When the Revenue Estimating Conference meets this morning, “They will peg a number that we are short in the current midyear,” says Governor John Bel Edwards. “I’ve been told to expect up to a $300-million shortfall.”
And while there’s been a lot of chatter about a special session to fix the shortfall, the governor says he won’t be issuing a call the minute REC adjourns. (In fact, he will be traveling to Rome, Italy, today.)
“When the Joint Legislative Committee on the Budget meets subsequent to that and adopts that number, that’s what triggers our timeline to fix the deficit,” Edwards explains.
It’s a 30-day clock, but the governor says the shortfall number itself will determine whether a special session will be necessary.
“The larger the number is, the more likely the special session will be,” says Edwards, “Simply because the larger the number, the broader the spectrum of budget you would need to open up for reductions. Otherwise, you concentrate all of those cuts on just a few areas, and they are just more painful than we can bear.”
The state Health Department is preparing for the pain, Secretary Rebekah Gee told us, when we caught up to her on a windy day on the capitol steps.
“Because of the way our constitution is constructed, the Health Department tends to take the large brunt of those cuts,” she said. “We are putting together various budget scenarios.”
She says there aren’t many discretionary items available for cutting from her budget.
“A $300-million deficit would be a disaster to the waivers and the public-private partners,” she said, referring to the programs for home health care for those with disabilities, and the partnerships that have replaced the old Charity Hospital system.
Because of that, she’s hoping for a special session – to spread the pain more evenly.
“We are optimistic that the Legislature will work with us to raise revenue for the things that we think are a priority,” Gee stated.