The relief some hoped would materialize did this week for Louisiana, but the bonus must be spent wisely in a manner that eventually shrinks government.
The state’s Revenue Estimating Conference this week determined that the state would have $130 million more for this, fiscal year 2024-25, and $139 million more predicted for next year, FY 2026. Policy-makers around the capitol had hoped to hear that the previous December projections had undershot what would be actual and forecast performance, but until now faced uncertainty with a raft of tax code changes kicking in at the start of this calendar year.
As these numbers didn’t apply to previous fiscal years (the other REC meetings throughout the year often take a look back into the just-completed fiscal year) which would be declaration of a surplus, the REC had the option to declare the additional revenues as recurring for this current period and obviously for the next, which it did. That means anything goes as far as expenditures, if even spent, as opposed to tagging these as nonrecurring where only specified, essentially one-time, expenditures could occur.