A plan to begin redirecting revenue generated by the state sales tax on cars and trucks away from the general fund so they can be used to fix roads and bridges has been shelved for now because of Louisiana’s budget problems.The transfers, approved earlier this year by the Legislature, were initially scheduled to total $636 million over five years and reach $320 million per year in seven years.But a sudden downturn in state revenue collections has canceled plans to transfer the first installment this year.The bill calling for the transfer included a provision that shelves the plan if official state revenue estimates plummet.The state’s budget outlook has also put a question mark over plans for future transfers that would aid road work.”It looks bleak,” said state Rep. Sam Jones, D-Franklin and a member of the House Transportation Committee.Mark Lambert, spokesman for the state transportation department, said Tuesday the delay is symptomatic of what is happening to a wide range of state services. Gov. Bobby Jindal has ordered a $341 million reduction in current state spending.The state faces a $2 billion deficit for the financial year that begins on July 1 if spending remains at current levels.”It is just disheartening,” said Jennifer Marusak, spokeswoman for Driving Louisiana Forward.The group represents highway contractors and others that backed the bill.”The legislators spoke for their constituents when they passed that legislation,” she said. “And it is just very disheartening that once again transportation is going to be put on the back burner.”Jindal’s chief budget official noted in a prepared statement that the state dedicated $400 million to roads and bridges from an earlier $1.1 billion surplus.”We anticipate the opportunity for significant new infrastructure investments through the federal stimulus package and the state surplus,” Commissioner of Administration Angele Davis said.
Louisiana revenue dip means less road money — 12/24
December 24, 2008