CNBC has ranked Louisiana #49 in America’s Top States for Businesses for 2023. Last year, our State was ranked #48 on that same list. In 2021, we were ranked 44th. Why the low ranking? We were given F’s in Workforce, Infrastructure, Health, and Innovation. We got D’s in Economy, Business Friendliness, and Access to Capital. The only thing we seem to be doing right is that we’re cheap — but that’s not enough to stop this downward trend.
More than 10% of mortgages in our State are underwater — the worst figure in the Nation. As pointed out in our recent lawsuit against FEMA, this will only get worse thanks to Risk Rating 2.0, or “Equity in Action,” which has altered flood maps and increased flood insurance rates astronomically. For these reasons and more, people are leaving Louisiana in droves, seeking better opportunities for themselves and their families.
Meanwhile, the Southeast leads the Nation for economic strength, according to CNBC. South Carolina — ranking #7 for Best Economies — is booming, and they’re not that different from us. They have ports, coastal towns, and even similar demographics; but that State has greatly surpassed us in economic prosperity over the past 30 years. They don’t even have S&P 500 companies headquartered there, yet South Carolina is considered one of the most popular places to start a business and build equity in your biggest asset — your home.
Similarly, Tennessee is boasting the nation’s second-fastest growing economy, acquired mostly through manufacturing. Georgia is reclaiming its old position as a mecca for business and prosperity. Texas added nearly 630,000 jobs last year with payrolls ranking among the best in the country. And Florida is still booming from the COVID days, with the strongest economic growth, a balanced housing market, and plenty of job opportunities. We’re even trailing behind Mississippi and Arkansas. Why?
Three reasons: workforce, infrastructure, and taxes. Our Education system might be squeaking by on this score board, but the fact of the matter is, we have too many people investing in worthless degrees rather than critical skills that our State desperately needs, such as welding, engineering, and cyber innovation. We need to return to the trades, and prepare students for careers that can actually offer a respectable living, high quality of life, and the ability to build a family, buy a home, and achieve stability. A Gender Studies degree doesn’t contribute to our State; the ability to build, repair, and envision something different might.
Next, our infrastructure needs investment. Take Highway 30 for example, where half a billion dollars in annual wages and over 4,000 jobs in Ascension Parish rely on this stretch of road. The highway was supposed to be widened to six lanes years ago, but no action has been taken, resulting in major bottlenecks, traffic jams, and damage to our communities. But that’s only one example of Louisiana’s decline when it comes to our critical roads and bridges. Without the proper infrastructure, we will continue to struggle economically, because who wants to build a business when no one can get there?
Finally, our tax system absolutely needs an overhaul so that Louisiana can be a State where businesses are eager to invest. We must reform and modernize our tax code, improve customer service, and compete with states like Texas and Tennessee on a project by project basis. But all of this will take time, just as it took time for Louisiana to slide down to the bottom of the list. We must be vigilant, we need to be smart, and we must embrace change — because one thing is clear: what we’ve been doing hasn’t worked and we’re only getting left behind.
If Louisiana is to join the ranks of Southern States that are succeeding, we must make different choices. We want the people of Louisiana to be proud of our culture and our food, but also our work, our creations, and our ingenuity. We want people to move back home, and bring their talent back to our State. But to do that, we need to imagine New Orleans being more like Charleston or Nashville; Bossier City more like Phoenix and Tampa; and our infrastructure more like leaders such as Minnesota and the Dakotas. That is possible — but it requires us to choose differently, and this is our year to do just that.
Jeff Landry
Louisiana Attorney General
