This week at the 2009 Regular Legislative Session, the Senate focused on state fiscal issues with initial hearings on the proposed state operating budget and committee approval of measures aimed at giving the Governor and the legislature more flexibility in dealing with budget issues during times of declining state revenue projections.
The Senate Finance Committee began work on HB 1 - the state's proposed $28.6 billion operating budget. The bill comes to the Senate after weeks of hard work on the part of House including almost one hundred hours of committee hearings on the budget. We appreciate their diligence and effort to send us the proposed budget in a timely manner. The House moved to restore some of the planned budget cuts in crucial areas such as health care and higher education, but there are still significant reductions in those areas as well as others. We look forward to continue to work with the House as the Senate examines the budget options to responsibly allocate taxpayer dollars to meet our immediate and long-term state needs. The Senate Finance Committee will continue its work on HB 1 next week.
One frustration we face each time a state budget crunch arises is the limited options we have with which to deal with a projected budget deficit, especially when a deficit occurs during a budget year. The State Constitution limits the amount that can be cut from "dedicated funds" to 5% and state law restricts those cuts to every two years. Over 60% of state funds are dedicated and of the remaining unprotected dollars 85% is in the areas of health care and higher education. The result is health care and higher education services bear the brunt of needed budget cuts to address a deficit.
I have authored two measures, approved by the Senate Finance Committee this week, aimed at addressing that situation. Senate Bill 1 proposes a change in the State Constitution to allow cuts in statutory dedications up to 10% rather than the current 5% limit, allowing more options for budget cutting and easing the burden of budget reductions on health care and higher education. Any cuts proposed by the Governor would have to be approved by the Joint Legislative Committee on the Budget, as is the case now. If approved by two-thirds of the legislature, the proposed constitutional change would still have to be approved by voters in the October, 2010 statewide election.
Senate Bill 2 is a change in state law to allow cuts in statutory dedications every year, rather than every two years. This change is particularly important since fiscal experts are forecasting continuing budget problems over the next several years.
Both Senate Bill 1 and Senate Bill 2 are common sense measures designed to give state government additional tools to address state fiscal issues and I look forward to working with my colleagues in the legislature to move the measures forward.
Bayoubuzz Note:Bayoubuzz is pleased, once again, to offer a platform for the Louisiana Legislative Leadership. Today, Louisiana Senate President, Joel Chaisson provides his first "diary" of the session to update our readers. Bayoubuzz is also pleased that House Speaker Jim Tucker also presents his diary on Bayoubuzz. These diaries allow the Louisiana citizenry to obtain a better understanding of the inner workings and governmental issues we face.Bayoubuzz has “housed” the diaries of the House Speakers and Senate Presidents since the web site’s inception and is proud to provide educational information to the public.
Another common sense approach would be to increase the tobacco tax and delay the repeal of the Stelly Plan. Written by David Quidd
on 5/20/2009
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