An updated forecast shows Louisiana will run an anticipated 500 million dollar surplus for the last fiscal year, up from the previously expected 300 million dollar surplus.
Commissioner of Administration Jay Dardenne says there are two reasons for the rising surplus, starting with the 2017 federal tax reform.
“Ironically when you pay less money in federal income tax you pay more money in state income tax because of the way that our system is structured.” said Dardenne “I also think that the economy in Louisiana is doing well.”
The money will be used to pay down retirement debt, fill the state savings account, and on certain construction projects.
Dardenne says they plan to use the funds to help replenish the state’s depleted “Rainy Day” savings fund, which was drained in the Jindal years.
“We are not completely out of the woods on replacing one-time money that was drained in the previous administration to meet operating needs,” said Dardenne.
New Orleans Representative Walt Leger says thanks to recent surpluses they’ve returned 232 million dollars to the state savings account.
Critics say the surplus is evidence that the Governor’s .45 percent sales tax increase was ultimately unnecessary. House Republican Chairman Lance Harris says the tax was passed after some disingenuous claims by the Edwards Administration.
“The state was told that maw-maw was going to be kicked out of the nursing home and that there would be no football, and yet we ended up with a surplus that very year.” said the House’s top Republican.
Harris adds that claims that the surplus is thanks to a growing economy are misleading at best, “This surplus is the direct result of bad fiscal policy, not good economic growth, or the economy growing at such a pace that it outpaces the growth of government.”
