Funding fight erupts

• By MICHELLE MILLHOLLON
• Advocate Capitol News Bureau
• Published: Mar 12, 2008 - Page: 1A - UPDATED: 12:05 a.m.

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Legislators accused the Jindal administration Tuesday of trying to make higher education and health care more vulnerable to budget cuts.

“You’re throwing higher ed and you’re throwing health care under the bus,” said Sen. John Alario, D-Westwego.

The committee ultimately approved Senate Bill 11 without an amendment that the Jindal administration wanted.

The argument erupted over SB11, which would gradually change how the state spends sales tax revenue from car and truck sales and leases. Instead of using the money for general state services, the measure eventually would allow the revenue to only be spent on roads, bridges and ports under the measure.

The bill also includes a safeguard that would allow the revenue to again be used for general state services during tough economic times.

At a meeting of the Senate Committee on Finance, Gov. Bobby Jindal’s top aides pushed legislators to change the safeguard as a House committee did earlier this week.

Legislators and the Jindal administration disagreed on what the impact of changing the safeguard would be.

Lawmakers, such as Alario, said the change would expose health care and higher education to deeper budget cuts in bad economic times.

Commissioner of Administration Angèle Davis said the amendment would include the vehicle sales tax revenue in the initial round of budget cuts when there is a deficit.

Certain areas of the state’s operating budget feel the axe first when expenses exceed revenue collections.

Some state services have dedicated funding sources that are set in law or the constitution. Other state services — mostly health care and higher education — are dependant on the Legislature appropriating money from the state’s general fund and are the first to get cut when the budget shrinks.

Davis said the amendment would spread the cuts in economic downturns.

“It would mean that you could cut transportation and health care and education all at the same time,” she said.