Louisiana’s Early Childhood Education Fund Faces Depletion Without Urgent Policy Action
A new study warns that Louisiana’s Early Childhood Education Fund may soon run out of money. The fund, created in 2017, provides a dollar-for-dollar state match to local communities investing in early childhood education. However, growing demand now threatens its sustainability.
According to Leaders for a Better Louisiana, the fund’s current reserves cannot meet future needs without new revenue sources. “This initiative successfully combines local and state resources,” said Barry Erwin, Chief Policy Officer of Better Louisiana. “But time is running out to secure its future.”
Growing Demand, Shrinking Funds
Lawmakers initially seeded the fund with a one-time $40 million appropriation in 2023, plus dedicated revenue streams. As more communities raised money, the fund’s balance began to drop. Today, annual income of about $21 million cannot match the rising demand.
If participation grows by just 10% each year, the fund could be depleted by 2027–28. Even without growth, it may last only until 2029–30. Expenditures could reach $30 million a year by decade’s end—or nearly $50 million with increased participation.
