Historical Louisiana budget and finance information

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The historical Louisiana budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Louisiana's budget and finances, click here.

As published 2016

Louisiana budget and finances

General information

Budget calendar: Annual

Fiscal year: 2017

State credit rating: AA (as of 2014)

Current governor: Bobby Jindal

Financial figures

Total spending (state and federal funds): $29.7 billion (estimated for 2015)

Per capita spending: $6,364.97 (estimated for 2015)

Total state tax collections: $9.7 billion (2014)

Per capita tax collections: $2,085.46 (2014)

State debt: $83.3 billion (as of 2014)

Per capita state debt: $18,097 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Louisiana

In Louisiana, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in Louisiana increased by approximately $3.0 billion—from $26.8 billion in fiscal year 2014 to an estimated $29.7 billion in 2015. This represents a 9.93-percent increase.

In Louisiana in fiscal year 2014, 52.8 percent of total tax revenues came from sales taxes and gross receipts. Income taxes accounted for 33.4 percent of total state tax collections.

Education accounted for 29.3 percent of state expenditures in fiscal year 2015, while 26.8 percent went to Medicaid.

The Louisiana state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, Louisiana had the second lowest state tax collections per capita, at $2,085.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Louisiana	$55,363	$5,115,636	$427,090	$3,234,892	$862,300	$9,695,281	4,648,990	$2,085
Alabama	$329,598	$4,812,674	$386,378	$3,612,991	$152,113	$9,293,754	4,846,411	$1,918
Arkansas	$1,077,377	$4,324,157	$368,622	$3,000,653	$165,972	$8,936,781	2,966,835	$3,012
Mississippi	$25,103	$4,704,955	$559,218	$2,193,646	$91,593	$7,574,515	2,993,443	$2,530
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Louisiana tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 52.8 percent of Louisiana's total state tax collections came from sales taxes and gross receipts.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Louisiana	0.6%	52.8%	4.4%	33.4%	8.9%
Alabama	3.5%	51.8%	4.2%	38.9%	1.6%
Arkansas	12.1%	48.4%	4.1%	33.6%	1.9%
Mississippi	0.3%	62.1%	7.4%	29.0%	1.2%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Louisiana’s general revenues came from the federal government in 2013. That year, Louisiana received approximately $10.6 billion in federal aid, 41.9 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $2,290 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Louisiana	$10,592,657	41.9%	2	4,625,470	$2,290
Alabama	$8,226,967	36.2%	9	4,833,722	$1,702
Arkansas	$5,689,390	32.9%	22	2,959,373	$1,922
Mississippi	$7,509,589	42.9%	1	2,991,207	$2,511
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

Louisiana's total estimated government spending in fiscal year 2015 was $29.7 billion, which was the highest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Louisiana	$19,580	$10,149	$29,729	4,670,724	$6,364.97
Alabama	$14,990	$9,556	$24,546	4,858,979	$5,051.68
Arkansas	$16,502	$7,131	$23,633	2,978,204	$7,935.32
Mississippi	$11,481	$8,953	$20,434	2,992,333	$6,828.79
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Louisiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2014, Medicaid accounted for 26.8 percent of Louisiana's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Louisiana	18.9%	10.4%	0.5%	26.8%	3.0%	5.5%	34.9%
Alabama	20.5%	20.6%	0.2%	23.3%	2.4%	6.4%	26.6%
Arkansas	15.1%	15.6%	2.3%	22.1%	2.1%	6.1%	36.8%
Mississippi	16.3%	18.9%	5.5%	24.6%	2.0%	7.1%	25.5%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2010 and 2014, the share of the Louisiana state budget spent on transportation decreased from 10.9 percent in 2010 to 5.5 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	18.9%	10.4%	0.5%	26.8%	3.0%	5.5%	34.9%
2013	19.3%	10.3%	0.5%	25.1%	3%	6.2%	35.7%
2012	18.4%	9.9%	0.6%	26.7%	2.9%	7.1%	34.4%
2011	16.6%	7.5%	0.6%	22.1%	2.7%	6.9%	43.7%
2010	18.1%	8.0%	0.6%	23.7%	2.9%	10.9%	35.7%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Fiscal year budgets

See also: Historical Louisiana budget and finance information

Fiscal year 2016

See budget bill: HB 1

Governor Bobby Jindal announced his fiscal year 2016 budget proposal on February 27, 2015. The proposal recommended a budget of $24.6 billion in total spending, which was a 4.7 percent decrease from the budget of fiscal year 2015. The state's loss of oil revenue caused budget shortfalls that required the state to reduce costs. The proposal would have eliminated 727 state positions, but maintained infrastructure and K-12 education funding. Other key aspects of the budget included reducing one-time spending and did not include tax raises. Goals of the budget included economic growth and the attempt to create over 91,000 new jobs through other investments.

