The Louisiana Legislature faces a $587 million shortfall for the 2025-26 fiscal year and has some alternatives for closing the gap. One of those alternatives could impact some financing for the new Interstate 10 bridge here over the Calcasieu River.

A 0.45% increase in the 4% state sales tax in 2018 solved a previous budget shortfall and put the state on a sound  financial footing. Unfortunately, the 0.45% increase goes off the books next July 1, causing a loss of $445 million.

Renewing that increase is one budget solution but the Republican-controlled Legislature isn’t likely to go that route.

A 2% tax on business utilities is also going off the books next July. Renewing that tax would produce $220 million to help close the projected deficit.

Teachers got a $2,000 stipend last year and school support workers got $1,000. The Advocate reported that Ternisa Hutchinson, state budget director, told the Joint Legislative Committee on the Budget last week the deficit would be only $340 million without those and other education funds.

It comes as no surprise, of course, that teacher unions, teachers and support workers don’t like that alternative one bit. The legislative director for the Louisiana Federation of Teachers warned that doing away with those stipends could make it harder to attract and retain teachers.

Cade Brumley, state superintendent of education, also wants to see the stipends continue. Education is making gains, he said, and not giving the stipends would send the wrong message.

Legislators in 2021 came up with a new way to fund the state’s road and bridge maintenance and construction  backlog that is approaching $20 billion.

Act 486 of 2021 said 30% of the state’s vehicle sales taxes would go into a road and bridge Construction Subfund in fiscal year 2023-24. It jumped to 60% this year and each fiscal year thereafter. If there are deficits, only $150 million of the vehicle state sales tax funds could go to the Construction Subfund.

The 2021 legislation said 75% of those vehicle sales taxes would be used for mega projects, which include new Interstate 10 bridges at Lake Charles and Baton Rouge. Improvements to interstate highways are also mega projects.

Legislators can change laws, of course, and The Advocate said another budget alternative is to raise $320 million by moving the vehicle sales tax money back into the state’s general fund.

Former state Rep. Tanner Magee, R-Houma, who was involved in passing that law along with former state Sen. Rick Ward, R-Port Allen, said those funds should be left alone.

“To go back to not having enough money to build roads and bridges … the juice isn’t worth the squeeze in my opinion,” Magee said.

Ward in 2021 said, “I’m super excited. It’s a big win for the transportation and infrastructure needs around the state…” Ward amended the bill in the Senate to provide the tax funds for roads and bridges and it passed the Senate 37-0. The House approved a conference committee report on the bill 88-13.

Southwest Louisiana legislators and other lawmakers tied to mega projects won’t be happy if that road and bridge construction money goes back into the state’s general fund.

House Speaker Phillip DeVillier, R-Eunice, said the House is unlikely to renew the 0.45% tax increase and it’s too soon to say what the Legislature would do to solve the budget shortfall.

Conservative budgeting is another solution for the shortfall. Agencies have already been told to look at possible savings. DeVillier also said legislators will consider broader changes to the state’s tax system, adding that some of which could deal with the fiscal cliff.

Unfortunately, Gov. Landry’s office wouldn’t say whether the governor supports redirecting the motor vehicle sales tax or renewing the business utilities tax, or where he stands on the teacher and support worker stipends.

Joe Donahue, the new secretary of the state Department of Transportation and Development, told the Louisiana Radio Network in February he wanted his staff to look at ways to dedicate more dollars to transportation needs.

Those of us who have been waiting much too long for a new Interstate 10 bridge here definitely hope Act 486 of 2021 that provides some money for the local bridge stays on the books.

Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or jim.beam.press@gmail.com.

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