7.11.12 Gov. Bobby Jindal said Tuesday the state would have a balanced budget that preserves critical health-care services, even when a new federally approved $860 million cut in Louisiana's Medicaid program begins.

Jindal would not say how that would occur.

The governor met briefly with reporters after a ceremony marking the start of construction of the $19 million LSU Medical Education and Innovation Center on the Our Lady of the Lake Medical Center's south Baton Rouge campus. Rain forced a planned groundbreaking indoors, complete with dirt and shovels for officials to use.

The 35,000 square foot, four-story building is part of construction taking place on the Lake's campus, as LSU prepares to move its medical education and inpatient hospital operations there by 2013. With the move, LSU will close its Earl K. Long Medical Center on Airline Highway.