Louisiana House Bill HB81

Louisiana 2015 Regular Session

• Introduced: 3/11/15
• Refer: 3/11/15
• Refer: 4/13/15

Caption

Increases the mineral revenue base for the Budget Stabilization Fund and dedicates the additional revenue to higher education and transportation (OR SEE FISC NOTE SD RV)

Impact

The creation of the Better Highways and Higher Education Fund will dedicate the new revenues – which will be fifty percent allocated to the Transportation Trust Fund for construction and maintenance projects, and fifty percent to various higher education institutions and support programs – providing much-needed support to these areas. This financial boost is intended to enhance state infrastructure and educational resources, thereby fostering long-term economic development. Furthermore, the bill allows for future increases to the base amount every ten years, ensuring adaptive financial growth in response to market conditions.

Summary

House Bill 81 proposes an increase in the mineral revenue base used to determine the deposits made into the Budget Stabilization Fund (BSF) from $850 million to $940,715,000. The BSF aims to stabilize the state budget against fluctuations in mineral revenue, crucial for a state like Louisiana, where mineral extraction plays a significant economic role. By raising the base, the bill is designed to channel additional revenues into a newly created fund dedicated specifically to transportation and higher education, collectively referred to as the Better Highways and Higher Education Fund.

Sentiment

The sentiment around HB 81 has been largely positive, particularly among stakeholders in the transportation and education sectors who view the bill as a significant opportunity to boost funding. Supporters argue that allocating mineral revenues in this way will provide more predictable funding streams, enhancing planning and execution for crucial projects. However, there are concerns regarding reliance on mineral revenues, reflecting broader debates on economic diversification within the state.

Contention

While proponents emphasize the benefits of increased funding and the strategic allocation of resources, there are those who express apprehension about potentially overshooting the revenue targets and the sustainability of depending heavily on mineral extraction. Critics of the bill may raise issues about the long-term viability of mineral revenues given market fluctuations and advocate for more diversified funding mechanisms that do not overly rely on this volatile sector.