BATON ROUGE, La. (AP) - Gov. Bobby Jindal is proposing to spend $526 million less on refundable tax credits next year, and direct that money to lessen the budget cuts on public colleges and health services.
The plan will be contained in the governor's budget proposal for next fiscal year, to be unveiled to lawmakers Friday.
For tax credits deemed "refundable," the state often pays out more than the actual taxes a person or business owes the state, simply writing a check for the difference.
Commissioner of Administration Kristy Nichols told The Associated Press on Thursday that Jindal wants to rework 12 such tax credits so the state doesn't pay more than the tax liability.
The savings would be split, with $150 million going to health care and the remaining $376 going to higher education.