BATON ROUGE, La. (AP) -- Gov. Bobby Jindal says his proposed $24.7 billion budget for next year relies heavily on privatization plans for LSU's charity hospitals to offset the loss of hundreds of millions of dollars in federal Medicaid funding.
Congress cut Louisiana's Medicaid payment rate last year. That's a significant factor in the state's budget gap next year.
Jindal says his budget will include "significant savings" in the LSU hospitals by turning many of them over to private management.
The Republican governor gave a brief overview Thursday of his spending proposals for the upcoming 2013-14 fiscal year. The full proposal and details will be outlined Friday to lawmakers.
Jindal says the budget includes minimal cuts to the health department and, with tuition increases, will keep spending flat for colleges.