(The middle place) – Governor John Bel Edwards will propose using part of Louisiana’s share of the US $ 350 billion government aid required under the US Bailout Act to fund infrastructure improvements, promote tourism and replenish the fund that pays for government unemployment benefits, its chief household clerk said Monday.

Louisiana’s share of the aid is expected to be nearly $ 5.2 billion, including about $ 3.2 billion for the state government, excluding $ 180 million set aside for construction projects. The rest goes to the local governments.

Louisiana administrative commissioner Jay Dardenne said the federal government has not made any rules about how the money is used. He said administrative officials had just had their first discussion on how to do this on Monday morning. Louisiana legislation would have to pass a bill to spend the money, and Edwards has not yet started meeting with lawmakers about his proposal, Dardenne said.

So the government plan is in the works, but putting “hundreds of millions of dollars” in, as Dardenne put it, “hundreds of millions of dollars” is a priority Edwards shares with many lawmakers.

The fund, which was more than $ 1 billion in balance prior to the COVID-19 pandemic, was tapped by an unprecedented demand that forced state officials to borrow money from the federal government to pay for statutory benefits. Last year, legislators suspended laws that would otherwise provide for tax increases for companies and reduced benefits for the unemployed if the fund’s assets get low.

Responding to the pandemic and replacing lost government revenues are two of the allowable uses of the government allocation, and Dardenne said replenishing the fund falls into both categories. States can also use the money to pay for water, sewer and broadband infrastructure, and the administration plans to propose “a substantial amount of money in these areas,” Dardenne said.

Tourism will also be a focus, Dardenne said, noting that local tourism boards and key assets like the Superdome, which the state owns, have seen a sharp drop in sales. As the pandemic subsides and people start traveling again, Dardenne wants Louisiana to capitalize on pent-up demand, he said.

A dozen cities in Louisiana are receiving grants direct from the federal government, Dardenne said. These cities are Alexandria, Baton Rouge, Bossier City, Houma, Kenner, Lafayette, Lake Charles, Monroe, New Orleans, Shreveport, Slidell and Thibodaux.

Dardenne expects the municipalities to receive money directly from the federal government as well, but the state will likely be responsible for distributing money to smaller municipalities.

Dardenne expects the government’s plan to be published before the start of the legislature on April 12th. Expecting official federal guidelines to be available soon, he notes that the first half of the state grant should be made within 60 days.

“The real trick in using those dollars properly will be to make sure that the various sources of funding available are meshed,” he said.

Jim Patterson of the Louisiana Association of Business and Industry said he would like to see enough federal funding poured into the unemployment fund to at least cover the state’s debt to the federal government, which is expected to be between $ 180 million and $ 200 million . He said an additional $ 400 million to $ 500 million would keep taxes and benefits at current levels, according to laws suspended last year.

There will also be calls to increase unemployment benefits for workers and improve the distribution system that has been tested by high demand. Louisiana’s maximum weekly benefit (excluding federal pandemic aid) is $ 247 per week. This is the second lowest payout in the nation.

“But the rush to replenish the trust fund hides bigger problems with the state’s unemployment system, which pays poor benefits and creates too many barriers for people who have lost their jobs through no fault of their own,” advocates the Louisiana Budget Project For Action believed to benefit low- and middle-income residents responded to calls from business leaders for a “bailout” of the fund.

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