States that saw their budgets balloon during the pandemic are now grappling with the hangover as federal aid dries up, The Center Square writes.
COVID-era stimulus—and the higher baselines lawmakers built on top of it—helped fuel major spending expansions in California, Illinois, Louisiana, Pennsylvania and Washington. But with the federal government $38 trillion in debt and pulling back on assistance, those same states are scrambling to balance budgets without layoffs or service cuts.
Louisiana is a prime example: State spending rose more than 27% from 2019 to 2022 and another 14% since 2023, part of a decade-long 71% climb. Analysts split on what’s driving the surge. Erin Bendily of the Pelican Institute warns that Louisiana’s growing reliance on federal dollars is “not sustainable,” while Invest in Louisiana’s Jan Moller argues most of the growth stems from Medicaid expansion and health care costs.
Gov. Jeff Landry says his proposed budget aims for flat funding and tighter controls on spending.
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