State budget problems loom large for the LSU AgCenter
The LSU AgCenter has been informed that there is an estimated $912 million hole in the current operating budget for the State caused by overestimated revenue collections and increased operation costs.
Additionally, based on current revenue collections and the use of non-recurring funds in the operating budget, next year’s budget is expected to have a more than $2 billion shortfall.
All budgetary decisions for the current year’s deficit and next year’s shortfall must be made during the special session which ends March 9.
The governor is proposing the use of existing (one-time) funds and new revenue sources.
Existing Revenue
• Rainy Day Fund- $128 million
• BP Settlement funds not dedicated to coastal- $200 million
• Reduction statutory dedicated funds not constitutionally protected by 10
New Revenue Generators
• “Clean Penny” Sales tax- Exempt groceries, prescription drugs and residential utilities
• Renew and increase landline and cellphone telecom tax to flat 5%
• Increase tobacco tax from $0.86 to $1.08/ pack
• Potential internet sales tax
• Repeal business utilities sales tax exemption
Others can be found on Governor’s web site
If new revenue sources are not identified and adopted the following scenario would be implemented based on available revenues:
A current year reduction of this magnitude would require immediate financial exigency to implement layoffs, furloughs, and
cancellation of existing
contracts.
It would be necessary
to terminate programs at
research stations.Layoffs
would eliminate the parish
based extension model.
4-H programs would be
signifi cantly impacted, or
eliminated as a result of less
agents available to conduct
programs. (4-H currently
reaches 187,000 individual
youth in the state)
Academic departments
eliminated and degree
programs in the College
of Agriculture would be
signifi cantly consolidated
and downsized.
Your legislator’s
contact information can be
located at this link https://
www.legis.la.gov/legis/
FindMyLegislators.aspx.
For more news from Tensas Parish,
subscribe to The Tensas Gazette by calling
318-766-3258 or 318-728-2250