Jindal rejects using rainy day fund, taxes to fix budget

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Jindal said Commissioner of Administration Angèle Davis already warned state agencies that growth in spending will be virtually nonexistent in the upcoming budget year.

He said programs will likely be eliminated.

The state created a rainy day fund for downturns in the economy.

But Jindal said tapping into the rainy day fund now would not resolve the $1.3 billion shortfall that is looming.

He did not rule out using the fund — to the tune of about $280 million — to resolve problems in next budget year.

Lawmakers are concerned about a deficit in the current fiscal year, which still has more than six months left.

Oil prices have fallen sharply from record highs, leading to lower prices at the pump.

The state collects royalties from production on state land and severance taxes that are tied to the price of oil and natural gas. The higher the price, the more revenue the state receives.

The governor said he will respond quickly to an official reduction in revenue. He said he will release a response on how to deal with a shortfall in the current year within 30 days.

Jindal was in Washington, D.C., and Virginia earlier in the week to help Republicans raise money.

In Washington, he attended a fundraiser for U.S. Sen. David Vitter, R-La. He then traveled to Richmond, Va., to lend his support to gubernatorial candidate Bob McDonnell.