Battered by drop in oil prices and Jindal’s fiscal policies, Louisiana falls into budget crisis

Washington Post, By Chico Harlan, March 4

Baton Rouge, LA — Already, the state of Louisiana had gutted university spending and depleted its rainy-day funds. It had cut 30,000 employees and furloughed others. It had slashed the number of child services staffers, including those devoted to foster family recruitment, and young abuse victims for the first time were spending nights at government offices.

And then, the state’s new governor, John Bel Edwards (D), came on TV and said the worst was yet to come.

Edwards, in a prime-time address on Feb. 11, said he’d learned of “devastating facts” about the extent of the state’s budget shortfall and said that Louisiana was plunging into a “historic fiscal crisis.” Despite all the cuts of the previous years, the nation’s second-poorest state still needed nearly $3 billion — almost $650 per person — just to maintain its regular services over the next 16 months. Edwards gave the state’s lawmakers three weeks to figure out a solution, a period that expires March 9 with no clear answer in reach.

Louisiana stands at the brink of economic disaster. Without sharp and painful tax increases in the coming weeks, the government will cease to offer many of its vital services, including education opportunities and certain programs for the needy. A few universities will shut down and declare bankruptcy. Graduations will be canceled. Students will lose scholarships. Select hospitals will close. Patients will lose funding for treatment of disabilities. Some reports of child abuse will go uninvestigated.

“Doomsday,” said Marketa Garner Walters, the head of Louisiana’s Department of Children and Family Services. If the state can’t raise any new revenue, her agency’s budget, like several others, will be slashed 60 percent.

This post was read 1212 times.

About author View all posts

Raja

3 CommentsLeave a comment

  • The last time I posted about cheap oil I said it was good for consumers. Someone pointed out American industry would eventually suffer. I’ve meant to swing back and correct my flippancy. It’s definitely a serious issue. Stressful times for folks in Louisiana.

    Thanks for posting, Raja.

  • Louisiana = Greece.

    And the solution is? Austerity (plus we are all in this together, which is untrue), and, of course, Clinton as President, because Hilary will fix everything.

    DLC to the rescue.

Leave a Reply