BRADENTON, Fla. - Louisiana Gov. John Bel Edwards ordered lawmakers to convene in a second special session June 6 to avoid what he says are "unnecessary" cuts to important state programs in fiscal 2017.
Edwards, who previously said he planned to call a special session, said he wants legislators to continue working on the budget that takes effect July 1.
On Monday, the two chambers were far apart on finalizing work on the general fund spending plan, although both impose drastic cuts to deal with an estimated $600 million deficit.
The full Senate is slated to vote on its version Wednesday, which focuses on cuts to hospitals and the popular Taylor Opportunity Program for Students - a scholarship program for Louisiana residents who attend a public college or university.
"Without the special session, K-12 education, higher education, lifesaving health care services, and TOPS will face unnecessary cuts," Edwards said Friday when he issued the special session call.
Lawmakers are scheduled to adjourn their regular session at 6 p.m. June 6, and some opposed calling a special session so soon.
However, Edwards wants them to remain in Baton Rouge from 6:30 p.m. June 6 through June 23 to consider new funding proposals such as revamping the state's tax code along with other revenue raising measures to bring the budget closer to being structurally balanced, he said.
"Delaying this special session would only contribute to the problems our state has faced for far too long," Edwards said. "I have developed a package of proposals that would specifically address our immediate crisis without threatening the programs that the vast majority of the people of Louisiana consider to be important."
In his proclamation calling the additional session, Edwards proposed numerous items that could increase state revenues.
Edwards wants lawmakers to consider changing the structure of the state's tax credits, addressing corporate income taxes and tax deductions for net capital gains, and lowering the percentage of personal federal itemized deductions in computing state income taxes.
Lawmakers will also be asked to ponder changing the rates and brackets for individual state income taxes, addressing the amount of interest paid on refunds of tax overpayments, adjusting the tax credit for assessments by the Louisiana Citizens Property Insurance Corp., and changing existing refundable tax credits.
In February, legislators began a three-week special session and adopted measures to increase budget funding, including temporarily raising the state sales tax by 1 cent.
In the upcoming second special session Edwards has asked lawmakers to make adjustments to the higher sales tax rate because it applied to nearly two dozen items that the state customarily exempted from sales tax collections.
Edwards did not indicate how much imposing the exemptions would trim sales tax collections.
Louisiana's budget problems have taken a toll on the state's general obligation ratings.
Earlier this year, Fitch Ratings downgraded the debt to AA-minus from AA with a stable outlook, and Moody's Investors Service lowered its GO ratings to Aa3 from Aa2 while maintaining a negative outlook.
Standard & Poor's continues to rate the GOs AA with a negative outlook.
