(Constitutional Amendment) Limits appropriations from the state general fund and creates the Working Cash Stabilization Fund (OR -$174,400,000 GF RV See Note)
Impact
The creation of the Working Cash Stabilization Fund is intended to enhance fiscal responsibility within the state's budgeting process, ensuring that appropriations are aligned more closely with actual revenue forecasts. This measure aims to prevent overspending that could lead to budget deficits, thereby promoting a more sustainable financial posture for Louisiana. By controlling appropriations in line with a realistic assessment of available revenue, the bill seeks to safeguard the state's financial health and improve accountability in fiscal management.
Summary
House Bill 535 proposes a constitutional amendment to establish the Working Cash Stabilization Fund in Louisiana. Starting from the fiscal year 2015-2016, the state treasurer would be required to deposit 2% of estimated state general fund revenues into this fund. The primary purpose of the fund is to provide a financial buffer that can be utilized in case of budget shortfalls, allowing for the stabilization of state finances in challenging economic times. The bill also stipulates that total appropriations from the state general fund shall not exceed 98% of the estimated revenues as confirmed by the Revenue Estimating Conference.
Sentiment
The legislative discourse surrounding HB 535 was generally supportive, reflecting a consensus on the need for more robust fiscal measures. However, concerns were raised about the limitations that such a fund might impose on state spending. While proponents view the bill as a necessary step towards fiscal responsibility, critics argue that strict limits on appropriations could hinder the state's ability to respond to urgent needs and emergencies that may require swift financial action, thereby creating a potential conflict between sound budgeting and responsive governance.
Contention
A notable point of contention in the discussions was the balance between ensuring fiscal discipline and maintaining enough flexibility within the budget to address unforeseen expenses. Some legislators argued against the constitutional amendment, suggesting that it could lead to missed opportunities for funding vital programs and services in times of need. Overall, the debate highlighted the challenge of establishing a budgetary framework that promotes fiscal stability while allowing for responsive governance in times of crisis.
(Constitutional Amendment) Provides for a hospital stabilization formula and assessment and creates the Hospital Stabilization Fund and provides for uses of the fund (EN INCREASE SD RV See Note)
Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. (2/3-CA13s1(A)) (OR INCREASE GF RV See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (OR SEE FISC NOTE GF EX)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3s-CA7s10(F)(1)) (EG SEE FISC NOTE GF RV See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (RE SEE FISC NOTE GF RV See Note)
(Constitutional Amendment) Authorizes limited redirection and transfer of funds supporting allocations and appropriations from the state general fund and dedicated funds in certain circumstances (OR SEE FISC NOTE SD EX See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (OR SEE FISC NOTE SD EX)
Constitutional amendment to revise the circumstances that would allow the reduction of constitutionally protected expenditures and dedications to eliminate a projected deficit in an ensuing fiscal year. (2/3 - CA13s1(A)) (EN SEE FISC NOTE SD EX See Note)
Requires the Revenue Estimating Conference to designate certain general fund money from mineral revenue as restricted and prohibits including such revenue in the executive budget (RE SEE FISC NOTE GF RV See Note)
Provides for the prohibition of the expenditure of state funds to refund a tax credit, pay certain rebates, or repurchase or grant transferable tax credits granted through incentive contracts unless budgeted and appropriated. (gov sig)
Requires spending due to constitutional or other mandates to be considered in a separate appropriation bill from spending that is not required to be funded if health care or higher education funding is reduced (EN SEE FISC NOTE GF RV See Note)