Budget Problems to Be Continued: Legislature Finally Goes Home

Article archive / July 1, 2016

Originally published: . Volume 7, No. 7. Source pages: 1, 3.

Despite two special sessions and a regular session where the state’s dire financial picture dominated, and tax changes that should raise somewhere in the range of $1.5 billion, cuts to key public programs are still going to occur.

The compromise budget passed on June 23 maintains the funding to higher education but cuts the TOPS program to 70 percent. The Edwards administration also believes they have protected public hospitals and doctor training programs, said a report in the Times Picayune.

Cuts will however come to K-12 schools, for about $24 million, and to prisons and sheriff offices who hold offenders, with shortages of $25 million. Cuts of $14.5 million are also forecasted for juvenile detention and rehabilitation services.

While the changes leave Louisiana with the highest average sales tax in the country, even this fix is temporary. The June budget depends on a sales tax that will work for only two years, and then another funding crisis will be teed up.

The Times Picayune reported that the reductions will likely cause LSU’s medical school in New Orleans to absorb costs of maintaining the old Charity Hospital.

Reductions to the Department of Corrections threaten the re-entry programs, according to documents provided by the governor’s staff, said the Times Picayune.

The sales tax was muscled through while Governor Edwards was unable to achieve any changes to individual income taxes over the three sessions. Likewise there was no significant change in the generous tax breaks to business and industry.

Another crisis could loom at mid- year, as well, because corporate tax collections appear to be coming in well under the estimates, setting up a shortfall of $200 million, said the report.

The Governor recently signed some bills into law:

Stabilization Units––Act 591 authorizes Human services districts may create intervention and stabilization units, for those with recurrent crises from mental health or substance abuse, and if funded.

Healthcare Background Checks –– Act 311 authorizes background checks for healthcare workers including behavioral health services providers and those in certain treatment facilities.

Office of Juvenile Justice Schools – – Act 500 requires the State Board of Elementary and Secondary Education to create a team to draft and propose a program for children judicially committed to Department of Public Safety and Corrections.

More changes to Medical Board –– Act 584 changes board membership and other matters; it adds members from LSUHSC and from Tulane Medical School.

Certified Addiction Counselor – Act 534 amends the current law to allow the certified addiction counselor to work independently when providing services in prisons.

Telemedicine ––Act 630 expands options such that patients and physicians can be in any location. Act 619 – Directs the Regents to review all needs and delivery system for postsecondary education.

Starvation added to child abuse reporting ––Act 302 adds injury resulting from starvation or malnutrition to the definition of “serious bodily injury.”

Lowers Value-Added Assessment Model Percent––Act 504 changes the percentage of Value-Added Assessment data in teacher evaluations.


This article is part of a historical newspaper archive. Read the original issue for its original layout, photographs and graphics.