(Constitutional Amendment) Provides for a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
Impact
The proposed amendment will have a significant impact on the expenditure of state funds, particularly concerning how nonrecurring revenue is utilized. By requiring a portion of revenue to be directed towards reducing unfunded liabilities, the bill aims to improve the financial health of public pension funds. This statute might restrict the legislature's ability to utilize surplus nonrecurring revenue for other priorities, such as public services or infrastructure projects, as a portion will be earmarked specifically for retirement liabilities.
Summary
House Bill 384 is a constitutional amendment aimed at addressing the unfunded accrued liabilities of the state retirement systems in Louisiana. The bill mandates that a minimum of five percent of nonrecurring revenue be allocated to the Louisiana State Employees' Retirement System and the Teachers' Retirement System of Louisiana for Fiscal Years 2013-2015. From Fiscal Year 2015-2016 onwards, this allocation will increase to a minimum of ten percent. The intent of the bill is to ensure that these retirement systems are adequately funded to meet their obligations to retirees without compromising budgetary flexibility.
Sentiment
The sentiment around HB 384 appears to be cautiously optimistic among supporters, who argue that addressing unfunded liabilities is crucial for the state's long-term fiscal stability. On the other hand, there is concern among opponents that such mandates could lead to fiscal constraints, limiting the state's ability to allocate funds for immediate public needs. Overall, the discussions surrounding the bill highlight a balance between ensuring pension security for state workers and maintaining operational flexibility within the state budget.
Contention
One notable point of contention surrounding HB 384 is the concern regarding the prioritization of pension funding at the potential expense of other essential state services. Critics argue that while addressing unfunded liabilities is necessary, the mandatory allocation could detract from the funding available for education, healthcare, and infrastructure. The debate revolves around how best to manage the state's priorities without compromising the financial commitments made to its public employees.
Provides that a minimum of 10% of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of the state retirement systems (EN SEE FISC NOTE SD RV See Note)
(Constitutional Amendment) Requires that a portion of nonrecurring revenue be applied toward reducing the balance of the unfunded accrued liability of certain state retirement systems
(Constitutional Amendment) Requires the legislature to appropriate no less than twenty-five percent of nonrecurring state revenues for application to certain state retirement system unfunded accrued liability (EN SEE FISC NOTE GF EX See Note)
(Constitutional Amendment) To require the legislature to appropriate no less than fifty percent of nonrecurring state revenues for application to certain state retirement system unfunded accrued liability (RR SEE FISC NOTE GF EX See Note)
(Constitutional Amendment) Provides relative to the application of state monies to the unfunded accrued liability of the Teachers' Retirement System of La. (EN DECREASE SD RV See Note)
(Constitutional Amendment) Adds tax rebates to La. taxpayers as a purpose for which nonrecurring revenues may be appropriated (OR SEE FISC NOTE SD EX See Note)
Dedicates certain revenue to fund the unfunded accrued liabilities of and post-retirement benefit increases for the four state systems. (6/30/14) (OR SEE FISC NOTE SD RV)
(Constitutional Amendment) Establishes the Seniors' Supplement Fund for the provision of occasional supplemental payments to certain retirees and beneficiaries of state retirement systems (OR SEE FISC NOTE SD EX)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.