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Reason Foundation

Addressing Louisiana's Budget Shortfall

Leonard Gilroy
November 6, 2005, 2:07pm

Louisiana Gov. Blanco signed an executive order Saturday cutting a half billion dollars from the state budget, and opened the legislative session on Sunday asking legislators for their help to trim spending even further to address an almost $1 billion budget shortfall in the wake of Hurricanes Katrina and Rita. From The Advocate: Sounds like a decent start. See the Governor's executive order here. It's also worth taking a look at Reason's recent study, The Sky Isn't Falling, as well as Priority Colorado, to see how states like Texas and South Carolina are using performance-based budgeting and activity-based prioritization funding models to institutionalize fiscal discipline by focusing spending on the highest priority needs and most effective programs. Louisiana would do well to take a page from this playbook. But the Washington Times offers some less encouraging news: Of course, the light-rail line stuck out like a sore thumb in that list. Given that it is usually a total loser, does it make sense to pour even a dime into light rail in Louisiana when there are so many other fish to fry?

Leonard Gilroy is Director of Government Reform

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