Governor Jindal signed Louisiana's budget into law on June 19, 2015. Total spending was reduced from $25.8 billion in fiscal year 2015 to $25.1 billion in fiscal year 2016. The budget was reduced using strategies outlined in the governor's proposal, and featured increases in healthcare funding, K-12 education spending and provided the funds for a new state police cadet training program.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Louisiana had a state debt of approximately $83.3 billion. Its state debt per capita was $18,097. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Louisiana	$83,280,815,000	$18,097	15
Alabama	$68,343,597,000	$14,173	26
Arkansas	$37,704,936,000	$12,785	33
Mississippi	$54,686,815,000	$18,321	14
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Louisiana ranked 12th worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Louisiana’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $16.6 billion in promised retirement benefits were unfunded, but only $4.4 billion of these liabilities were reported on Louisiana’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $19.5 billion, or a taxpayer burden of $15,200.

Public pensions

See also: Louisiana public pensions and Louisiana public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Louisiana's state-administered pension plans decreased from 69.2 percent to 55.5 percent. The state paid 96 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $18.4 billion. This amounted to $4,161 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for Louisiana and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Louisiana	AA	AA	AA	AA	AA-	AA-	A+	A	A	A	A+
Alabama	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Arkansas	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Mississippi	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators

See also: Economic indicators by state

Louisiana's GDP increased by 1.9 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

In Louisiana, about 29 percent of the population earned incomes at least 400 percent above the federal poverty level (FPL), the highest percentage among neighboring states. An equal percentage earned incomes between 200 and 399 above the FPL. Among its neighboring states, Louisiana had the lowest unemployment rate in September 2014 at 6 percent.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Louisiana	19%	22%	29%	29%	$40,844	6%	6%	$253,576
Alabama	17%	22%	33%	28%	$43,330	6.4%	6.6%	$193,566
Arkansas	17%	26%	33%	24%	$40,877	7.7%	6.2%	$124,218
Mississippi	23%	20%	29%	28%	$40,338	8.4%	7.7%	$105,163
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Louisiana budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Louisiana CAFR Louisiana budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is:

1. Budget instructions are sent to state agencies by September 20.
2. State agencies submit their budget requests by November 15.
3. The governor submits his or her proposed budget to the state legislature 45 days before the legislature convenes. (Newly elected governors have until 30 days before the legislature convenes.)
4. The legislature typically adopts a budget in June. A simple majority is required to pass a budget. The fiscal year begins July 1.

Louisiana is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature must pass a balanced budget.

Agencies, offices, and committees

The following standing committees in the Louisiana State Legislature deal with budget and finance matters:

1. Appropriations Committee, Louisiana House of Representatives
2. Ways and Means Committee, Louisiana House of Representatives
3. Finance Committee, Louisiana State Senate
4. Revenue & Fiscal Affairs Committee, Louisiana State Senate
5. Joint Legislative Budget Committee, Louisiana State Legislature

The Louisiana Legislative Auditor is responsible for overseeing state and local government finances, financial audit, compliance audit, performance audit, advisory and recovery assistance services. The auditor is elected by members of the Louisiana State Legislature.

Transparency

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Louisiana received a grade of A and a numerical score of 96, indicating that Louisiana was "Leading" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in Louisiana increased by approximately $1.8 billion, from $26.9 billion in fiscal year 2013 to an estimated $28.8 billion in 2014. This represents a 6.8 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Louisiana a credit rating of AA.

HIGHLIGHTS

In fiscal year 2014, total estimated spending in Louisiana amounted to $28.8 billion.

In 2012 Louisiana ranked second in the nation for the percentage of its state budget comprised of federal aid, which stood at 44 percent of its budget.

