The Senate Finance Committee will take up the 34 billion dollar budget for the next fiscal year Wednesday afternoon.
Lapolitics.com Publisher Jeremy Alford expects it to be approved, but notes crafting the budget is tricky because total revenue could change if a series of COVID relief tax breaks are passed.
“There’s been a little bit more deliberate approach in the Senate to make sure that any tax breaks have corresponding spending reductions, so it is kind of a tricky line to walk,” says Alford.
Several of the larger tax break bills headed to the Senate floor have been redirected back to Senate Finance for further review after winning approval in another committee.
Federal relief dollars plugged most of the, at one point, billion-dollar shortfall, but some cuts in healthcare and higher ed are still planned. Alford says early year promises for more early childhood education funding and teacher pay raises had to be abandoned as well.
“There are a number of priorities that had to be slashed and cut to account for the downturn even with those federal dollars,” says Alford.
The state constitution requires the budget to be balanced.
Lawmakers only have a week left to pass the budget which still has to clear the Senate and head back to the House. Alford says that compressed timeline will likely mean fewer fights over its contents.
“It’s ticking so loud, people are ready to get home they’ve been in session for awhile, that works to the advantage of the folks that just want to see it get sent to the Governor,” says Alford.
Alford expects lawmakers will likely be back in Baton Rouge in the fall for a midyear budget review once the state has a better idea of the economic impact of COVID.
