The nagging fear of another budget cut before the end of the year is one step closer to becoming a reality.
The Revenue Estimating Conference announced Wednesday a $319 million reduction in state revenue for the current fiscal year will likely lead to another deep cut into the University’s funding to be met by the end of June.
The Revenue Estimating Conference also announced a $244 million reduction in revenues available for the next fiscal year which could put higher education under further pressure.
What is certain is the state must fill a $319 million hole — what is unclear is how much the University must fill.
Gov. Bobby Jindal said at a news conference, following the announcement, he will meet with legislators and higher education officials and will have a plan for filling the hole in “the next few days.”
“We will continue to do everything we can to mitigate the effects on higher education and health care,” Jindal said. “Bottom line, though, is we are going to balance our budget both this year and next fiscal year.”
The state already took a midyear cut earlier this year. This cut will be handled differently as the legislature is now in session and has the primary authority for balancing the budget.
The revenue shortage will be covered this fiscal year by a supplemental appropriations bill while the reductions in revenue for the current fiscal year will be adjusted through amendments to the general budget, which is currently in the legislature, Jindal said.
Chancellor Michael Martin sent preliminary plans to the LSU System Office preempting the announcement earlier last week.
System spokesperson Charles Zewe said plans for cuts aren’t going forward in light of today’s announcement because the exact amount higher education must cut is unknown.
The legislature has more flexibility to assign cuts than the governor, and it has yet to be seen whether the state will use rainy day reserve funds to help cover the hole, said Jason Droddy, assistant vice chancellor of Legislative and External Affairs.
“I’ve got concerns about using the rainy day fund in this situation, but I have made a commitment to legislative leaders that we are not going to take any options off the table,” Jindal said.
Jindal said he had concerns with using rainy day funds because the schedule in which the state must repay the funds.
Contact Xerxes A. Wilson at [email protected]