Showdowns on state budget still pending in 2010 session
by MICHELLE MILLHOLLON AND MARK BALLARD - Advocate (excerpt)

Despite gloomy fiscal scenarios and nose-to-the-grindstone predictions, the Louisiana Legislature finished up its first month of the 2010 general session with little apparent work being done on the state government’s budget. Instead, lawmakers tackled abortion coverage, “synthetic” marijuana, cockfighting, drug testing welfare recipients and challenging the federal health-care revamp. Waiting in the wings to take center stage is what legislators said would be the star of the show: balancing the state’s budget. Legislators must finish their business by 6 p.m., June 21.

Some economists predict that the amount of revenues coming into state coffers may actually go up next year even as the drop off in available federal dollars creates an even bigger gap between revenues and expenditures, Pearson said. Under the rules, that scenario would hinder the use the “rainy day” fund in coming years, he said. Senate Bill 1 and Senate Bill 2 would change some of those restrictions by allowing state government in future years to more easily use the rainy day money when revenues from federal sources decrease — not just when revenues the state generates go down. Both bills are awaiting an initial hearing in the Senate Finance Committee. Jindal supports these measures, but he opposes Senate Concurrent Resolution 42, which would make up to $172 million of rainy day money available to address this year’s $319 million shortage.

Holding up discussion of next year’s $1 billion shortfall is the current year’s $319 million shortfall. The governor favors a multi-layered approach to addressing lagging revenue in the final weeks of the fiscal year. House Speaker Jim Tucker, R-Terrytown, said he was surprised at the amount of money the Jindal administration was able to scrape together to address the latest problem. Tucker and other Republicans want to wait until the U.S. Congress acts before pushing through the governor’s budget patch plan.