Political Horizons for Jan. 11, 2009

• By MARK BALLARD
• Capitol news bureau editor
• Published: Jan 11, 2009 - Page: 7B - UPDATED: 12:05 am

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At last Louisiana’s beavers can breathe easy. For all the promises of streamlined government and warnings of layoffs that accompanied Gov. Bobby Jindal’s $341 million “cost-savings” plan to balance this year’s budget, it appears the few flesh-and-blood, full-time state employees who actually will receive pink slips include the eight who work in the office that trapped 1,451 beavers last year.

The rest of the so-called cuts include about $32 million for not filling vacant jobs, some $57 million from one-time money in health-care programs and about $80 million in unused appropriations after goods and services were paid.

By law, this unspent money, otherwise, would become surplus on June 30, the end of the fiscal year.

Former state House Appropriations Committee chairman and now-Sen. Robert Adley says Jindal’s budget jiggling didn’t really reduce state government spending. “You cut that money, but it’s not really a cut because you weren’t spending it either,” said Adley, R-Benton.

The only real cuts in Jindal’s plan include reductions in prescriptions for seniors, the postponing of some developmental programs and the loss of about two dozen jobs.

Maybe the gap between Jindal’s rhetoric and reality isn’t so bad. Thinking as a property owner in a town where most of state government’s money is spent, where a vast majority of the 103,775 state workers live — 11,883 of whom make more than $70,000 annually — perhaps the more prudent course wasn’t hacking away but buying more time.

The Jindal administration estimates the state will be $2 billion short of the money necessary to keep government services at their basic current level — including inflation — for the budget year that starts July 1. That means when legislators convene on April 27, they will be looking at far-deeper cuts in state government services than eliminating phone music for callers put on hold.

Maybe before then the economy will get better. Maybe the price of oil will increase or President Obama will provide the significant help he promised the 40-plus states facing budget crises.

In the meantime, more and more legislators are talking about raiding the $418 million in the so-called economic development megafund. The megafund was launched by former Gov. Kathleen Blanco to provide ready cash for use in the state’s quest to entice big businesses to locate facilities here.

Spending the money would be using “one-time” dollars — from a source that doesn’t replenish — for expenses that occur year in and year out.

 Why not use megafund dollars to pay down debt or cover construction costs, thereby freeing cash from a recurring source, such as tax dollars, to pay for ongoing expenses?

“I’m hearing folks are looking at it,” said state Sen. John Alario, D-New Orleans, a former House money and tax committee chairman.

He urges caution, at least until lawmakers start figuring out how to make up the expected $2 billion shortfall.