Early estimates show the state budget for the next fiscal year will likely have a hefty shortfall due to the COVID shutdown and the collapse of oil prices.
Houma Appropriations Chairman Jerome Zeringue says that equates to about a 500 million dollar budget shortfall, but at least this year’s budget shouldn’t be impacted.
“We are going form where we think that we will be ok this fiscal year to where budget analysts are telling us that we need to anticipate a five percent reduction in state revenue,” says Zeringue.
A five percent revenue hit may sound low given the ongoing economic collapse but the Houma Republican says federal dollars will help soften some of the blow.
“Even though the stimulus money and the FEMA dollars can’t address budget deficits we believe that there are some things through LDH and other agencies that we may be able to weather,” says Zeringue.
The session is set to start next week and Zeringue anticipates budget discussions will start the week after meaning they’ll have a brief three weeks to craft the spending plan before the session ends.
“We will still allow for the public to attend the committee meetings but we are going to have to have spacing and limited numbers,” says Zeringue.
Zeringue says the Revenue Estimating Conference will meet mid-May to hopefully provide an approved revenue outlook. A balanced budget must be approved by July.
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