As a public servant, business owner from New Orleans, and active member of the Republican State Central Committee, my top priorities have always been fostering economic development in our state and creating a strong business climate. However, I am deeply concerned about some of the legislation I have seen this session that appears to be anti-free market and pro-big government intrusion. One such bill, Senate Bill 234, could have disastrous consequences for businesses and Louisiana taxpayers.
This bill could reduce the number of financial institutions eligible to compete for and finance taxpayer-funded projects such as road construction, school maintenance, assets for first responders, and healthcare. A competitive bond market is essential for the best interests of businesses, municipalities, and taxpayers. It allows towns and cities to innovate infrastructure development, create jobs, and foster an economic environment where businesses can thrive.
In 2021, Texas passed similar legislation that banned local municipalities from conducting business with certain financial institutions at the discretion of its attorney general. A study on the impact of this legislation projected that Texas could lose nearly $670 million in economic activity, 3,034 full-time permanent jobs, and over $37 million in state and local tax revenue. Texas taxpayers are experiencing the negative consequences of this legislation, including skyrocketing property taxes to pay off bond debt without the support of large financial institutions.
Louisiana ranked 5th in the United States for economic growth in 2023
