(The Center Square) — Louisiana lawmakers are expected to have an additional $565 million to spend on debt payments, infrastructure improvements and other one-time expenses after state officials reported a projected budget surplus Thursday.

The surplus, reported to the Joint Legislative Committee on the Budget, reflects the fiscal year that ended June 30. The money will not be available for lawmakers to appropriate until the surplus is certified by the committee and officially recognized by the Revenue Estimating Conference early next year.

Under Louisiana’s Constitution, one-quarter of the surplus, approximately $141 million, must go toward paying down the state’s retirement system debt. Another $141 million must be deposited into the state’s rainy-day fund, which is intended to help cushion the state against future revenue shortfalls.

Lawmakers will have discretion over how to allocate the remaining $282 million, although the Constitution restricts surplus spending to certain one-time purposes, including debt payments, construction projects and infrastructure improvements.

Just last month, the Revenue Estimating Conference was informed that the state’s rainy-day fund had climbed to a record high of nearly $1.4 billion. The next allocation from this surplus will bring it to nearly $1.5 billion.

Senate President Cameron Henry, R-Metairie, and House Speaker Phillip DeVillier, R-Eunice, welcomed the projected surplus in a joint statement Thursday, describing it as an opportunity to continue reducing debt and investing in state infrastructure.

“Today’s good news encourages us to stay committed to the path we have chosen since this legislative term began: a dedication to good fiscal policy that reins in spending and prioritizes paying down debt and investing in a brighter future for our Louisiana families,” the legislative leaders said.

Henry and DeVillier said they intend to use the surplus to bolster the rainy-day fund, reduce retirement debt, improve roads, fund construction projects and strengthen Louisiana’s coast.