Governor Edwards is recommending to legislative leaders to use federal money to close a one-billion-dollar budget hole that’s been caused by the coronavirus pandemic. Commissioner of Administration Jay Dardenne says a portion of the rainy day fund can be used as well, leaving just 80-million dollars in cuts.
“So it’s not insignificant what’s taking place by the way of cuts, but it’s not as dramatic as having to take almost a billion dollars out of the budget,” said Dardenne.
Dardenne says most of the projected cuts would occur within the Louisiana Department of Health’s budget. He says many other agencies are taking a two-percent cut, including higher education and there’s also a possibility more cuts will be needed later this year if the economy doesn’t rebound.
“It’s still very possible we can have mid-year reductions, it’s also possible we can have additional revenue that could be available to spend,” said Dardenne.
Dardenne says their proposal to lawmakers is to keep TOPS fully funded and they are not recommending a reduction in public school funding.
When the session started, Edwards hoped to provide teachers a pay raise and increase funding for K-12 schools and early childhood education but that’s not possible anymore.
Lawmakers have until July 1st to pass a budget, and it may take a June special session to get it done.
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