Louisiana governor proposes a state infrastructure bank

Louisiana Gov. Jeff Landry urged the legislature to approve a state infrastructure bank as another arrow in the state's quiver.

Such a bank would be a "revolving financing tool that allows us to stretch dollars further, leverage federal programs without surrendering control and deliver more projects without raising taxes," Landry said in his state of the state speech delivered Monday. A spokesperson for Landry didn't immediately respond to a request for information about the proposal.

South Carolina has a Transportation Infrastructure Bank funded by municipal bonds.

Landry's proposal followed his discussion of several transportation developments. He said construction work on a Calcasieu River/Interstate 10 bridge in Southwest Louisiana would start next month. The work is being partly financed by $1.33 billion private-activity bonds sold in 2024.

Separately, Landry noted his proposed $46.9 billion budget for the coming fiscal year is smaller than last year's $50 billion budget.

"A year ago, we committed to ending the old habit of funding ongoing government [expenses] with one?time money," Landry said. "That is something that has eluded governors again and again. This budget keeps that promise."

"For too long, this state lived in a constant budget crisis. Ladies and gentlemen, because of your work, that era is over," Landry said.

The state will be "well within" its constitutional debt limit, with debt reduced by $190 million, he said.

Landry said the state should continue its quest to eliminate the state income tax.

The governor called on voters to approve Amendment 3 in May to allow the paydown of "massive debt" in the teachers retirement system.

The measure would repeal three educational trusts and use the money for the retirement system.

Democratic leaders of the state Senate and House of Representatives didn't immediately respond to requests for comment.