Late-hour compromise reduces cuts in budget

• By MICHELLE MILLHOLLON
• Advocate Capitol News Bureau
• Published: Jun 26, 2009 - Page: 1A

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With less than an hour left in the legislative session, lawmakers agreed to a state budget compromise Thursday after days of discord.

The agreement decreases the budget cuts that Gov. Bobby Jindal originally proposed for higher education, health care, the arts and other state services.

“We’ve got a reasonable, sensible budget,” Jindal said at his end-of-the-session news conference.

The state’s rainy day fund, a dormant insurance fund and a rising unemployment rate contributed to the compromise.

Lawmakers put an additional $100 million toward higher education, reducing the $219 million in cuts that Jindal proposed amid state budget problems.

They also found money for projects in their districts, firefighter training at LSU, the state agricultural department and judgments in lawsuits against the state.

Higher education and health care still will endure cuts in the $28 billion budget for the fiscal year that starts Wednesday.

State Commissioner of Higher Education Sally Clausen said the reductions are very close to what she asked for when she requested that the $219 million in proposed cuts be halved.

“We’re very appreciative,” Clausen said. “We now focus not on obstacles, but on opportunities.”

The reductions in cuts allow colleges to avoid drastic layoffs and program eliminations in the immediate future so they can better prepare for a downsized future, she said.

Louisiana is feeling the pinch of the recession. State revenue is expected to drop $1.3 billion in the upcoming fiscal year. The state’s financial problems are expected to continue for several years.

House Speaker Jim Tucker, R-Terrytown, said legislators eased the state’s budget problems without borrowing money or raising taxes.

“We’re on a path to avoid a catastrophe … by slowly working our way down to a smaller, more efficient government,” he said.