Another legislative session has ended and another budget battle has been fought, as the state moves a little closer to the expected budgetary 'cliff' of fiscal year 2011-2012.
"It's going to be a very trying time for Louisiana," said State Representative Mike Danahay at Wednesday's meeting of the Sulphur Kiwanis Club.
Revenue continues to be down and the just-ended session was all about facing shortages and balancing a budget. The House Appropriations Committee worked diligently to try and spread cuts over two years, suggesting over $400 million in cuts. Then the budget went to the Senate.
"The Senate takes a whole different view then we do," said Danahay.
"The Senate took the budget and restored a lot of our cuts."
According to Danahay, the Senate grabbed all the one time monies they could find, including funds from oil contingency, over collections, and the stimulus, among others. The loss next year of stimulus money alone will amount to $1.5 billion in funding.
"We are going to have to make some dire cuts in our budget," said Danahay.
Health care and higher education will, once again, suffer the biggest blows, as they are the biggest expense from the general fund outside of those that fall under dedicated funds. The Senate attempted to ease the burden this year with Senate Bills 391 and 392, which would have allowed the governor to make up to an additional five percent cut in dedicated funds on top of the five percent he is already allowed to make. However, both of these bills failed to pass the House.
The rainy day fund has been tapped into this year with both the House and Senate agreeing to borrow $198 million from it and paying the monies back over a three year period, according to Danahay. They can only draw about a one-third of the $842 million fund in a two year period.
What about taxes? Well, with the economy still struggling and the mood of the country still bleak, there could be very few taxes that make it all the way through next year's fiscal session.
While the budget and its balancing are anticipated to loom large next year, redistricting will likely be right there beside it. According to Danahay, Louisiana had only a 60 percent compliance rate in the last census.
"What this means in Louisiana is billions and billions of dollars lost to us," he said in regards to the 2000 count.
"It is extremely important that everyone is counted. It means a lot to Louisiana."
Danahay sits on the House and Government Affairs Committee, which is responsible for the initial redistricting plan development. The Committee will receive the Census data in February. Following that, there will be committee and public hearings, debate and passage through the House and Senate, and then submission to the Justice Department for approval. As a Section 5 state, Louisiana must prove that the redistricting changes do not deny or abridge the right to vote of any resident on account of race, color, or membership in a language minority group.
And they must do this in a short window of time, needing to sort out plans before elections in the fall.
"We have from March to August to do this," said Danahay.
The state representative foresees a considerably different state, redistricting wise, coming out of the Legislature.
"There is going to be a major change in Louisiana because of Hurricanes Katrina and Rita."
Not only was there a large population loss in New Orleans, but there has been quite an obvious gain in places like the North Shore (north of Lake Ponchartrain), Baton Rouge, and Bossier City. Danahay foresees only a slight gain for this area, as many residents from Cameron Parish have relocated northward.
"I think we are going to be fine here," said Danahay. "I don't think our numbers our going to be off the charts here."
On the web:
www.justice.gov/crt/voting/sec_5/about.php
www.legis.state.la.us
