Fostering Economic Growth in Louisiana: A Review of Senate Bill 234 and its Potential Impact on Businesses

As a public servant, member of the Republican State Central Committee, and business owner from New Orleans, I have always prioritized creating and maintaining a strong business climate and promoting economic development in our state. However, I am concerned about some of the legislation that is being proposed this session that could be harmful to businesses.

One bill, Senate Bill 234, in particular, could have disastrous consequences for Louisiana taxpayers and businesses. The bill aims to reduce the number of financial institutions eligible to compete for taxpayer-funded projects such as road construction, school maintenance, assets for first responders, and healthcare. This legislation overlooks basic principles of economics. A competitive bond market is essential for businesses, municipalities, and taxpayers to thrive. It allows for innovation in infrastructure development and job creation.

In 2021, Texas passed similar legislation that restricted local municipalities from doing business with specific financial institutions at the discretion of its attorney general. A recent study on the impact of this legislation in Texas projected significant economic losses, job cuts, and reduced tax revenues. Louisiana cannot afford to follow the same path. With a fifth-place ranking in the United States for economic growth in 2023