Spending

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

In Louisiana in fiscal year 2014, total estimated spending equaled $28.8 billion. Estimated per capita spending was $6,188.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Louisiana	$17,683	$11,091	$28,774	4,649,676	$6,188.39
Alabama	$14,605	$9,288	$23,893	4,849,377	$4,927.02
Arkansas	$16,077	$6,511	$22,588	2,966,369	$7,614.70
Mississippi	$10,479	$8,197	$18,676	2,994,079	$6,237.64
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures

Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Louisiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In Louisiana in fiscal year 2013, higher education accounted for 10.3 percent of total state spending, a smaller share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
Louisiana	19.3%	10.3%	0.5%	25.1%	3%	6.2%	35.7%
Alabama	20.4%	19.9%	0.2%	22.8%	2.4%	6.5%	27.7%
Arkansas	15.6%	15.4%	2%	21%	2.1%	5.8%	38%
Mississippi	16.4%	16.1%	5.9%	26.1%	2%	6.7%	26.7%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2009 and 2012, the share of the Louisiana state budget spent on Medicaid increased from 24 percent to 25.1 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2013	19.3%	10.3%	0.5%	25.1%	3%	6.2%	35.7%
2012	18.4%	9.9%	0.6%	26.7%	2.9%	7.1%	34.4%
2011	16.6%	7.5%	0.6%	22.1%	2.7%	6.9%	43.7%
2010	18.1%	8.0%	0.6%	23.7%	2.9%	10.9%	35.7%
2009	18.9%	10.6%	0.5%	24.0%	3.3%	6.7%	35.9%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.

Total tax collections in Louisiana in 2013 amounted to $9.2 billion. Per capita tax collections totaled $1,992.50.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
Louisiana	$52,686	$4,974,642	$369,930	$2,739,983	$252,430	$834,158	$9,223,829	4,629,284	$1,992.50
Alabama	$322,300	$4,707,375	$490,475	$3,202,520	$382,202	$161,597	$9,266,469	4,833,996	$1,916.94
Arkansas	$1,022,066	$4,019,203	$356,920	$2,649,577	$402,874	$135,767	$8,586,407	2,958,765	$2,902.02
Mississippi	$24,122	$4,571,294	$530,010	$1,755,424	$415,980	$105,895	$7,402,725	2,992,206	$2,474.00
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Louisiana tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Louisiana, sales taxes and gross receipts accounted for approximately 54 percent of total tax collections.

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
Louisiana	0.57%	53.93%	4.01%	29.71%	2.74%	9.04%
Alabama	3.48%	50.80%	5.29%	34.56%	4.12%	1.74%
Arkansas	11.90%	46.81%	4.16%	30.86%	4.69%	1.58%
Mississippi	0.33%	61.75%	7.16%	23.71%	5.62%	1.43%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Louisiana had a state debt of approximately $83.3 billion. Its state debt per capita was $18,097. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Louisiana	$83,280,815,000	$18,097	15
Alabama	$68,343,597,000	$14,173	26
Arkansas	$37,704,936,000	$12,785	33
Mississippi	$54,686,815,000	$18,321	14
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Louisiana public pensions and Louisiana public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Louisiana's state-administered pension plans decreased from 69.2 percent to 55.5 percent. The state paid 96 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $18.4 billion. This amounted to $4,161 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for Louisiana and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Louisiana	AA	AA	AA	AA	AA-	AA-	A+	A	A	A	A+
Alabama	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Arkansas	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Mississippi	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.

The table below notes what share of Louisiana’s general revenues came from the federal government in 2012. That year, Louisiana received approximately $11.1 billion in federal aid, 44 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
Louisiana	$11,136,334	43.96%	2
Alabama	$8,112,509	36.50%	9
Arkansas	$5,900,988	34.46%	21
Mississippi	$7,725,294	45.35%	1
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Louisiana received $2.9 billion in federal funding between February 2009 and June 2013.

Louisiana received approximately $540 million from the federal government in the summer of 2010 under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that President Barack Obama signed into law on August 10, 2010.

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is:

1. Budget instructions are sent to state agencies by September 20.
2. State agencies submit their budget requests by November 15.
3. The governor submits his or her proposed budget to the state legislature 45 days before the legislature convenes. (Newly elected governors have until 30 days before the legislature convenes.)
4. The legislature typically adopts a budget in June. A simple majority is required to pass a budget. The fiscal year begins July 1.

Louisiana is one of 44 states in which the governor has line item veto authority.

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature must pass a balanced budget.

