When the legislature left the capitol last night, Louisiana’s budget deficit sat at $67 million. They returned this morning to find the deficit had more than doubled overnight.
According to Governor John Bel Edwards, the reversal of House Bill 54 left the state with an unexpected $75 billion gap in the budget, bringing the deficit to $147 million.
“We are nowhere near where we need to be at this time,” said Governor Edwards at a meeting with the press this morning. “Continued inaction on the part of the House of Representatives is not helping.”
With the end of this special session five days away, the Governor said he is not optimistic about the state’s current financial climate, and the attitudes of many in the legislature.
“You need to lead, follow, or get out of the way and we have some legislature’s choosing to do none of the three,” said the Governor.  “If you’re not going to propose your own plan, follow mine.”
Edwards has proposed a three-quarters of a penny tax increase on alcohol.  If passed, it would be the first alcohol tax increase since 1948.
Governor Edwards also expressed concerns about time limitations on universities, healthcare providers, and the state itself if the legislature does not balance the budget, and Louisiana is forced to declare financial exigency.
“It’s time for the tough decisions, it’s time for the hard work,” said Governor Edwards. “That’s why we’re here, we need to fix this problem once and for all. [We need to] stabilize the situation for Louisiana, [and] allow ourselves to transition to a new and better tax system…that provides us with the predictability and the stability to make sure we can deliver the essential services that the people of Louisiana demand from us.”