State Budgets: Louisiana Governor Stands By Tax Cuts and Tax Credits; Holds Off Using Rainy Day Fund
December 29, 2008
Louisiana Gov. Bobby Jindal (R) expects the $1.3 billion shortfall in current $30 billion budget will worsen. He has urged efficiencies such as $25 million from a hiring freeze and other cuts, and is also studying program elimination. Jindal has refused to consider drawing down the state’s $280 million rainy day fund until next year, or using $800 million in reserves, or postponing $380 million in “Stelly rollback” income tax cuts that take effect next year. He remains supportive of Louisiana’s costly film tax credit, and has cautioned income tax repeal proponents of the need to replace the revenue.
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