Louisiana House Bill HB395

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 4/26/12

Caption

Provides relative to the expenditure or allocation of funds appropriated to postsecondary education management boards

Impact

If enacted, HB 395 will amend existing statutes governing the financial management of Louisiana's postsecondary education systems. The bill aims to streamline the allocation process and enhance the management boards' ability to respond to financial challenges efficiently. This could potentially improve the operational efficiency of these boards, allowing them to better allocate resources in a manner that serves the educational institutions under their purview.

Summary

House Bill 395 addresses the powers of postsecondary education management boards in Louisiana concerning the allocation and expenditure of funds. The bill allows these boards to receive and manage the funds appropriated to them, and stipulates that their actions must align with the funding formula set by the Board of Regents. A notable provision in the bill permits each management board to redirect up to 5% of their designated funding allocation to address unexpected financial issues that may arise during the budgeting process. This change aims to provide boards some flexibility while adhering to broader financial oversight from the state.

Sentiment

General sentiment around HB 395 appears to lean towards support from educational institutions and management boards, as it grants them greater operational flexibility. However, there may be concerns from fiscal watchdog groups or lawmakers focused on financial oversight, who might view the allowance for budget redirection as a potential risk for fiscal irresponsibility if not carefully monitored.

Contention

Debate surrounding this bill may arise regarding the implications of allowing management boards increased control over funding. Critics could argue that this flexibility could lead to less transparency and accountability in how education funds are used. Supporters, however, may contend that such measures are necessary to ensure that postsecondary institutions can adapt to unforeseen budgetary issues while still adhering to state guidelines.