The Louisiana Legislature faces a $587 million shortfall for the 2025-26 fiscal year and has some alternatives for closing the gap. One of those alternatives could impact some financing for the new Interstate 10 bridge here over the Calcasieu River.
A 0.45% increase in the 4% state sales tax in 2018 solved a previous budget shortfall and put the state on a sound financial footing. Unfortunately, the 0.45% increase goes off the books next July 1, causing a loss of $445 million.
Renewing that increase is one budget solution but the Republican-controlled Legislature isn’t likely to go that route.
A 2% tax on business utilities is also going off the books next July. Renewing that tax would produce $220 million to help close the projected deficit.
Teachers got a $2,000 stipend last year and school support workers got $1,000. The Advocate reported that Ternisa Hutchinson, state budget director, told the Joint Legislative Committee on the Budget last week the deficit would be only $340 million without those and other education funds.