New $103M midyear deficit because of oil price plummet
BATON ROUGE - Louisiana has a more than $103 million deficit to close in its $25 billion budget because of the continuing fall in oil prices.
And next year's budget shortfall now reaches $1.6 billion.
The state's budget troubles deepened Monday with the adjustments of the state's income forecasting panel, called the Revenue Estimating Conference. The four-member conference dropped income expectations to account for the steep drop in oil prices.
Gov. Bobby Jindal's chief budget adviser, Commissioner of Administration Kristy Nichols, said she expects to ask lawmakers to approve a proposal to close the midyear deficit in about two weeks.
It's the second midyear deficit for the budget year that ends June 30. A $170 million gap was largely closed with patchwork financing. But Nichols said this second deficit will involve mostly cuts.