Louisiana House Bill HB657

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16
• Report Pass: 3/21/16

Caption

Provides for additional authority for the governor and legislature to reduce appropriations if there is a projected deficit (EG SEE FISC NOTE SD EX See Note)

Impact

The bill seeks to amend existing laws relating to budgetary procedures, specifically regarding how much of appropriated funds—including constitutionally protected or mandated funds—can be modified in the event of a projected financial shortfall. With the proposed changes, the legislature would have increased power to adjust these appropriations proactively, potentially stabilizing the state budget during economic downturns or unexpected revenue drops. This change could have implications for various sectors dependent on state funding.

Summary

House Bill 657 aims to enhance the authority of the governor and legislature in managing state budget appropriations, particularly in response to projected deficits. The bill proposes to increase the percentage of funds that can be reallocated from 5% to 10% to address budget shortfalls. This change is intended to give state officials more flexibility in managing resources and preventing deficits in essential services and programs.

Sentiment

The sentiment surrounding HB 657 appears to be cautiously supportive among legislators who view it as a necessary tool for financial management in uncertain economic times. However, there may also be underlying concerns among some stakeholders regarding the implications of expanding the governor's authority over budgetary decisions, especially in terms of transparency and accountability. The discussions highlight a broader concern about the balance of power in the state's financial decision-making processes.

Contention

Notably, while the bill aims to provide a practical solution for fiscal management, it also raises questions about the potential centralization of financial authority. Opponents may argue that increasing the governor's power to adjust appropriations could lead to mismanagement or misuse of funds, particularly in politically contentious areas. The appropriate checks and balances would need to be assured to address any concerns about fiscal responsibility and the prioritization of funding across different sectors within the state.