Posted: Sep 21, 2009 5:20 PM by Mike Steele
Updated: Sep 21, 2009 5:36 PM
State money managers say Louisiana is expected to add $1.2 billion to this year's budget shortfall.
Louisiana's shortfall has already reached $850 million this year. The price for a barrel of oil is an important factor in forecasting state revenue. A barrel is currently selling for about $70. State projections are around $53. That would normally trigger a surplus.
State budget experts said sales and income taxes are lower than expected. That will offset any difference with the price of oil under current conditions.