Louisiana Gov. Bobby Jindal said at his Monday news conference that he would not oppose legislative efforts to use some $50 million of the state’s budget stabilization fund to further reduce cuts to higher education in the fiscal 2010 budget.
The governor has proposed $209 million in cuts to higher education in next year’s budget, but the House softened the cuts with $50 million from a tax amnesty program, $30 million in higher tuition, and $23 million in other revenues. The restorations were included in the House-approved $27.9 billion budget bill.
Jindal said he would support drawing on the fund if the tax amnesty program does not generate sufficient revenues, but only if it would not create budget issues in later years.
About $258 million is available in fiscal 2010 from the budget stabilization fund, which is primarily supported by energy severance taxes. State law prohibits the use of more than a third of the total fund in a fiscal year.
Jindal had opposed any reliance on the stabilization fund, warning that federal stimulus funds will not be available after two years.
