Louisiana at the Crossroads:
Responsible Responses to Louisiana’s Financial Crisis
WWW.LABUDGET.ORG
1
2
(in millions)
FY09
FY10
FY11
FY12
State General Fund
Revenue
$9,490
$8,532
$7,776
$8,199
State General Fund
Expenditure
$9,475
$9,046
$9,163
$10,522
$15
$53
$104
$104
$0
($567)
($1,491)
($2,427)
Adjustments
Cumulative
Balance
3
(in millions)
REC – 12/17/2009
REC – 4/14/2010
+/(-)
Sales
$2,559
$2,456
($102)
Individual Income
$2,593
$2,467
($126)
$442
$392
($50)
Mineral
$1,243
$1,113
($130)
Gaming
$395
$390
($5)
Other
$631
$726
$94
Total
$7,863
$7,544
($319)
Corporate
4
(in millions)
December
April
June
FY2010
$7,863
$7,544
$7,282
FY2011
$8,021
$7,776
$7,719
5
$2.4 billion ÷ $29 billion = 8%
3-year Cumulative Shortfall
Total FY10 Budget
Percent of total
FY10 budget to
be cut over 3
years
6
General Fund
31%
Federal
51%
Statutory
Dedications
13%
Self-Generated
5%
7
$2.4 billion ÷ $9 billion = 27%
3-year Cumulative Shortfall
FY10 State General Fund
Percent of FY10
state general fund to
be cut over 3 years
8
Discretionary
45%
NonDiscretionary
55%
9
$2.4 billion ÷ $3.3 billion = 73%
3-year Cumulative Shortfall
FY10 Discretionary Funds
(minus one-time funds for
Percent of FY10
Capital Outlay)
recurring discretionary
fund to be cut over 3
years
10
Human
Resources
35%
Environment &
Natural
Resources
1%
Business &
Infrastructure
21%
Education
35%
General
Government
4%
Public Safety
4%
11
100.0%
80.0%
80.0%
80.0%
8.7%
12.3%
16.8%
72.0%
71.3%
67.7%
63.2%
63.2%
Oct. 2007
Oct. 2008
Oct. 2009
Oct. 2010
Jan. 2011
80.0%
60.0%
40.0%
20.0%
0.0%
Original FMAP
Stimulus
12
$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
13
State General Fund Revenue
2%
Medicaid
13%
LACHIP
16%
Food Stamps
20%
Community & Technical Colleges
37%
0%
10%
20%
30%
40%
14
(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
15
$7.1 BILLION
16

State general fund revenues: $7.8 billion

Cost of tax exemptions:

$7.1 billion
Tax code spending equals 91.6% of SGF
revenues
17
2006
Number
Cost
2011
% Increase
364
441
21%
$5.6 Billion
$7.1 Billion
28%
18


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%
Example:
Lack of assessment of each tax expenditure
19
$234 million – Delinquent taxes
recovered in the
2009 tax amnesty
program
20
21
Governors that Supported Tax Increases
by Party
Republican
55%
Democrat
75%
22
23