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Think Tank 1210pm fiscal trouble

Feb 15, 2017|

Louisiana in big fiscal trouble.  Here we go again.  Big deficit, little money, who do we cut?  Has the legislature cried wolf too many times for us believe the gloom and doom? This hours guest: Cameron Henry - Louisiana State Representative & Chairman of the Appropriations Committee Jay Dardenne - Commissioner of Administration

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Automatically Generated Transcript (may not be 100% accurate)

Here Barbara doing it bugged if you've heard this boom for. Louisiana is really big fiscal trouble. We get a big deficit. Real little money. Some thing better try to keep things who believe you are something we go to cock. Seemed seemed like something we've heard ball four. Federal sale all of this reluctantly have Cameron Henry broadly Louisa and saved represented chairman of the Appropriations. Committee. Cameras all in no you busy appreciated call. Our Ali that I don't darn good bill good to. Bu big government says were placing the 304 million dollar budget shortfall but the current fiscal year that ends June 30. And he told these special session of the legislature prime breeding proclaimed we're about to hear. The coach would be concentrated. On the narrow spectrum of the budget and would be deeper and more painful. The necessary to close the gap what do you think. Well I think the main focus on it not spending more money. And that's it and edit them very simple folk and in bad rooted problem troll weeks ago machine to be. Adding to that tradition. Would honor a tradition of recruitment. Second short ball 300 shortly ago which was mainly the reason mainly that. Because which income tax per compact Keenan lower than expected. Obviously that. They were he I'd go economy shortly that it will get industry. I believe that number is around 33 out only patched up that loss. Hamachi there at that exact figure. So if you look at from that perspective income taxes low the money's not they're. To use any day it could be reducing the count. They re learning expenses. Due to perpetuate the problem in the future. Now compound that problem with a party that shortfall this year. Net total equaled 617. Billion. 617. Million dollars that much actual clutch at the boat has opposed it nine. Million. Everything else we that put two pain and we used. Some full some of the sort of revenue made it on immediate actually indicate on our beat. We kind of got some other count that we use to at a latest on Richard you know we should do the previous administration. So if you everybody that was 617. Million dollars shall and we've addressed that by only cutting nine strictly about. They'll and an officer support people and everyone wants to keep everything open as much we can put. From a lot of rainy days away and it is unfortunate I think where your state financially. It is where real. This isn't an anomaly that is exactly where we're where we are this time too we need to start adjusting our spending to meet. As early. To the future partner help. The department helped put request for next year. 7%. That roughly equals there about two billion dollar budget now they're asking for a total of fourteen point six billion now. Now we just discuss thirty seconds ago short twice you tune of over 600 million dollars we know next year. We're gonna be short 400 now so. We need to start slowly and methodically. Making small reduction NATO. So that. Long term we can get spending under control. Kept our biggest problem we have right now in the state are our spending in outpacing revenues coming. So it's aware of where we've caught. Well the majority of the budget goes to. Hell. Higher education and correction. Now I introduced earlier you were talking about how kind of the same old song we have massive budget short all have to make. So when you make any culturally and tell the first thing they tell you that they cut hospital and they are now labor and they cut. Role as well. Let the saints going and that that in the administration put forth unfortunate that go on. I can't run the department. No legislator can run. The governor has the authority to go and actually behind each spending reductions with in the department. I think that's where the shenae columns more philosophical debate than anything. Key thing. Government has enough money or don't. Believe you have mixed at some point time for the year after me he was quoted in the newspaper. Recently out of that. To get to the beat that date and time an article. That the two really doubt we re doing. The governor's first year office 222. Billion contacted me just one and a month. I thought that Brett take you to think that you think two billion dollars is enough. Under the economic. We should be have more than a couple all the services that we actually heal or priority. Do in global com if you still wanna cut the budget you going to pick the most heart wrenching thing it's that you and I and it'll legislated it. That's like you pointed out. So shall go in there and windy save that what are you saying. Where and Lincoln abundant hardened ground ball. We're gonna because. So and so what board shall responds to. All the good news there of bigger and cut the paralyzed kid. And these mothers didn't have Lou Peru. They come up with what to do. So assembly I would say for the department that