House panel sends state budget forward

BATON ROUGE – In the first step by the Legislature to transform Gov. Jeff Landry's proposed budget into its own, the House Appropriations Committee unanimously advanced House Bill 1 on Monday, generally following the governor's desire for a standstill state operating budget of $47 billion for the fiscal year starting July 1.

The bill, which pays down longstanding debt and increases workforce initiatives, is expected to before the House on Thursday.

“Members, when you take all this into account, the budget is fiscally responsible,” said Rep. Jack McFarland, R-Jonesboro, the committee chair.

The general appropriations bill, House Bill 1, determines how the state will use its funds for general operating expenses in the upcoming fiscal year.

The bill maintains a standstill budget in anticipation of budget shortfalls approaching $300 million in fiscal 2027 and more than $1 billion by 2029 — if the current federal and state budget policies remain.

A central feature of the proposed budget is a continued effort to reduce reliance on one-time spending and instead align ongoing expenditures with stable, recurring revenue sources.

This approach is intended to provide a clearer picture of the state’s long-term financial obligations and improve fiscal sustainability, particularly as Louisiana faces projected budget challenges in the coming years.

“Utilizing those one-time dollars in HB1 puts us in a better position next year because that will be more dollars available to meet the shortfall that we’re forecasting for next year,” McFarland said.

The total budget includes tens of billions in federal money for various programs. The state’s general fund consists of $12.6 billion. It is made up of Louisiana’s tax dollars and state revenues.

The fund covers the costs of K-12 and higher education, health care and Medicaid, corrections and other departments not covered by dedicated funds or federal aid.

“We are prioritizing education, workforce and training while creating high-demand, high-paying jobs within the state of Louisiana,” McFarland said.

House Bill 312, also authored by McFarland, was advanced and would act as a supplemental bill for the current fiscal year that ends June 30.

That bill would allow the Legislature to use $144.3 million from the state’s surplus funds to pay down the debt owed to the Louisiana State Employees Retirement System.

“I think this is what the public expects us to do with our tax dollars,” McFarland said.

HB 1 includes $420 million in funding for early childhood education and $87 million for the Louisiana Gator Scholarship Program.

The House Appropriations Committee generally followed the governor’s budget blueprint, but the Senate has shown more willingness to adjust spending in certain areas.

Landry had asked for $93.5 million last year for the LA Gator Program but received only $43.5 million.

He asked the Legislature for an additional $44.2 million for next year. However, Senate President Cameron Henry, R-Metairie, has said he does not support increasing Gator funding.

“Doubling a program every year’s going to be a problem for us financially because at some point in time, you have to figure out when you are going to stop doubling it,” Henry said during the Baton Rouge Press Club meeting on March 2.

There is no teacher pay raise or stipend in the new budget.

A potential teacher pay raise depends on what voters decide next month about a constitutional amendment that would give a $2,250 raise to public school teachers and a $1,125 raise to support workers.

The amendment would dissolve three educational trust funds and use the money to pay down retirement debt and fund those permanent raises.

The budget bill for next year would cover an expected $42.3 million increase in the state’s administrative expenses in the SNAP program.

The increased costs are the result of changes made to SNAP in President Trump’s One Big Beautiful Bill, which requires states to cover 75% of the administrative costs for SNAP instead of the previous 50-50 split of costs between the state and federal government.

The appropriations bill would also give the Louisiana Department of Health $28.8 million for the managed care organization adjustment, which is a private insurance plan contracted to manage Medicaid services.

About $75 million would be allocated to Louisiana Economic Development for the high-impact jobs program. This would encourage companies to create jobs that pay above the average wage paid in civil parishes and offer a basic health benefit plan.

As the state keeps inmates in jail longer under tougher-on-crime policies, an additional $14.3 million would be given to the Department of Corrections to increase the offender medical budget by about 50%.

The current budget for prisoners’ medical expenses is $28.7 million.

The Department of Children and Family Services also would receive $24.4 million for technology upgrades.