The 2025 Legislative Session Begins: The Next Chapter in Louisiana’s Comeback Story?
State lawmakers return to Baton Rouge this week to begin the 2025 Regular Session—one that is technically supposed to focus on fiscal matters, but also thankfully appears to concentrate on issues that voters find most important to them and the future of Louisiana.
Earlier this month, the Pelican Institute released the results of a new poll showing that Louisiana voters want leaner state government, more tax relief, expanded education options, and solutions to tackle soaring insurance costs. It seems lawmakers got the memo.
Fiscal Responsibility
Starting with fiscal issues, after the failure of proposed Constitutional Amendment 2 in the last election, the Legislature is going back to the drawing board to figure out how to further limit—and possibly even phase out—certain taxes, unlock dedicated funding that hinders responsible budgeting, rein in growing state government spending, and pay off expensive state retirement debt. Pieces of CA 2 appear in several standalone bills that lawmakers will advance again, take input from the public on, and determine how best to present to voters for consideration. Since these laws are presently in the state’s constitution, changing them in any way requires approval by the people. And because many suspect that non-fiscal matters included on the previous ballot heavily influenced the outcome, lawmakers will be sensitive to passing other non-fiscal bills requiring changes to the constitution.
Why are lawmakers still pursuing these changes at all, given voters’ strong rejection at the polls last month? The Pelican Institute’s recent poll revealed that pocketbooks are top of mind for Louisianans right now, and this carries consistently across all demographics. Respondents put the state’s economy in the #1 spot for priorities they want addressed. They signaled overwhelming support for the 2024 tax reforms and for additional measures to be taken.
Insurance
A second high priority of this session is continuing to tackle Louisiana’s insurance crisis—particularly in automotive insurance, where premiums in Louisiana remain significantly higher than the national average. The state has a disproportionately higher number of bodily injury claims and double the amount of losses compared to the national average. The Pelican Institute’s poll revealed that respondents are feeling these effects, with nearly 80% answering that their auto insurance premiums increased in the past year. An overwhelming number of respondents representing Republicans, Independents, and Democrats alike pointed to lawsuit abuse as a major cost driver.
Governor Landry and Insurance Commissioner Tim Temple both held press conferences last week to unveil their respective proposals to provide relief. Governor Landry’s plan is available here, and Commissioner Temple’s plan here. Pelican Institute CEO Daniel Erspamer was interviewed on the Mornings with Brian Haldane show on Talk 107.3 FM and said the question before lawmakers this session will be, “how do we stay focused on reforms that will actually help drive down insurance rates over time and put consumers in the driver’s seat? The people aren’t buying the talking points of the billboard lawyers. What they want, though, are solutions.”
Education
A third major area of decision-making that lawmakers will face is in funding the state’s new LA GATOR program, which provides state funds for families to enroll their children in a school of their choosing or customize a home-based educational program to meet their individual needs. Well over 35,000 families have applied to the program, signaling their need for an alternative to their government-zoned school. The question now is: Will lawmakers respond and deliver, or will they choose not to fund these families’ requests—effectively forcing them to keep their kids in schools they don’t believe are working?
Some have suggested that not implementing LA GATOR would produce a “savings” of $50 million that could be used elsewhere in the budget. That’s not necessarily true. The students who would be prioritized for LA GATOR funding (per state board of education regulations) are low-income and disabled, so it’s a near certainty that without LA GATOR, they will remain in public schools where the state will pay for them in the Minimum Foundation Program (MFP) formula. Given that the state will most assuredly pay either way, will lawmakers honor what families want for their kids?
Workforce & Social Services (“One Door”)
As lawmakers debate education issues, they’ll also consider a major proposed shift that could help many of the same families in poverty find hope and opportunity. It’s a move to reorganize and integrate the state’s workforce and social service agencies and programs to function as “one door,” delivering outcome-oriented support while more effectively connecting individuals to meaningful work toward self-sufficiency.
It’s the product of Governor Landry’s Louisiana Workforce and Social Services Reform Task Force, which met throughout the last year and concluded in a final report that Louisiana’s current fragmented workforce and social service systems are “managed by multiple agencies, leading to inconsistent services, duplication, and inefficiencies.” The report concludes that, “Louisiana faces a general opportunity to modernize and transform its workforce development and social services programs to deliver better results for Louisiana residents and employers. This is needed now, more than ever, as the state faces challenges regarding preparation of its citizens for the high tech, growing jobs of today and tomorrow and employers needing skilled workers for well-paying jobs across sectors and industries.”
Regulatory Reform
Finally, to further enable jobs and opportunity, lawmakers will consider bills related to regulatory reform. Several such bills are aimed at limiting or even substantially reducing bureaucracy, red tape, and burdensome rules that are hindering Louisiana’s people from working and businesses from thriving in a competitive free market. Louisiana has long been one of the highest regulating states in the country, especially when it comes to licensing requirements associated with low-to-moderate income professions on which many individuals rely.
Louisianans are beginning to once again have hope that their state is headed in the right direction, but they also know that there’s still work left to be done. They remain concerned about their loved ones leaving the state and what Louisiana will offer their children. They’re struggling with the cost of living. And they know if other states can limit government spending, keep taxes low, take less out of their paychecks, and attract jobs, then Louisiana can, too.
Here’s hoping that lawmakers will give Louisianans more to celebrate through bold reforms that put them first—not special interests—in writing Louisiana’s comeback story. We stand ready to work alongside them to achieve those important wins.
Read The Pelican Guide to Following the Legislative Session here.