Better Choices for a Better Louisiana
Responsible Responses to Louisiana’s Financial Crisis
WWW.LABUDGET.ORG
1
$1.6 billion ÷ $25.5 billion = 6%
FY12 Projected Shortfall
Total FY11 Budget
Percent of total
FY11 budget to
be cut over 3
years
2
$1.6 billion ÷ $7.7 billion = 21%
FY12 Projected Shortfall
FY11 State General Fund
Percent of FY11
state general fund to
be cut in FY12
3
$1.6 billion ÷ $2.6 billion = 62%
FY12 Projected Shortfall
FY11 Discretionary Funds
Percent of FY11
discretionary fund to
be cut in FY12
4
$40 000 000 000
$30 000 000 000
$20 000 000 000
$10 000 000 000
$FY05
FY06
FY07
FY08
FY09
FY10
FY11
Total State Budget
Total State Budget Less Hurricane Disaster Recovery Funding
State General Fund
5
State General Fund Revenue
2%
Medicaid
13%
LACHIP
16%
Food Stamps
20%
Community & Technical Colleges
37%
0%
10%
20%
30%
40%
6
(in millions)
FY08
FY09
FY10
FY11
FY12
5-Year
Total
Excess Itemized
Deductions
$152
$250
$255
$260
$265
$1,182
Bracket Changes
N/A
N/A
$359
$251
$262
$872
$152
$250
$614
$511
$527
$2,054
Total Cost
Source:
Department of Revenue for Excess Itemized Deductions, except FY12, which is LBP estimate
Legislative Fiscal Office for Bracket Changes
7
$7.1 BILLION
8

State general fund revenues: $7.7 billion

Cost of tax exemptions:

$7.1 billion
Tax code spending equals 92% of SGF
revenues
9
Insurance Premium Tax Credit
$195 million
Motion Picture Investor Credit
$119 million
Income shifting by multistate
corporations
$32 million
Paying companies to send
their sales taxes on time
$34 million
Enterprise zone credit
$23 million
Horizontal drilling exemption
$15 million
10

Example:
Of 179 sales tax exemptions, 90 are lumped
under “Other Exemptions” at a cost of $3.8
billion of $4.7 billion or 80%
11
The budget is “devastating”
Suspending tax exemptions is
“something we should debate”
Senate President Joel Chaisson
Baton Rouge Business Report
September 24, 2010
12
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