Dardenne claims that state’s budget problems are severe

LAFAYETTE — The state faces a $487 million shortfall in its current budget and there is no single solution to the problem, Lt. Gov. Jay Dardenne said Friday at a meeting hosted by One Acadiana at the Picard Center.
In addition, a $1.9 billion deficit is projected for the next fiscal year, he added.
Dardenne became commissioner of administration as John Bel Edwards was sworn into office as governor Monday.
“We all agree that these numbers are accurate and this is reality,” Dardenne said. “The difference between what you are going to see from this Gov. Edwards and the Jindal administration is we are going to tell the truth and we are going to be honest and unvarnished about what our budget situation looks like.
“We are not going to rely, as has been done in the past, on one time money, on sweeping funds to balance the budget. Even if we wanted to, and we don’t, we couldn’t because the pots have all been drained.”
The budget woes are a result of revenue shortfalls and spending.
“That’s not a pretty picture for the current fiscal year,’ he said. The budget must be adjusted by the end of June, he said.
The $487 million shortfall estimated by the state’s Revenue Estimating Conference in November may not be the full extent of the deficit.
Revenues are declining, Dardenne said. The revenue decline includes $326 million less than expected in corporate income taxes, he said. In addition, sales tax revenues slowed in November.
The deficit may balloon to $700 million to $750 million in the current year as revenues drop, he said.
“Everything is on the table,” he said of the budget.
“When the dust clears and when the legislative leadership issue is resolved on Monday ... they will be involved with us in this discussion every step of the way,” he said.
Dardenne said the goal is to establish a stable budget “... and not create the smoke and mirrors that have been created in the past.”
Of the state’s $26 billion budget, there is about $8.9 billion available for cuts, he said.
Louisiana’s state budget crisis is dramatically worse than it was during the 1980’s oilpatch downturn.
“The jury is still out on the oil patch and what is going to happen with the price of oil overall and what it does to the economy of south Louisiana,” Dardenne said.