Louisiana leaders weigh possible short-term loan to shore up cash flow
Louisiana leaders are developing a game plan just in case the state starts to experience cash flow problems in the coming months.
The State Bond Commission on Thursday agreed to give staff the authority to develop a short-term borrowing plan that could be implemented if the state isn't able to keep up with its bills. A final decision won't be made until August, when leaders are expected to have a clearer picture of the pace of revenue.
State Treasurer John Kennedy said the state's expenses and its cash intake timelines don't match up. Most of the state's money comes in during the second half of the fiscal year, while expenses are often "front-loaded," he said.
"This is the cash flow problem," he said.
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