Louisiana House Bill HB1173

Louisiana 2014 Regular Session

• Introduced: 4/1/14
• Refer: 4/2/14

Caption

Prohibits certain types of funding for nongovernmental organizations if the continuation budget indicates a deficit

Impact

The bill significantly impacts state budget management by curtailing discretionary spending on nongovernmental organizations during fiscal constraints. This could lead to a decrease in funding for various programs that rely on state appropriations, particularly those provided by non-state entities. However, there are exceptions outlined in the bill, such as payments for court-ordered judgments and funding for specific public service organizations like councils on aging and volunteer fire departments. This carve-out ensures that critical services may still receive support even in times of budgetary shortfall.

Summary

House Bill 1173 aims to strengthen budgetary controls by prohibiting the appropriation of funds by line item or issuing lines of credit to nongovernmental entities if the continuation budget forecasts a deficit. The bill stipulates that the legislature cannot allocate state general or dedicated funds to such entities in years when expenditures are projected to exceed revenues, thereby tightening fiscal discipline. This measure reflects a broader effort in government to ensure that financial obligations align with projected economic realities, preventing overspending and potential insolvency.

Sentiment

Sentiments surrounding HB 1173 appear largely supportive among lawmakers prioritizing fiscal responsibility, particularly in challenging budgetary climates. Proponents argue that the bill is a necessary move to safeguard state financial stability and ensure that necessary funds are directed where they are most needed without jeopardizing fiscal health. Conversely, some lawmakers may express concern that limiting appropriations could adversely affect vital community services that depend on funding from the state, particularly in areas like social services and emergency response.

Contention

The primary contention regarding this bill lies in the balance between maintaining strict budget controls and ensuring that vulnerable segments of the community continue to receive essential services. Critics may argue that the bill could lead to a funding vacuum for key nonprofits and services that serve public needs, especially during tight budget periods. The discussion around HB 1173 raises important questions about how to effectively manage state funds while also fulfilling the government's role in supporting community welfare through appropriate resource allocations.