Louisiana’s budget at the beginning of fiscal year 2023 was $47 billion, which is an increase of 63 percent over
the last decade. With a state population of 4.6 million, and shrinking, this is a spending burden of more than
$10,000 per person. While nearly half of the money in the state budget comes from the federal government,
Louisiana’s taxpayers are still on the hook for the total. This growth in state spending is unsustainable given
the lack of growth in the state’s economy and a history of net outmigration. This report offers an overview and
brief history of Louisiana’s operating and capital budgets and outlines how the state can begin to create a more
responsible, sustainable budget over time that remains adaptable to the needs of citizens.

Originally published at Pelican Institute.

Today, I cover:

1. CPI Inflation Report: The Bureau of Labor Statistics recently released its report for the consumer price index (CPI) measure of inflation. The headline is up 5% year-over-year, and core (excluding food and energy) is up 5.6% y/y—both are the highest in 32 years. I cut through the noise to let you know what it means to you and for the housing market, which is slowing across the country and in Texas. 
   
2. State Actions: The Texas Senate recently released its budget for the upcoming 2024-25 budget, which appropriates too much and provides too little in property tax relief. Find out the details in my policy brief on what’s in the budget and how it could be improved. I also discuss how states nationwide are passing school choice, so it’s important that states like Texas and Louisiana don’t fall behind in education. But more importantly, they should empower parents to do what’s best for their kids’ education.
3. CBDC + U.S. Dollar Reserve Status: I was recently on the Wake Up America Show with Austin Peterson (watch my interview at 33:35 at YouTube link below) to discuss the failures of a central bank digital currency and the influence this could have on our lives. I also talk about how global factors are influencing the U.S. dollar’s global reserve status and what this means for us (good article by Peter Earle at AIER here).

​You can watch this episode on YouTube or listen to it on Apple Podcast, Spotify, Google Podcast, or Anchor (please share, subscribe, like, and leave a 5-star rating).

​An Overview

• Texans for Fiscal Responsibility provided a three-step process to eliminate all property taxes over the next decade by simply limiting government spending at the state and local levels of government and returning surplus collected taxpayer dollars to taxpayers.

• Unfortunately, the Texas Senate’s budget appropriates too much taxpayer money. It substantially increases all funds appropriations in the proposed 2024-25 budget above the 2022-23 budget by 16.3% to $308.0 billion and increases state funds appropriations (exclude federal funds) by 25.4% to $208.6 billion. Even excluding property tax relief effort amounts in the 2022-23 and 2024-25 budgets, all funds appropriations increase by 19.4%, and state funds appropriations increase by 20.9%, which are well above the rate of population growth plus inflation over the last two fiscal years of 16%.

• These increases in appropriations would be better allocated to new property tax relief, primarily through compression of school district maintenance and operations property taxes. This is the way to create a path to eliminating these property taxes, thereby giving Texans more of the right to own their property instead of perpetually renting from the government.

Originally published by Texans for Fiscal Responsibility.

​In Let People Prosper episode #39, I talk with Daniel Erspamer, CEO of Pelican Institute in Louisiana, about LA's economic issues, need for tax and budget reforms, and ways that let people prosper.

​Thank you for listening to the Let People Prosper Show podcast and for reading the newsletter for show notes and key economic insights.

On today's episode of the "Let People Prosper" show, which was recorded on March 31, 2023, I'm thankful to be joined by Daniel Erspamer, CEO of the Pelican Institute for Public Policy in Louisiana.

We discuss the Pelican Institute’s “Louisiana’s Comeback Agenda” which includes:

• What are the biggest barriers impeding Louisiana's growth and fueling its net out-migration;
• How the complicated tax code burdens Louisianans and why it needs an overhaul that includes responsible budgeting; and
• How there’s a need to advance school choice, unleash new technologies, and much more to empower individuals, parents, families, and entrepreneurs to reach their full potential and flourish.

​Daniel Erspamer’s bio and other info (here):

• A nationally-recognized free-market leader, Daniel Erspamer has spent his career building and growing effective policy organizations around the country. Over the course of his career, he has mentored hundreds of nonprofit leaders, raised tens of millions of dollars for opportunity policy initiatives, and helped achieve meaningful policy wins across the nation.
• Since being appointed Pelican Institute CEO in 2017, he has built a team and strategy to address Louisiana’s most substantial policy challenges and to create a Louisiana where everyone has the opportunity to flourish. Under Daniel’s leadership, the Institute has generated policy victories in the areas of education reform, criminal justice reform, state spending, innovation policy, occupational licensing, and more. For this work, in 2020 Daniel was recognized with a Buckley Award, given annually by America’s Future to recognize leaders making strides to advance freedom and prosperity.
• Prior to his leadership of Pelican, Daniel served as Vice President for Strategic Partnerships for State Policy Network, and in a variety of leadership and development roles at the national office of Americans for Prosperity. He holds a B.A., with honors, in Political Economy and Communication from Tulane University. Daniel and his wife, Emily, a graduate of Tulane University School of Law, live in New Orleans with their four children, one dog, two birds, two guinea pigs, and many tropical fish.
• Follow him on Twitter @rightwave.

​
Please like this video and subscribe to the channel if you enjoyed this podcast!

​Executive Summary
The U.S. Congress passed and President Biden signed into law the so-called “Inflation Reduction Act” (IRA) in August 2022. The IRA includes many provisions which are now estimated to cost $1.2 trillion over a decade per Goldman Sachs’ more recent analysis compared with the Congressional Budget Office’s (CBO) initial estimate of $391 billion.

Part of this substantially higher estimated cost is because of the new cost estimates for tax credits for electric vehicle (EV) battery cells and modules manufactured in the U.S. Instead of the initially estimated cost of $30.6 billion by the CBO, new estimates based on more precise projections and growth in the EV market indicate that this could be as high as $196.5 billion (540% higher than initially estimated) per the Mercatus Center and Goldman Sachs. This higher estimate appears more accurate than the original CBO estimate given the large increase in the EV market and the expanding use of these tax credits.

Given that the cost of these subsidies passed by Congress and communicated to the public appears to be substantially undervalued, the CBO and other nonpartisan agencies and committees responsible for providing Congress with accurate revenue estimates and sound economic analysis should reexamine their calculations.

​Originally published at Americans for Tax Reform.