The Louisiana House has approved a 34- billion dollar spending plan for the fiscal year that begins July 1st. The current budget is 30-billion dollars. Alexandria Representative Lance Harris says the increase is due to an influx of federal coronavirus relief dollars, so he cautions lawmakers the state will not have this much money to spend next year.
“We as a body need to get ready for next year,” said Harris. “By passing this budget we are taking one time money and spending it on recurring expenses.”
Harris says 13 months from now, if current spending levels hold, the state will face a 731-million dollar deficit.
The extra federal dollars means the state does not have to make any deep cuts. But Erath Representative Blake Miguez is still concerned cuts will be needed a few months from now
“If our economic recovery is slowed then we could potentially see ourselves in a situation where we would have a mid-year shortfall,” said Miguez.
The budget was stitched together with those federal funds, so if the state were to see a mid-year revenue shortfall, could that be remedied with another round of help from D.C.? House Appropriations Chairman Jerome Zeringue says it’s possible but unlikely.
Zeringue says it’s likely the state will need another special session in the fall because of the revenue unpredictability. For now the budget heads to the Senate for more debate.