As Louisiana’s special session on fiscal reform begins this week, the focus should be on fiscal conservatism’s principles: responsible budgeting, low taxes, and economic freedom.

Fiscal conservatism ultimately emphasizes keeping government spending in check so taxpayers can keep more of what they earn, supporting a competitive, thriving economy. This session offers an opportunity to drive Louisiana’s comeback through spending and tax reform.

Different national platforms illustrate approaches to fiscal discipline: the 2024 GOP platform advocates for cutting wasteful spending, the 2024 Libertarian platform proposes repealing the income tax entirely to force government restraint, and even the 2024 Democratic platform recognizes the need to reduce the national debt.

But too often politicians ignore the root issue of excessive taxes, regulations, and poverty: unchecked government spending.

Why Responsible Budgeting Matters for Louisiana

Unchecked government spending is the government’s primary burden on people. Every tax dollar taken from Louisiana families is a dollar lost to grow businesses, raise wages, and create jobs.

The recent Pelican Institute report details how Louisiana’s spending has outpaced population growth and inflation over time, redirecting resources from the private sector to government programs. Excessive spending also funds bureaucratic programs that regulate and restrict business, further stifling economic growth.

A responsible budget ties spending growth to what taxpayers can realistically support—population growth plus inflation—preventing overspending that raises taxes and debt. Louisiana should prioritize essential services, not an expanding bureaucracy.

By limiting spending to reduce tax burdens, Louisiana can boost its economic competitiveness and attract investment, following successful examples from other states.

Spending Discipline: Proven Success in Other States

Successful states already demonstrate the benefits of responsible budgeting.

Texas, for instance, tends to restrain spending to less than population growth and inflation, allowing room for tax relief while keeping budgets sustainable. Other fiscally conservative states follow similar models, such as Colorado’s Taxpayer Bill of Rights, responsible state budgeting, and the Americans for Tax Reform’s Sustainable Budget Project, proving that spending restraint contributes to economic growth and stability.

Louisiana’s Path Forward

Louisiana has a choice: maintain the high-spending, high-tax status quo, or adopt responsible budgeting principles that enable sustainable growth.

By aligning spending with actual needs, focusing on essential services, and reducing regulatory burdens, Louisiana lawmakers can create a more competitive state economy that benefits everyone.

This special session is a crucial chance for Louisiana’s leaders to adopt a truly fiscally conservative approach that prioritizes people over government expansion, securing a prosperous future for Louisianans.