Commissioner of Administration Jay Dardenne updated the Baton Rouge Press Club on the state’s money situation Monday, saying they’re still reconciling the books on the fiscal year that ended July first.
“We’re anxiously awaiting numbers in the next week or so about what FY 16 looks like, waiting to see whether or not we’re going to have a deficit,” Dardenne stated. “And I think it might be a little more accurate to say, exactly how much that deficit is going to be.”
LSU economist Dr. Jim Richardson, who chairs the Louisiana’s Revenue Estimating Conference, has said he anticipates a deficit in the neighborhood of $200-million.
On a more positive note, Dardenne says negotiations with the public –private partner hospitals are nearing a conclusion.
“I think that in the next couple of weeks we’re going to be in a position to announce what the arrangement will be with each of the partners, and that we’re going to make some changes in those cooperative endeavor agreements.”
He said he expects the modified agreements will both lower state costs and limit the growth of those expenses.
Dardenne also says they’re working on changing a pair of major contracts for call centers -- one with DHH, the other with Family Services (DCFS).
“We are going to consolidate those two very significant contracts into one, and have a single call center with individuals who are trained to handle both of those calls,” although he said that would not impact the current fiscal year spending.
The biggest immediate worry remains cash flow, with the bulk of state revenue not coming in till next spring, and payment of many state bills due shortly. Dardenne says cash reserves have been depleted.
“Over the course of the previous administration, more than $3 billion – $3-billion – in treasury funds were spent, either by funds sweeps or by spending one-time money that was not coming back again.”
He adds the decision on taking out a bank loan to pay the bills will likely come in September.