(The Center Square) – Louisiana’s spending proposals have begun winding through the Legislature following the first round of amendments, with both the construction budget and the general appropriations bill clearing the Appropriations Committee.
The budget remains unchanged from the proposed $47 billion, part of the state’s effort to limit spending – a feature emphasized and celebrated by Gov. Jeff Landry and Appropriations Chairman Rep. Jack McFarland, R-Jonesboro. The bill “emphasizes fiscal responsibility by prioritizing paying down debt, providing more support to Louisiana students, and attracting new industries that will change the face of Louisiana’s economy – all without raising taxes.”
The clearest priorities so far this legislative session have been workforce development and education. Leaders in the House of Representatives say the spending reflects those priorities, including $420 million for early childhood education; an increase in the K-12 funding formula; $87 million for the LA GATOR scholarship program; $47 million for Louisiana Economic Development projects; $50 million for emergency reserves; and a $144 million surplus payment to LASERS to reduce retirement debt.
But, as McFarland told The Center Square, “It is a long session. A lot could change.”
McFarland had just advanced the capital outlay budget, which provides money for brick-and-mortar construction such as highways, schools and hospitals.
“This statewide construction budget advanced today stays under the maximum available funding level by several million dollars,” said Ways and Means Chairman Tony Bacala, R-Prairieville.
Within that budget, the state’s concerted effort to prepare and build its workforce for the supposed $100 billion in investments is evident.
The state is budgeted to construct five different workforce development centers in East Baton Rouge, Caddo, Rapides and Terrebonne parishes for a total cost of about $74.3 million. They include an education and workforce hub, a workforce academic center, a new workforce training and technology center, a maritime and petroleum workforce training academy, and a “Small Business Incubator, Community Health Clinic, and Workforce Training Center.”
Education-wise, LSU and the Louisiana Community and Technical College System have secured sizable increases from taxpayers. LSU will receive $56 million for personnel expenditures, and community colleges $4.3 million.
McFarland told The Center Square he was encouraged by the changes being made by the universities, several of which are facing sizable budget deficits.
“Many of those universities operating under a shortfall are making the necessary changes,” McFarland told The Center Square.
He added there were some items universities were requesting that he didn’t put in the budget because “there is an opportunity for them to be made whole.”
McFarland mentioned the coming amendments on the spring ballot as one such opportunity. He said Amendment 3, if it passes, could save $80 million by dissolving three education trust funds and use roughly $2 billion to pay down part of the Teachers’ Retirement System debt.
Universities are largely funded by a formula designed by the Board of Regents, a formula McFarland called “complicated.” He added that the new formula will “put them in a better position.”
Formula aside, universities often lobby legislators for funding beyond what the formula designates for specific projects within specific colleges, such as the currently funded $2.7 million for the LSU Energy Institute or facility upgrades to the Pennington Biomedical Research Center.
Other projects receiving funding include $11 million for the Hyundai Steel Training Facility at River Parishes Community College, $100,000 for the LNG Center of Excellence at McNeese State University, and $520,000 in athletic equipment.
One school facing a deficit is the University of Louisiana at Lafayette, which is around $50 million. University President Ramesh Kolluru, in office only since February, testified before the House Education Committee on Tuesday, assuring legislators that he was committed to fiscal responsibility.
“As legislators I know you expect accountability and that is something we expect from ourselves as well,” Kolluru told the committee. “We chose to solve it, not defer it, not conceal it. Through disciplined action, we are closing that gap and putting controls in place to ensure that doesn’t happen again.”
The school is slated to receive $45,000 for workforce development and $250,000 for the University of Louisiana at Lafayette’s Cajun Advanced Picosatellite Experiment Program.
The Center Square was unsuccessful prior to publication getting comment from Kolluru on the specific fiscal accountability changes being made.
Beyond education and workforce, lawmakers continue to seed the budget with highly specific local projects. The amendments direct money from the Richland Parish Visitor Enterprise Fund to named small-town recipients: $25,000 to Delhi, including $5,000 for the Delhi Municipal Golf Course and the remainder for the Cave Theater; $10,000 for downtown development in Mangham; and $25,000 for downtown development in Rayville.
In Caddo Parish, amendments would send $65,000 to the Shreveport Downtown Development Authority for riverfront activities and small-business development, $25,000 to the Caddo Parish Sheriff’s Office for special downtown patrol and operations, and $80,000 to Sci-Port Discovery Center. The bill also includes $3 million for the Cameron Ferry operations and maintenance contract.
Jefferson Parish also appears prominently in the early amendment package. The budget language preserves at least $1.2 million for the purposes already required by law from the Jefferson Parish Convention Center Fund.
Then it directs the remaining money to the Jefferson Performing Arts Society; Westwego Farmers and Fisherman’s Market; Sala Avenue improvements; Westwego Fest; the FORE Kids Foundation tied to the Zurich Classic; Gretna Heritage Festival; Hope Haven Festival Park improvements; Louisiana Crawfish Boiling Championships; and the Lafitte Fisheries Market, with any remainder going to the Alario Center for maintenance and improvements.
