[StBernard] Governor Blanco's statement regarding today's Revenue Estimating Conference action

[Westley Annis]

Statement by Governor Kathleen Babineaux Blanco regarding 
today's Revenue Estimating Conference Action October 28, 2005 


"The report by the Revenue Estimating Conference today makes it clear that
we have a long and challenging road ahead in our effort to balance the
state's budget.  We are dealing with an estimated budget shortfall, in the
current fiscal year, of about one billion dollars. 

"While this is not good news, this number is about half a billion less than
we feared. 

"Today's news means that deep budget cuts will be necessary.  Last month,
anticipating today's news, I issued an Executive Order to proactively slow
state expenditures and conserve state resources in the current fiscal year.
In addition, we have notified executive branch agencies to send the Division
of Administration a plan to substantially reduce spending 

"Once the Joint Legislative Committee on the Budget takes action on today's
news, I will be empowered to demand a cut of up to 3% of the state General
Fund budget in each Executive Branch agency. With the Committee's approval,
I can also make an additional cut totaling 5% of the General Fund budget and
cut 5% of the constitutionally dedicated funds and allocations, along with a
1% reduction in MFP funds not involved in instruction. 

"Those actions should bring us savings of about $307 million, leaving us
about $700 million short of covering our projected shortfall. 

"Our next step will be examining the so called "rainy day fund." With
Legislative approval, we can apply one third of that fund -- about $153
million -- toward balancing the budget. 

"In the coming days, I will be considering a number of options that would
close the remaining shortfall of about $550 million." 

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The Louisiana Disaster Recovery Foundation (LDRF), Louisiana's fund for
Louisiana's people, has been established by Governor Kathleen Babineaux
Blanco in order to support long-term family restoration and recovery and
help provide assistance to our citizens in need through a network of
Louisiana charities and non-profit agencies.