by Julie O’Donoghue, Louisiana Illuminator
June 10, 2025

The 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. 

State lawmakers expect to send Gov. Jeff Landry a $48 billion budget plan for the fiscal year that starts July 1 by the time their legislative session concludes Thursday. The current plan includes additional money for roadways and bridges ($709 million), economic development site upgrades ($150 million), state government technology improvements ($59.8 million) and public university maintenance projects ($28 million).

The money comes from a state savings account called the Revenue Stabilization Trust Fund, which takes in corporate taxes as well as energy production taxes in excess of $600 million each per year. Established by voters in 2016, the fund was set up to provide an additional source of funding to Louisiana during economic downturns when the state faces budget crises.

Lawmakers gave themselves a significant amount of latitude in the law to access the fund at any time, so long as they can get two-thirds of the House and Senate to vote to draw down the money.

The Senate voted unanimously Monday through House Bill 461 to withdraw $1.2 billion. The House is expected to approve the same plan Wednesday or Thursday. 

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. They also took $717 million out of the account just last year, mostly for transportation and youth prison projects.

Even after the withdrawal, the Revenue Stabilization Trust Fund will have $2.7 billion left. There’s also more than $1.1 billion in the Budget Stabilization Trust Fund, a separate account often referred to as the state “rainy day” fund used to cover budget shortfalls.

Here are some highlights of how the money will be spent:

$280 million: Transportation funding to attract federal money 

Rep. Jack McFarland, R-Jonesboro, said this allocation will be used to draw down $1.3 billion in federal funding for transportation projects that could include both new construction and maintenance of existing infrastructure. A list of specific items that would be funded was not provided.

$240 million: Transportation preservation projects

This money would be used to fix and upgrade existing transportation infrastructure, according to McFarland. On top of this money, an additional $63 million is going directly to state transportation districts, where it can also be used for that purpose.

$150 million: Louisiana economic development site investment

The Louisiana Economic Development agency requested this funding in order to pay for physical upgrades and infrastructure at specific sites where the state hopes to attract private sector investment.

For example, the state has already committed to spending millions of dollars to build new roads around the site of the anticipated Hyundai steel mill in Ascension Parish. It will also reimburse Hyundai for some of the construction the company undertakes to build its facility at that location, according to The Times-Picayune. It’s unclear whether any of this funding is committed to the Hyundai project or others recently announced. 

On top of this allocation, the economic development agency will also receive an additional $74 million for its “debt service and commitments program” from the $1.2 billion. The department will also get $5 million to launch a marketing campaign for the state. 

$101 million: Bridge upgrades

McFarland said Louisiana intends to “bundle up” bridge maintenance projects – around 20 at a time – and put them out to bid as a collective in order to get a better price on the construction work. This money would be used to pay for that work. 

$75 million: Water system upgrades 

This money is supposed to be used to improve local drinking water and sewerage systems in Louisiana. The state has put hundreds of millions of dollars toward similar projects since 2021, but the repairs needed are estimated to cost billions of dollars. 

$29 million: College campus deferred maintenance 

The funding will support delayed construction projects and repairs at public universities and colleges. It includes $3 million for work at the University of New Orleans, which is being transferred to the LSU System later this year. 

$24.1 million: OMV technology upgrades

The state Office of Motor Vehicles experienced outages of its system this spring, leading Gov. Jeff Landry to declare a state of emergency and waive driver’s license fees  as members of the public struggled to access the system. The technology motor vehicle offices rely on is approximately 50 years old. 

$10 million: LIV Golf and other ‘major’ events

Lawmakers will combine this money with other state funds in the Major Events Incentive Fund for a total of $16.4 million in spending for tourist-heavy events that are expected to generate revenue.

These include $7 million for a LIV Golf League event in New Orleans; $3.5 million for the months-long U.S. Bowling Congress Tournament in Baton Rouge; $1.2 million for Essence Festival in New Orleans and $1.5 million for an Ultimate Fighting Championship event in New Orleans.

$10 million: New voting machines

For years, Louisiana has been trying to purchase new voting machines to replace ones that are more than three decades old. This allocation comes as lawmakers passed legislation to change the bid process for purchasing a voting system earlier this month. 

$5 million: Upgrade to Medicaid eligibility system 

This money is supposed to allow Louisiana to upgrade the technology it uses to make sure Medicaid recipients are eligible for the public health insurance benefit. The Louisiana Department of Health recently announced its intention to start cross-checking its Medicaid rolls with other state databases, including those used by the Office of Motor Vehicles.

$4 million: More grass cutting on state roads

This allocation will be used to pay for additional cycles of mowing along state roads over the next fiscal cycle. 

$3 million: AI tool for monitoring state prisoner phone calls

Louisiana’s prison system will receive $3 million to help pay for an artificial intelligence tool that monitors and collects data on phone calls from state prisoners. The program Verus, made by the company LeoTech, is used to detect criminal activity, prevent self-harm and assist with public safety, according to the LeoTech’s website.

The company says it does not monitor communication between incarcerated people and their attorneys, spiritual advisors or doctors. 

$3 million: Louisiana Supreme Court building security

The court is receiving a blanket $1.8 million to upgrade security at its facility in the French Quarter in New Orleans. Another $1.1 million has been allocated specifically for additional fencing around the building. 

$1.8 million: State police payment for the ‘recapture of fugitives’

The state’s top law enforcement agency is receiving $1.8 million for “expenses related to the recapture of fugitives.”

It’s not stated explicitly, but this money may be going to reimburse state police for assisting with the 10-person jailbreak that occurred at the New Orleans jail in May.

Louisiana Illuminator is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Louisiana Illuminator maintains editorial independence. Contact Editor Greg LaRose for questions: info@lailluminator.com.

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Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

The content presents a detailed and factual account of Louisiana’s legislative budget decisions without any overt editorializing or partisan language. It describes how funds are being allocated across various sectors such as infrastructure, economic development, technology upgrades, and public safety, reflecting a pragmatic approach to governance. The emphasis on bipartisan legislative approval and the inclusion of multiple perspectives and facts suggests a neutral stance aimed at informing readers rather than advocating a particular political viewpoint.

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