Louisiana House Bill HCR157

Louisiana 2012 Regular Session

• Introduced: 5/17/12
• Refer: 5/21/12

Caption

Requests various state entities to provide information relative to existing statutory dedications and tax deductions, exclusions, and credits, and to report findings and recommendations to the legislature

Impact

The resolution highlights significant concerns regarding Louisiana's ongoing budget deficits, which have led to a reduction in state revenue. The 2011-2012 fiscal year showed an alarming $219.8 million budget deficit, and ongoing issues have since compounded. In this context, the bill seeks to identify over $3.5 billion in revenue redirected by statutory dedications that often evade scrutiny. By comparing this with the extensive tax exemptions exceeding $10 billion, HCR157 aims to establish a framework for better governance and oversight over secondary fiscal policies that can impact the general fund during budget cuts.

Summary

HCR157, introduced by Representative Harrison, requests various state entities in Louisiana to provide information regarding existing statutory dedications, tax deductions, exclusions, and credits. The primary aim of the resolution is to assess the revenue lost or diverted due to these statutory arrangements and to analyze their economic impacts. The request includes a call for a report detailing findings and recommendations to be submitted to the Louisiana Legislature, fostering a greater understanding of the financial implications of these state-level fiscal policies.

Sentiment

The sentiment surrounding HCR157 appears to lean towards a proactive approach in fiscal management, with supporters likely looking for enhanced transparency and accountability. By urging a systematic review of fiscal dedications and exemptions, the resolution addresses the potential for financial misallocation and the necessity for legislative oversight. Despite potentially facing opposition from entities benefiting from these dedications, which might argue for their importance in specific sectors or industries, the overarching goal is to align financial practices with the state’s fiscal health.

Contention

Some contention may arise regarding the implications of requiring state agencies to cooperate with the state treasurer for this comprehensive review. There may be pushback from specific sectors that rely on existing statutory dedications or tax exemptions, which could view the resolution as a threat to their financial operations. Furthermore, stakeholders might express concern over whether the suggested reviews may lead to cuts or changes in current funding structures, which could impact various state programs that are funded through these dedications.