Conservatives in the Louisiana Legislature can’t flinch at the chance to keep state spending at a more sensible level.
The Wuhan coronavirus pandemic bonus tax revenues for states, from record increases in federal borrowing sustained by Washington Democrats that force-fed an expanded money supply through the economy, has made state coffers flush last year, this year, and likely the next before it fades away – although this action also eroded the value of those dollars by triggering record price inflation that hardly has moderated. This has produced for last year, this year, and forecast for next year extra dollars to the tune of two and a quarter billion for Louisiana.
Naturally, politicians have plans for that. Around a third has to go to nonrecurring spending that includes mandatory paying off unfunded pensions and replenishing the Budget Stabilization Fund, with the remainder to a few select uses. Both Democrat Gov. John Bel Edwards and legislative leaders have offered to use the balance for capital outlay projects.