For Louisiana Legislators, a majority of the Carnival Season is likely to be spent at
the Capitol cutting the state out of a nearly $318 million budget shortfall for FY17.
This news comes after the Revenue Estimating Conference recognized Friday that state
collections are nearly $340 million short of those forecasted for this year. Greg
Albrecht, of the Louisiana Legislative Fiscal Office, tied the low collection numbers
to the state of Louisiana's economy and the large number of high-earning oil field
jobs that the state has lost: "We are still losing jobs on a monthly basis," he noted.
For a fourth time in the span of a year, Legislators will convene to address Louisiana's
fiscal woes and will only be able to fill a portion of the budget hole with funds
transferred from the state's Rainy Day Fund. Governor John Bel Edwards (D-Amite) has
stated that he hopes to save healthcare and higher education from additional cuts by
calling a Special Session for mid-February. Edwards and lawmakers have cut nearly
$850 million in the past year, but many legislators feel like additional cuts to programs
should be made before any revenue raising measures are discussed. "I do believe there is
a way to close the gap. A potential plan for how the administration plans to address the
deficit is what I want to hear more about," said House Speaker Taylor Barras
(R-New Iberia). The Joint Legislative Committee on the Budget is tentatively scheduled
to meet on January 27 to officially recognize the shortfall.
As lawmakers begin to clear their schedules between Valentine's Day (February 14) and
Lundi Gras (February 24), we will continue to keep you abreast of the latest rumblings
regarding a Special Session and Louisiana's budget crisis. Governor Edwards must issue
a proclamation calling for the Special Session seven days prior to convocation. We will
inform you of the timeline and nature of the Special Session immediately after the
proclamation's release. If you have any further questions, please do not hesitate to
contact us.
Adams and Reese LLP Louisiana Governmental Relations Team