they total picture positions that you. Just simply on it they can position. Which in the tune of look somewhere between when you include benefits. Somewhere between sixteen or demean the Ball State. Let's. Get go look Egypt vacant position and it. Go look at it full tribal what you have remaining for the remainder of this year it's 620000. Have you looked at that. You have eight supply outlook in. Go that you go look in the Ito on it to see what you come back you three point I mean now it may cut supply. I'll have a definition of what supplied our. But I imagine it we've it would be an accurate it would be watching all we're not talking about too rigid and and care in ancient name for actual care. Just simple supply. You'll oral goal is for government to grow and your overall goal is to not. You know it'll look at these. I have to dig in at the right questions 200 people predicting it. Could that'll put the secretary of the the government action to more information that we. Yet you have to understand the perspective and all your listeners. As a legislator I don't receive information from Egypt. I don't have any other action to kill. You and you'll have to stamp. You very broad look at supplies his goal look at vacancies go look at trouble and tell me what are. We get that information from the we don't have access to the computer's a tool we require when we request like him cremation. Dale that we request everything we actually no win any all intimate enough. Georgia and from the perspective. The other side. From that from the government. How much information. About how accurate can beat it you know use that information. To cut you botched. Achieve make statements and more efficient. That's a particular and that just means that staters and before or after it really comes need to come from the Butler saying look I'm going to be insured up to really be in that these budget and find what's. What we can make the reductions. He added it's a political slot that. It's not it's not Republican Democrat it don't want DC politics that that that the lead actually get widgets so optically. Differ on how we need to move the state school I don't think we can spend anymore money. That's just common sense key believe that. We can and and if we get to a point where we run that that we should Eurasia catches more to cut. And if you don't pay packet on the heat I think lecture that the ship them out should football you about the correctly. That you bishop M at the hospital stay. The revenue in community expects it. We didn't get model that they thought they deserved. I believe we have a policy that might and applaud that we would like. The hospital is still functioning. And it's just such a process that will go but. We're all working appear to try to get something done about it. And we're gonna turn come right back up much later continue to question next year and the trying to make problems sports connection. I'm you can appreciate. Cameron. Got Integra Greg bunch card tension injured talk and butter pocketbook. And above questions. I mean. What Cameron's talking about what Jay Darden isn't about. Even though I gotta tell you camera in the room where we go alone through troops into the gold says than who would give and tried. Tired here in the same thing every year. Regardless who would sell abroad and we're getting tired of hearing as it did it is going origin going to a peck as soon rural leader. Your thoughts and the think tank double via. Its own site and should. Intend to the trouble we cover. Up love smokers. Project Bard doubled bill in new poll would whoever you I'll warheads allegedly drew cried wolf too many time for possibly the gloom and doom about that. So birds and abuse say absolutely. Governor usual. At war is saying replacing a 300 and Wharton. And dollar budget deficit for the current school years Indians. June 30. Veterans and all that sort of got Cameron in Great Britain in beard chairman of the Appropriations Committee camera. Strong session. I mean Sharon's question in and it's all it's OK Briggs yours strange guy. You talked about income taxes. Being pretty short to ensure primarily because of the dip in or revenues. What did it in and I think that many I'm sure that factors. And that she was a better. Job than. Our our unaudited three headlines one from form one from altered one from Bloomberg. I'm choosing one from Forbes it says is saying things to. Electric cars and and tribal this court's. Going to cause big. Oil marched Dan. Now we've we've got old prediction. As origin and the imports of club back recovered chords longer beard the 2030. We got sober in Pittsburg wood 200 cards and learning from each other in competition. From everything from BMW. Two gold. Changes like gonna get her ex would eventually or what pastures than 2030. Are you guys and girls look ended in anything that says okay we're debating these big deficits. But part of the recurring deficit is drop in oil old revenues. What happens if we had poor in this country will read challenged ward using them much. Well I mean that's one of the issues we have with projecting how vigilant about what is based on the projection of about what. And that number has fluctuated which is one reason you know which. Compound the problem in this state. As it relates to the callers. Whether it's electrical argued that caught it get more miles to the talent. Just something like that