66°
Baton Rouge, Louisiana
3 Day Outlook
Wed
84°
71°
100%
Thu
87°
71°
60%
Fri
86°
70°
60%

Latest Weather Blog

Follow our weather team on social media

New law offers more room to borrow under debt cap

1 year ago May 16, 2014 May 16, 2014 Friday, May 16 2014 Friday, May 16, 2014 3:39:56 PM EDT in News
Source: Associated Press

BATON ROUGE - Efforts to put more limits on how state government spends its money had an unintended consequence, boosting the amount of money the state can borrow each year under its debt ceiling.

The issue is tied to the complex way Louisiana calculates its annual cap on state debt.

A proposal pushed into law by House fiscal conservatives requires the state's income forecasting panel to estimate how much money is available in set-aside funds it didn't previously forecast.

Louisiana's debt ceiling is calculated as a percentage off that forecast. Since more money was swept into the estimate, the state now has more room under the ceiling.

The change removes ongoing concerns about breaching the ceiling. But Treasurer John Kennedy said that doesn't mean Louisiana can afford to spend more on construction projects.

More News

comments powered by Disqus

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
5 Days
Radar
Today
Not Available
66°
73°
Wed
Heavy T-Storms
84°
71°
Thu
Scattered T-Storms
87°
71°
Fri
Scattered T-Storms
86°
70°
Sat
PM T-Storms
87°
71°