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Jindal proposes cuts, patchwork financing to close deficit

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BATON ROUGE - Gov. Bobby Jindal proposes to cut $150 million across agencies, tap into the state "rainy day" fund and use piecemeal financing to close a $487 million budget deficit.

Public colleges will be shielded from cuts. The state health department, however, will have to shrink its state spending by $130 million.

Jindal's top budget adviser Stafford Palmieri unveiled the broad overview Wednesday of the plan to rebalance the $25 billion budget. Lawmakers - who have to approve parts of the proposal before they can take effect - will consider the recommendations Friday.

Most of the deficit emerged when Louisiana's income forecasting panel downgraded its projections for the current budget year, to account for declining oil prices and lower-than-expected business tax collections.

Another gap is from last year, when the state overspent.

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