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Yahoo
3 days ago
- Business
- Yahoo
Louisiana House committee passes budget that closes $200 million shortfall without raising taxes
BATON ROUGE — The House Appropriations Committee advanced a $49.4 billion state budget Monday that funds $2,000 teacher stipends for next year, closes a nearly $200 million shortfall and balances the books without raising taxes. To bridge the budget gap, lawmakers pieced together a solution using a mix of cuts, delayed spending and the discovery of unspent or underutilized funds tucked away in various agencies. This included clawing back excess appropriations, redirecting one-time revenues and freezing certain state expenditures. Some of the savings came from blocking state vehicle purchases and combing Medicaid rolls to remove people who have moved out of state. The committee's approach not only avoided tax hikes but also safeguarded critical areas like education and healthcare. The effort won praise from both sides of the aisle, with Republicans applauding the fiscal discipline and Democrats recognizing the protection of key public services and the funding of teacher stipends. At the heart of the plan is House Bill 1, the state's main operating budget authored by Appropriations Chairman Jack McFarland, R-Winnfield. The bill, originally submitted by Gov. Jeff Landry as a standstill plan, was overhauled to address the shortfall and fund the $2,000 stipends for teachers and $1,000 for school support staff, including charter school employees, The stipends that were in jeopardy after Louisiana voters rejected a constitutional amendment in March that would have secured a permanent funding source for the stipends. 'In tough times, families tighten their belts,' McFarland said in a news release. "We made sure the state government did the same — responsibly, and without asking more from taxpayers.' Protecting teacher raises: Louisiana legislative panel funds teacher pay raises in surprise move Income tax plan advances Louisiana House passes bill that could further cut income tax, with constitutional amendment TOPS funding TOPS tweaks trouble cofounder Taylor: 'Let's not throw the baby out with the bath water' The final package included a series of cost-saving measures. Lawmakers blocked $91 million in vehicle and equipment purchases for state agencies, cut $26.3 million in Medicaid spending by removing ineligible recipients and saved $20 million through a statewide hiring freeze ordered by Landry. They also used state reserves to pay down $148 million in retirement debt for the State Police system, generating $25.5 million in interest savings, and eliminated 'high-dosage' tutoring programs, freeing up an additional $30 million. 'We balanced the budget, protected taxpayers, and made government more accountable. And we're just getting started,' said House Speaker Phillip DeVillier, R-Eunice. 'These cuts lay the groundwork for long-term reform and financial stability.' The committee also kept intact Landry's request for $94 million in funding for the new Louisiana GATOR program, an education savings account initiative that allows families to use public funds for private school tuition and other non-public education expenses. The program is a key part of Landry's school choice agenda and is expected to launch in phases. It is controversial among some education advocates and rural lawmakers, who say it could eventually drain money from public schools. McFarland acknowledged the teacher stipends are being funded with one-time dollars and that a long-term solution remains elusive. 'Until then, this is what we had to do, but I don't want to have to do it again,' McFarland said. Democrats praised the bipartisan work needed to achieve this bill. "I want to thank the chairman and administration and everyone who has worked on getting these amendments done, particularly for teacher stipends,' Rep. Denise Marcelle, D-Baton Rouge, said. 'Thank you for looking under tables and around the corners.' Rep. Jason Hughes, D-New Orleans, the vice chairman of the House Appropriations Committee, noted that early childhood education funding remains untouched and pointed to new investments in public safety. Gov. Landry's hiring freeze is expected to save $20 million annually and is seen as a way to preserve healthcare and education spending without deeper cuts. 'The public should know this budget represents no cuts in services,' Hughes said. 