BATON ROUGE - On Wednesday, the governor told media outlets that Louisiana hit the jackpot.

Gov. Jeff Landry said families can expect to see $500 back on their tax returns, but for every cut in taxes, budgets also usually shrink, and that worries at least one community advocate who says there could be unintended costs in the future.

In an announcement on Wednesday, Landry said that because of changes in state law he pushed in 2024, this year, people could see major savings when they file their taxes this spring.

The governor estimates an average family could get $500 and working individuals $261 in savings this tax year. Landry attributed those savings to what he called the largest income tax cut in the state's history, but Jan Moller with Invest in Louisiana isn't so sure if the cuts will benefit everyone long-term.

The governor added that Louisiana families will now get their first $25,000 of income tax-free.

"The governor proposed a standstill budget, but that budget isn't going to be standing still for very long," Moller said.

Landry said the changes were made by increasing the standard deduction, eliminating income tax for the lowest earners, and lowering the personal state income tax to a flat 3%.

Moller said those subtractions add up to potential deficits in the future. He also says that last year's federal cuts to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid will put more responsibility on states like Louisiana to pay. He added that it leaves the state vulnerable in the coming years to a budget deficit.

"When you start paying more for SNAP and Medicaid..." Moller said, "All of a sudden, you're going to have a budget shortfall because we don't have more tax dollars coming in."

The governor has said new private sector investments will grow the economy, create new jobs, and help prevent a large deficit.