Construction budget has no new projects
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Gov. Bobby Jindal proposed a $4.7 billion state construction budget Tuesday that includes no new projects.
Instead, Jindal said he will honor the projects that the previous administration promised to fund.
The “capital outlay” budget — contained in House Bill 2 — is for the state spending year that begins July 1.
The governor also announced plans to change the way the state handles construction projects, joining a legislative drumbeat to fix an “untenable” system.
Among other things, Jindal wants legislators to stop stuffing more projects into the budget bill than the state can possibly fund. That proposal falls in line with legislation filed this session to make the construction budget more realistic.
However, another of Jindal’s proposed changes sparked concern among some lawmakers that the construction budget system will become too pricey for rural areas of the state.
Every year, the construction budget is a mix of state and local projects. The budget contains big-ticket items such as public hospitals as well as community centers and drainage projects for small towns. The budget funds projects over several years.
The governor wants local governments to pay 25 percent of their projects’ cost in future years.
Sen. Francis Thompson, D-Delhi, said many rural areas do not have a tax base.
Forcing them to contribute 25 percent would lock them out of the construction budget system, he said.
“If we’re not careful in how we forge policy, the ones that have gotten will be the only ones that get,” Thompson said.
Commissioner of Administration Angèle Davis said the 25 percent contribution would be waived for emergencies and for local governments without resources.
Sen. Robert Adley, R-Benton, noted that the governor wants legislators to put $300 million into an economic development mega-project fund.
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