The Democratic governor, disappointed at the failure to reach a full budget solution in the special session, will speak to the majority Republican Legislature an hour after the latest session opens at noon. This year’s shortfall ranges from $30 million to $60 million.
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What the agreement does do, however, is raise revenue-largely through regressive taxation, such as a 1 percent increase in the state sales tax-to keep critical state services on life support and under pressure to cut more and more from their expenses.
“The statutory and constitutional blocks to spending cuts force legislators to cut from higher [education] and health care, while other programs may not face cuts”, Kane said.
Some lawmakers will be returning to Baton Rouge from districts digging out of severe flooding after days of storms inundated neighborhoods in north Louisiana and in Edwards’ home parish.
Lawmakers agreed to permanent tax increases on alcohol, cigarettes, phone service, vehicle rentals, certain business activities and short-term room rentals through Airbnb.
In February, the REC estimated that the current year’s budget deficit was more than $943 million, while next year’s deficit was more than $2 billion.
The biggest-ticket tax hikes, however, last until mid-2018.
The state is suffering from the impact of tax cuts made under former Gov. Bobby Jindal, a Republican, coupled with the fall in oil prices.
Republicans also say Louisiana needs to make structural changes to how it spends its money.
LSU System President F. King Alexander said whatever cut his campuses take will hit more heavily because few months remain in the financial year and because colleges have been struck with repeated slashing for years.
The state’s education department, which approves charter schools in New Orleans and oversees the state’s voucher system, is expected to undergo severe cuts. House Speaker Taylor Barras, R-New Iberia, said the review would help lawmakers get educated and develop reform ideas. “They need more time”, Barras said.
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Melinda Deslatte covers Louisiana politics for The Associated Press.
