Lawmakers have finally agreed on how many rainy day dollars to use to close a $304 million midyear budget shortfall, and $99 million is the compromise.

Cut 22 (03) “…in good faith”

That’s Senate Finance Chairman Eric LaFleur of Ville Platte, who said earlier on the Senate floor negotiations have gone well.

Republican House leaders have been hesitant to use the rainy day money because of concerns of another shortfall next fiscal year. But House Speaker Taylor Barras is glad they came to an agreement.

Cut 23 (18) “…that is required”

The House agreed to use 99 million rainy day dollars after the Senate approved a bill that frees up money in future budgets by diverting money from areas like TOPS and highway construction.

The special session is coming to a close, but not before lawmakers agree to a variety of cuts. New Orleans Representative Walt Leger explains what services will be impacted.

Cut 24 (19) “…taking a cut”

Leger says higher education and prisons will not face any budget cuts.

As the special session ends, the discussion turns to the fiscal session that begins in April. The Louisiana Budget Project has released its tax reform blueprint. Senior Policy Analyst Nick Albares they’re proposing eliminating the federal income tax deduction and excess itemized deductions. He says they’re calling for a reduction in the state sales tax and broadening its base. Other recommendations include limiting some tax exemptions, including the film tax credit.