Jindal drains another fund Monday, Feb 24 2014
According to the Legislative Fiscal Office (“LFO”), Bobby Jindal’s FY15 (starts July 1) Operating Budget contains $233 Million more in one-time funds than had previously been reported. The non-recurring funds will be used for recurring expenses. ( Report here.)
The one-time money will come from the Medicaid Trust Fund for the Elderly. This fund was established in 2001 to assist in matching Federal Medicaid funds for eligible individuals in private nursing homes.
Unlike other statutorily-dedicated funds, there is no mechanism, other than interest earnings, to replenish the funds each year.
When Jindal became governor in 2008, the fund was earning $46.7 Million annually with a fund balance of approximately $800 Million. Now, according to the LFO, the fund balance will be “almost entirely depleted” with the FY15 draw-down. Projected interest earnings through June 30 will only be $6.7 Million.
Can’s at end of road
The House “Fiscal Hawks” refer to such fiscally-irresponsible tactics as “kicking the can down the road.” In this case, we know when the road ends – June 30, 2015.
We also know what happens at the end of the road: 1) Taxes will be increased on paying patients in nursing homes; 2) State funds will be taken from other programs; 3) Medicaid eligible will be kicked out of the nursing homes or 4) State taxes will be raised.
None of the options are acceptable. It’s up to the leges to stop this fiscally-irresponsible action by Jindal from happening.
One option that the leges won’t have – saying they didn’t know. The LFO told the leges and now you know that they know.
“King of Subversive Bloggers” – James Gill
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