Louisiana House Bill HR106

Louisiana 2012 Regular Session

• Introduced: 5/21/12
• Passed: 5/22/12

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 asserts that the existing statutory dedications redirect over $3.5 billion away from the state general fund, which could hinder financial flexibility in times of economic downturns. By facilitating a structure to regularly review and evaluate these dedications and tax exemptions, HR106 intends to provide the Louisiana Legislature with better insight into revenue allocation. This is seen as necessary for adapting and improving budget practices to align state financial operations with fiscal realities.

Summary

House Resolution 106 (HR106) is a legislative proposal that aims to address the significant number of statutory dedications and tax exemptions existing within the state of Louisiana. The resolution calls for the state treasurer to coordinate the identification and classification of these dedications and exemptions, along with their collective impact on the state's revenues. With Louisiana experiencing a budget deficit and a reduction in revenue, there is a pressing need to analyze these financial mechanisms to understand their implications and ensure accountability moving forward. The bill underscores the importance of routine reviews of statutory dedications to minimize unchecked fiscal obligations that contribute to budgetary challenges.

Sentiment

Overall, the sentiment around HR106 appears to be cautiously optimistic. Many legislators recognize the necessity for such a measure in light of the budget deficits and the ever-increasing financial pressures faced by the state. While there may be diverse opinions on how effectively these evaluations can be conducted or the potential for legislative pushback on certain exemptions or dedications, the consensus seems to support a thorough examination of existing fiscal policies. Advocates believe this bill could help create a more transparent and accountable framework for financial governance.

Contention

A point of contention surrounding HR106 is the balance it seeks to achieve between fiscal oversight and the potential repercussions for entities benefiting from these dedications and exemptions. Stakeholders within various industries may view this initiative as a threat to their financial stability, leading to potential lobbying against the resolution. Additionally, there may be concerns regarding the workload this initiative imposes on the state treasurer and involved agencies, as gathering comprehensive data on these financial mechanisms is no small task.