Louisiana governor urges tax hike, tapping reserves to fix budget gap(Reuters) - Louisiana Governor John Bel Edwards on Tuesday urged state legislators to approve a plan to increase taxes and tap reserves to plug the largest budget shortfall in state history. Louisiana faces a projected shortfall of $750 million this fiscal year and the gap is expected to grow to $1.9 billion in the next fiscal year beginning July 1 from deteriorating tax revenues and a drop in oil prices. Edwards, a Democrat who took office earlier this month, wants to add 1 cent to the state’s existing 4-cent sales tax, excluding the purchase of groceries, prescription drugs and residential utilities. The proposed measure is expected to raise $216 million by late June. The plan also taps $128 million from the state’s rainy day fund and $200 million paid by Plc to reimburse cleanup efforts following the 2010 Deepwater Horizon oil spill. The state would also cut some discretionary funding. If enacted, the governor’s plan would reduce but not eliminate the deficits the state faces. “The days of using budget gimmicks that helped us limp along are over,” said Edwards, the first Democrat to hold the office of governor in Louisiana since 2008. “This administration will remove the smoke and mirrors and provide the facts of where we are and where we are going.” Edwards warned that if leaders did not act quickly, universities could struggle, distressed hospitals could close, and public education could suffer severe cuts. “Raising taxes is not my first, second, or even third option when seeking to fill the state’s budget shortfall,” said Edwards. “Unfortunately, those cuts will not be enough to bridge the enormous shortfall we face today.” The state’s overall budget problems stem from the drop in oil prices, but much of the shortfall also comes from previous excessive use of one-time money and lower-than-expected revenues, the governor’s office reported. Louisiana is now contending with years of unresolved structural budget deficits that have collided with a weakening state economy and a sharp drop in revenues from oil and gas extraction taxes, Moody’s Investors Services said in December. Moody’s rates Louisiana Aa2 with a negative outlook. During Edwards’ inaugural address last week, he pledged to  begin accepting federal funding to expand healthcare to residents through the Affordable Care Act, also known as Obamacare. politicsNews
louisiana governor urges tax hike tapping reserves fix budget gap reuters louisiana governor john bel edwards tuesday urged state legislators approve plan increase taxes tap reserves plug largest budget shortfall state history louisiana faces projected shortfall million fiscal year gap expected grow billion next fiscal year beginning july deteriorating tax revenues drop oil prices edwards democrat took office earlier month wants add cent state existing sales tax excluding purchase groceries prescription drugs residential utilities the proposed measure expected raise million late june the plan also taps million state rainy day fund million paid plc reimburse cleanup efforts following deepwater horizon oil spill the state would also cut discretionary funding if enacted governor plan would reduce eliminate deficits state faces the days using budget gimmick helped us limp along said edwards first democrat hold office governor louisiana since this administration remove smoke mirrors provide facts edwards warned leaders act quickly universities could struggle distressed hospitals could close public education could suffer severe cuts raising taxes first second even third option seeking fill state budget shortfall said edwards unfortunately cuts enough bridge enormous shortfall face the state overall budget problems stem drop oil prices much shortfall also comes previous excessive use money revenues governor office reported louisiana contending years unresolved structural budget deficits collided weakening state economy sharp drop revenues oil gas extraction taxes moody investors services said december moody rates louisiana negative outlook during edwards inaugural address last week pledged begin accepting federal funding expand healthcare residents affordable care act also known obamacare politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Louisiana governor urges tax hike, tapping reserves to fix budget gap(Reuters) - Louisiana Governor John Bel Edwards on Tuesday urged state legislators to approve a plan to increase taxes and tap reserves to plug the largest budget shortfall in state history. Louisiana faces a projected shortfall of $750 million this fiscal year and the gap is expected to grow to $1.9 billion in the next fiscal year beginning July 1 from deteriorating tax revenues and a drop in oil prices. Edwards, a Democrat who took office earlier this month, wants to add 1 cent to the state’s existing 4-cent sales tax, excluding the purchase of groceries, prescription drugs and residential utilities. The proposed measure is expected to raise $216 million by late June. The plan also taps $128 million from the state’s rainy day fund and $200 million paid by Plc to reimburse cleanup efforts following the 2010 Deepwater Horizon oil spill. The state would also cut some discretionary funding. If enacted, the governor’s plan would reduce but not eliminate the deficits the state faces. “The days of using budget gimmicks that helped us limp along are over,” said Edwards, the first Democrat to hold the office of governor in Louisiana since 2008. “This administration will remove the smoke and mirrors and provide the facts of where we are and where we are going.” Edwards warned that if leaders did not act quickly, universities could struggle, distressed hospitals could close, and public education could suffer severe cuts. “Raising taxes is not my first, second, or even third option when seeking to fill the state’s budget shortfall,” said Edwards. “Unfortunately, those cuts will not be enough to bridge the enormous shortfall we face today.” The state’s overall budget problems stem from the drop in oil prices, but much of the shortfall also comes from previous excessive use of one-time money and lower-than-expected revenues, the governor’s office reported. Louisiana is now contending with years of unresolved structural budget deficits that have collided with a weakening state economy and a sharp drop in revenues from oil and gas extraction taxes, Moody’s Investors Services said in December. Moody’s rates Louisiana Aa2 with a negative outlook. During Edwards’ inaugural address last week, he pledged to  begin accepting federal funding to expand healthcare to residents through the Affordable Care Act, also known as Obamacare. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: louisiana governor urges tax hike tapping reserves fix budget gap reuters louisiana governor john bel edwards tuesday urged state legislators approve plan increase taxes tap reserves plug largest budget shortfall state history louisiana faces projected shortfall million fiscal year gap expected grow billion next fiscal year beginning july deteriorating tax revenues drop oil prices edwards democrat took office earlier month wants add cent state existing sales tax excluding purchase groceries prescription drugs residential utilities the proposed measure expected raise million late june the plan also taps million state rainy day fund million paid plc reimburse cleanup efforts following deepwater horizon oil spill the state would also cut discretionary funding if enacted governor plan would reduce eliminate deficits state faces the days using budget gimmick helped us limp along said edwards first democrat hold office governor louisiana since this administration remove smoke mirrors provide facts edwards warned leaders act quickly universities could struggle distressed hospitals could close public education could suffer severe cuts raising taxes first second even third option seeking fill state budget shortfall said edwards unfortunately cuts enough bridge enormous shortfall face the state overall budget problems stem drop oil prices much shortfall also comes previous excessive use money revenues governor office reported louisiana contending years unresolved structural budget deficits collided weakening state economy sharp drop revenues oil gas extraction taxes moody investors services said december moody rates louisiana negative outlook during edwards inaugural address last week pledged begin accepting federal funding expand healthcare residents affordable care act also known obamacare politicsnews