Jindal and Kennedy reach a deal on $200M borrowing
BATON ROUGE - Treasurer John Kennedy and Gov. Bobby Jindal's administration have struck a deal that will allow the state to borrow $200 million for construction work.
Both sides confirmed Thursday that a compromise had been reached and no construction work was delayed.
At issue was whether Louisiana ended last year with a budget surplus or deficit.
The Jindal administration says it identified additional state cash reserves that it calls a $179 million surplus. Kennedy says when revenues are compared against expenses from last year, the state had a $141 million deficit.
Kennedy had said he wouldn't sign financial documents needed to borrow the money until they accurately explained the surplus disagreement.
Commissioner of Administration Kristy Nichols had said Kennedy was unnecessarily holding up the paperwork and threatened to stall state-financed construction projects.