Governor John Bel Edwards is proposing cuts in funding to the Louisiana Department of Health and Hospitals and tapping into the state's "rainy day" fund to deal with a $304 million dollar revenue shortfall.
Edwards has outlined the following plan.
- Use of the Rainy Day Fund - $119.6 million*
- 2.5 percent reduction of state general fund to the judiciary - $3.79 million*
- 2.5 percent reduction of state general fund to the legislature - $1.65 million*
- Excess funds from the Louisiana Legislative Auditor to construct a new office building - $8 million
- Attorney General’s escrow account balance - $3.98 million
- 5 percent reduction in statutory dedications from the Attorney General - $1.9 million
- Reduction in statutory dedications from the Department of Transportation and Development - $1.46 million
- The Louisiana Department of Health - $127.8 million in reductions and adjustments
The legislature will meet in a special session beginning February 13 to take action.
The Governor has defended the use of reserve funds to balance the budget.
"I think making use of the rainy day fund makes an awful lot of sense because we then get to avoid about $120 million in cuts," Edwards said. "Without the rainy day money, we would not be able to protect our critical priorities to the degree we can by utilizing those funds."
Republican State Representative Cameron Henry of Metairie says he is "deeply concerned" about using reserve funds for recurring payments.