LA FREEDOM CAUCUS OPPOSES BUSTING BUDGET SPENDING CAPS

Apr 24, 2023

FOR IMMEDIATE RELEASE: April 23, 2023
CONTACT: press@lafreedomcaucus.org, (225) 267-7858

LA FREEDOM CAUCUS OPPOSES BUSTING BUDGET SPENDING CAPS

Supports Paying Off Unfunded Debt to Save Taxpayers Hundreds of Millions of Dollars in Interest Payments

(BATON ROUGE, LA)—The Louisiana Freedom Caucus (LAFC) announced today it will join the Louisiana Conservative Caucus in voting to keep the current expenditure limit in place. Given the forecasts of future budget deficits currently projected, using surplus and excess funds for recurring expenses or pet projects is fiscally irresponsible. The LAFC believes those funds should be used to pay off existing prosperity-choking debt.

One option is to pay off the unfunded liability to the Teachers’ Retirement System of Louisiana (TRSL) to eliminate the cost of interest taxpayers will pay on the debt, put money back into our annual budget and relieve local school boards from paying their matching funds obligation requirements. It gives every school board in Louisiana an opportunity to keep that money and use it for things like teacher pay raises and other important local needs.

Another option for full payoff is the Louisiana State Employees’ Retirement System (LASERS). This would free up money now being spent every year on this debt while saving Louisiana interest charges every single year, creating a recurring source of revenue which is needed for teacher pay raises and other significant yearly expenses.

“Louisiana is in the unusual position of having surplus and excess funds available after meeting the state’s current obligations. This leads to some tough choices. It would be fiscally irresponsible to burden the state with additional recurring obligations that we will be forced to meet in future years when a surplus is not available. It would be equally irresponsible to go on a spending spree, buying things that we would all like to have while looking the other way as current debt and interest continue to rob Louisiana’s future. The Louisiana Freedom Caucus supports doing the responsible thing—paying off debt—which sets Louisiana on more sound footing for the future,” said LAFC, Chairman Alan Seabaugh.

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