The Revenue Estimating Conference announced at a meeting Wednesday the state has $35 million less to spend in this year’s budget.
The committee mapped out the income forecast, which could potentially affect midyear cuts for the University, but budget cuts will remain uncertain until the state budget is released.
Director of External Affairs Jason Droddy said although the budget and revenue are separate items, they are still related, and the governor will present his budget plan shortly after the REC meeting.
Gov. Bobby Jindal is set to present his budget proposal next week.
The drop in revenue does not necessarily mean there will be cuts to state agencies, including higher education, the Associated Press reported.
Commissioner of Administration Kristy Nichols said the governor’s administration is urging legislators to pull from the tax amnesty fund to fill the deficit instead of cut from state agencies, according to the Associated Press.
During the amnesty period, eligible taxpayers were allowed to pay overdue taxes with no penalty fees and only 50 percent of interest owed, giving the state $435 million, according to the Greater Baton Rouge Business Report.