Establishes the Mineral Revenue Fund and provides for dedications into and the uses of monies in the fund (Item #7) (EG -$465,000,000 GF RV See Note)
Impact
The implementation of HB 115 is expected to provide significant financial support to state retirement systems, which have faced challenges with unfunded liabilities. By directing a substantial portion of mineral revenues towards these liabilities, the legislature aims to bolster the financial health of retirement funds, thereby increasing security for state employees. Concurrently, the allocation of 30% for transportation projects underlines a commitment to improve the state's infrastructure, an area critical for economic development and public safety.
Summary
House Bill 115 aims to establish the Mineral Revenue Fund, a special treasury fund designated for managing revenues generated from mineral production and exploration in Louisiana. The bill stipulates that all mineral revenues received by the state, barring certain statutory allocations, will funnel into this fund. Notably, the legislation mandates that 70% of the fund's money be allocated to state retirement systems to address unfunded accrued liabilities, while the remaining 30% is earmarked for transportation projects, specifically benefiting highway and port infrastructure.
Sentiment
The sentiment surrounding HB 115 reflects a pragmatic approach to addressing the fiscal challenges in Louisiana. Supporters emphasize the bill's potential to strengthen both the retirement systems and infrastructure funding, viewing it as a necessary measure to ensure economic stability. However, there is also concern among critics regarding how effectively the bill will address long-term financial obligations, with debates centering on whether the projected revenues will be sufficient to meet the needs of both the retirement systems and the transportation initiatives.
Contention
One of the notable points of contention regarding HB 115 lies in the reliance on fluctuating mineral revenues, which can be unpredictable. Critics argue that depending on these revenues could potentially jeopardize the funding stability of both retirement systems and transportation projects in times of economic downturn. Additionally, while proponents see the bill as a holistic solution to dual challenges of retirement and infrastructure, opponents express fears over the long-term sustainability of addressing unfunded liabilities through variable income sources.
Establishes the Mineral Revenue Stabilization Trust Fund for the deposit of mineral revenues and provides for the dedication of mineral revenues (OR -$200,000,000 GF RV See Note)
Provides relative to the disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and dedication of certain revenues to the Budget Stabilization Fund. (EG SEE FISC NOTE GF RV See Note)
(Constitutional Amendment) Establishes the Mineral Revenue Stabilization Trust Fund and provides for dedication of mineral revenues (OR -$317,000,000 GF RV See Note)
Provides with regard to dedications of certain excess mineral revenues and deposits into the Budget Stabilization Fund (RE1 SEE FISC NOTE GF RV See Note)
Constitutional amendment to require deposit of certain mineral revenue into the Transportation Trust Fund. (2/3 - CA13s1(A))(7/1/17) (OR SEE FISC NOTE GF RV)
Constitutional amendment to rename the Budget Stabilization Fund to the Budget and Transportation Stabilization Trust and to provide for use of monies in the fund. (2/3s CA 13s 1 (A)) (EN SEE FISC NOTE SD RV See Note)
Appropriates funds for payment of the consent judgments against the state in the consolidated actions entitled Canella et al. v Oliver et al. consolidated with Troy V. Canella v Oliver et al.
Appropriates funds for payment of the consent judgment against the state in the suit entitled David L. Ocmand et al. v. Town of Brusly et al. c/w Louisiana Farm Bureau Casualty Insurance Company v. the State of Louisiana c/w State Farm Mutual Automobile Insurance Com. v. the State of Louisiana
Appropriates funds for payment of the consent judgment against the state in the suit entitled David L. Ocmand et al. v. Town of Brusly et al. c/w Louisiana Farm Bureau Casualty Insurance Company v. the State of Louisiana c/w State Farm Mutual Automobile Insurance Com. v. the State of Louisiana