Louisiana House Bill HB730

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Increases the amount of monies dedicated into the Unclaimed Property Leverage Fund and provides with respect to limitations on state debt (OR -$15,000,000 GF RV See Note)

Impact

The bill carries implications for Louisiana's fiscal management and infrastructure development. By doubling the allocated annual amount, it allows for a greater availability of funds for infrastructure projects, which could lead to improvements in transportation and economic development across the state. Furthermore, it specifies that any bonds issued by the Louisiana Transportation Authority, backed by the revenues from the Unclaimed Property Leverage Fund, will not contribute to the state's net tax-supported debt. This provision may influence how the state manages its overall debt profile, potentially facilitating more aggressive investment strategies in transportation.

Summary

House Bill 730 proposes an amendment to increase the annual deposit into the Unclaimed Property Leverage Fund from the current amount of $15 million to up to $30 million. This fund is specifically designated for the allocation of resources towards the construction and maintenance of transportation infrastructure, namely the I-49 North and South corridors. By providing additional financial resources, the bill aims to enhance the state's ability to address pressing transportation projects that could benefit the public effectively.

Sentiment

General sentiment surrounding HB 730 appears supportive, particularly among legislators focused on enhancing state infrastructure and economic growth. Advocates view the increased deposit as a significant step forward in bolstering funding for critical transportation initiatives. However, some concerns may arise regarding the long-term implications of increasing the state’s financial commitments, especially related to debt management and the reliance on unclaimed property as a revenue source.

Contention

A notable point of contention related to HB 730 might revolve around the limitations it places on how the state budgets and manages its debt. As the bill allows for certain bonds to be excluded from the state debt calculation, some lawmakers may debate the potential risks associated with this approach. Critics may argue that while increasing funding for transportation is vital, it must be balanced against prudent financial management practices to ensure the state’s fiscal health is maintained.