Here's some reaction to governor's proposed budget

Policy advocates are urging a greater focus on accountability and directing more funds toward helping Louisiana's most vulnerable after Gov. John Bel Edwards unveiled his proposed state budget.

Commentary from the Public Affairs Research Council (PAR) highlighted the “glut of cash” for the upcoming fiscal year and commended Edwards for devoting large chunks to pay down debt, such as a suggested $400 million federal loan payment for upgrades to New Orleans’ storm protection system.

PAR agreed with the governor’s plan to use the $2.8 billion in one-time funding on nonrecurring expenses such as debt reduction and transportation projects, but is advocating for a more transparent and accountable process than in the past, with targeted goals to measure the impact of investments.

“PAR would like to see more planning in appropriations for the short-term cash and the increased general fund money available in next year’s budget, with an eye toward long-term state improvement and targeted goals for what the spending should achieve,” the commentary read.

“Edwards and lawmakers should connect a wanted policy outcome to the money, rather than splitting it up so every favored project simply gets a little piece of the largesse."

The private research nonprofit also urged lawmakers to prepare for the expiration of a temporary 0.45% state sales tax in mid-2025, as well as a shift in a portion of taxes charged on the sales of new cars and trucks from the general fund to a transportation fund for road and bridge work.

“The latest forecast shows $161 million expected to be steered toward the transportation dedication in the 2023-24 financial year and $325 million a year later,” according to the PAR commentary. “But when the temporary sales tax disappears in the 2025-26 budget year, general fund revenue is forecast to fall to below $10.6 million, a $371 million drop from the upcoming budget year.”

PAR is advocating for an easy-to-navigate website to track the state’s spending of federal funding for the pandemic that shows where lawmakers steered the money and who received the assistance.

A Louisiana Budget Project (LBP) analysis applauded the governor’s proposed pay increases for teachers and college faculty, rate increases for home and community-based services and investment in the M.J. Foster Promise Program to help low- to moderate-income students with community and technical college.

The LBP, however, believes more of the $1.4 billion in federal pandemic funding, $700 million in surplus and $853 in unanticipated revenue could be put to better use. The LBP pointed to a proposed $550 million payment to the state Unemployment Insurance Trust Fund and $1 billion toward highway projects in particular.

“While no one who has driven on Louisiana’s highways disputes the need for transportation upgrades, it should not consume such a massive portion of these discretionary dollars,” LBP Executive Director Jan Moller wrote. "And steering these one-time relief dollars into the unemployment trust fund means prioritizing bosses and corporations over their hard-working staff.”

The LBP would prefer the money go toward addressing the affordable housing crisis, creating a paid sick leave program or bonuses for teachers and retail workers.

“Regular people in Louisiana are still struggling during our long recovery from Covid,” Moller wrote. “The Legislature should take a more balanced approach to investing this year’s windfall: one that centers the people and communities with the greatest need.”

The Pelican Institute CEO Daniel Erspamer is also focused on how lawmakers ultimately spend the one-time funds, and he is urging restraint and discipline in the process.

“Now is the time for fiscal responsibility,” Erspamer said. “One-time funds should be spent on one-time expenses. We know what comes after a boom, and the Legislature would be wise to hold the line on spending and continue their work to grow the economy and bring jobs and opportunity back to Louisiana.”