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Home News News Fox 8 Oil spill causes loss in tax revenues

Oil spill causes loss in tax revenues

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The combination of a 6 month moratorium on deep water drilling and a fight to stop millions of gallons of spilled oil from reaching the wetlands, is taking an economic toll on local governments.

In Plaquemines Parish alone, thousands of fishermen are already out of work. Businesses are also feeling the pinch and that's just from the oil spill.

The moratorium on drilling is hitting parish governments hard too.

Billy Nungesser says, "Roughly 37 percent of our budget for 2010 is oil and gas and that's mostly what's in the waters."

State Treasurer John Kennedy says tax revenue numbers are in for the month of May and they're not pretty. He blames the decline on the ongoing oil spill disaster.

Kennedy says, "This is our fiscal year of course. In January we were down 12 percent since last fiscal year. Today we are down 19 percent and dropping."

Those numbers prompted Kennedy to urge lawmakers to allocate nearly $25 million in state money to help the coastal parishes.

Kennedy says, "They're spending money out of their budget on the oil spill that they don't have. I worry about their ability to have the cash flow to make their payments in bonds and debt. "

The House passed an amendment to the 'supplemental appropriations bill' to give some of the parishes relief, but Kennedy worries about what will happen to that money in the Senate.

He says, "I understand that the Jindal administration is going to try to take that out in the Senate. I don't want to get into a squabble with the Governor. If he wants to replace it with something else, that's fine with me but we have to put some money together to make sure these parishes don't have cash flow problems."

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