Louisiana House Bill HB629

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14
• Refer: 4/22/14
• Refer: 4/23/14
• Report Pass: 4/28/14
• Engrossed: 5/13/14
• Report Pass: 5/29/14

Caption

(Constitutional Amendment) Provides for the deposit of revenues into the Transportation Trust Fund (RRF SEE FISC NOTE GF RV See Note)

Impact

If passed, this bill would amend existing Louisiana constitutional provisions concerning how excess mineral revenues are allocated. By shifting funds from the Budget Stabilization Fund to the TTF, the bill aims to bolster immediate infrastructure funding. The Budget Stabilization Fund is traditionally reserved for circumstances of budget deficits, which means this change could impact the state's ability to manage financial emergencies in the future. However, supporters argue that prioritizing transportation will yield economic benefits and improve public safety through better roads and infrastructure.

Summary

House Bill 629 proposes a constitutional amendment that would divert $50 million of excess mineral revenues into the Transportation Trust Fund (TTF) instead of directing these funds into the Budget Stabilization Fund. This amendment would be effective for a decade, starting from July 1, 2017, and concluding at the end of the fiscal year on June 30, 2027. The primary intention is to enhance funding for transportation infrastructure as managed by the state’s Department of Transportation and Development, thereby reinforcing the state's efforts in maintaining and improving its highway systems.

Sentiment

Discussions around HB 629 revealed a mix of sentiment among lawmakers and the public. Proponents highlighted the urgent need for transportation funding in a state known for its extensive road network, emphasizing that improved infrastructure is vital for economic growth. Conversely, opponents raised concerns that diverting funds from the Budget Stabilization Fund could compromise the state’s financial safety net, potentially exacerbating issues during economic downturns. This sentiment reflects a broader debate about the balance between infrastructure investment and fiscal prudence in state budgeting.

Contention

Notable points of contention include the reliance on mineral revenues, which can be volatile and unpredictable, making planning for long-term infrastructure funding challenging. Critics of the bill suggested that relying on such revenues could lead to unsustainable funding practices, particularly if mineral prices fluctuate significantly. The amendment's proposal for a state infrastructure bank as a potential use for the funds also sparked debate, with some legislators questioning the necessity and implications of establishing such a bank, fearing it might create additional layers of bureaucracy.