The State Senate Finance Committee began work on the state’s $16.5 billion operating budget this week, with plans to work through the weekend and possibly next weekend as well. Senators are examining each area of the budget, hearing from department officials and legislative fiscal experts on specific plans for the use of taxpayers’ dollars. The House approved budget is balanced with the use of about $289 million in extra federal funds for the Medicaid program and other services. And while the extra federal money allows the state to avoid proposed reductions in education and health care services, finance committee members are concerned about the use of this one time money and other non-recurring funds.

"This proposed state operating budget depends on over $500 million in one-time money. And while it appears the use of the extra federal money and other financing mechanisms are something we must do to make ends meet in the coming fiscal year, we must be very prudent in how those funds are used and must be cognizant of the need to plan for the delivering of needed services when the one-time monies are gone," Senate President John Hainkel said.

Senate President Hainkel notes that one area that needs close scrutiny is how we intend to spend Temporary Assistance to Needy Families (TANF) dollars. For several years now, Louisiana has made an effort to make better use of those monies which had built up over the years by targeting special needs in education, early childhood education, child care, job training and more. The problem is the surplus TANF funds will be used up by the end of the next fiscal year.

"We need to make it very clear to agencies and community groups across the state that have been using TANF grants to provide services that these monies are dwindling. We also must move immediately to determine which of the TANF programs we will need to continue when the TANF monies are gone," Senate President Hainkel said.

The Senate Finance Committee will be working on the state appropriations bill through the weekend. Citizens will have an opportunity to have a say on the budget plan beginning at 9:00 AM Monday, June 9, 2003 in the Senate Briefing Room at the State Capitol. The Senate Revenue And Fiscal Affairs Committee will hear public testimony on the state construction budget on Monday at 9:00 AM in Senate Committee Room A.

Beyond the money issues, earlier this week the full Senate took a major step toward finalizing the legislation key to the state’s coastal restoration efforts. The Senate approved a proposed change in the state constitution to make sure the state will not face enormous costs associated with the take over or alteration of private property in conjunction with coastal restoration projects. The constitutional change would set the value of such property at the fair market value and limit the state’s liability in the implementation of the coastal restoration plan. The measure is part of a series of bills at the legislative session to position the state to gain $14 billion in federal funds for Louisiana’s coastal restoration efforts.