Posted on 05/07/2020 11:51:22 AM PDT by abb
Louisiana’s tax and fee collections dropped $494 million – 42.7% – in April when compared to the same month last year.
A Department of Revenue report circulated among state government leaders Wednesday night gives budget architects a first look at the actual receipts for the time that Louisiana stayed at home while businesses and institutions shut down to stem the community spread of the coronavirus. Louisiana net receipts report for April Louisiana net receipts report for April
Gov. John Bel Edwards issued “stay at home” orders beginning March 16. Fiscal leaders warned that without shops open, customers hunkering down and employees being laid off, predicted the numbers would look bad, really bad. The report reflects only the collections by the Revenue Department, which account for about 80% of the state's money. Taxes and fees from the gambling industry, which account for $800 million annually, are collected by a different agency and are not included. Casinos are also closed. Neither are the taxes collected on insurance premiums.
This is the money that supplements law enforcement salaries, pays for roads, bridges, public schools, colleges and universities, provides healthcare for about 25% of the population, and all manner of other services. If the revenues come in short, then legislators must either reduce services or raise taxes.
Lawmakers are in Baton Rouge drafting the law that allows government spending for the coming fiscal year. A balanced state operating budget must be approved by July 1.
The report shows that Louisiana’s economy was strong with collections running about 8% above the previous year. But now, collections for the entire year are about 4% lower.
“Because we went in strong, we were hoping it wouldn’t be as hard a hit if the shutdown is short,” said Robert Scott, head the Public Affairs Research Council of Louisiana. May and June numbers could rebound and if that’s the case, state government could end the year with a manageable shortfall of a few hundred million dollars.
“If May and June look as bad as April, if we continue at this rate, it will catastrophic,” Scott added.
The report doesn’t include revenue from gambling operations. A significant source of state government funds, casinos were closed before Edwards issued the “stay at home” order.
Both sales taxes and income taxes showed significant dips. But the Department of Revenue delayed the filing of income taxes, so a nearly $300 million decline individual income tax collections – comparing last year to this year – may be because taxpayers have postponed sending in their checks. On the other hand, the lower number could also reflect people making less money now.
Courting the Mardi Gras dollars did not prove profitable.
The problem with socialism is you eventually run out of someone else’s money.
Maybe that's the problem, 25% on government healthcare is ridiculous.
I bet most governors had NO CLUE as to the consequences of shutting down their states. These jerks overreacted with the herd looking around, seeing what their fellow moronic governors were doing and some saw it as a contest to see who was the more nuts.
government will not go unfed... they will get their dollars... they always receive their pay.
“Because we went in strong, we were hoping it wouldn’t be as hard a hit if the shutdown is short”
Well looks lahk you done kilt the patient Bobby.
Not real smart on your part, huh Bubba?!
Obviously, they need to raise taxes...that’s the only way to solve this (extreme sarcasm).
You’re correct. They ARE that stupid!!
Somebody should write a book about Atlas shrugging.
(- My late husband; sure miss him!)
Realities are just starting to hit home
California Just Revealed a $54.3 Billion Deficit — Worse Than the Great Recession
https://lostcoastoutpost.com/2020/may/7/california-just-revealed-a-543-billion-deficit-wor/
Not this time.
Holy Toledo....
$54 billion in the hole????
Look for a major tax increase, I mean increases, plural.
Every tax and fee which is collected for every function, is going to increase.
I’m sure it will be sold as a package.
Income tax, sales tax, gas tax, all the various permits and fees and business license fees will go up, drivers license fee, car registration fees, etc. etc.
No sympathy for government budgets - none whatsoever. They need to live within their means just like everyone else. They’ll start whining about cuts to firemen, policemen, etc. when there’s plenty of room to cut bloated bureaucracies which they just won’t. Instead, they’ll go whining to DC for a bailout. That’s the grand scheme here. States like California, New York and Illinois that have been underwater for decades because of bad policies will demand FedGov make them whole so they don’t have to live with the consequences of their socialist failures.
Watch the rush by states to legalize dope and gambling
Hey, we HAVE to We are outta $$$
Else, raise yo’ texas!!
Louisiana
Since 2020
Saving lives $500 million at a time...
That’s hilarious when I see 2020!
Wisconsin is currently slated to lose TWO BILLION in tax revenue due to this lockdown.
Governor Evers (D, Douche, WI) continues to fiddle while Wisconsin burns!
They cancelled the EAA AirVenture which brings in $170 Million each summer to our state.
LIBERATE WISCONSIN!
BR mayor expects $23M revenue shortfall in general fund due to COVID-19 pandemic
Cops will be ordered out to ticket anything that moves. There will be DOT stops on every truck route. Every agency that can will send out code enforcement. They’ll be flying drones over your property looking for violations. They need money and this is how they will get it. Don’t doubt.
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