Moody’s has stated that Louisiana is one of six states that will have to address budget shortfalls in its fiscal year forecast because of lower tax revenues from job losses in the energy sector as oil prices continue to fall. Reuters reports that Moody’s comments came after Oklahoma revised down its revenue projections last Tuesday for the remainder of the current fiscal year by $444 million, or 8 percent, and by 13 percent for the next fiscal year, which starts July 1st, 2016. The other states in a similar situation are: Alaska, New Mexico, North Dakota and Texas. Moody’s noted New Mexico, North Dakota and Texas are more insulated from the fall in oil prices than Louisiana, Alaska and Oklahoma because their economies are more diversified and have substantial reserves.
Read more via Reuters here.