Louisiana Senate Bill SB33

Louisiana 2025 Regular Session

• Introduced: 3/31/25
• Refer: 3/31/25
• Refer: 4/14/25
• Report Pass: 4/28/25
• Refer: 4/29/25

Caption

Authorizes an income tax credit for eligible state employees that identify cost savings in state agencies. (gov sig) (EG SEE FISC NOTE GF EX See Note)

Impact

The implementation of SB 33 will create a structured tax credit model where eligible employees can earn credits equivalent to 30% of certified state savings identified through their proposals. The program is capped at a total of $10 million annually. This cap ensures that the initiative remains financially feasible while still providing substantial motivation for state workers to seek efficiencies. The certification process is overseen by the commissioner of the division of administration, who evaluates each proposal based on verifiable evidence of its expected savings.

Summary

Senate Bill 33, known as the Government Accountability and Innovation for Net Savings (GAINS) tax credit program, seeks to incentivize state employees in Louisiana to propose cost-saving measures within state agencies. By offering a tax credit against personal income taxes, the bill encourages employees to present viable savings proposals, aligning their initiatives with fiscal responsibility and improved operational efficiency. The ultimate aim is to implement actionable recommendations that enhance resource utilization and reduce waste while maintaining or improving service quality.

Sentiment

The general sentiment around SB 33 is one of cautious optimism from proponents, who argue it will foster a culture of innovation and accountability among state employees. Supporters believe that this initiative aligns the interests of the workforce with the financial health of state government, potentially leading to significant long-term savings. However, there may also be concerns regarding the feasibility of implementing the proposals and the adequacy of support for employees in navigating the bureaucracy associated with submitting and certifying these savings proposals.

Contention

Notable points of contention may arise around the oversight and administrative processes involved in the GAINS tax credit program. There may be apprehensions from within agencies regarding the initial burden that proposal evaluations and certifications could place on staff. Additionally, skepticism may exist about whether employees will be adequately compensated for their efforts if their proposals are not accepted or if the savings are marginally recognized. Furthermore, the requirement for a first-come, first-served application process could lead to competitiveness that detracts from collaboration among state entities.