By Ivory Bibbins
State Sen. Bret Allain, the top Republican on the Senate Finance Committee, sees more budget problems ahead. And he hopes Democratic Gov. John Bel Edwards will continue working with the Legislature to solve Louisiana’s budget problems.
“I hope Edwards comes to the Legislature before he presents his budget proposal and works with us so that he makes cuts in areas that hurt the people the least,” Allain, R-Franklin, said Monday at the St. Mary Industrial Group meeting at the Petroleum Club.
Allain said the projected 2018 fiscal year budget comes with a $1.5 billion deficit that can no longer be fixed with the sales tax hikes passed last year.
The senator traced at least part of the recurring budget problems to changes in the Stelly Plan.
Before voters passed the Stelly Plan in 2002, the Legislature suspended state sales tax exemptions on groceries and other necessities each year to balance the budget.
Stelly made those exemptions permanent and raised state income taxes to make up for the lost revenue.
But opponents, among them former Gov. Bobby Jindal, complained that the income tax hikes were too large a burden. So the Legislature rolled back in the increases.
Allain said the push to do away with the Stelly Plan created a then $800 million hole in the budget that was never addressed with any permanent solutions.
Allain said several cuts have been made to various departments during the last fiscal year. Capital outlay projects were cut, and economic development was cut by $8 million.
The Office of the Lieutenant Governor, which funds state tourism efforts, has also seen budget cuts.
“Every dollar we spend on tourism, we get $14 back in taxes,” Allain said. “We continue to cut things that make sense, and we continue to fund things that don’t.”
Allain said he’s concerned with the Affordable Care Act’s expansion of Medicaid, which attracted 430,000 enrollees the first year and made more than 4,300 St. Mary people eligible for Medicaid, according to the Department of Health and Hospitals.
Allain said that after three years, the state will reduce its reimbursement for expansion to 95 percent, which will cost the state money.
The senator also supported U.S. Bill Cassidy’s efforts at health care reform, which failed in the Senate. Allain said Cassidy’s plan was basically going back to the charity hospital system.
“The charity hospital system trained some of the best doctors we had in the state,” said Allain.