The state faces a billion-dollar deficit for the fiscal year starting July 1st with the possibility that deficit could rise if the economy continues to deteriorate.
Governor Edwards says that unpredictability makes it likely any budget passed this session would have to be changed in the fall.
“It is a pretty good bet that we would be coming back in October after an REC meeting to make adjustments to the budget for the remainder of the fiscal year,” says Edwards.
The Revenue Estimating Conference projects a 316 million dollar loss in sales tax, a 351 million dollar decline in severance taxes, and 172 million dollars in gaming revenue losses due to COVID-19. Another 150 million in lost taxes and fees are also expected.
Despite the uncertainty, Edwards does not believe a special session will be necessary to pass a budget, because we won’t have a much clearer picture in June than we have now.
“So I would hope that while we are here in the regular session that we do the essential work that the Legislature has to do and part of that is passing a budget,” says Edwards.
But Edwards says if the feds bail out state and local governments it’s possible the deficit could shrink significantly by fall.
“It is one of the things that we talked about with the Vice President, we spent a lot of time on that with governors all around the country. He certainly expressed an openness to it,” says Edwards.
Senator Bill Cassidy is spearheading a federal effort to get 500 billion dollars sent to local and state governments.
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