Louisiana faces a $1.6 billion shortfall in the next fiscal year due to the largest tax cuts in the state’s history and back-door spending that remains unaccounted for. To restore fiscal responsibility, legislators ought to follow Congress by enacting a PAYGO rule.
PAYGO would provide a responsible budget control mechanism for Louisiana that would empower the Legislature to prioritize budgetary expenditures, tax expenditures, and revenue policy in a way that provides for the needs of state residents. Legislators would have to find the means to pay for any proposed new spending, tax cuts, or tax exemptions.
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