(The Center Square) − The Louisiana Senate Finance Committee advanced a package of budget bills with amendments that cut some education spending and shift money toward infrastructure, economic development and local government projects.
“We are working to adjust and calm state agencies’ budget growth, being careful to rein in future costs, so that we can stay within a standstill budget” said Senate Finance Committee Chairman Glen Womack, R-Harrisonburg. “There is some really good legislation out there that we are simply having to delay for now, due to financial constraints.”
The changes came after the Revenue Estimating Conference lowered the state’s official forecast by $112 million for the current fiscal year and $104 million for the next fiscal year. The reductions forced lawmakers to trim recurring expenses in the spending plan, according to committee testimony.
The Senate amendments to House Bill 1 would eliminate new funding for the Louisiana Giving All True Opportunity to Rise scholarship program, known as LA GATOR, and remove enhanced increases in the Minimum Foundation Program, the state’s K-12 school funding formula. Together, those cuts total nearly $75 million.
There is also no amendments that include funding for the $2,000 teacher stipends the public schools had been receiving.
Lawmakers could receive per diem for additional workdays outside of formal session or committee meetings under an amendment added to the Legislature’s budget bill.
Gov. Jeff Landry promised to veto any pay increase for any state government employee should the legislature not fund a pay raise for teachers.
The committee also proposed using the Revenue Stabilization Fund for three major areas: infrastructure and roads, economic development and local government initiatives. The infrastructure spending includes money for the highway priority program and road repairs totaling nearly $400 million.
The committee also added $33.6 million for Medicaid rate increases for home- and community-based services for people with disabilities. A recent study commission by the Louisiana Department of Health reccomended $163 million for rate increases.
House Bill 312, the supplemental spending bill for the current fiscal year, was also advanced with amendments. The bill adjusts the current operating budget to reflect the latest revenue forecast and agency needs through the end of the fiscal year.
The amendments total $103 million and include a net reduction of $67.5 million in state general fund spending. Major reductions include $53.1 million in state general fund savings by maximizing other state revenue sources recognized by the Revenue Estimating Conference, and $47.1 million from updated spending projections across state agencies.
Those savings include more than $30 million in the Medicaid program.
The committee also moved House Bill 2, the state construction budget, with amendments making investments using Revenue Stabilization Fund money. Lawmakers said more adjustments are likely when the bill reaches the Senate floor next week.
House Bill 983, the judiciary budget, now removes pay plan adjustments and salary increases for cetain judges throughout the state.
All nine budget bills advanced and now head to the Senate floor for debate.
