Ending Fiscal Cliffs
“We can avert budget crisis and put the state on a sustainable path."
— Governor Jeff Landry
Transforming the Tax Code
Since the 1980s, Louisiana has operated from fiscal crisis to crisis, passing temporary solutions to stay afloat. Relying on budget gimmicks, temporary taxes, and federal cash, lawmakers have had their hands tied with dedications, a large list of exemptions, exclusions, credits, and deductions, among other fiscal restraints. This forces a massive cut to critical priorities like healthcare, education and infrastructure projects. It’s time we modernize and simplify our tax code to make Louisiana more inviting to businesses.
- Our tax code, originally designed in the 1930s, was built to rely heavily on oil revenue, which is volatile and unpredictable.
- In 1982, oil accounted for 42% of the state’s budget, but today, it makes up less than 5%. This revenue is also dependent on the highly fluctuating price of oil.
- As a result, Louisiana is projected to face a $737 million budget shortfall by the 2026 fiscal year and over $1 billion in 2028.
- The projected budget shortfall would leave our most vulnerable residents with reduced access to critical care and cause significant cuts to education and infrastructure.
- Certain funds in the Louisiana Constitution are “locked” for specific, often outdated uses. Voters can amend the Constitution to free up these “lockbox” funds for more critical priorities that match modern demands.
- Reforming our outdated tax code is essential to breaking the cycle of budget crises and ensuring Louisiana has a more stable financial future so our elected leaders can make critical plans that put Louisiana on a path for growth and success.
Safeguarding Essential Services
The Consequences of Past Budget Threats
The previous administration frequently used threats of severe budget cuts to underscore the urgent need for new revenue sources in Louisiana. From 2016 to 2018, Governor John Bel Edwards warned of drastic reductions to essential state services if the legislature did not raise taxes to fill significant budget shortfalls.
These threatened cuts spanned critical areas:
- Funding for corrections, which would have forced early prisoner releases
- Healthcare, with the closure of safety net hospitals for the state's most vulnerable populations
- Education, where scholarship programs and funding for K-12 and higher education would face steep declines
- Public safety, affecting resources for local law enforcement, sheriffs, and district attorneys
- Louisiana’s beloved college sports programs, particularly football, faced closures due to insufficient funds.
How much will you save?
Enter your details to find out how much you’ll save with Governor Jeff Landry’s tax cut plan.
Contact Your Legislator
It’s time to cut income taxes and streamline our outdated tax code. Contact your legislator to help us move Louisiana forward.