'We found surpluses elsewhere. But this is just one step in a very lengthy process.' The budget increases spending by $7 million for domestic violence shelters under the Department of Children and Family Services. The budget also reduces dedications from the State General Fund and officially ends remote work for state employees. If HB1 passes the House as expected, it will move to the Senate Finance Committee for further deliberation. The committee also advanced other key budget bills. House Bill 460 allocates $148.8 million in surplus funds to pay down State Police retirement debt, saving $25.5 million in interest compared to the original plan to spread the money across four systems. House Bill 461 sends 25% of the 2023–2024 surplus to the Budget Stabilization Fund and authorizes emergency spending. House Bill 463 funds ancillary agencies without tapping the State General Fund, while House Bill 647 finances the judiciary. Additional allocations in the budget include $7 million for domestic violence shelters under the Department of Children and Family Services. The budget also reduces dedications from the State General Fund and officially ends remote work for state employees. This article originally appeared on Lafayette Daily Advertiser: Louisiana House Appropriations Committee passes budget, closes shortfall
Yahoo
18-05-2025
- Politics
- Yahoo
This Week in Louisiana Politics: State budget, teacher pay raises, anti-hazing bill
BATON ROUGE, La. (Louisiana First) — On This Week in Louisiana Politics, a funding bill heads to the Senate, teacher pay raises, an update on the anti-hazing bill, and East Baton Rouge Mayor-President Sid Edwards' proposed tax plan. Here's a recap of the latest in Louisiana political news. HB 1, authored by Jack McFarland, passed out of the House Committee on Appropriations. The bill seeks to deliver a balanced budget with $200 million less in revenue, while still funding priorities identified by the legislature and Gov. Jeff Landry, such as state police offices, LDWF, and behavioral health offices. Rep. Josh Carlson's HB 466 is headed to the Senate, along with Julie Emerson's HB 473. Both bills would pave the way for a $2,000 annual raise for all teachers. Lawmakers said if they're getting the stipend, they'd get the actual raise if this becomes a law. The plan is to pay down debt in the Teacher's Retirement Fund. HB 279, or formerly known as the 'Caleb Wilson Act,' passed out of the Education Committee with slight changes. These changes would shift responsibility to educate on hazing from the universities to the organizations and increase the required course hours from one hour to two hours. The majority of Edwards' proposed tax plan was approved by the metro council and will appear on the ballots in November. Edwards' Thrive! Plan aims to address the budget while maintaining critical services and reducing debt without increasing taxes. Capital One is acquiring Discover: Will you be impacted? This Week in Louisiana Politics: State budget, teacher pay raises, anti-hazing bill The best SUVs with 3 rows for 2025 How does the EPA know a pesticide is safe to use in my yard? Scotlandville Library expands with Black Heritage Room, outdoor areas Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-05-2025
- Business
- Yahoo
State budget with targeted cuts headed to House for debate
BATON ROUGE, La. (Louisiana First) — House Bill 1, which is the state's budget plan, passed out of the House Committee on Appropriations Monday morning with no opposition. The bill authored by Chairman Jack McFarland (R-Jonesboro, La.) sought to deliver a balanced budget with $200 million less in revenue, while still funding priorities identified by the legislature and Governor Jeff Landry. 'If you'll remember when the session began, I told everyone publicly I'm going to fund the priorities of the legislature,' said Representative McFarland shortly after the committee state's bottom line for 2025-2026 is about $45 billion. With less revenue coming in, lawmakers were challenged to find some savings without cutting services and also providing a permanent pay raise for teachers. Committee members congratulated the Chairman of the committee, Jack McFarland, saying the process has been transparent and fair. Targeted cuts include paying down debt, rolling back on state agency purchases, and a hiring freeze by Governor Jeff Landry. Committee members touted the bill as a compromise and pointed out that no crucial services were cut in this budget, and no taxes were raised. 'In tough times, families tighten their belts. We made sure the state government did the same — responsibly, and without asking more from taxpayers,' said McFarland. The full House is scheduled to debate HB 1 on Thursday. Episcopal Church halts refugee partnership with feds over white South Africans Senate GOP weighs safety, legal concerns over Trump Qatar jet gift Perkins Rowe Baton Rouge changes management, Dallas firm acquires local staple State budget with targeted cuts headed to House for debate Trump's Middle East trip: 5 things to watch Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