at that point you buying less gas. Which means that less money going into the state transportation trust which means it reduces the amount of money that you had to fix roads and bridges and so. So that there is there a big compound in effect all of that. And we'd like we we look at that are willing to catch significantly adequately to electric car I don't believe we're there yet. In that statement up and we have to be mindful because you'll correct. Went all the but all this comes a lot of standard sources of revenue. Martin beat that goes to this point it as the state ball. And we are revenues decreasing. Are spending a little ball with it Weathers to make adjustments for. Income tax not being here whether big egyptians were people not buying much gasoline. Well will be a lecture caught it and as you put. You have to be willing to follow and. How really how we can be evolved gas stacks. At this stage and that rate eating can you expect partly execute. Overall on capacity in the is not doing very well our capacity to borrow money. Is historically low. We have about a pottery it will once already. You could do the show would cheat the chairman aid in future that we need to meet you simply on. On up on the issue upload process that the state and a troubling. Moving forward that's going to be greater concern. To some folks in the budget process I believe all money yet state. And when you look. From my perspective look at all those things yet to craft budgets. And we make up no one wants to make reductions to hospitals and and education but. At a time when everyone else in their back home is cutting back because revenues that there. We need all our agency to step up to do the same thing they've got a site is government never come to mean it needless money Atlanta. Quite quite the opposite the agencies that submitted a budget this year. Going summit that this out earlier. 020% 1920% from last year. I find that hard to believe that you put that on paper no financial trouble. And I agree with a list. Though if you pull the 7% Walt side here and that's why we're pushing back. Travelers say it every year you guys in the same thing and I promise you today Appropriations Committee can get to bill. And the condition or so instead they can make these cuts would get a cut higher they're closed out there was shut down eligible well. But next year are skewed pretty much of what we do next year's budget and they LLB once an additional two billion dollars. Get they. You don't give me all fourteen point one billion we're gonna quote. They use the same argument you know the in the potential and they think they do it they at least right now there's reattached a year that year. And Alec so little waiver. To help so some. Adult control of that the state provides served as the now we've talked. They bring it in there which that it cute that have that special needs and they say the first thing LB to cut it now. I'll put them back to the principles that Egypt the lowest priority. It's all about the age all of that that danger you lower your low priority in their in state ST trial there at the net and the supplies. It's insulting to power to do that took every year we passed a resolution. Well an amendment that that locks you can't cut now labor's which equals about 220 main belt. Well you know it. Again it's the same song ended year to year I can appreciate frustration that it list. That's what members seat today while pushing back shall order by using all day. An administration that respect it it's still raining. The fiscal year that'll. We looked at and so a couple of leapt at the end of the year which still short and we all rainy day there how do you cut someone budget at the end of the it is difficult element having one month we had to look what you bush again. I don't need any date will compromise using some do we really need to keep shall we action at 219 for the fiscal year. A lot of money and we used it to kick in now given the opportunity case it would shall into this fiscal year to get things. I it's it's not easy not pleasant but I can appreciate your listeners were targeted things. They can be anymore for extra time or deny it. Cameron. Everything and every time income educated or fewer talk to QA. And then thing. Much sell in the losers. Gets a reformation in heard before and who you brazile I appreciate it did to men and introducing interviewed thank you so much. That it. Our program that actually talked to Jerry Gordon computer Truman administration here we go from side of the jury's. It's. You just can't beat it over and over again but eventually. Were born they can't find in the future what do you think twos into ones eats there regularly call. All right here would you were thinking. Where do little of visual unscientific but it covers. People project more than double in polls. As little shall insured cry bull tomb in time for it's believed the gloom and doom about that Dobson 75%. Of you say you shall. Where god governor of the original build a war of selling the legislature part read correctly were pacing now at 304 million dollar budget shortfall of the core twos are. Where its lungs June 3 which I think means we've got more deficits coming in the short order. And federal some analysts WebJay Jordan. A commissioner. Of administration jail which retreated to try and take. It so it's win win win would would would look at. Tufts. Again and