Statewide Debate: A Spending Peg in a Revenue Hole

This month the Louisiana Budget Project (LBP) has made news all across the state. LBP’s firm stance—that Louisiana has a revenue problem, not a spending problem—has sparked a statewide debate.

  • On March 20th, The Advertiser in Lafayette published “Louisiana budget: A spending peg in a revenue hole.” The article summarizes our position on the state’s budget crisis. The article concludes quoting LBP’s Executive Director Eddie Ashworth: “We’re trying to pound a spending peg into a revenue hole, and it’s tremendously detrimental to higher education and other things.
  • On March 16th, The Independent Weekly in Lafayette published “The Imaginary Budget” summarizing how Governor Jindal proposes to close the $1.6 billion dollar shortfall for the upcoming fiscal year. The paper explains how tax exemptions for businesses cost the state $7.1 billion dollars of much-needed revenue.
  • On March 6th, The Shreveport Times ran “Should we now address revenue side of equation?” discussing Louisiana’s budget shortfall and the Governor’s “Draconian” cuts in discretionary funds. The article highlights the Louisiana Budget Project’s six research notes that will offer balanced, transparent solutions to fixing Louisiana’s fiscal crisis. The article mentions considering a state tax on Social Security benefits and a state tax on cigarettes. As Eddie Ashworth concludes, “We don’t think the revenue side of the equation can be avoided any longer.”
The governor's plan will mainly benefit corporations and the wealthy, while working and middle-class families will pay more for services and products we use every day such as diapers, garbage collection, haircuts and home repairs. Louisiana’s tax system certainly needs to be improved, but this is the wrong way to do it.
Gov. Jeff Landry has called the Legislature into a special session to overhaul Louisiana’s tax structure.