52°
Baton Rouge, Louisiana
7 Day Forecast
Follow our weather team on social media

Audit: Louisiana borrowing maneuvers increased state debt

9 months 3 weeks 2 days ago February 15, 2016 Feb 15, 2016 Monday, February 15 2016 February 15, 2016 10:56 AM in News
Source: Associated Press
By: Melinda Deslatte

BATON ROUGE - A new audit says Louisiana's borrowing practices during former Gov. Bobby Jindal's administration will cost the state millions in extra interest payments over decades.

Legislative Auditor Daryl Purpera's office says in its report, released Monday, the debt payment maneuvers used since 2011 helped get quick cash for the state budget but came with a larger price tag for Louisiana.

In addition, auditors say the short-term maneuvers pushed Louisiana closer to its debt ceiling and will restrict state borrowing capacity for construction work through 2024.

The report says Louisiana used a type of borrowing in which it got extra money upfront by agreeing to pay higher interest rates over the life of the debt. Purpera's office says that will cost the state an additional $71 million in interest over 20 years.

More News

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
Radar
7 Days