BRADENTON, Fla. — Louisiana Gov. John Bel Edwards in his inaugural address Monday vowed to fix the state's structural budget deficit and expand Medicaid.
Edwards, a Democrat, said that one of his first actions in office would be "to accept the federal funding to expand Medicaid so that working families in Louisiana can get access to healthcare."
The audience clapped and cheered after he pledged to expand the state's insurance program shortly after taking the oath of office.
Republicans control both chambers of the Legislature.
Edwards, a former state representative, also said that he would rather be inheriting a $1 billion surplus than the $1.9 billion shortfall he's getting.
"We face a daunting fiscal crisis," he said. "We must be grounded in reality and see the facts as they are, not as we want them to be."
Stabilizing the budget is his top priority, he said, adding that Louisiana cannot afford to continue cobbling temporary measures from year to year.
All options are on the table, he said, including strategic budget reductions, increasing efficiencies, and reworking "the failed system of tax incentives, credits and rebates, which bleed the state's revenue and too often leave little to show for the spending."
Tax incentives, credits and rebates were among outgoing Gov. Bobby Jindal's signature programs, which he used to expand business and job opportunities.
Jindal, a Republican, also refused to allow any major tax increases during his eight-year tenure.
Edwards said he would make the necessary changes to improve the state budget by partnering with the Legislature, business and industry, local governments, educators, stakeholders, and "working people all across this state."
"Following shared sacrifice, there will be shared prosperity," he said. "I am bullish on our future."
In addition to an estimated $1.9 billion budget gap in fiscal 2017, Edwards' Commissioner of Administration Jay Dardenne has said that the current budget deficit could top $750 million.
Dardenne released the news less than two months after state lawmakers addressed a $500 million mid-year gap.
Analysts have said the growing imbalance is pressuring Louisiana's double-A general obligation credit ratings.
Edwards has said that in coming weeks he will release measures that state legislators can consider as they tackle persistent budget problems.
Edwards will give his first State of the State address on Feb. 12, after which he plans to call a special legislative session to work with lawmakers in developing a consensus on state spending.
The Legislature's regular annual session begins March 14 and runs through June 6.
