(Constitutional Amendment) Establishes the Revenue Stabilization Trust Fund (EN SEE FISC NOTE SD RV See Note)
Impact
The establishment of the Revenue Stabilization Trust Fund represents a significant amendment to state financial management practices. The funds can only be appropriated under specific conditions, such as reaching a balance of over five billion dollars, ensuring that only a portion (up to 10%) can be used for capital outlay projects and transportation infrastructure. This creates a structured approach for budget surplus management, aimed at fostering responsible financial stability while prioritizing state infrastructure.
Summary
House Bill 603 establishes the Revenue Stabilization Trust Fund in the state treasury dedicated to managing and utilizing surplus revenues effectively. This bill mandates that certain excess revenues, particularly from mineral and corporate taxes, are allocated to this fund. Specifically, mineral revenues exceeding an established threshold and corporate tax revenues over a specified amount will be continuously deposited into the trust fund, aiming to create financial stability and ensure funds are available for essential projects when fiscal conditions allow.
Sentiment
The sentiment surrounding HB 603 appeared largely positive, with broad bipartisan support. The proposed fund is seen as a prudent financial tool that can help the state manage its resources better, especially in times of fiscal volatility. Legislators affirm that it is crucial for long-term economic planning, and this structured fund may mitigate the risk of budget deficits and provide a reliable source of funding for vital state projects.
Contention
While there was significant support for HB 603, the discussions highlighted some contention regarding the constraints on using funds from the Revenue Stabilization Trust Fund. Some legislators raised concerns that limiting appropriations to a strict percentage might hinder responsiveness to emergencies or urgent funding needs. Critics argued for a more flexible approach to ensure that local and state needs could be met promptly, particularly if unexpected costs arise in economic downturns or during emergencies.
(Constitutional Amendment) Establishes the Mineral Revenue Stabilization Trust Fund and provides for dedication of mineral revenues (OR -$317,000,000 GF RV See Note)
(Constitutional Amendment) Establishes the Mineral Revenue Stabilization Trust Fund and provides for the deposit of mineral revenues (OR -$200,000,000 GF RV See Note)
(Constitutional Amendment) Modifies disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and deposits of certain revenue streams into the Budget Stabilization Fund (RRF INCREASE GF RV See Note)
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)
Authorizes local taxing authorities to impose additional sales and use taxes pursuant to Article VI, Section 30(B) of the Louisiana Constitution (OR SEE FISC NOTE LF RV)
Provides relative to the printing of certain constitutional provisions regarding disqualification from holding elective office that were unconstitutionally adopted
Constitutional Amendment to abolish the Board of Regents and the postsecondary management boards and transfer their powers, duties, and responsibilities to a newly created La. Postsecondary Education Board of Trustees. (2/3 - CA13s1(A)) (OR INCREASE GF EX See Note)
Provides relative to the state sales and use tax exemptions for food for home consumption, residential utilities, and prescription drugs (OR NO IMPACT GF RV See Note)
(Constitutional Amendment) Relative to management of postsecondary education, abolishes the Board of Regents and the management boards and transfers their powers, duties, and responsibilities to a newly created La. Postsecondary Education Board of Trustees (RE INCREASE GF EX See Note)