BATON ROUGE, LA – Millions of extra dollars generated by last year’s sale of $200 million in general obligation bonds should be put toward reducing budget cuts to higher education in next year’s budget, State Treasurer John Kennedy said Monday.”We are looking at a $1.6 billion deficit in next year’s budget that begins July 1. Higher education is scheduled for cuts of up to $400 million, which is unacceptable,” Treasurer Kennedy said. “This extra money should go to our colleges and universities.”The money is a bond premium generated by last year’s sale of general obligation bonds. The premium can only be used to pay debt on state bonds, not including those that generated the premium. By using the premium to pay debt service, $29 million is freed up for other state needs.

“I can think of no greater need than our colleges and universities. They’ve been cut to the bone,” said Treasurer Kennedy. “Let’s put this money to good use.”

Contact:
Michelle Millhollon
(225) 342-0012
mmillhollon@treasury.state.la.us