Why Louisiana’s growing budget is deemed ‘unsustainable’ by analysts

Louisiana’s budget has ballooned over the past decade, growing 71% as federal dollars—especially Medicaid funds—boosted overall spending far beyond inflation.

A new Center Square analysis shows that even under Gov. Jeff Landry, who campaigned on tightening state finances, total appropriations continue to rise. The current $53.5 billion budget is 5% higher than when former Gov. John Bel Edwards left office, with federal dollars now making up 44% of spending.

Policy analysts warn the trajectory is “unsustainable,” noting Louisiana’s unusually high dependence on Washington for disaster aid and Medicaid support. Critics fear a fiscal cliff if federal policy shifts. Others argue the numbers obscure a more conservative reality: growth in the state-controlled general fund has lagged inflation, rising just 27% since 2017.

As Landry pushes tax reforms and touts flat funding, watchdogs say the budget still contains political “pet projects”—fueling debate over what true fiscal responsibility looks like in Louisiana.

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