Jindal giveth and taketh away Monday, Nov 17 2014
The great delusionist!
What he giveth
In late January, Bobby Jindal released his proposed state Operating Budget for the current fiscal year (FY15). Much was made about Jindal graciously providing more funding to Higher Education after reducing funding by over $700 Million.
It was announced that $142 million would be added for Higher Education in the current (FY15) budget.
–Upon closer examination we learned that $88 Million of the extra funding was from tuition hikes (Otherwise known as a tax on college students.) on most of the college campuses. Those campuses that didn’t meet the LA GRAD Act qualifications for increasing tuition would receive no extra money via tuition. In other words, due to inflation, they likely will have to cut their budgets.
–Then we learned that $40 Million of the extra money (from sources to be found by the leges) was dedicated for specific types of job training. The allocation of these funds was approved Friday.
–Thus, the net increase in state funds for general Higher Education operations was approximately $14 Million.
There was great rejoicing by the heads of the colleges and much praise for Jindal. Unsaid was that it wasn’t praise as much as it was thankful prayers for Jindal not proposing further cuts.
What he taketh away
Not long after the lege adjourned this summer amongst much self-congratulation on what a fine job they did with the budget, reality began to set in:
– Thanks to poor decision-making (bad gamble) by Jindal’s Commissioner of Administration Kristy Nichols and a lack of oversight by the leges it was announced there would be a drastic reduction in healthcare insurance benefits for active and retired state employees (including those on college campuses) plus an increase in premiums paid by the workers and their employers/taxpayers.
After a huge outcry from the active and retired state employees plus public school teachers directed at the leges, the leges summoned the courage to hold a meeting about the insurance program.
Now, Nichols has reconsidered her decision. She announced that the healthcare insurance benefits will remain the same, but there will a 11% premium increase on the employee/retiree portion. Add to that millions more that will be paid by the employers/taxpayers which includes the Higher Education institutions and will it further reduce the net $14 Million appropriated to them.
– A week or so ago, the LA Department of Health and Hospitals announced that they are already $171 million over budget in the Medicaid program with eight months to go in the current fiscal year.
– On Friday, the State Revenue Estimating Conference determined that the leges had appropriated $171 Million more than would be generated in revenues. Nichols, unable to again turn water into wine (She magically turned a deficit in the FY14 Budget into a surplus.), admitted that cuts would have to be made.
Nichols says she will have a plan for cutting the budget as early as this Friday. If the history of the Jindal Administration is any judge, the areas of the budget that will be hit the hardest by cuts will be – you guessed it — Healthcare and Higher Education.
As Ernest Hemingway said: “Never mistake motion for action.”
Jindal’s plan is to use more smoke, mirrors and accounting gimmicks to merely limp by for another 18 months.
It’s past time for the leges to break from Jindal’s leash, stop going through the motions and start doing something. Unless they are as delusional as Jindal, they will have to deal with reality either now or, for those unfortunate to be reelected, in 18 months.
My suggestion is to start now; delay will only cause require more reductions in services and much higher taxes. Anyone delusional enough to believe that the Jindal fiscal mess can be resolved without both, should consider joining the Bobby for POTUS campaign team.
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