La. watchful of Zika virus
February 11, 2016
PLAYER OF THE WEEK
February 11, 2016
Local state lawmakers say they are ready to work at a special session called by Gov. John Bel Edwards during which the largest budget shortfall in Louisiana’s history will be addressed.
Edwards issued the call for a 25-day special session to begin Feb. 14 and to run no later than March 9.
“This is a season of hard choices for Louisiana,” Edwards said. “We have lived through seven years of mid-year deficits and budget cuts across state government. Now, we have three and a half weeks to decide how to fix a $750 million budget shortfall with effectively only three months in which to make cuts to critical state services and collect more revenue for the state. This is not the plan I want to submit to the Legislature, but unfortunately, these are the options we have to choose from in the short-term.”
The state government is $750 million short of the money it needs to fund this fiscal year, which ends June 30, 2016. Louisiana citizens face an additional $1.9 billion budget gap for the next year that must be filled just to continue offering the same state government services that are available today.
Educators, health care providers and other state officials whose ability to provide services are hoping the session won’t become a St. Valentine’s Day massacre. Local lawmakers say they are keeping all options open as they seek to address the shortfalls.
“We have to equitably find solutions that can benefit all,” said Sen. Norby Chabert, R-Houma.
Rep. Beryl Amedee, R-Houma, has been sharpening her pencils and paying special attention to suggestions from Treasurer John Kennedy, who questions whether tax increases proposed by Edwards will be an appropriate fix.
The governor’s list of responses include the ability for legislators to pass spending cuts to the budget, cuts to and elimination of some state contracts; use of the state’s “Rainy Day Fund” and non-coastal BP settlement dollars; as well as
changes to sales, business, and personal income taxes. Also included are options to raise cigarette and alcohol taxes, to bring back an expired rental car tax, and to require retailers to collect tax on online sales.
“Leadership demands that we all work together – my administration, legislators and every Louisiana citizen who cares about the future of our state – to stabilize this budget structurally, not only for this year, but for the long-term,” Edwards said. “I have listened to legislators and have drafted a broad call allowing flexibility to consider both cuts and raising money for the state. Now is the time for legislators to join with me to resolve these problems and to begin filing bills that contain specific and workable solutions for the people of Louisiana, who deserve our very best right now.”
Edwards said he expects the Revenue Estimating Conference at its meeting this week to increase the projected deficit for this year, given the continued fall in oil prices and other revenue collections by the state over the past few months.
The special session, Edwards said, is necessary to address the budget crisis because the state constitution does not permit this year’s regular session to be used for certain fiscal or tax matters.
Governor John Bel Edwards has ordered a special session of the Louisiana Legislature to begin Valentine’s Day. Its sole purpose will be to find solutions for Louisiana’s $790 million and $1.9 billion gaps.
