Louisiana House Bill HB117

Louisiana 2016 1st Special Session

• Introduced: 2/23/16
• Refer: 2/23/16

Caption

Dedicates the avails of the existing one percent state sales and use tax to the Stability in Higher Education Fund and provides with respect to the extent of that tax base for purposes of monies available for deposit into the fund (Items #7 and 36) (EG SEE FISC NOTE GF RV See Note)

Impact

The enactment of HB 117 will redefine how sales tax revenues are allocated within the state. By directing these funds to the Stability in Higher Education Fund, the bill aims to ensure that public colleges and universities have the resources needed to maintain and enhance educational quality. It will help mitigate the financial strains that many educational institutions face and has the potential to positively impact enrollment, program offerings, and overall educational infrastructure.

Summary

House Bill 117 aims to dedicate the avails of the existing 2% state sales and use tax to the newly established Stability in Higher Education Fund. This fund is designed to support public post-secondary education in Louisiana. The bill seeks to amend various statutes that previously allocated a portion of the sales and use tax revenues to economic development activities and associated funds like the Marketing Fund. The intended shift in funding priority reflects a growing acknowledgment of the necessity for sustainable financial support for higher education institutions.

Sentiment

The sentiment around HB 117 appears generally supportive among education advocates and local government officials who recognize the pressing need for reliable funding for public colleges and universities. However, there has also been some concern regarding the removal of funds that were previously allocated for economic development, raising questions about potential trade-offs between economic growth initiatives and educational support. The bill has sparked discussions on balancing state priorities amid competing financial demands.

Contention

Notably, opponents of the bill argue that diverting funds from economic development activities could hinder growth prospects in other areas. There is a palpable tension between those advocating for essential educational support and those who fear that this shift may lead to underinvestment in critical economic strategies that also benefit public welfare. This debate highlights the significance of fiscal policy decisions and their cascading effects on multiple sectors within the state.