Louisiana Lawmakers Consider Using ‘Unexpected’ Tax Revenue to Boost for Health Care Spending

An unexpected $87 million boost in Louisiana's income tax revenue will likely go toward restoring cuts in the state's health care system, the New Orleans Times-Picayune reports. The new funding comes from "unexpectedly high" income tax collections from both the personal income and corporate income tax sectors. Commissioner of Administration Mark Drennen said the administration hopes to allocate the money for health care programs, including Medicaid and the charity hospitals system, which were "hardest-hit when cash was short" (Wardlaw, New Orleans Times-Picayune, 5/15). Drennen indicated that the extra funding would result in a $25 million boost to charity hospitals and a $60 million to $65 million boost to the Department of Health and Hospitals budget. The extra funds may also go toward the state employees' health insurance plan, projected to face a $140 million shortfall by June 30. However, Drennen predicted that legislators would "press" to use some of the extra tax money to bolster other non-health-related programs (Redman, Baton Rouge Advocate, 5/15). Legislators will add the budget changes to include the extra funding as amendments to the House general appropriations bill (HB 1) (New Orleans Times-Picayune, 5/15).