As Louisiana’s economic fortunes under Republican Gov. Jeff Landry continue to improve, it can’t rob Peter to pay Paul if it expects the progress to continue.
With the Legislature endorsing overall tax cuts and the Landry Administration hustling that grabbed hundreds of billions of dollars in new economic development, Fitch Ratings noticed and upgraded the state’s general obligation bond debt (it also recently has upgraded several other kinds of state issuances). That means in the constant revolving door of debt that state issues will come at lower interest rates, saving taxpayer dollars.
This will provide some minor relief from projected budget deficits beginning next fiscal year, which the state pegs will grow from $541 million next year to $1.23 billion by fiscal year 2030. Another debt-related maneuver that could ease the burden somewhat also would be to take the bulk of the recently-forecast surplus and pay down debt.