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Better Choices for a Better Louisiana Responsible Responses to Louisiana’s Financial Crisis

Better Choices for a Better Louisiana Responsible Responses to Louisiana’s Financial Crisis. WWW.LABUDGET.ORG. Percent of Total Budget. $1.6 billion ÷ $25.5 billion = 6%. FY12 Projected Shortfall Total FY11 Budget. Percent of total FY11 budget to be cut over 3 years.

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Better Choices for a Better Louisiana Responsible Responses to Louisiana’s Financial Crisis

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  1. Better Choices for a Better Louisiana Responsible Responses to Louisiana’s Financial Crisis WWW.LABUDGET.ORG

  2. Percent of Total Budget $1.6 billion ÷ $25.5 billion = 6% FY12 Projected Shortfall Total FY11 Budget Percent of total FY11 budget to be cut over 3 years

  3. Percent of State General Fund Spending $1.6 billion ÷ $7.7 billion = 21% FY12 Projected Shortfall FY11 State General Fund Percent of FY11 state general fund to be cut in FY12

  4. Percent of Discretionary Spending $1.6 billion ÷ $2.6 billion = 62% FY12 Projected Shortfall FY11 Discretionary Funds Percent of FY11 discretionary fund to be cut in FY12

  5. Spending Reverts to Pre-Katrina Levels (in 2009 dollars)

  6. Increases Since Pre-KatrinaFY05-FY10

  7. Fiscal Effect of Stelly Repeals

  8. 5-Year Tax Exemption Budget $7.1 BILLION

  9. FY 2011 Budget Projections • State general fund revenues: $7.7 billion • Cost of tax exemptions: $7.1 billion • Tax code spending equals 92%of SGF revenues

  10. Examples of What Louisiana’s Tax Policies Cost $195 million $119 million $32 million $34 million $23 million $15 million Insurance Premium Tax Credit Motion Picture Investor Credit Income shifting by multistate corporations Paying companies to send their sales taxes on time Enterprise zone credit Horizontal drilling exemption

  11. Tax Exemption Budget Needs More Transparency • Example: Of 179 sales tax exemptions, 90 are lumped under “Other Exemptions” at a cost of $3.8 billion of $4.7 billion or 80%

  12. The budget is “devastating” Suspending tax exemptions is “something we should debate” Senate President Joel Chaisson Baton Rouge Business Report September 24, 2010

  13. WWW.LABUDGET.ORG

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