State lawmakers have agreed to a pared-down version of Gov. Jeff Landry’s tax overhaul package but one that would still affect most people and businesses in Louisiana. The deal, hashed out in back-room negotiations Thursday, is expected to receive full approval Friday.
“A lot can change overnight, but as of right now, we’re comfortable with the number of votes we have…in the Senate,” said Senate President Cameron Henry, R-Metairie.
“I believe we have the votes [in the Louisiana House],” Speaker Pro Tempore Mike Johnson, R-Pineville said.
The revised package calls for pushing the current sales tax rate of 4.45% to 5% for five years, starting July 1, 2025, when the state’s next fiscal year starts. It would drop to 4.75% in 2030 but still remain higher than the current 4.45% rate.
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In exchange for these higher, permanent sales taxes, most Louisiana residents would receive an income tax cut. The state would move from a three-tiered income tax system with a high rate of 4.25% to a flat rate of 3% accompanied by a significantly higher standard deduction threshold. On the business side, the corporate franchise tax will be eliminated altogether, and the corporate income tax would move to a flat rate of 5.5% — right between the current lowest rate of 3.5% and highest rate of 7.5%. The Legislature has also agreed to dissolve some government funds dedicated to special purposes and end some business and industry tax breaks to shore up state revenue. This includes ending the state’s many incentive programs such as the Quality Jobs and Enterprise Zone tax credits, among others..
A portion of the state inventory tax credit, which helps businesses cover their local parish tax bills, will be phased out for some employers in 2026. Money from the vehicle sales tax that was going to large transportation projects – such as the new Baton Rouge Interstate 10 bypass bridge and Interstate 49 expansions – will now be diverted for general government expenses. In an interview Thursday night, Henry said he did not expect the current deal to leave Louisiana with a significant budget shortfall as some had feared. Still, lawmakers held off on taking votes on the tax package until Friday because they are waiting for the final revenue estimates to be finished by staff.
“Staff needs the time … . And we want time to read and digest the bills before we vote,” House Republican Caucus Chairman Mark Wright, R-Covington, said.
Landry was also throwing a political fundraiser Thursday night in Baton Rouge, and any tax votes taken before Friday would likely have coincided with the event.
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Legislative leaders are also combining the bill that cuts income taxes with the legislation to increase sales taxes in order to pin down conservative Republican votes. Once the proposals merge, lawmakers will no longer be able to vote for the tax break without the corresponding tax hike.
“It’s to lock people in. You can’t vote for the tax cuts without voting for the revenue, too,” said Sen. Gerald Boudreaux of Lafayette, chairman of his chamber’s Democratic Caucus.
Republicans have supermajorities in the Senate and House, but Democrats will be needed to reach the 70 votes required to pass the sales tax hike legislation. Certain conservative Republicans have refused to vote for any bill that included a tax hike, which means bipartisan support becomes even more important to get the package across the finish line.
Much of the negotiations over the past two days has taken place between Landry and Senate Democrats, who had reservations about raising Louisiana’s sales tax rate to pay for an income tax reduction.
Louisiana already has the highest average sales tax rate in the nation when local parish rates are included. High sales taxes are more of a burden for poor people, who end up spending more of their paycheck to cover their cost. Boudreaux said Democrats were given some concessions for agreeing to support Landry’s tax package. They were assured certain health care services wouldn’t be cut, and funding for early childhood education and juvenile vocation programs would be prioritized, he said.
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State Sen. Gerald Boudreaux, pictured May 26, 2022. (Greg LaRose/Louisiana Illuminator)
The state funding formula for higher education might also be reworked to direct more support to Louisiana historically Black colleges and universities, according to Boudreaux. The votes appear to be on tight margins, however.
Wright, as the head of the House Republican Caucus, expressed concern that the Legislature would start “losing people” who would vote for the tax bills the longer they waited to vote on Friday. Some lawmakers have made it clear they don’t intend to push their holiday travel to support the tax overhaul.
The special session must end by 6 p.m. Monday. “It’ll be interesting because I heard they may have more Republicans missing as the day goes on, especially around five o’clock,” said House Democratic Caucus Chairman Matthew Willard of New Orleans, who has opposed Landry’s proposal.
RUSTON, La. (KNOE) – Louisiana Tech University’s College of Education and Human Sciences announced it has established a new Center for Literacy and Learning designed to expand evidence-based reading support for children and professional development for educators across North Louisiana.
The university’s Department of Curriculum, Instruction, and Leadership said the launch of the Center for Literacy and Learning at Louisiana Tech, also known as L3, will provide diagnostic assessments, tutoring and workshop opportunities, combining academic research with hands-on clinical practice.
“As literacy rates and reading achievement continue to present challenges across Louisiana and the nation, the Center for Literacy and Learning is rooted in supporting evidence-based instruction, applied research, and community partnerships,” said Dr. Dustin Whitlock, interim department head of Curriculum, Instruction, and Leadership.
