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Hospitals, TOPS, K-12 on Chopping Block

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“We are cutting $792 million," said Governor John Bel Edwards.

Governor Edwards presented the revised plan for next fiscal year's budget to the House Appropriations committee Tuesday, highlighting proposed cuts for k-12 education, TOPS and hospitals. 

Asked if the budget reflects his priorities, Edwards responded, “it reflects my priorities when you have $750 million less."

Appropriations Chairman Cameron Henry remarked the budget is now the Legislature’s problem, saying “we as a committee could alter this plan to fund this in our own way to where our priorities might be a little different than yours. So, we have the ability to fully fund TOPS if we chose." 

The Governor sat quietly and shook his head from left to right. “I don’t doubt the ability to move $183 million to TOPS. I can’t imagine you’d choose to do that and cut where you would obviously have to cut.” 

The administration proposes $400 million in cuts to the Department of Health and Hospitals, which will affect the public-private partners. “The recommendation," said Commissioner of Administration Jay Dardenne, "is that four hospitals are not funded: Bogalusa, Lake Charles, Houma and Alexandria.” The other safety-net hospitals in Baton Rouge, Lafayette, Monroe, New Orleans and Shreveport would receive a three percent reduction in funding.

Henry challenged Dardenne on that, pointing out that ten positions were being protected in the Louisiana Ethics Administration, while hospitals were being put at risk. “If we’re saying we’re not going to lay off ten people because of ethics, but we’re going to close hospitals? Help me out with that.”

“The cut was $800,000 that Ethics would have sustained," responded Dardenne.

To keep the least expensive hospital funded would cost the state $16.8 million. Dardenne reiterated, "we simply do not have the money to keep all of them open.” 

Edwards says more revenue is still needed and "there will be a second special session to address these revenue needs.” To the extent the Legislature can agree on more revenue, some of these cuts may not have to be realized.