PAYGO: A Tool for More Responsible Budgeting

PAYGO: A Tool for More Responsible Budgeting

Louisiana faces a $1.6 billion shortfall in the next fiscal year due to the largest tax cuts in the state’s history and back-door spending that remains unaccounted for. To restore fiscal responsibility, legislators ought to follow Congress by enacting a PAYGO rule.

PAYGO would provide a responsible budget control mechanism for Louisiana that would empower the Legislature to prioritize budgetary expenditures, tax expenditures, and revenue policy in a way that provides for the needs of state residents. Legislators would have to find the means to pay for any proposed new spending, tax cuts, or tax exemptions.

Full report attached…