New Orleans has lost more jobs than any other large metropolitan area in the nation since 2000, according to a new report from The Data Center. Invest in Louisiana’s Stacey Roussel and Christina LeBlanc, who authored the report, break down the Crescent City’s complex and uneven recovery in the two decades after Hurricane Katrina:
Billions of dollars in federal aid, philanthropic investment, and public-private partnerships have helped rebuild the regionʼs infrastructure and maintain its brand as a cultural and economic destination. Yet for the workers who form the backbone of this economy, the story is more complicated. From the Deepwater Horizon oil spill in 2010, to the COVID-19 pandemic of 2020 to 2023, to Hurricane Ida in 2021, residents have weathered repeated economic shocks—each one revealing and exacerbating long-standing structural weaknesses in the New Orleans metropolitan region’s labor market. While New Orleans is globally known for its resilience, many of its workers remain vulnerable to financial instability, low wages, and limited access to opportunity.
There are policies that can drive economic mobility for city residents:
The report recommends a range of policy actions — including increasing the state Earned Income Tax Credit, establishing a state minimum wage, expanding workplace benefits, investing in affordable education and workforce training, and repealing preemption laws — to build greater household economic resilience and ensure the region’s prosperity is more broadly shared.
States face huge bill due to recent SNAP changes
Louisiana could soon be forced to pay an extra $170 million for federal food assistance due to a change in federal law, according to new U.S. Department of Agriculture data. The federal tax and budget megabill requires states with higher payment error rates for the Supplemental Nutrition Assistance Program, which can be caused by underpaying or overpaying benefit amounts, to cover a portion of food assistance benefits starting in fiscal year 2028. Katie Bergh and Joseph Llobrera of the Center on Budget and Policy Priorities explain how states will struggle with these new costs:
If states can’t fully cover these huge new costs by raising taxes or cutting other services, they’ll need to further restrict access to SNAP or potentially end the program entirely. In a recent survey by the American Public Human Services Association, 11 percent of responding states identified the potential risk that they will withdraw from SNAP as a result of the cost shift, and 5 percent said there’s a risk that they will pause SNAP operations. That would have dire consequences for struggling families — who would face even harder decisions about which essentials to pay for, whether it’s rent or putting food on the table — and the broader economy.
Collectively, states would be on the hook for $9 billion based on 2025 error rates.
Data centers and increasing utility rates
Gov. Jeff Landry is expected to issue an executive order on Thursday that targets increased electricity costs caused by data centers. The Times-Picayune | Baton Rouge Advocate’s Sam Karlin explains what spurred Landry’s move:
The high-profile move comes as some elected leaders, including Republicans, are raising questions about Entergy Louisiana’s plans to buy a power plant in Texas called Cottonwood, a decision that would cost the average customer about $8 a month, records show. A consultant for Louisiana’s Public Service Commission, which has to approve the acquisition, said in a recent report that the plant is primarily needed because of Meta’s giant north Louisiana data center. Entergy and Meta say the conclusion is inaccurate. But it has put a public spotlight on whether the companies are fulfilling the promise that regular customers won’t pay for data center costs.
An influential state lawmaker is also weighing in:
[Senate Committee on Natural Resources chair Bob Hensgens] recently sent a letter to PSC member Mike Francis that warns about data centers’ potential impact on customers’ electric bills. … “It’s fine if they want to pass that on to Meta,” Hensgens said. “It’s not fine if they want to socialize it to the ratepayers.” Hensgens asked the PSC to consider establishing a policy for customers that need huge amounts of power like data centers.
Some states have considered separate, higher electricity rates for data centers.
Legislature approves Landry’s teacher pay plan
State lawmakers have approved Gov. Jeff Landry’s plan to cut $168 million from public schools’ operating budgets to finance stipends for teachers and support staff. Landry’s executive order required the consent of two-thirds of the Legislature. The Times-Picayune | Baton Rouge Advocate’s Patrick Wall reports:
In the House, 76 of 105 members voted for the funding cut, while eight members voted against it, one abstained and 20 members did not vote, according to the official tally. The “no” votes were cast by Democrats and Rep. Neil Riser, a Republican who represents several rural parishes where school leaders have said the state funding cut could devastate their budgets. In the Senate, 37 of 39 members voted in favor of the funding reduction, while Sen. Royce Duplessis, D-New Orleans, cast the lone “no” vote and Sen. Katrina Jackson-Andrews, D-Monroe, abstained.
Landry’s teacher pay plan still faces a legal hurdle:
The order was set to take effect July 1, if the Legislature gave its blessing. However, a Baton Rouge judge put the plan on hold after a group of education advocates last week filed a lawsuit arguing that Landry overstepped his legal authority by effectively reallocating education funding, which is controlled by the Legislature and the state board of education.
Number of the Day
-4% – Percent change for fertility rate for women ages 30 to 34 in Louisiana from 2015 to 2024. (Source: Centers for Disease Control and Prevention via The Advocate)