The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Donahue (SB)
Proposed law provides that all economic reports for projects submitted in conjunction with the
request for either the review or approval of the Joint Legislative Committee on the Budget
(JLCB) shall be in accordance with the following procedures:
(1)The requesting department shall retain a non-public party or an economist with
experience in dynamic economic modeling and static economic modeling to perform an
economic analysis of the proposed project using both models. The non-public party or
economist shall be selected from a list of not less than three non-public parties or
economists recommended by the Legislative Fiscal Office (LFO).
(2)The department shall submit the request for JLCB approval of the project with both
economic analyses for its review at least two full weeks prior to the meeting at which the
department is seeking the committee's approval.
Proposed law also provides for definitions:
"Project" shall mean any public-private partnership, agreement with a non-public party,
lease, cooperative endeavor agreement, memorandum of understanding, or other contractual
agreement which would result in or is expected to result in the obligation of state resources or the
expenditure of revenues from the operation, management, or control of a state resource.
"Dynamic economic model" shall mean a model that accounts for the input-output
relationships between all industry sectors within the particular study locale, while also
incorporating the effects of wage and price adjustments, consequent substitution effects in
production inputs and the consumption of outputs, labor and population flows, and productivity
changes as an initiating change or ripples through the economy.
"Static input-output economic model" shall mean a model based on data reflecting the
inputs from all supplying industries that are necessary to produce a unit of output by a particular
industry of interest. Also, the collection of input and output data for all industries is often
transformed into tables of "multipliers" that reflect how much of a given change in the economic
activity of a particular industry in a particular region will be associated with changes in all the
other industries in the region.
Effective July 1, 2014.
(Adds R.S. 24:653(M))