Louisiana House Bill HCR43

Louisiana 2011 Regular Session

• Introduced: 4/27/11
• Refer: 4/28/11

Caption

Directs the commissioner of administration to require the use of returns on investment in strategic planning and performance standards (OR SEE FISC NOTE)

Impact

By adopting this approach, HCR43 is expected to influence state laws pertaining to budgetary procedures and strategic planning. The emphasis on ROI will likely encourage the legislature and state agencies to focus on outcomes that maximize benefit from state funds, ultimately aiming to improve the efficiency and effectiveness of government services. This could lead to a more data-driven approach in state budgeting, potentially reducing waste and making informed decisions on funding allocations.

Summary

House Concurrent Resolution 43 (HCR43) directs the commissioner of administration in Louisiana to require the use of returns on investment (ROI) when developing strategic plans and performance standards. This directive aims to enhance state budget activities by integrating ROI metrics in order to evaluate and prioritize state expenditures. The resolution emphasizes the importance of ensuring that limited state resources are allocated effectively, especially during fiscal years where deficits in projected revenues are expected.

Sentiment

The sentiment surrounding HCR43 appears generally supportive, as it seeks to apply a practical framework to state fiscal management. Advocates of the resolution may identify it as a necessary step towards accountability and transparency in government spending. However, as with many budget-related initiatives, there may be concerns raised by certain stakeholders regarding how the implementation of these ROI requirements could impact smaller agencies or programs that may not easily quantify their returns on investment.

Contention

Some points of contention that may arise from HCR43 include debates over the definitions and methodologies used to calculate ROI, which could vary significantly between different programs and projects. Moreover, there may be apprehensions about the potential pressure this could put on state agencies to align closely with ROI metrics that favor short-term financial outcomes over long-term benefits to communities. The resolution thus opens a broader discussion about the balancing act between financial efficiency and fulfilling the essential missions of state services.