February, 2010

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Scary Movies− Louisiana’s 2011 Budget

Wednesday, February 10th, 2010

 The Louisiana Budget Project’s latest report, Scary Movies-Louisiana’s 2011 Budget, previews the Governor’s Executive Budget, to be released on Friday.

The Budget Project projects that the Governor’s budget for the next year will rely almost entirely on deep spending cuts to make up for shortfalls in revenues. Departments facing cuts include Health and Hospitals, Social Services, Corrections, and possibly higher education. While popular with some audiences, LBP analysts warn that a slasher film approach to Louisiana’s budget will represent real and difficult reductions in services for Louisiana families and children.

A majority of states, when faced with revenue shortfalls last year, chose a balanced approach, one that included revenue increases in addition to strategic spending cuts.

Specific programs that may face severe cuts or elimination include:

  • LACHIP, which provides health care coverage to over 125,000 Louisiana children
  • Prescription drug access, serving 814,677 residents
  • Personal Care Services, providing assistance that helps recipients remain at home rather than in a nursing home, to 15,731 elderly and disabled.

Federal Aid for Food Stamp Programs Should Help Louisianans

Thursday, February 4th, 2010

In a letter to Louisiana’s Secretary of the Department of Social Services, Kristy Nichols, and Louisiana’s Commissioner of the Division of Administration, Angele Davis, and a press release the Louisiana Budget Project (LBP) and the Kingsley House, strongly urge that the state use new federal money to provide additional resources to the state food stamp program. These additional resources will help ensure that applicants of the state food stamp program do not have to wait for interviews and applications are reviewed in a timely manner. 

The FY 2010 Department of Defense Appropriation provides $400 million in new federal money for states to use to enhance their food stamp operations in response to increasing caseloads. Louisiana’s share is $7.4 million, based on estimates by the Center on Budget and Policy Priorities.  Last year, Louisiana chose to use this increase in federal funds to offset cuts in state funds, rather than providing additional resources to the program.

These actions of Congress are in response to the deepest recession since the Great Depression. As a result of this recession, in Louisiana, like in every other state, food stamp recipients are increasing. In the first half of FY 2010, the total number of food stamp recipients was 4,573,021, an increase of 619,606, or 15.7%, from the comparable period last year.  Reflecting declining family incomes, the size of the benefit provided food stamp recipients increased from an average of $120.42 per recipient to $134.81.

From the above, it is clear that the additional federal funds for handling this increased caseload are a welcome addition to the state budget, and it is critical that they be used in the manner intended by Congress.