Edwards Unveils $70M In State Budget Cuts, To Close Deficit

BATON ROUGE, La. (AP) — To rebalance this year's budget, Gov. John Bel Edwards  is levying all of a $70 million spending reduction on the state health department and sparing Louisiana's public colleges.

The Democratic governor announced Thursday the final pieces of budget rebalancing needed to get the state out of the red before June 30.

Edwards says the Department of Health and Hospitals has $40 million in savings from lower-than-expected Medicaid spending and changes made in department management since he took office.

The remaining $30 million in cuts will be divided among a program for "medically fragile" children, the managers of the privatized LSU hospitals and managed care companies that provide Medicaid services. Contracts in the department also will be cut, and Louisiana will tap into additional federal financing available for the Medicaid program.

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Our news partners at Louisiana Radio Network were there at the press conference, tweeting as it was happening.

And here was State Treasurer John Bel Edwards reaction to Gov. Edwards' speech: