Louisiana construction budget to be whittled down in coming weeks

Posted by IronPlanet on Jun 8, 2012 2:13:00 AM

After weeks of negotiating, the construction budget for the state of Louisiana still has an extra $120 million worth of projects, leaving the fate of many buildings and upgrades in the hands of Governor Bobby Jindal.

According to The Associated Press, state lawmakers filled the budget proposal with pet projects that are seeking approval. That left the bloated construction bill far over budget when it was sent to the desk of Jindal. Essentially, Jindal will have the final say in what does and doesn't receive funding as he seeks to approve the bill before the fiscal year begins on July 1.

"Everyone feels like at least if it's in the bill, we have a chance," Representative Joel Robideaux told the news source. "We all have the same burden, pleading our case to the administration."

The news source reports the budget is likely to become a source of political tension for state lawmakers. With everything in the bill essentially left to Jindal, those who voted against the governor will likely not see their favorite projects getting approved. Meanwhile, legislators who have backed Jindal's policies are sure to be rewarded when the budget reaches its final state.

Technically, Jindal doesn't have absolute authority over what construction projects get approved. After the budget is whittled down, the State Bond Commission will vote on each individual project to determine whether or not it will receive funding. However, since the State Bond Commission is mainly made up of people loyal to the governor, it's essentially just a formality.

The political wrangling over the budget will likely have major implications for contractors working in the area. Recent reports have shown public spending is down across the country, so those who get to work on new projects will be in a good position comparatively. Contractors should be sure they have the right equipment for any job that comes up. The online auction site IronPlanet offers a way for business owners to quickly and easily buy used construction equipment over the web, often at a more affordable price than buying new.

Topics: Construction, Industry Headlines