From 11/6's Post-hurricane cuts run deep, Governor chops $431 million in spending
Gov. Kathleen Blanco chopped $431 million in state spending Saturday in a move that could keep some state colleges closed indefinitely.
Blanco made the budget cuts a day before legislators are scheduled to convene at the State Capitol to begin addressing the devastation caused by hurricanes Katrina and Rita.
The reductions are on top of the $70 million that the governor expects to save through an earlier spending freeze. Coupled together, the fiscal tightening would get the state about halfway toward resolving a nearly $1 billion tax revenue shortfall caused by the storms.
Higher education, which is already grappling with a $54 million loss in tuition and fees from students displaced by the hurricanes, took the biggest hit -- a reduction of $71.4 million.
The $222 million cuts in health care look huge at first glance. However, the state is spending $169 million less on patients since the storms because some hospitals are closed and many residents remain out of state.
A few areas escaped the budget axe, including the TOPS college scholarship program, the military, wetlands restoration and teacher pay...