BATON ROUGE — Gov. Jeff Landry's office on Friday presented a general funding plan for next year that is about 6 percent smaller than what Louisiana is spending this year.

Counting state appropriations, self-generated funds and federal funds, Landry’s executive budget totals just over $46.9 billion dollars, down from $50 billion this year — a drop of 6.19 percent.

For a third year, Landry is proposing “standstill” spending from the state’s general fund, at about $12.6 billion. Fees and self-generated funds are expected to be off about 4 percent and dedicated funds will be off 20 percent, the budget suggests.

Federal spending in Louisiana should drop about 4.6 percent to just under $23.8 billion, the administration expects.

The state's education systems would see drops under the spending plan, while there are increases for the Health Department and prisons. More money is being earmarked for food stamps and the LA Gator scholarship program.

Landry's budget office painted a bleak picture of future state finances, with a current $577 million surplus turning into a $977 million shortfall in 2030.

“These imbalances are caused by both a decline in revenue, which is mostly attributable to the motor vehicle sales tax revenue being rededicated … in fiscal year 2028 after these funds were temporarily going straight to the general fund,” said Colleen Gil, the state director of the Planning and Budget Office, in a presentation to the Legislature's Joint Budget Committee.

“Expenditures are going up primarily as a result of statewide costs increasing, inflation and the typical Medicaid adjustments that we account for,” she said.

The state constitution restricts how Louisiana lawmakers can spend its surplus. One-quarter must go to the state’s rainy day fund and another quarter goes to cover unfunded liabilities. Half is split among highway projects, deferred maintenance and the Coastal Protection and Restoration Authority.