Are State Cuts On The Horizon

Are state cuts to higher education and healthcare coming? Gov. John Bel Edwards’s first spending proposal for the coming budget year will likely cut state services to offset a budget hole of hundreds of millions. Lawmakers reduced the state’s revenue forecast for the coming fiscal year by $229 million yesterday after state experts projected the economy will not rebound as quickly as they once hoped. Cuts are not guaranteed, and the economy could rebound faster than expected. Lawmakers can also mitigate cuts with federal funding, though it’s not clear how much of the latest congressional coronavirus aid package can be used to fill holes. The state should finish the current budget year with some surplus, since Louisianans spent more money during the pandemic’s height than expected.