Rainy day fund lawsuit

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Posted: Oct 26, 2011 5:50 PM by Mike Steele
Updated: Oct 26, 2011 7:04 PM
Source: WBRZ

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Topics: budget, shortfall, rainy day, fund, lawsuit, wbrz, louisiana

BATON ROUGE- The state could be facing a new $200 million dollar shortfall dealing with the rainy day fund.

It is known officially as the budget stabilization fund. Attorney Kyle Keegan represents a group that filed suit saying the legislature illegally used nearly $200 million from the rainy day fund to fill budget holes for the 2010-2011 fiscal year.

State voters rejected an amendment that would have given lawmakers five years to replace the money.

Keegan says the fund involves state oil and gas money. Oil and gas revenue in excess of $ 850 million dollars is supposed to be deposited into the fund. Keegan says lawmakers are not being responsible by using money that is not guaranteed from year to year.

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