Louisiana Gov. John Bel Edwards Opposes Higher Ed, Health Cuts

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BRADENTON, Fla. – Louisiana Gov. John Bel Edwards warned that "a distracting political storm is brewing" as a special legislative session nears to deal with the state's budget crisis.

In a newspaper column also distributed as a press release Thursday, Edwards said he would not "support deep cuts to higher education and the elimination of critical health services that will result if we do not work together to tackle these budget challenges responsibly."

Louisiana faces a $750 million gap in the current budget with only five months left in the fiscal year. A $1.9 billion deficit is now estimated for fiscal 2017, although some have suggested that the gap could be higher.

Some Republican lawmakers suggested recently that the state should cut the budget further before consider revenue raising measures suggested by Edwards. Those measures include raising the state sales tax as soon as possible.

"Additional cuts would force colleges into financial exigency, lead to hospital closures across the state and prevent the state from delivering basic and critical services to its citizens," wrote Edwards, a Democrat.

Louisiana State University, anticipating budget cuts last year, said it was exploring actions to reduce its expenses, including a declaration of financial exigency that would allow it to cut tenured faculty and other expenses.

LSU also withdrew a bond deal after it priced last year due to uncertainty about state funding.

Moody's Investors Service warned in February 2015 that after five years of some of nation's deepest funding cuts, Louisiana's public universities were "ill-equipped to face additional credit stress."

State revenues have plummeted partly because oil prices have remained low. In January, crude price fell below $30 per barrel – the lowest in the last 12 years, according to the Rockefeller Institute.

Contributors to the current budget crisis also include slowing sales tax collections, an underestimation of income for Medicaid, and underfunding for public schools, the state's college scholarship program, and housing for state prisoners, according to the current administration.

Edwards said he plans to call a special session of the GOP-led Legislature soon to develop consensus for solving the state's budget imbalance. He is expected to release his budget on Feb. 12.

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