A look at Jindal's proposal to close the $1.6B budget gap
BATON ROUGE - Louisiana has a $1.6 billion budget shortfall in the 2015-16 fiscal year that begins July 1. Gov. Bobby Jindal proposes to close the gap with savings from lessened tax break spending, piecemeal financing and cuts across state agencies.
Here's how Jindal proposes to address the shortfall:
-Cap a dozen refundable tax credits so the state doesn't pay more to businesses and individuals than they owe in tax liability, and redirect the savings to health care and higher education. Total: $526 million.
-Use piecemeal financing from a state surplus, tax amnesty program and other one-time sources of revenue. Total: $300 million.
-Budget cuts across state agencies. Total: $416 million.
-Use the recommendations of an outside consultant to shrink state spending through efficiencies, consolidations and other reductions. Total: $145 million.
-Don't provide funding for inflationary increases like state worker pay raises and medical inflation that are included in the shortfall calculation. Total: $160 million.
-Annualize savings from midyear budget cuts. Total: $36 million.