Louisiana's budget problems are getting worse. The Revenue Estimating Conference has revised the deficit for this fiscal year from 750-million to 870-million dollars. The legislature's chief economist Greg Albrecht says Louisiana's lagging economy is impacting state tax collections.
"For all practical purposes Louisiana is entering it's own recession, it's an oil-based recession. We have different cycle than the rest of the country and we entering what amounts to a state recession," Albrecht said.
The budget deficit for next fiscal year has swelled past two billion dollars. Low oil prices are to blame for the less than anticipated revenues, but that's not the only issue. Albrecht says corporate tax collections are also very week.
State lawmakers will meet for a special session that starts on Sunday and attempt to come up with a rebalanced budget that takes into account the 870-million dollar shortfall.