La. lawmakers approve nearly $30B state budget
Published 11:09 am Sunday, June 22, 2008
BATON ROUGE, La. (AP) — A $29.9 billion budget that continues nearly all state services next year, expands health care and education programs, and boosts state spending by $1 billion received final legislative passage Saturday.
With a 102-0 vote from the House approving Senate add-ons to the budget, lawmakers wrapped up work on the largest outstanding issue still remaining in the legislative session, two days before the session ends.
The bill will finance state government operations and services in the fiscal year beginning July 1 and will send millions of dollars to lawmakers’ local districts for pet projects. Most of Gov. Bobby Jindal’s budget recommendations were kept in tact. The proposal now heads to Jindal, who can strip individual items with his line-item veto power.
Although the budget is an overall decrease from this year’s spending, the shrinkage is tied to the loss of one-time federal recovery aid after the hurricanes that lawmakers do not control. Meanwhile, state spending is slated to grow by $1 billion in the proposal — an increase of more than 12 percent from this year, amid record state revenues spurred by high oil prices.
Several lawmakers on Saturday praised the drop in the price tag for the bill, a $4.5 billion reduction from the current year, without explaining that the state’s spending actually will grow and the drop was tied directly to federal hurricane relief money.
Rep. Chuck Kleckley, R-Lake Charles, called the budget an “unprecedented” cut in spending in the history of the state.
“I think that this is something we can be very, very proud of that we were able to reduce our government by this significant amount,” Kleckley said.
Rep. Karen Carter Peterson said the $1 billion growth in spending of state tax dollars was what mattered, not federal aid.
“That’s an increase in 12 percent of the state general fund budget. I am not at all trying to diminish the work that was done,” said Peterson, D-New Orleans. “But you must return home with facts. You must not misstate the facts.”
The spending plan will increase funding for the state’s Medicaid program for the poor, elderly and disabled; start a new literacy program for public school children; and keep public colleges funded at the level of peer institutions in the South.
Public school teachers will get an across-the-board $1,019 pay raise, and school support workers, like bus drivers and teachers’ aides, will get a one-time $1,000 bonus. A new $10 million Jindal-backed voucher program for New Orleans, using taxpayer dollars to send a group of poor students to private schools, also will be funded.
More than 700 vacant state government jobs will be cut.
Earlier in the session, House members had complained about the growth in government spending and cut millions of dollars proposed by Jindal for education and health care programs, juvenile justice reform efforts and environmental enforcement.
Senators restored many of the dollars stripped by the House, saying the programs will provide needed services around the state. The Senate also reversed House cuts to the salaries for Jindal’s top economic development officials and agreed to further pay increases for other Jindal appointees.
Though they complained about some of the restorations, lawmakers in the House didn’t push to reject the Senate changes.
“All of us are not happy with what is in the budget. All of us are not happy with the bottom number … Everything is not perfect, but this process is what it is,” said Rep. Jane Smith, R-Bossier City.
Both chambers added millions of dollars in projects for their districts, money for local festivals, small museums, senior centers and nonprofit organizations, despite threats from Jindal that he might remove some of those add-ons.
The budget bill sent to the governor is about $50 million below an annual cap on state government spending.
Also given final legislative approval with unanimous House votes were:
—An additional $173 million state spending plan for the current budget year ending June 30, with funding slated for the LSU-run hospitals; new professorships at universities; economic development programs; legal judgments against the state; and the state’s contractual obligations to the New Orleans Saints and Hornets. It also includes millions for lawmakers’ pet projects.
—A bill to sock away $643 million in excess cash from this year into an array of funds, to be spent in later years. Nearly half the money, $307 million, will be stored in an economic development fund designed to attract so-called “mega-projects” — big-ticket manufacturing facilities sought by the state. Any spending from the funds will have to be OK’d by lawmakers.
—A $4.9 billion state construction budget for the 2008-09 fiscal year. Many of the projects won’t be funded for several years. Half the construction budget includes road projects and other items that have direct cash lines of funding, but the other half includes projects that will be funded through state borrowing.
Those spending plans also head to Jindal. The bills still will leave the state with an estimated $584 million surplus from the current budget year. The state’s tax revenues were better than expected, mainly because of skyrocketing oil prices.