FISCAL CLIFF'S IMPACT ON CAPITAL OUTLAY- Last week Governor John Bel Edwards presented his balanced budget proposal to the Joint Legislative Budget Committee and it revealed that state revenue will decrease by more than $1 billion as a temporary sales tax expires July 1st. This expected revenue drop has been named “the fiscal cliff”. Edwards says that loss in revenue will limit investments the state can make in things like infrastructure. "I don't see us, if we don't fix the cliff, having any additional Capital Outlay for next year." That's the message he delivered when he presented his balanced budget before the Joint Legislative Budget Committee.
Capitol outlay funding for things like bridges, roads, and water systems is made possible through state bond sales. The state agrees to pay off bond debt over 20 years. Commissioner of Administration Jay Dardenne says funding for interest payments on new bond sales isn’t included in the budget proposal — a total of $6 million. He explained "We don't feel like we can make a commitment to $6 million over the course of the next 20 years facing the cliff." Without new bond sales, funding these construction projects could prove difficult. At a Joint Committee meeting on Capital Outlay Monday, Sen. Gerald Long (R-Winnfield) observed the kind of funding constraints legislators could expect."We all know that the Capital Outlay projects that are currently pending are limited because of the scope of, obviously, our inability to move bonds at this time." Mark Moses is in charge of Capital Outlay
for the state. He says just to keep projects going that are already underway could cost more than $600 million. But so far, the state doesn't have that much to spend."There's a shortfall from what we already have that we need to reauthorize just to keep these projects going." BUT it appears there’s not much money to spend. Gov Edwards, a democrat--- has suggested calling a special session to address state fiscal needs. Republican lawmakers feel more details from the Governor are needed and more cuts should be made. The Regular legislative session-- which will not include raising revenues-- is scheduled for March 12th.
