(The Center Square) — Gov. Jeff Landry presented his administration’s budget proposal for the 2025-2026 fiscal year, emphasizing fiscal restraint and continued reductions in government spending.
The proposal follows a year of significant tax cuts and economic development initiatives.
The proposed fiscal 2026 budget totals $44.96 billion, a decrease from the $45.4 billion in the current fiscal year. State general fund revenue is projected at $12.15 billion, a slight increase from the current $12.08 billion, while federal funding is expected to rise from $22.13 billion to $22.76 billion.
Landry highlighted his administration’s efforts to reduce spending.
“We have begun to rein in runaway government spending — spending $2 billion less than the previous year,” Landry told lawmakers.
His proposed budget aims for flat funding while making targeted investments in infrastructure and potential further tax reductions.
Expenditures at the time of last year’s revenue estimating conference summed $47.6 billion, now $45.3 billion. Key budget allocations for the fiscal 2025-26 proposal include a slight reduction in education funding from $5.5 billion to $5.477 billion, a decrease in public safety funding from $1.457 billion to $1.363 billion and a cut in general government funding from $1.111 billion to $823 million.
Landry pointed to savings across several agencies, including $11 million in savings from the Louisiana Department of Health, over $1 million saved in the Department of Energy and Natural Resources and $2.3 million in cuts from the Division of Administration.
The governor also announced the creation of a fiscal responsibility program, led by a newly appointed budget czar, to identify further cost reductions.
“I conducted a similar review as Attorney General and achieved significant savings. I expect we will again achieve great results,” Landry said.
If Landry was hoping to get closer to President Donald Trump by emulating his policies, it appears to have worked. Landry was announced as part of President Trump’s Council of Governors on Wednesday.
A major factor in the state’s fiscal future is Amendment 2, set for a statewide vote on March 29. The constitutional amendment would lower the maximum income tax rate, increase deductions for citizens over 65, impose a government growth limit, modify constitutional funds, and provide a permanent teacher salary increase through surplus payments to teacher retirement debt.
“If Amendment 2 passes, the budget picture will change again,” said Patrick Goldsmith, the deputy commissioner of the Louisiana Division of Administration, noting that the state could see further adjustments in revenue allocations and expenditures.
Despite efforts to cut spending, unforeseen costs impacted the budget, including emergency spending by the Governor’s Office of Homeland Security and Emergency Preparedness following a New Orleans dog attack on January 1st.
Additionally, Louisiana’s economy is experiencing slower growth, with GDP projected to increase by only 2% in 2025 and 1.3% in 2026.
Long-term financial forecasts indicate potential budget shortfalls in fiscal years 2028 and 2029, though these projections do not account for the impact of Amendment 2.
Landry remains optimistic about Louisiana’s fiscal direction.
“I continue to be focused on turning our state around — working with my team, the Legislature, and our people to make Louisiana a great state with a growing economy and strong revenue,” Landry said.