LABI outlines recommendations for state budget changes

Did You Know…

1. The Louisiana Legislature appropriated more than $25 billion in the current fiscal year – a state budget that is 44 percent larger than 10 years ago and represents the highest per capita spending among states in the South?

Action Item: Enact cost controls on spending so the state doesn’t find itself in another deficit in a few short years.

2. Most of Louisiana’s $25 billion state budget is considered off limits to annual review or reductions?

Action Item: Eliminate most statutory dedications and allow for annual prioritization of spending.

3. More than $100 million is earned in interest every year on statutory dedications that are not allowed to remain in the State General Fund where it is invested?

Action Item: Require interest earned on dedications to remain with the State General Fund.

4. Louisiana sends more than $6 billion of the $25 billion annual budget back to local government and school districts?

Action Item: Review and reduce ALL government spending, including the portion that is sent to the local government.

5. Funding for K-12 schools has not been reduced in any of the recent deficits? In fact, spending has increased by more than $900 million in the State General Fund for schools over the past decade?

Action Item: Review ALL government spending and avoid additional reductions in areas of the state budget that have been repeatedly scrutinized, instead focusing on areas where costs and funding continue to grow.

6. The Medicaid budget for Louisiana has increased by more than $1 billion over the past decade, just in the State General Fund share?

Action Item: Seek reforms to the Medicaid program that can improve access and quality of care while also controlling the exponential growth in costs of services.

 

About Stephen Waguespack 18 Articles
Stephen Waguespack is the President and CEO of the Louisiana Association of Business and Industry (LABI). As the state’s chamber of commerce and manufacturer’s association, LABI is the largest business advocacy group, representing more than 2,200 business members and 324,000 employees.

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