The Louisiana Senate Finance Committee is expected to extensively revise the fiscal 2011 budget bill adopted by the House when it begins considering the measure on Monday.
Sen. Mike Michot, R-Lafayette, said early this week that the Senate committee would likely restore funds for higher education and the state’s charity hospital system that were cut by the House.
The House measure did not tap into the $198 million available from the $700 million budget stabilization fund for fiscal 2011, or any of the $242 million generated in a tax amnesty program in 2009.
Michot said the Senate panel would revise the budget by using those funds. He said cutting the hospital system’s allocation so severely could force the closure of several of the 10 facilities.
The Revenue Estimating Conference was unable to officially certify the money for allocation two weeks ago because of a dispute between House and Senate leaders on how quickly the budget stabilization fund must be reimbursed.
The Senate version of the operating budget will be closer to the one proposed by Gov. Bobby Jindal, according to Michot.
The House bill, which balances the budget with cuts, reduces the funding proposed by Jindal for higher education by $50 million and for the charity hospital system by $68 million.
The budget must be adopted by the end of the legislative session on June 21.
