La. House opens hearings on Jindal budget proposal

BATON ROUGE, La. (AP) -- Republicans on the House budget-writing committee criticized Gov. Bobby Jindal's budget proposal Tuesday as an elaborate shell game balanced by shaky financing and improper money maneuvers.

The testy exchanges with Jindal administration leaders set the tone for a tense budget debate, which is expected to continue as the House Appropriations Committee combs through the governor's spending proposals for the 2013-14 fiscal year.

The GOP governor's budget relies on anticipated savings from the privatization of LSU-run public hospitals, which hasn't yet happened; passage of bills not yet approved; and patchwork financing from property sales and other not-yet-completed fund sweeps.

Lawmakers, both Republicans and Democrats, questioned assumptions used to craft Jindal's budget. A bloc of conservative House Republicans nicknamed the "fiscal hawks" said some of the governor's financing plans don't follow constitutional limits on certain pools of money. That's the subject of a pending lawsuit filed by two lawmakers against the administration.

"Don't go with the 'We've always done it this way' argument. That doesn't fly with me," said Rep. Brett Geymann, R-Lake Charles.

Rep. John Schroder, R-Covington, said millions of dollars built into this year's budget — based on Jindal administration proposals — hasn't materialized. He said it doesn't make sense to use similar tactics in the fiscal year beginning July 1.

"Something in the numbers isn't working," Schroder said.

Jindal's budget chief, Commissioner of Administration Kristy Nichols, said she was confident in the financing arrangements for this year and next and was certain the governor's spending recommendations follow the constitution.

"It's a dynamic process where you make projections ... and then you constantly manage your budget," Nichols said.

Some committee members disagreed with the governor's plan to take $100 million from the New Orleans convention center's reserve fund, largely built up with local hotel/motel tax revenue, and then backfill it with dollars from the construction budget. The construction funding is borrowed money that is paid off over years with interest.

"We're taking $100 million to plug a budget shortfall that in the long run is going to cost the taxpayers $60 million" in fees and interest, said Rep. Lance Harris, R-Alexandria, chairman of the House Republican delegation.

Rep. Jim Morris, R-Oil City, took issue with the shifting of license fees, penalty payments and other dollars from dedicated funds to other parts of the budget for which they weren't initially earmarked.

For example, he questioned plans to use $1.2 million from fees paid for concealed handgun permits for public colleges, rather than on the state police office that handles the permitting. Morris said he's received complaints the office takes months to process permits.

"Couldn't this money be used to beef up that particular service?" he said.

Nichols replied that the dollars from the convention center, the fund sweeps and other one-time sources of financing were being used to protect health care and higher education from deeper cuts, because those areas are most unprotected from slashing.

"I know it sounds good for the media, but it's irritating when you sit there and say if we want to change this, we're going to hurt higher education and health care," Schroder said, his voice rising.

Lawmakers also objected to Jindal's proposal to end a program that helps elderly citizens apply for and learn about programs that offer rebates and discounts on medication purchases. Nine resource centers and the entire SenioRx program are slated for shuttering under the governor's budget, an expected $1.1 million in savings.

"What in the world are we thinking here?" said Rep. Bubba Chaney, R-Rayville. "It looks like we're making a decision here based on short-sightedness at best."

Barry Dusse, director of the governor's Office of Planning and Budget, said similar services are offered in other health care clinics, by the state health department and through community-based nonprofits.

"We feel like these are duplicative services," he said.