Louisiana Legislature Approves $1.2 Billion Spending Plan from Revenue Stabilization Trust Fund

The Louisiana Legislature's leaders have approved a $1.2 billion spending plan from the Revenue Stabilization Trust Fund, earmarking funds for infrastructure, economic development, and technology upgrades. The $48 billion budget plan, expected to be sent to Governor Jeff Landry by the end of the legislative session, allocates significant amounts for various projects, including transportation funding, bridge upgrades, water system improvements, and college campus maintenance. The plan is ambitious, leveraging the state's savings accounts to invest in vital areas, despite not being in the midst of a budget crisis.

Key Takeaways:

• The $1.2 billion comes from the Revenue Stabilization Trust Fund, a state savings account, with $2.7 billion remaining after the withdrawal.
• The allocation includes $280 million for transportation funding to attract federal money, with a specific list of items to be funded not provided.
• $240 million is set aside for transportation preservation projects, focusing on fixing and upgrading existing infrastructure.
• $150 million is designated for Louisiana economic development site investments, aiming to attract private sector investment by upgrading infrastructure at specific sites.
• The economic development agency will also receive an additional $74 million and $5 million for its "debt service and commitments program" and to launch a marketing campaign.
• $101 million is allocated for bridge upgrades, aiming to bundle up projects and bid them out collectively for cost savings.
• $75 million is allocated for water system upgrades, addressing local drinking water and sewerage system improvements.
• $29 million supports college campus deferred maintenance, including work at the University of New Orleans and other public universities.
• $24.1 million is designated for OMV technology upgrades, addressing the state's outdated technology system used for driver's licenses.
• $10 million is allocated for LIV Golf and other "major" events combined with other state funds.
• $10 million will be spent on purchasing new voting machines, addressing a long-standing issue with the state's outdated equipment.
• $5 million will upgrade the Medicaid eligibility system, aiming to improve public health insurance benefits.

Statistics:

• $1.2 billion: The amount allocated for infrastructure, economic development, and technology upgrades from the Revenue Stabilization Trust Fund.
• $2.7 billion: The remaining balance in the Revenue Stabilization Trust Fund after the withdrawal of $1.2 billion.
• 10%: The percentage of the allocation focused on transportation funding.
• 40%: The percentage of the allocation dedicated to economic development and infrastructure projects.
• $50-year-old technology: The age of the state's Office of Motor Vehicles technology system used for driver's licenses.
• 10-person jailbreak: The number of inmates who escaped from the New Orleans jail in May, which may be related to the state police payment for "expenses related to the recapture of fugitives."

Sources:

• [1] "Louisiana Legislature's leaders want to spend $1.2 billion that would typically be deposited into a state savings account on infrastructure, economic development and technology upgrades." (lailluminator.com)
• [2] "The Senate voted unanimously Monday through House Bill 461 to withdraw $1.2 billion." (legis.la.gov)
• [3] "Louisiana is not in the midst of a budget crisis but legislators feel confident about using the money anyway because the state's two major savings accounts are flush with cash." (lailluminator.com)
• [4] "The Revenue Stabilization Trust Fund will have $2.7 billion left even after the withdrawal of $1.2 billion." (lailluminator.com)