Legislature passes 2009-10 state budget; Jindal says he will strip $278 million from budget

Unpredictable and tense — so goes the 2009 legislative session.

Thursday marked the beginning of what's expected to be a long and drawn-out end to the state's budget debate, as the Louisiana House voted 69-25 in favor of agreeing with amendments the state Senate tacked on to HB 1 — the state's $28.7 billion spending proposal. The shocking move sent the bill to Gov. Bobby Jindal and a sense of urgency to LSU's campuses.

LSU System President John Lombardi told all academic, health care and research institutions on Monday to finalize their plans for deep spending cuts, effective July 1, by the end of next week.

"These cuts are real, and we must begin now to address the consequences for our students, employees and other commitments to the state of Louisiana," Lombardi said in a news release. 

Many expected HB 1 to go into conference committee, where a handful of lawmakers would have ironed out the details of the budget. Instead, the House passed the budget to Jindal for final approval — a move that leaves Senate funding measures included in HB 1 for higher education vulnerable.


Several funding measures for higher education and agriculture the Senate added to HB 1 are contingent on House approval, like SB 335, which would use $118 million generated from the delay of a planned income tax break for higher education. SB 335 and other Senate "contingencies" are not expected to pass, meaning the budget will look like how the House and governor originally had it.

And Jindal said on Monday he plans to veto about $278 million in spending from the budget that is tied to separate legislation, vowing to work with lawmakers to restore some of that money. Included in the $278 million worth of contingencies — money that can only be spent if certain legislation in passed — is SB 335.

That leaves $120 million lawmakers can use to plug holes in the budget, made up of $50 million from a proposed tax amnesty program, and $70 million from an expired insurance fund.

Jindal said his goal is to reduce the cuts to higher education to 10 percent or less, instead of the 15 percent proposed in the original budget. The governor has 12 days to review the budget.

"While the additional financial relief from the Legislature and the governor is much appreciated, it does not eliminate the need for significant budget adjustments," Lombardi said. "We have to be accountable and effective in acting responsibly for today and the future even if the overall budget cut is reduced."

Lombardi also called for the completion of the University's massive realignment plan, which aims to reorganize and rename nearly every academic college on campus. The plan will need approval from the Board of Supervisors before changes can begin and Louisiana Board of Regents approval may also be needed.

While a "transition task force" made up of faculty and administrators was formed to address conflicts with the implementation of the plan, Executive Vice Chancellor and Provost Astrid Merget said no changes will be made to the plan.


Make sure to read Kyle Bove's "Eye on the Budget" blog for a more personal take on budget cuts.

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Contact Kyle Bove at kbove@lsureveille.com