All the numbers have been tabulated, and it turns out Louisiana finished last fiscal year with a $565 million budget surplus. House Appropriations Chairman Jack McFarland says a huge percentage of that surplus is the result of higher-than-expected tax collections.
“Personal income tax came in at $170 million more than what we had estimated during the budgeting process; sales tax was up $160 million,” McFarland noted.
The state constitution dictates how the surplus dollars can be spent. McFarland says at least half of it will be used to add dollars to the rainy-day fund and the paying down of state employee retirement debt. He says the rest of the money will be used on one-time expenses.
“The other 50%, it can be utilized on coastal restoration, infrastructure; we all know we need better roads and bridges. It can be used on deferred maintenance, on college campuses,” McFarland explained.
McFarland says another reason for the surplus, the Landry Administration and this state legislature have limited the growth of state government. He expects Louisiana will avoid tough budget times in the future, because of the job creation that’s happening.
“We’ve got $264 billion of investment in Louisiana. As those jobs continue to turn over and be created, I think it’s just more positive for Louisiana,” McFarland said.
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