With No Legislative Solution On Fiscal Cliff, What Happens Next?
So what happens now that the legislature wasn't able to come to any agreement on solving the fiscal cliff? Governor John Bel Edwards doubts legislators can pass a budget for next fiscal year in the regular session, so another special session is likely.
"As a result, I've already asked Senate President John Alario and House Speaker Taylor Barras adjourn their regular session by mid-May, doing so would allow us to have a special session that would conclude by June 4th," Edwards said.
But Republican House Appropriations Chairman Cameron Henry is optimist they can pass a budget in the regular session, because the state can do more to reduce its spending.
"Remember, a shortfall is defined as money that agencies want, not what they need, so when we say we have a shortfall, we are not able to give the agencies all of the money they want," Henry said.
The state is facing a billion dollar shortfall, but Louisiana will receieve an additional 300-million dollars in state tax revenues, because of changes made as a result of the federal tax overhaul.
Edwards says even with the extra revenue deep cuts will be needed and there will be more urgency to raise revenue in a special session that he hopes will begin in May.
"And actually see the choices they are going to have to make to try to fashion a budget in $694 million less in state general funds than they have this year," Edwards said.
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