On December 30, Gov. Jindal discussed his proposed plan to cut the state budget by $341 million for the fiscal year ending June 30, 2009.
On December 30, Gov. Jindal discussed his proposed plan to cut the state budget by $341 million for the fiscal year ending June 30, 2009. Through an executive order he was able to cut $163 million, but the Joint Legislative Committee on the Budget will meet later this week to approve the remaining $178 million. These cuts are necessary as the state anticipates lower revenue from fallen oil prices and tax collections.
More than half of the $341 million will be cut from healthcare and higher education. The cuts to higher education are divided among three of the state’s universities (LSU, SU and UL) and the Board of Regents. Each college campus will decide how best to cut costs. The effects to the healthcare system will be magnified by the loss of federal funding the state receives. The federal government rewards states for healthcare spending by matching it with federal dollars.
