Louisiana state economist contradicts Bobby Jindal's explanation of budget problems

Gov. Bobby Jindal has repeatedly claimed that Louisiana's projected $1.6 billion financial shortfall in the next fiscal year is primarily due to falling oil prices, but the state's own economist is saying -- in no uncertain terms -- that this is not the case.

"The bulk of the projected funding shortfall for [next year's] budget is not related to oil prices. The [budget] funding shortfall was projected at nearly $1.2 billion before any oil price revisions were considered," said Greg Albrecht, the chief economist for the Louisiana Legislature, in an analysis he released Wednesday (Feb. 25).

The economist's explanation is quite different from what Jindal has been saying in the national press and elsewhere about Louisiana's financial crisis. When asked about the causes of the $1.6 projected billion budget deficit two weeks ago, Jindal said oil prices were the primary culprit.

Unlike Jindal, Albrecht blamed the majority of the shortfall on Louisiana's budgeting tactics over the last few years. He said Jindal and the Legislature have relied on piecemeal funding sources -- trusts, revenue from property sales and other things -- that don't replenish themselves year after year. This has lead to the financial crisis.

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http://www.nola.com/politics/index.ssf/2015/02/greg_albrecht_state_budget.html