State Agencies Prepare for Budget Cuts

State agencies are bracing for severe budget cuts for the state fiscal year that begins on July1.

Commissioner of Administration Angèle Davis said Thursday that she met this week with the agencies that oversee veterans affairs, revenue and natural resources.

“We challenged (state agencies) months ago to think about innovative approaches to cost savings,” Davis said.

The Jindal administration is projecting a $2 billion budget shortfall for the state fiscal year that starts July 1 because of falling oil prices and decreased tax collections. The shortfall is based on the amount of money needed to keep state services at their current level as well as what is needed for inflationary costs.

The administration must present a state operating budget proposal to the Legislature by March 13.

Like other states across the country, the economic downturn is affecting state government in Louisiana.