Legislative Auditor: State’s Borrowing Detrimental For Decades
The Louisiana Legislative Auditor's Office has released a report today claiming the state's borrowing activities over the past six years has caused multi-million dollar problems for the next two decades..
In a press release from the Louisiana Legislative Auditor's Office, the bond commission's borrowing activities were labeled as causing some detrimental consequences to the state's finances for years to come.
Though the borrowing over the last six years did help address General Fund shortfalls, it only served as a bandage to cover a much larger fiscal wound.
The release states, firstly, the state will have to pay nearly $250 million more in additional interest over the next 20 years.
Those actions will also restrict the state's borrowing capacity for capital outlay projects through 2024.
The additional money owed over the next two decades will also push the state closer to its debt ceiling.