by David Jacobs, The Center Square | May 25, 2021 12:00 PM Print this article
A Louisiana Senate committee voted Monday to make a $400 million debt payment with cash rather than borrowing the money.
The House already has agreed to put $45 million toward the payment. The Senate Finance Committee agreed to spend another $355 million, using money made available last week when the Revenue Estimating Conference raised the official forecast of how much money the state expects to collect.
Louisiana has to cover its share of the cost of a multibillion dollar federally built levee system in the New Orleans area. The original deal called for the state to make payments over 30 years, which could have added up to $3 billion including interest.
Louisiana Illuminator
Senate walks back commitment to $130 million settlement
The Louisiana Capitol Building, April 8, 2021. (Wes Muller/Louisiana Illuminator).
Gov. John Bel Edwardsâ administration had been hoping to settle the $300 million judgment by paying out less than half of the amount due $130 million over the next five years. The governorâs office hoped the flood victims would agree to the deal, in order to ensure they would receive any money at all.Â
The House got on the board with Edwardsâ plan earlier this month. The lower chamber included $30 million in this yearâs budget plan for the first payment to the flood victims. The initial installment was supposed to be followed up with four more payments of $25 million over the following four years. The state also would have had to get a judge to sign off on the compromise.Â
by David Jacobs, The Center Square | May 24, 2021 06:00 PM Print this article
Gov. John Bel Edwards’ administration has proposed paying for a looming $400 million state obligation in cash, rather than borrowing the money.
Lawmakers are able to consider the option now that they’re in the unfamiliar position of being relatively flush thanks to better-than-expected tax collections and federal aid. Raises for teachers and a spending increase for the state’s court system also are on the wish list.
“It’s always a lot easier when you have money than when you’re wrestling with cuts,” Commissioner of Administration Jay Dardenne, the governor’s top official for budget matters, told the Senate Finance Committee on Friday.