1. Louisiana at the Crossroads: Responsible Responses to Louisiana’s Financial Crisis WWW.LABUDGET.ORG 1

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3. (in millions)FY09FY10FY11FY12 State General Fund Revenue$9,490$8,532$7,776$8,199 State General Fund Expenditure$9,475$9,046$9,163$10,522 Adjustments $15$53$104 Cumulative Balance$0($567)($1,491)($2,427) 3

4. (in millions)REC – 12/17/2009REC – 4/14/2010+/(-) Sales $2,559$2,456($102) Individual Income $2,593$2,467($126) Corporate $442$392($50) Mineral $1,243$1,113($130) Gaming $395$390($5) Other $631$726$94 Total $7,863$7,544($319) 4

5. (in millions)DecemberAprilJune FY2010$7,863$7,544$7,282 FY2011$8,021$7,776$7,719 5

6. $2.4 billion ÷ $29 billion = 8% 3-year Cumulative Shortfall Total FY10 Budget Percent of total FY10 budget to be cut over 3 years 6

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8. $2.4 billion ÷ $9 billion = 27% 3-year Cumulative Shortfall FY10 State General Fund Percent of FY10 state general fund to be cut over 3 years 8

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10. $2.4 billion ÷ $3.3 billion = 73% 3-year Cumulative Shortfall Percent of FY10 recurring discretionary fund to be cut over 3 years FY10 Discretionary Funds (minus one-time funds for Capital Outlay) 10

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15. (in millions)FY08FY09FY10FY11FY12 5-Year Total Excess Itemized Deductions$152$250$255$260$265$1,182 Bracket ChangesN/A $359$251$262$872 Total Cost$152$250$614$511$527$2,054 Source: Department of Revenue for Excess Itemized Deductions, except FY12, which is LBP estimate Legislative Fiscal Office for Bracket Changes 15

16. $7.1 BILLION 16

17.  State general fund revenues:$7.8 billion  Cost of tax exemptions:$7.1 billion  Tax code spending equals 91.6% of SGF revenues 17

18. 20062011% Increase Number36444121% Cost$5.6 Billion$7.1 Billion28% 18

19.  Example: Of 179 sales tax exemptions, 90 are lumped under “Other Exemptions” at a cost of $3.8 billion of $4.7 billion or 80%  Example: Lack of assessment of each tax expenditure 19

20. $234 million – Delinquent taxes recovered in the 2009 tax amnesty program 20

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22. Governors that Supported Tax Increases by Party Republican55% Democrat75% 22

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