Kennedy still in the dark on Jindal's reasoning for unexpected funds

Published Aug 2, 2012 at 3:00 pm (Updated Aug 2, 2012)

State Treasurer John Kennedy says the Jindal administration still hasn't explained to him why a law dealing with unbudgeted funds doesn't mean what legislators say it means. Kennedy, who made the remarks Wednesday, says he might seek an attorney general's opinion to help clarify the matter. As explained by the Legislature's chief economist, House Bill 822—which passed during the last session and was signed by Gov. Bobby Jindal—says that if the Revenue Estimating Conference recognizes up to $204.7 million in actual collections from the last fiscal year above April's projection, the money should be transferred by the treasury to a Replenishment Fund and then to the Budget Stabilization Fund, commonly known as the "rainy day" fund. The Jindal administration wants to use at least some of that money, if it surfaces, to offset pending Medicaid cuts. "[W]e feel confident that any savings will be available to mitigate the health care reductions as the HB 822 provision applies only to dollars recognized before the end of the fiscal year," says Michael DiResto, an aide to Division of Administration Commissioner Paul Rainwater, in an email. However, DiResto did not provide any facts or arguments to support the administration's position. "Frankly, it seems very clear that the money goes back into the rainy day fund," Kennedy says. "I haven't heard why the administration thinks otherwise. I'm certainly willing to listen. I just want to follow the will of the Legislature." —David Jacobs