Gov. Edwards: budget situation "devastating"

"These are not scare tactics, this is reality - an unstable state budget will not only hurt children and working families in our state, it will devastate communities, businesses and local government as well," Edwards said.

The problem?

A $940 million budget deficit for the current fiscal year, which ends June 30, which includes $370 million "in commitments we made that we don't have the funds to pay for." For the 2016-17 fiscal year, a projected $2 billion deficit.

"While my predecessor inherited a $1 billion surplus when he became governor, I've been left with almost a $1 billion deficit for this year alone and a $2 billion deficit next year," Edwards said.

In addition, the state's revenue stream is strangled by tax credits, Edwards said.

"In fact, we're paying out more in credits and refunds to corporations this year than we are collecting from them in taxes," he said. "This is not sound financial policy."

Edwards reiterated his earlier call for new revenue and cuts to address the issues, including a state-wide hiring freeze, a reduction in state contracts, and more than $160 million in spending cuts; and using $128 million from the so-called "rainy day" fund, $200 million in BP non-coastal payments to address the deficit. He's also proposing reducing tax credits, suspending corporate tax deductions, adding a penny of sales tax to the current four cents, and an increase in alcohol and cigarette taxes.