La. Budget Impasse Widens
by Jan Moller - Times-Picayune (excerpt)

BATON ROUGE -- House Republicans abruptly broke off negotiations on the state budget Wednesday, and threatened to block a $1.9 billion budget bill that contains key reconstruction aid for New Orleans if their demands to lower the overall amount of new state spending are not met.

"We are not going to be able to come to a compromise on the House side on the budget," House GOP leader Jim Tucker of Algiers said at an early afternoon news conference, surrounded by 22 colleagues.

On the operating budget, which awaits action in the Senate Finance Committee, the two sides are about $350 million apart on how much money should be directed to programs that have to be financed in future years, such as health care and education.

Blanco's budget contains about $1.2 billion in new "recurring" spending, while Republicans want the amount capped at $850 million. Republicans are seeking $460 million in tax cuts and rebates, or $160 million more than the Democrats have offered.

(Rep. John) Alario (sponsor of the spending measure) and Tucker both said Republicans have enough votes to block a cap vote when it first comes up for debate, which could be today. "I would think on the first vote we won't" prevail, Alario said.

But such a "test vote" would let supporters of raising the cap know which lawmakers need to be brought on board. With billions of dollars in surplus cash floating around, the administration has plenty of tools to bargain with members who are looking to bring home election-year dollars to their districts.