Lafayette, LA – Governor Jeff Landry’s proposed budget for the 2025-26 fiscal year, released Thursday, has been met with mixed reactions due to a backdrop of uncertainty regarding both state and federal financial sources. According to a recent analysis from the Public Affairs Research Council (PAR), unanswered questions about the flow of funds could complicate efforts to finalize the state’s spending plan as the fiscal year approaches.
The governor’s office released the budget plan ahead of the Joint Legislative Committee on the Budget, which is set to review it. In his address, Landry emphasized that the proposed budget continues the trend of decreasing government spending, aiming for flat funding compared to the previous year. Specifically, the governor outlined reductions in total state funds, both with and without the inclusion of carryforwards, which are funds carried over from the prior year.
The proposed budget features the following key figures:
- A reduction of $1 billion in total state funds when accounting for carryforwards.
- A decrease of over $400 million in total state funds when excluding carryforwards.
Despite these cuts, the budget does reflect an increase in federal funding, driven in part by efficiencies in the RESTORE program—a state initiative designed to improve government operations.
Landry’s push for a leaner state government is clear, but PAR’s report highlights that a significant amount of uncertainty still lingers over federal and state financing. As questions surrounding funding sources remain unanswered, the complexity of crafting a comprehensive and accurate spending plan for the coming fiscal year continues to rise.
While the proposal emphasizes fiscal responsibility, especially in reducing state spending, the absence of clarity around key funding sources presents a challenge for lawmakers tasked with approving the budget. With the fiscal year set to begin July 1, all eyes are on the legislature to determine how these budgetary proposals will take shape amidst the ongoing financial ambiguity.