Jindal - $1 billion budget gap in Louisiana
From Sunshine Review
20 October 2008 Louisiana Governor Bobby Jindal held a meeting with his cabinet secretaries to discuss the state Louisiana's economy. According to the analysis, next year is projected to see a $1.3 billion budget gap. Jindal said that cuts will be necessary, but it is too early to say where those will come.[1]
Contents |
[edit] Economic Health
Although the outlook may look bleak, Jindal reassured Louisiana citizens that their state is doing better than most. "Louisiana's economy continues to out perform the country, Jindal said, "we continue to be in a much more better position than other states and across the country."
While they may be in a better position, it was clear that there is a long road ahead. Jindal continued, "We could be a little bit better, but we're doing okay. We do anticipate some significant budget challenges for the 09/10 fiscal year and so it is absolutely appropriate for our state to be getting ready for those challenges as we move forward."[2]
[edit] Cause?
Last year, Louisiana managed to save $865 million, but that money can only be used for one time items, such as debt payments. It cannot be used for any holes in the budget. Owing to the surplus, Jindal did not cite spending as a reason for the shortfall.
Instead, reasons for the shortfall are said to include falling oil prices, decreased corporate and personal income taxes, along with a state sales tax that remains flat.[1]
[edit] No Tax Increase
Jindal made it clear that he is flatly refusing any call to raise taxes. The Governor stated, "Our administration will not be supporting any tax increases to close this gap. Let me take that option off the table."[1]
The Governor will focus on finding areas to cut in order to balance the budget. He will submit his recommended budget to lawmakers before they return in April.