Agencies, offices, and committees

The following standing committees in the Louisiana State Legislature deal with budget and finance matters:

1. Appropriations Committee, Louisiana House of Representatives
2. Ways and Means Committee, Louisiana House of Representatives
3. Finance Committee, Louisiana State Senate
4. Revenue & Fiscal Affairs Committee, Louisiana State Senate
5. Joint Legislative Budget Committee, Louisiana State Legislature

The Louisiana Legislative Auditor is responsible for overseeing state and local government finances, financial audit, compliance audit, performance audit, advisory and recovery assistance services. The auditor is elected by members of the Louisiana State Legislature.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Louisiana received a grade of B+ and a numerical score of 88, indicating that Louisiana was an "advancing" state in terms of transparency regarding state spending.

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, Louisiana's total expenditures increased by approximately $4.01 billion, from $25.654 billion in 2009 to $29.662 billion in 2013. This represented a 15.62 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures
Louisiana	$8,156	$12,311	$8,791	$404	$29,662	$6,412.75
Alabama	$6,897	$9,541	$7,490	$189	$24,117	$4,989.32
Arkansas	$4,746	$6,189	$10,447	$203	$21,585	$7,293.77
Mississippi	$4,699	$8,274	$5,660	$784	$19,417	$6,491.36
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in Louisiana can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
Louisiana	18.4%	9.9%	0.6%	26.7%	2.9%	7.1%	34.4%
Alabama	20.9%	20.1%	0.2%	23.3%	2.5%	6.1%	27.0%
Arkansas	16.3%	16.2%	2.1%	21.4%	2.2%	5.8%	36.0%
Mississippi	16.9%	16.8%	5.8%	23.4%	1.8%	7.5%	27.7%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

From 2008 to 2012, Medicaid spending rose by more than seven percentage points, or 38.3 percent, as a share of the budget. During the same period, transportation expenditures rose by nearly two percentage points, or 36.5 percent, as a share of the state budget. The table below details changes in expenditures from 2008 to 2012. Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
2012	18.4%	9.9%	0.6%	26.7%	2.9%	7.1%	34.4%
2011	16.6%	7.5%	0.6%	22.1%	2.7%	6.9%	43.7%
2010	18.1%	8.0%	0.6%	23.7%	2.9%	10.9%	35.7%
2009	18.9%	10.6%	0.5%	24.0%	3.3%	6.7%	35.9%
2008	15.2%	9.6%	0.5%	19.3%	2.7%	5.2%	47.5%
Change in %	3.20%	0.30%	0.10%	7.40%	0.20%	1.90%	-13.10%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
Louisiana	$2,853	$2,685	$340	$386	$1,839	$8,103	$1,751.82
Alabama	$1,945	$3,104	$376	$2	$1,887	$7,314	$1,513.12
Arkansas	$2,125	$3,144	$431	$39	$475	$6,214	$2,099.77
Mississippi	$1,887	$1,480	$463	$145	$763	$4,738	$1,583.98
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Louisiana ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$2,853	$2,685	$340	$386	$1,839	$8,103	$1,751.82
2012	$2,840	$2,486	$374	$387	$1,978	$8,066	$1,752.67
2011	$2,838	$2,405	$262	$388	$1,876	$7,770	$1,698.29
2010	$2,548	$2,212	$175	$386	$1,852	$7,174	$1,578.30
2009	$3,023	$2,966	$825	$419	$2,153	$9,386	$2,089.46
Change in %	-5.62%	-9.47%	-58.79%	-7.88%	-14.58%	-13.67%	-16.16%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in Louisiana ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$8,344	31%	$7,793	29%	$10,616	39%	$320	1%	$27,073
2010-2011	$7,786	25%	$11,854	38%	$10,969	35%	$591	2%	$31,200
2009-2010	$9,061	29%	$10,368	33%	$11,859	37%	$641	2%	$31,684
Averages:	$8,397	28%	$10,005	33%	$11,148	37%	$517	2%	$29,986

Budget transparency

Transparency evaluation
	LaTrac
Searchability	Y
Grants	N
Contracts	Y
Line item expenditures	Y
Dept./agency budgets	Y
Public employee salaries	N
Last evaluated in 2013.

See also: Evaluation of Louisiana state website and Constitutional provisions regarding reading of bills

Article 3, Section 15(d) of the state constitution stipulates that each bill must be read by title on three separate days in each house of the state legislature and that there can be no final passage without public hearing and committee report.

