which Kennedy believes.
