Louisiana budget gap gets a new, lower number: $648 million

BATON ROUGE, La. (AP) – The size of Louisiana’s budget shortfall has dropped to $648 million.
  
Louisiana’s income forecasting panel Thursday revised revenue projections for the upcoming budget year that begins July 1.
  
The budget gap previously had been pegged at $994 million, but changes largely tied to the impact of the federal tax overhaul lessened the hole by $346 million. Most of the changes had been expected, though the bottom line is slightly better than anticipated.
  
Still, lawmakers trying to craft next year’s spending plans will have to make $648 million in state financing cuts to keep things in balance. The House Appropriations Committee will unveil its proposal Monday.
  
The shortfall is caused by expiring temporary taxes. Gov. John Bel Edwards wants to hold a special session to fill the gap with replacement taxes.