On November 12, 2008, Louisiana announced the launch of its spending transparency database, Louisiana Accountability and Transparency (LaTrac).

The database was created as a result of an executive order by Governor Bobby Jindal and the authorization of the legislature. Commissioner of Administration Angele Davis said, “This is an important event, an extraordinary step forward, and a historic reform initiative for Louisiana and its pursuit of better, more accountable government. ... Today we begin to empower four million citizen auditors to monitor what the state spends and to judge whether it’s wise, necessary, and achieving results.”

The database includes all executive branch spending for the state of Louisiana, including higher education spending. It also features a vendor search option and a link to the performance reports of state agencies through the Louisiana Performance Accountability System (LaPAS). LaTrack also links to LA eGrants, which lists all grants that are available through the state.

The table to the right is helpful in evaluating the level of transparency provided by LaTrac.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Louisiana, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Louisiana tied for 20th in the nation with 12 other states, earning five out of eight possible points.

Louisiana - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting	N
Annual cycle	Y
Binding revenue forecast
Legislative revenue forecast
Nonpartisan staff	Y
Constitution or statutory tax/spend limitations	N
TOTAL	5

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.

Prior fiscal year budgets

Fiscal year 2016

See budget bill: HB 1

Governor Bobby Jindal announced his fiscal year 2016 budget proposal on February 27, 2015. The proposal recommended a budget of $24.6 billion in total spending, which was a 4.7 percent decrease from the budget of fiscal year 2015. The state's loss of oil revenue caused budget shortfalls that required the state to reduce costs. The proposal would have eliminated 727 state positions, but maintained infrastructure and K-12 education funding. Other key aspects of the budget included reducing one-time spending and did not include tax raises. Goals of the budget included economic growth and the attempt to create over 91,000 new jobs through other investments.

Governor Jindal signed Louisiana's budget into law on June 19, 2015. Total spending was reduced from $25.8 billion in fiscal year 2015 to $25.1 billion in fiscal year 2016. The budget was reduced using strategies outlined in the governor's proposal, and featured increases in healthcare funding, K-12 education spending and provided the funds for a new state police cadet training program.

Fiscal year 2015

See budget bill: HB 1

Governor Bobby Jindal announced his fiscal year 2015 budget proposal on January 24, 2014. Under the governor's proposal, total state spending for fiscal year 2015 would have equaled approximately $25 billion, including $8.6 billion in general fund spending.

On June 19, 2014, Jindal signed into law the fiscal year 2015 budget. The enacted budget totaled $25.1 billion. The budget included a $120 million increase in the K-12 education funding formula. The budget also included a merit pay increase for state workers.

Fiscal year 2014

See budget bill: HB 1

Louisiana state budget -- 2014
Louisiana State Legislature
Text:	HB 1
Legislative history
Introduced:	April 8, 2013
House:	May 10, 2013
Vote (lower house):	92-6
Senate:	June 1, 2013
Vote (upper house):	37-1
Conference:	June 6, 2013
Conference vote (upper house):	38-1
Conference vote (lower house):	104-0
Governor:	Bobby Jindal
Signed:	June 21, 2013

On June 21, 2013, Governor Bobby Jindal signed the fiscal year 2014 budget into law. Jindal executed several line-item vetoes. He removed $4 million budgeted for home-based services for the developmentally disabled and made additional cuts to children's clinics and family violence programs. Jindal argued the vetoes were necessary because the state legislature did not provide sufficient funds for the state's health department, which administers the aforementioned programs. In the message accompanying his vetoes, Jindal wrote, "In light of the legislative reduction to Medicaid utilization, this program expansion cannot be funded."

Jindal's original budget proposal included significant one-time revenues (such as legal settlements and property sales) to fund regular year-to-year expenses. The adopted budget reduced one-time revenues, instituted a tax amnesty program, and provided for pay raises for elementary and secondary education teachers. As part of the budget compromise, Jindal signed a series of bills designed to make it more difficult to use one-time revenues for year-to-year expenses in future budgets.

Fiscal year 2013

See also: Louisiana state budget (2012-2013)

Fiscal year 2012

See also: Louisiana state budget (2011-2012)

Fiscal year 2011

See also: Louisiana state budget (2010-2011)

Fiscal year 2010

See also: Louisiana state budget (2009-2010)

See also

• Louisiana state budget and finances