(Constitutional Amendment) Prohibits the levy of taxes by the legislature unless there is an increase in population or a reduction in the official forecast
Impact
The passage of HB318 would significantly alter how tax legislation is approached in Louisiana. By restricting the conditions under which taxes could be levied or increased, the bill aims to provide a clearer framework for tax policy that prioritizes population growth and fiscal health. This could have wider implications for state funding and budget management, as restrictions on raising new revenue could affect state programs and services. Lawmakers would need to carefully consider fiscal trends and population changes when deliberating tax legislation.
Summary
House Bill 318 proposes an amendment to the Louisiana Constitution aimed at limiting the tax-levying authority of the legislature. Under this proposal, new taxes or increases in existing taxes would only be permissible under specific circumstances, such as a population increase, a reduction in the current or next fiscal year's revenue forecast, diminished federal assistance creating a projected deficit, or the declaration of a public emergency or catastrophe. The bill seeks to ensure fiscal responsibility and guard against arbitrary tax increases that might occur without substantial justification.
Sentiment
Discussions surrounding HB318 reflect a mixture of support and concern. Proponents argue that the bill introduces necessary safeguards against unpredictable taxation and promotes accountability in fiscal matters, thereby appealing to constituents wary of tax increases. Conversely, opponents may express apprehension that such restrictions could limit the state's ability to respond effectively to future financial challenges or emergencies. The sentiment is divisive, with strong opinions on both sides regarding the implications for local governance and citizen welfare.
Contention
Key points of contention associated with HB318 revolve around the potential rigidity it introduces to tax policy. Critics argue that the restriction on tax levies could hamper the state's financial flexibility during critical times, such as economic downturns or disasters, when funding is crucial for recovery efforts. On the other hand, supporters contend that the bill is a necessary safeguard against irresponsible fiscal practices. Thus, the debate captures the tension between fiscal conservatism and the pragmatic need for responsive governance.
Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. (2/3-CA13s1(A)) (OR INCREASE GF RV See Note)
(Constitutional Amendment) Allows for the use of a portion of the Louisiana Education Quality Trust Fund when there is a projected deficit (EG INCREASE SD EX See Note)
(Constitutional Amendment) Prohibits the supplanting of state funds for tuition and fee increases for institutions of higher education (RR SEE FISC NOTE GF EX)
(Constitutional Amendment) Provides for additional authority for the governor and legislature to reduce budgets if there is a projected deficit (EG SEE FISC NOTE SD EX See Note)
Constitutional amendment to revise the circumstances that would allow the reduction of constitutionally protected expenditures and dedications to eliminate a projected deficit in an ensuing fiscal year. (2/3 - CA13s1(A)) (EN SEE FISC NOTE SD EX See Note)
Requires the Revenue Estimating Conference to designate certain general fund money from mineral revenue as restricted and prohibits including such revenue in the executive budget (RE SEE FISC NOTE GF RV See Note)
Provides for the prohibition of the expenditure of state funds to refund a tax credit, pay certain rebates, or repurchase or grant transferable tax credits granted through incentive contracts unless budgeted and appropriated. (gov sig)