Louisianans
need to brace themselves for the possibility of yet another round of education
and health services funding cuts due to what I term, “the perfect storm.”
The first phase of this storm began with
the sudden drop in the price of crude oil. While we rejoice with each
visit to the pump, we need to remember that lower
oil prices also take a chunk out of the state budget, since production
royalties, severance taxes, and state land leases are the big moneymakers for
this state.
Don Briggs, president of the
Louisiana Oil and Gas Association, states if the low oil prices begin to affect
oil rigs along the Gulf of Mexico, "For every dollar that the price of oil
drops, the state loses $12 million dollars in the general fund."
The second phase of this storm comes from
the recent passage of amendments 1 and 2 by the voters of this state protecting
private nursing homes and hospitals from budget cuts at the expense of colleges and universities, and in-home
health services for the elderly, disabled, and those with special needs.
The first phase of this
perfect storm could be somewhat nullified if we had not been saddled with a
budgetary reckless governor. In states with visionary wisdom such
as Texas, rainy day funds were setup to offset any oil revenue fluctuations.
Monies are set aside over the years to be used in emergency
situations. Louisiana had such an account until Bobby came on board.
The rainy day fund, formally
called the Budget Stabilization Fund, was tapped by Jindal’s minions in recent
years to help close state budget gaps. Bobby has spent over $300 million
with legislators’ approval.
Consequently, the state can’t
afford this perfect storm, for if the price of crude oil continues to remain
low, legislators will have to go back and cut the only entities not protected
by constitutional amendment. Since passage of amendments 1 and 2 just
removed two more entities from possible funding reductions, those that remain,
education and medical services, will receive even more draconian cuts.
Just remember voters, you
reap what you sow!
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