But, this time, it is in part due to horrible planning by the Bobby Jindal administration over the past eight years and legislative compliance. Oh, and throw in the oil crises which has reduced the revenues by over a third since the price dropping began.
In structuring the budget, in trying to save education, healthcare and other critical services, the process starts with revenues.
Without revenues, the state cannot pay its expenses.As you watch the video below, click on CC (closed caption) and you will see the closed caption transcript. Also, you can comment after this article using your Facebook or Twitter account.
And while the Louisiana legislature, Governor Jon Bel Edwards debate, persuade and negotiate a billion dollar short-term budget problem along with a 2 billion shortfall for next year, there is one man who has been at the very center of all Louisiana budgets, at least, since 1987. That man is Dr. James Jim Richardson, economist, from LSU.
His role is to help estimate the revenues the state might be able to expect for the upcoming fiscal years.
On Wednesday morning, I had the opportunity to discuss the budget with Dr. Richardson, via online video conference. Since the late 80s, he has been on the Revenue Estimating Conference which is the constitutionally-mandated organization of government that attempts to forecast a range of revenues the state can expect when it determines its annual expenses. In my video interview conversation with the LSU professor, Dr. Richardson explained how the conference was established, his role and the respective responsibilities of the other conference members.
In determining the projected revenues, since the government must decide unanimously on the projected revenues, Richardson maintains as much power as the governor and the legislative leaders.
In part one of a multipart series, Richardson explains the process, the difficulty in making projections, the influence of market durables such as oil prices. In the ensuing parts of the interview, Dr. Richardson discusses how the budget for this current year was derived and impact of cuts, taxes might have upon the government and the people it serves.
Above is a Youtube video. Please watch it below. As you watch, click on CC (closed caption) and you will see the closed caption transcript.