Post by pavel on Mar 17, 2016 22:41:11 GMT -6
Louisiana’s top officials agreed Thursday to refinance state debt to generate $82 million in quick cash to help close gaps in this year’s budget.
The Bond Commission agreed to the financing maneuver over the objections of its chairman, Treasurer John Kennedy.
Lawmakers assumed the additional cash in its budget rebalancing work during the recently added special legislative session, so refusal to do the refinancing would have more than doubled a remaining $70 million shortfall for the budget year that ends June 30.
But the decision will add long-term costs to state debt repayment.
Kennedy was the only member to vote against the refinancing. He said he couldn’t vote for what he considers another budget gimmick, on top of years of short-term fixes that left Louisiana stumbling from one shortfall to another. He said the refinancing was the equivalent of shifting from a 15-year home mortgage to a 30-year mortgage to pay for a new boat.
Read more: theadvocate.com/news/15221361-64/louisiana-to-refinance-debt-for-82-million-to-help-close-this-years-budget-gap
The Bond Commission agreed to the financing maneuver over the objections of its chairman, Treasurer John Kennedy.
Lawmakers assumed the additional cash in its budget rebalancing work during the recently added special legislative session, so refusal to do the refinancing would have more than doubled a remaining $70 million shortfall for the budget year that ends June 30.
But the decision will add long-term costs to state debt repayment.
Kennedy was the only member to vote against the refinancing. He said he couldn’t vote for what he considers another budget gimmick, on top of years of short-term fixes that left Louisiana stumbling from one shortfall to another. He said the refinancing was the equivalent of shifting from a 15-year home mortgage to a 30-year mortgage to pay for a new boat.
Read more: theadvocate.com/news/15221361-64/louisiana-to-refinance-debt-for-82-million-to-help-close-this-years-budget-gap