The governor signed an executive order Wednesday that pauses hiring for state government departments and agencies under the governor’s control. The order does not apply to Louisiana’s judicial or legislative branches, according to Landry’s press secretary Elizabeth Crochet.
“To ensure the long-term fiscal health of Louisiana and protect essential services for our most vulnerable citizens, we must take decisive action now to address revenue shortfalls,” Landry said in a written statement. “By implementing a temporary hiring freeze, we will reign in spending, saving an annualized $20 million. This is a necessary step to give the Legislature more options, to prevent deeper cuts to health care and education, and to safeguard the future of our state.”
Landry and state lawmakers looked to avoid a budget crunch during a special legislative session on taxes and state spending in November. They increased the state sales tax from 4.45 percent to 5 percent, effective through fiscal year 2029, and state income tax rates were lowered to a flat 3 percent for individuals and 5.5 percent for corporations.
The governor and legislators also agreed to put a constitutional amendment before voters that would have shifted certain revenue streams into the state general fund.
In December, legislators were shown revenue projections that indicated their actions would stave off a budget deficit. That money would have likely helped address the shortfall that Landry now predicts.
But that was before voters resoundingly rejected Amendment 2 in Saturday’s election, which would have moved money from state’s savings accounts in the general fund, where it could be more easily spent.
In addition to the failed amendment fallout, the Landry administration may have to cope with federal funding cuts that will impact the state spending plan for the 2025-26 fiscal year.
This article was published by the Louisiana Illuminator. Read the original here.
