Audit: Louisiana borrowing maneuvers increased state debt
BATON ROUGE - A new audit says Louisiana's borrowing practices during former Gov. Bobby Jindal's administration will cost the state millions in extra interest payments over decades.
Legislative Auditor Daryl Purpera's office says in its report, released Monday, the debt payment maneuvers used since 2011 helped get quick cash for the state budget but came with a larger price tag for Louisiana.
In addition, auditors say the short-term maneuvers pushed Louisiana closer to its debt ceiling and will restrict state borrowing capacity for construction work through 2024.
The report says Louisiana used a type of borrowing in which it got extra money upfront by agreeing to pay higher interest rates over the life of the debt. Purpera's office says that will cost the state an additional $71 million in interest over 20 years.
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