The collapse in the price of oil has lawmakers concerned the state’s energy-dependent budget could take a big hit.
The Governor’s budget calls for a 128 million dollar increase in general fund spending, including 25 million for early childhood education, and 39 million for K-12 spending. New Orleans Representative Royce Duplessis says that could impact those priorities.
“There is great concern, the oil price is very important and we don’t know what is going to happen at this point. There is a lot of volatility, so we have to be mindful of that,” says Duplessis.
There’s debate as to whether the K-12 spending increase should be used to fund a 500 dollar teacher pay raise.
Monroe Senator Katrina Jackson is concerned the uncertainty could result in legislature having to wait longer than usual into the session for a consensus from the Revenue Estimating Conference.
“I think what it shows is that for those who serve on the Revenue Estimating Conference that we really need to lock down a number, and this thing may fluctuate up and down but I was concerned before that because we had not recognized the revenue yet,” says Jackson.
Without an official REC forecast, a state budget cannot be crafted.
Alexandria Representative Lance Harris says the only good news here is that Louisiana has managed to diversify it’s revenue streams.
“Luckily over the past eight years we have done some things to get away from some dependence on oil, but it will impact the budget,” says Harris.