Craig may have for Ramon carbide nine million. Last year. Cuts are high heritage Riordan even though issue football maybe. Our car corrections. Executive judiciary. And issues seems to dangerous don't put together in AD million dollar pool complex. No no parents. Protests in the in the quarter. And we've got prison Stallone whom we. No hospitals closing. No colleges close. Talk to me about. If we do we keep hearing how serious this is where will concede the things that that. We conceived fueling. So. We've covered a lot of territory. They'll shoot football is not in jeopardy Gurney thing like that. The complex is built related to athletics on campus Serbs are usually paid for by the athletic department about tiger athletic foundation and not pay state dollars. Put that. Understand the public's frustration and it's been been frustrating me for an awful long time and I'll watch these budgets as well but. You know this is trying to budget revenues a very difficult. Prussia and it's an art it's not a science we don't know exactly what trip is gonna Colombian. And at the end of the fiscal year sometimes you have little bit more than you thought and more often than not we have less that we ought to. And we have a good system at least you know that helps us again when we have a deficit. And require the states never to deficits span temperature we're only expand what we pay. And so that's why we go to the actress and I've been very repeated over the course the past decade. Where there are mid year deficits in obviously we try to manage and we certainly this administration certainly try to manage that by setting priorities. And not making collection areas that we would like to know as full funding that's one on the governor's proposal for the shortfall we're facing right now. He's suggesting using the ring any date on which is exactly for the purpose we're facing right now and not making further cuts to higher education which have been cut. For all the past years until discovered took office. And not making cuts in health care that would necessitate. Running off somewhat. Public private partner hospitals so we do everything we can't not to maximize Tony. And and that's why there are always the threat of that certain things don't happen. And that's the case again right now we have a very real 304 million dollar shortfall it's got to be addressed. Before the end of this fiscal year. We put forth a proposal to do that we've we've given legislature we've not seen anything. Any response to any of the proposal that says. We would rather cut here here here here the use the rainy day fund that's the challenge legislature now is in excellent. I just said Cameron Henry on. It and flipped her mother wrote notes Greg please and to look at health care vacancies six and 200 million it'll look good tribal. 625. Million dollars. Or aren't there are eight Boe or Serb and an entities that we can cost. We we have cut we we cut at the beginning of the year 326 million dollars that would have been necessary to continue funding last year's level. 312. Million dollars to take care of the deficit that was in last year's budget ended June 30. And now we got another 304 million dollars that we kept things. All the while we've got a budget that is then I'm on a straightforward budget with the people with the legislate no one time money in this budget whatsoever. No money for inflation. No new programs. I'm no gimmicks like we saw offer for any previous years and now we're dealing with the reality. A hole cuts that have been put in place over the past eight years in the country that we put in place. Last year this year so we constantly so late we can cut in the weeks we've proposed reductions in sort addresses prop. So was Cameron wrong when he said they would get succeed a hundred million dollar cooks and held vacancies. And you're tribal owned 625. Million. I don't know girl I'm not sure what numbers he referred to and I can't take announcing any kind of numbers that that resemble I'm I'm not. Question is or ST piecing it but I haven't seen. I know that they're going to be. Proposal today that I just saw literally literally ago. Bob some of the members of the appropriations committee to take some money out of what they call attrition positions that are not failed and we are taken. A huge amount of money for Erie area boats but first. But did sold 312 real problem hand in this proposed cuts so we're very much aware that issue vacant positions in. You know the workforce of the state changes. Literally day with people retiring people coming people go and it's a constant moving target would obviously make sure that you have personally been funded. In the budget that's been approved Bible actually. All right take a break Bloomberg conduct. Talk about a quoted in the paper from senate term Conroe propellers so broad realty. In a recession movies you know we've been told by economists. That we might be 234. Years ago or recover. It if do you economists or Greg in there if poke a hole that's correct Maurice quoting. We all wish it did to win we've got drew many colleges boob can't close them you'd Truman universe are we can't close them. Because of politics. When we get to a point we're being told were caught in the map a role. Isn't it time of politically. To jump to glib and enclosed from colleges or universities. Come right back double to. Or hybrid engine about one more