Posted: Oct 5, 2010 6:03 PM by Melissa Canone
Updated: Oct 5, 2010 6:03 PM
BATON ROUGE, La. (AP) - The state will close the books on the
last budget year with a $108 million deficit, and agencies will be
cut this fiscal year to close that gap.
That's according to Commissioner of Administration Paul
Rainwater, the governor's top budget adviser. Rainwater said he
called agency chiefs, statewide elected officials and higher
education leaders Tuesday to tell them of the problem.
Rainwater says state economists notified him last week that the
state budget was in the red for the fiscal year that ended June 30
- even after three rounds of budget reductions and adjustments. He
says corporate taxes came in lower than economists projected for
Rainwater says the Jindal administration will formally notify
the Legislature's joint budget committee on Oct. 22 of the deficit,
which will give the governor 30 days to address the gap.