Looming budget cuts to be unveiled

Published 12:00 am Friday, March 13, 2009

BATON ROUGE (AP) — The timing of Gov. Bobby Jindal’s budget proposal couldn’t be more appropriate: the spending plan containing hundreds of millions of dollars in cuts will be unveiled on Friday the 13th.

The Jindal administration has offered few details so far about its recommendations for the 2009-10 budget, except to say the federal stimulus money won’t plug all the gaps.

‘‘We still will need to make significant cuts,’’ Jindal’s top budget crafter, Commissioner of Administration Angele Davis, told lawmakers recently.

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But a few details about the governor’s proposed budget for the year beginning July 1 have leaked out before the Friday presentation to the Legislature’s joint budget committee.

Higher education officials said they face $219 million in cuts across public college campuses.

The state’s 69 public school districts face a proposed standstill funding formula, rather than the annual bump they typically receive.

And the state’s health secretary said cuts are proposed to reimbursement rates for the state’s multibillion dollar Medicaid program. Lawmakers have said such cuts could force a rationing of care or service reductions.

Health care and higher education are the largest unprotected areas of state spending, so they are expected to be most susceptible.

‘‘We’re going to continue to do everything we can to mitigate the impacts within higher education, health care, other areas that are historically vulnerable when it comes time to tighten our belts,’’ Jindal said this week.

LSU Chancellor Michael Martin said the nearly $35 million in cuts proposed by the governor for his university could devastate the campus.

‘‘We will do all we can to minimize the adverse impacts, but this will clearly do real harm to a great university,’’ Martin said in a news release.

Louisiana’s coffers next year face a three-pronged hit: the recession, a nosedive in oil and gas prices, and a slew of tax breaks approved in the past few years by lawmakers that will drain more than $700 million from next year’s revenue.

According to the state’s revenue forecast, Louisiana will bring in $1.3 billion less in state general fund revenue next year than this year. The budget shortfall grows to more than $1.7 billion when inflationary costs and the rising costs of health care and retirement are included.

That’s on top of $341 million in spending reductions already made this year to close a midyear budget gap.

‘‘Certainly, I think we’re going to have to do more with less, set priorities and make sure that even while we’re tightening our belt that we are moving forward,’’ Jindal said.

The state must maintain a balanced budget. The release of Jindal’s budget proposal starts a months-long series of negotiations at the state Capitol. Lawmakers will craft a final version of the budget in the regular session beginning in April.

Jindal said he will oppose any tax increases to fill in the budget gap, and lawmakers are proposing tax breaks in the upcoming session that would worsen the cuts needed to keep the budget balanced.

But lawmakers also are eyeing the state’s ‘‘rainy day’’ fund and other unspent economic development funds to help stave off some proposed cuts.

Rep. Gary Smith, D-Norco, said the state survived the midyear budget cuts and will survive this next round of cuts, too.

‘‘I expect it to be bad, but I don’t like a lot of doom and gloom, so I would prefer to look at it and say, ’Let’s take a deep breath,’’’ he said.