Louisiana government is faced with possibly cutting more than $2.4 billion from the state budget by July 1, 2011.
While few states have escaped the harsh financial blow triggered by the national recession, Louisiana’s existing fiscal policies and a set of unique economic circumstances are creating a particularly challenging dilemma for the governor and Legislature.
Because the budget crisis Louisiana confronts is both complex and significant, the LSU System has developed two documents designed to enhance understanding of these issues among policy makers, the media, and general public.
The accompanying spreadsheet uses existing appropriation data and the official Five-Year Base-Line Budget Report of the Division of Administration to provide an approximation of how the state’s projected $2.4 billion shortfall might be distributed to the various government departments.
The spreadsheet also utilizes a number of different financial scenarios to project how budget cuts might be minimized should the state revenues perform better than the Official Forecast upon which the $2.4 billion shortfall is based. The PowerPoint presentation, meanwhile, summarizes results of the spreadsheet, provides background information on how the shortfall developed, and explores options for dealing with the reductions in revenues.
More on: lsusystem.edu/media/budget/budgetShortfall2009.cfm