Louisiana
Louisiana expects $595 million surplus, but it won’t help with looming budget crisis • Louisiana Illuminator
Louisiana is projected to have tens of millions of extra dollars to spend after the state ended its last budget year with a $590 million surplus, according to the latest calculation.
Gov. Jeff Landry and lawmakers face constitutional restrictions on how they can spend the money. They have to use half of any surplus for state reserves and to pay down public retirement debt.
The rest can go toward one-time building projects, coastal restoration, roads, bridges and other transportation needs, but it cannot be used to deal with Louisiana’s looming budget deficit. It cannot cover, for example, teacher compensation.
“Surplus funds cannot be used for recurring budgetary operational expenses or requirements and therefore, cannot be used toward solving the upcoming FY25-26 budget shortfall,” Commissioner of Administration Taylor Barras wrote to legislators in a letter last week.
The $595 million is left over from the state’s fiscal cycle that ended June 30. That was the last budget plan put together by Gov. John Bel Edwards and the former Legislature, who left office at the beginning of 2024.
Louisiana faces a financial shortfall of at least $587 million next year primarily because of automatic tax cuts scheduled to take effect next year.
The state sales tax rate is expected to drop from 4.45% to 4% on July 1, costing the state $455 million annually. A business utility sales tax is also expected to roll off the books at the same time, among other more modest changes.
An automatic income tax cut worth $200 million to $400 million per year could also go into place in January 2026 if it’s determined later this year that the state has met certain revenue goals. That will grow the budget deficit even further, to at least $787 million.
Landry is hoping those specific tax cuts will not come to fruition, however. The Republican governor wants to overhaul the structure of the tax system.
Under Landry’s plan, most Louisiana residents and corporations would see an income tax cut but continue to pay a 4.45% sales tax rate that would be applied to a wider range of services. Business taxes would also be reshuffled.
Landry hopes to pass his tax package in a special session starting the first week of November, though some of the plan would also need approval from voters through a constitutional amendment in March.
BATON ROUGE, La. (KLFY) — Governor Landry has officially declared Louisiana under state of emergency.
The state emergency declaration covers Avoyelles, Lafourche, Pointe Coupee, St. Landry, St. Tammany and Terrebonne parishes.
The declaration was issued Thursday following the impacts of Tropical Storm Arthur, which brough rainfall and strong storms to parts of the state on June 17 and 18.
Officials said the National Weather Service has confirmed three tornadoes tied to the storm system.
Officials also reported record or near-record rainfall totals in Avoyelles and Pointe Coupee parishes over a 12-hour period.
The order allows the Governor’s Office of Homeland Security and Emergency Preparedness to coordinate resources and provide assistance to local governments if needed.
Certain state purchasing and bidding requirements have been temporarily suspended to speed up emergency response efforts.
The declaration took effect immediately and will remain in place through July 18 unless it is lifted or extended.
State officials are urging residents to stay weather aware, avoid flooded roadways and follow guidance from local emergency managers.
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MONROE, La. (KNOE) – The North Louisiana Crime Lab released a June 2026 law enforcement bulletin warning of additional cases tied to cyclorphine, a synthetic opioid the lab says can be significantly more potent than fentanyl.
The bulletin, titled “Cyclorphine Update — Additional Cases & Footprint,” notes that drug evidence submissions testing positive for cyclorphine have been received from multiple parishes in North Louisiana.
What is cyclorphine?
According to the bulletin, cyclorphine is a synthetic opioid in the emerging orphine drug class. The lab said current toxicity data are limited, but laboratory studies indicate cyclorphine may be up to 10 times more potent than fentanyl.
Reported effects
The crime lab said cyclorphine can produce effects similar to other narcotic analgesics, including:
- Central nervous system depression
- Lethargy or stupor
- Respiratory depression with slow, shallow breathing
- Pinpoint pupils
The bulletin said Narcan should be administered to someone suffering from cyclorphine toxicity, and that multiple doses may be needed.
What the bulletin says about trends
The crime lab said national data indicate cyclorphine will likely continue spreading through the region, including becoming more common in seized and submitted drug evidence.
Where cyclorphine has been detected
The bulletin includes a “detection timeline and counterfeit tablet types,” showing evidence submissions tied to specific parishes and dates, including:
- Caddo Parish (Feb. 19; April 14)
- Ouachita Parish (March 18; May 13)
- DeSoto Parish (March 25)
- Natchitoches Parish (May 14)
The lab also noted counterfeit pill types associated with these submissions, including tablets labeled “M30,” “M15,” “K56,” “1259,” and “M367.” Officials warned it may be impossible to know what a pill contains, even if it resembles a known tablet.
The North Louisiana Crime Lab said it will continue tracking trends and sharing updates as additional evidence is submitted.
Copyright 2026 KNOE. All rights reserved.
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