$205M is first deposit in Louisiana fund aimed at stability

Louisiana News

BATON ROUGE, La. (AP) — Louisiana collected enough business taxes during the last budget year to deposit the first $205 million into a never-used trust fund created to curb the state’s boom-and-bust cycles of budgeting. Voters in 2016 agreed to set up the Revenue Stabilization Trust Fund to siphon off a portion of the state’s oil and gas revenue and corporate taxes when those collections are high.

Louisiana triggered the corporate tax collection provision in the budget year that ended June 30. Once the fund reaches $5 billion, up to 10% can be spent on construction projects and roadwork. Lawmakers by a two-thirds vote also could use the money in an emergency.

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