In the ongoing saga of underfunded states and/or government blocs (California, Michigan, Washington, D.C., Illinois, New York, oh my god the list never ends) having to scrimp and fire and bawl their way through budget shortfalls, Louisiana is a rare exception. The home of this year’s Super Bowl champs is facing its second budget crisis of 2010:
An unexpected drop in state tax collections has created a mid-year budget deficit that could be as high as $400 million, complicating an already dismal state financial picture as lawmakers prepare for the start of their annual session in two weeks.
The news, delivered to Gov. Bobby Jindal‘s administration late last week by state economists, comes less than three months after the governor wasforced to cut $248 million from the 2009-10 budget to adjust for shrinking state tax collections.
James Richardson, a Louisiana State University economist, said the latest deficit stems from February tax-collection figures that were far lower than economists had predicted earlier, particularly in the key areas of sales and personal-income taxes.
Also:
the state’s Medicaid rolls have swelled to record numbers at the same time that the money to pay for ongoing expenses is shrinking. “I’m aware that there may be an issue forthcoming and I’m just trying to prepare myself for it,” Levine said.