The continuing drop in the price of oil likely will require state government to change its spending plan for a second time to balance this year’s budget.
The New Orleans Advocate reports that for next year’s budget, which is being drafted now, the collapsing oil prices are adding to problems caused by a big shortfall in revenues.
Commissioner of Administration Kristy Nichols is warning that tough choices are pending.
The administration is chipping away at the size of next year’s budget hole, and decisions are still weeks away.
But Nichols says there may be more cuts to higher education and the possibility of no merit pay raises for state workers.
Nichols’ staff will start meeting with agency officials today.
The executive budget proposal is due in late February.