The Revenue Estimating Conference met Friday, January 13, 2017 to determine the budget deficit for fiscal year 2017. Based on tax collections, which are below expectations, Louisiana’s economists proposed either a $340M or $502M deficit. The Revenue Estimating Conference ultimately concluded the deficit for fiscal year 2017 is $340M, of which $313M in cuts will be needed.
Governor John Bel Edwards previously stated that any budget deficit requiring cuts in excess of $300M would require a special session by the legislature to make those cuts and/or raise revenue. Coupled with the fiscal regular session that begins in March and will likely involve large-scale tax reform discussions, 2017 is shaping up to be another interesting (and busy) year for Louisiana taxpayers.