Louisiana Legislature passes $38.3B state budget with 2 weeks to spare
(The Center Square) – The Louisiana Legislature unanimously approved a $38.3 billion state budget proposal for the fiscal year that begins July 1.
More than half of the spending comes from the federal government, including one-time federal COVID-19 relief and stimulus money.
“There is a lot of money to appropriate [from] different sources,” said Republican Sen. Bodi White, who chairs the Senate Finance Committee. “Probably the biggest budget, I’m sure, we’ve ever had.”
House Bill 1, which cleared the Legislature on Thursday, now heads to Gov. John Bel Edwards’ desk well ahead of the June 10 deadline, in contrast to previous years when legislators didn’t settle on a state operating budget until the session’s closing moments.
Better-than-expected state collections and federal aid have made for a less contentious budgeting process than in years when cuts were necessary. While the Democratic governor has the power to veto specific items in the state budget, getting the bill to him early may allow time for the Republican-dominated Legislature to override any vetoes.
The budget calls for making the state’s first $400 million payment on its $1.1 billion cost share for a New Orleans-area levee system in cash, rather than borrowing the money as was previously considered. College faculty, K-12 teachers and prison guards are among state workers who would receive a pay raise.
Teachers will get an $800 raise while school support workers will get $400, falling short of the $1,000 and $500 raises some lawmakers would have preferred to give once they knew the state’s revenue picture had improved. Louisiana teachers, on average, make about $4,000 less than their peers in nearby states, according to the Southern Regional Education Board.
“We didn’t get there this year,” White said, adding that more raises could be possible next year.
The budget also does not include a proposed $6 million for early childhood education, which many legislators said should be a priority.
“We really need to invest in early childhood education,” said Rep. Aimee Freeman, D-New Orleans.
The Senate also approved a $1.6 billion spending plan Thursday for the first allocation of $3.01 billion the state will receive through the federal American Rescue Plan Act. The biggest portion, $563 million, would go to roads and bridges, followed by $490 million to pay back the federal government for unemployment benefits the state paid out after its benefits fund ran out and to shore up the fund’s balance.
An additional $300 million would be reserved for upgrading water and sewer infrastructure statewide. Other priorities include hurricane recovery, ports, tourism promotion, and helping nonprofits, loggers and movie theaters recover from the pandemic-driven downturn.
The House declined to concur with the Senate version of the ARPA plan, sending it to a conference committee between the two chambers.
Legislators also didn’t agree on a final version of House Bill 2, which contains a $6 billion multiyear construction budget. There’s a $40 million difference between how much leaders in each chamber think the state has to spend, House Ways and Means Chair Stuart Bishop said.
“I can’t put my name on this bill,” Bishop said. “Give me another week to work it out.”
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