Louisiana's Treasurer announced Friday that when the final budget numbers for fiscal year ending June 30, 2018 are tallied the state should have a balanced budget with an approximate budget surplus of $300 million. Richard Carbo, a spokesman for the governor confirmed Louisiana does have a surplus but the final numbers will not be known until October.
The state's budget for fiscal 2016-17 that ended June 30 of 2017 also had a surplus to the tune of $123 million. The state's constitution spells out what the surplus can be used for and how it must be spent. Those two budget years were a much better outcome than the disaster created during the Jindal administration. The republicans in the state legislature in response to the budget surplus said it was the result of being over taxed with out offering any evidence. But those who pay attention knew Louisiana had a shortfall of revenue do to the $8 billion in tax benefits to business, the lowering of personal income tax and a weak economy under the Jindal administration.
The added revenue will allow the state to fund critical services it cut through out the Jindal administration and pay for priority issues where Louisiana lags. Sunday's Times Picayune carried a good example of the critical need for mental health services and facilities that have been devastated by previous cuts to the budget. The people of Louisiana know the state lags the nation in so many areas that are critical to progress and for moving forward.
Governor Edwards was willing to face the challenge Louisiana had to deal with and refused to accept the status quo of the past. The budget improvement will allow the Governor to move forward in a constructive way to improve Louisiana's economy, the quality of life for its people and to upgrade the states institutions and its infrastructure. The policy and the direction has been set and the republican controlled legislature should follow the Governor's lead.
This commentary written by Joe Lorio
