WITH OIL PRICES WAY DOWN, THERE WON’T BE A LOT OF EXTRA MONEY TO SPEND IN NEXT YEAR’S STATE BUDGET. LEGISLATIVE FINANCE COMMITTEE CHAIRMAN JOHN ARTHUR SMITH SAYS ANTICIPATED NEW REVENUE HAS BEEN REDUCED BY HALF IN RECENT MONTHS. SO HE SAYS STATE AGENCIES ARE BEING ASKED TO TIGHTEN THEIR BELTS IN ANTICIPATION OF AN ADDITIONAL DECLINE IN THE BUDGET.
SMITH THERE WON’T ACTUALLY BE BUDGET CUTS, AND THERE’S NO TALK OF TAX INCREASES AS LAWMAKERS START THEIR BUDGET SESSION NEXT WEEK. THE LOW PRICE OF OIL IS HAVING A MAJOR IMPACT, SINCE THE OIL AND GAS INDUSTRY ACCOUNTS FOR ABOUT A THIRD OF THE STATE’S BUDGET.
