Random Ramblings- The Blog
Carl M. Ambrose, Jr.
(Lake Charles,La) Yesterday the Price of oil closed below $27 a barrel. The Louisiana budget is based on $63 a barrel, you don't have to be a Rhodes Scholar to see what's taking place. The state of La. uses oil prices to project what revenues will be generated via mineral revenues, adding corporate taxes and sales tax from employee spending. A reduction in those numbers causes a reduction in the state budget. Jan Moeller, the Director of the Louisiana Budget Project had this to say to the Louisiana Radio Network:
"I think the original budget for this year was built on $63 a barrel oil. I think the forecast has downgraded into the 40's, but I think it going to have to be dropped again."
The lower prices for oil are and will adversely affect the state of Louisiana's budget, a budget that cannot take any more hits.
As we the price continues to drops, not only will jobs be lost, but you can also expect sharp drops in Corporate tax collection, Individual income tax collections as well as sales tax collections.
This reduction in funds available to the state means there will be a reduction in state services, possibly layoff in many sectors and less money for the funding of roadwork and higher education.
It is very important that Governor Edwards and the state legislature use care in the allocation of limited funds that are dwindling by the day. There are many factors that can come into play that can make this situation much worse.
As Rep. Neil Abramson has shown us there are self-serving individuals that don't care about what their constituents or the people of the state of Louisiana want or need. It's time to root them all out, or else, nothing will change. As long as our future is solely tied to the price of oil and remains below the break even point for the state...that hole in the budget, will remain.
No comments:
Post a Comment