Officials said planning for the center began more than a decade ago as faculty sought to expand literacy services for local schools and the surrounding community, but the effort faced delays due to space and funding challenges.
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University leaders said momentum increased after faculty partnered with the Louisiana Department of Education and literacy experts nationwide to create a professional learning course for Louisiana K-3 educators. The course, “The Science and Art of Teaching Reading,” focuses on structured literacy practices aligned with Science of Reading research. Louisiana Tech said funding connected to the course and the state education department helped make the center possible.
Megan Hunt, a teacher at A.E. Phillips Laboratory School, was selected to lead the center. Whitlock said Hunt brings a strong background in foundational literacy instruction and is working toward becoming a certified UFLI coach.
“Mrs. Hunt’s skill and expertise allow her to support both students and educators through high-quality literacy instruction and professional learning,” Whitlock said.
Hunt said the center is aimed at building long-term support for literacy instruction through collaboration with districts, families and community partners.
“Literacy affects all aspects of life and is ultimately how people access opportunity and how communities grow stronger,” Hunt said. “When children become proficient readers, it represents more than just academic progress; it changes the trajectory of their lives.”
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Local school leaders also praised the partnership. Michelle Thrower, K-2 facilitator for Lincoln Parish Schools, said professional development and resources connected to Louisiana Tech have supported literacy growth in the district.
“Our collaboration with Louisiana Tech has been a cornerstone of our success in elevating literacy proficiency across Lincoln Parish Schools,” Thrower said, citing DIBELS growth tied to the UFLI Foundations curriculum in K-2.
Louisiana Tech said the center will operate through three main components:
The Literacy Clinic
The Literacy Institute
The Literacy Resource Center.
The center is expected to provide individualized assessments, targeted intervention services, literacy workshops and educator professional development.
Officials said the components will be developed in phases over the next few years.
For more information, Louisiana Tech said the public can contact Dr. Dustin Whitlock at whitlock@latech.edu.
The U.S. Department of Energy announced Tuesday that Louisiana was one of the few states chosen for a $134 million rare earth element initiative in a move that would give the U.S. more independence from China, Reuters reports.
ElementUSA has been awarded about $67 million for a rare earth refining facility projected to cost $850 million in St. John the Baptist Parish to ramp up its production of core material for military vehicles, naval ships and aircrafts.
Louisiana’s rare earth element initiatives are aimed at relocating the critical American minerals supply chain for electric vehicles, renewable energy and national defense. The minerals include bauxite residue, which is a waste product from aluminium production. The plant is expected to produce roughly 150-1,000 metric tons of rare earths annually.
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Oklahoma was also chosen to receive grant money for a refining facility in Tulsa.
A Department of Homeland Security watchdog report revealed that staff members at an ICE detention center in Louisiana used a prohibited chokehold to “gain control” of a person being held there and stabbed another in the hand with a pen when an officer could not close the door to a housing unit.
The newly released findings about Winn Correctional Center in central Louisiana follow the DHS inspector general’s review of video of the use-of-force incidents as part of an unannounced facility inspection. The report, which was published on the DHS website, also noted that the officer who stabbed the detainee with a pen was disciplined.
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Staff members failed to maintain safe and sanitary conditions, the report says, noting leaking vents and ceilings with insulation falling through. Staff members used napkins and Styrofoam containers to collect the water from the leaks, according to the report.
Scrutiny of conditions inside ICE detention centers that house more than 60,000 detainees has been growing.
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Earlier Wednesday, Homeland Security Secretary Markwayne Mullin defended his agency’s detention standards on Capitol Hill amid complaints about ICE’s Delaney Hall detention facility in Newark, New Jersey. That center has been the site of frequent protests.
Rep. Tim Kennedy, D-N.Y., accused Mullin of leaving detainees without food or medical care.
Mullin rejected the claims. “You can say all you want, but don’t accuse me of something that’s not accurate,” he said.
The inspector general made nine recommendations, ranging from environmental health and safety standards to proper handling of use-of-force incidents and maintaining food service standards.
ICE is working to address all of the issues, including by providing additional staff training, a spokesperson for the agency said.
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“These minor infractions included failing to provide detainees exercise equipment, record keeping errors and leaking vents. Another infraction included providing a shared computer for legal research that would allow other detainees to see other detainees’ case information,” the spokesperson said.
A spokesperson for DHS said the report shows that the facility complies with detention standards.
“ICE has higher detention standards than most U.S. prisons that hold actual U.S. citizens,” the spokesperson said.
Winn Correctional is one of the largest ICE detention centers in the country, housing more than 1,500 men. It opened in 1990, and ICE took it over from the state in 2019.
The report was produced after an unannounced inspection by the DHS inspector general, whose office recently got an infusion of $20 million and plans to boost its inspections from four to six per year to potentially as many as 40 to 60.
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ICE lists 70% of the 1,500 detainees at Winn as having “No ICE threat level,” meaning they do not have violent criminal histories.
Winn is an hour north of Alexandria, which is one of four hubs for ICE deportation flights around the country.