and try and Louisiana is in big trouble bugs that boosted government Edwards Adams. Facing you 340. Million dollar budget shortfall for the current fiscal years that in June 30 and potentially more. After the stealing BO valuable time of Algeria hard Darden Doug commissioner of administration. Puree. As that said wanted go to quote from in the paper from it was so Nolan column. Senator of Conroe and tell. We your neighbors session you know we've been told by economists we might be 234 years before we recover. No one do agree with number two pew doomed. Sure. Start making the hard decisions of which colleges or universities. Have cloves or even which hospitals. I do agree that we're in recession can't necessarily speak to duration anchor economists told us that we are in the midst of an I don't know if it'll last another 234 years but it. Fatigue of that by the ways is important game people working in all areas of the state in Baton Rouge Lake Charles area. We've got significant unemployment so the key is to get people working. That generate dollars from a tax standpoint and also gets people label about things in two they enjoyed the. A benefit to pay and job. The legislature has been in discussion format closing universities. There's obviously huge expense involved by simply saying you're closing university in the long run it would save money but. He also have winding down cost you have retirement obligations you have to pay you as. Debt obligations you have to play the legislature rightly or wrongly is not an appetite. Much to do that you even because for example hotly debated combination earned the merger southern and so unfortunately. You know. Which would seemingly be easy to bow their size bouts that date that virtually sheer physical post but. That has not going anywhere in any recent legislative session so. If it is a purported eighties see. Solution but it's very difficult to accomplish not only politically but also practically in the one usually come forward that we do that. Right now. Termed hospitals we're we're in the middle of a really a transition where we converted our world charity hospital system. 21 that now involves probably partner hospitals. In essence the state is pick winners and loser so to speak in terms of hospital food benefit from great deal of federal and state dollars. And are gonna have the responsibility of providing care to our indigent population. We came perilously close Ludwig from those partners in the budget debate last year when we were having to consider dramatic cuts to those hospitals it is. Stepped in and take in the place of the good cherry hospital system will have that same discussions come April in the regular session because. In addition the problems we're facing now we're gonna haven't put 200 million now plus problem in next year's budget which will be introduced next week. I'm Lisa governor's budget will be introduced next week and will be debate on when the regular session the gates. Final question and in. I'm live today c'mon go wrong but Cameron inquiry told me you I think. You go as the Braves to a billion dollars in taxes if the instant true and if it would why is that not enough. It's an amazing number and it's close to being truly great almost that much probably the legislature as in the governor asked for a good bit of that can be raised. Because we had a two billion dollar bill. That this governor of this legislature inherited a terrible fiscal maps from the previous. Administration we're one time and money had been used for ongoing expenses. 800 million dollar alone last year's budget that was not coming back again one time money for recurring expenses. We did note that in the budget they were operating under right now because that's we weeks ahead you have to stop that practice governor to make it very clear. He's not gonna continue those practices that got us into this hole. We're still don't know the whole we still got to correct where we are of the upcoming session will be an opportunity talk about good text system in Louisiana. Overall we beat making maybe making some changes. Even a little bit of an ogre and thank you so much for your open all. Absent in the big. I go back to a blue widgets additional. On trial once rallies for and for infrastructure. We need 926. Billion in this country. A large part of its QBs played it. Or at least they tortured them and Tuesday. We're talking about it true towards rumored talk about brought a lose wars over talk about who were in a I. Don't need to be ex would didn't you leave. Thinking or. What the future's bring because that may be pleased in the just a thought. In the cool being turning double BO. Scar desserts and got a very introducing children results who got a very introducing blog. On web site. He says there are some of them deeply concerned about America had its. Not my intent to offend me and he did trumps reporters at regular part of blues afternoon audience and oh lord shall one of the video however. Failing to be honest about Indy political controversy would disqualify. Me from a credible breed you talk show host. Into red Reza grow like guarantee you're going to be intrusive in screwed its next talk about that in more. John Bucher pollutants and then they think you're broke the paper clips and chewing gums it held that showed go over those of you listening thank you so much. Have a great day business. News WB now.