Louisiana Redirects $48M in Transportation Funds to Help Cover General Budget Deficit

AASHTO Journal, 4 December 2015

State lawmakers approved a plan to close a $487 million deficit in the Louisiana general budget, partly by using $48 million in funds designated for road and bridge improvements.

The AP reported that the deficit measures were proposed by Gov. Bobby Jindal, and approved by the legislature’s joint House and Senate budget committee.

The story said the state has received more revenue than expected in motor fuel taxes “after low gas prices boosted fuel consumption in Louisiana.”

It cited a statement from a Jindal spokesman saying: “We are utilizing this extra funding to protect higher education and critical services. No existing transportation projects will be adversely affected by this decision.”

The story also noted that this is just the latest such diversion of transportation money this year, and that counting an earlier use of such funds to pay for state police the state has shifted $93 million out of transportation to other budget needs.

Raiding transportation funds for other uses has been drawing high-profile criticism in Louisiana. “All four major candidates for governor — including the winner . . . Democrat John Bel Edwards — campaigned on ending the fund raids and using the money as intended for transportation projects,” the AP reported.

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