Louisiana Senate Bill SR199

Louisiana 2016 Regular Session

• Introduced: 6/6/16
• Passed: 6/6/16

Caption

Directs treasurer to make debt service payments of the full faith and credit obligations of the state from state general fund (direct) dollars.

Impact

The passage of SR199 has significant implications for state fiscal policy, particularly regarding how funds are allocated within the state treasury. By establishing the framework for using general fund dollars for debt service payments, the resolution may influence future budget decisions and the overall financial management of state obligations. It ensures that the funds remain consistent in support of the state's creditworthiness and ongoing financial responsibilities, thereby promoting fiscal stability.

Summary

Senate Resolution 199 directs the state treasurer of Louisiana to continue making debt service payments of the state's full faith and credit obligations using state general fund (direct) monies. This action aligns with a long-standing practice observed since at least the early 1980s. The resolution serves as a legislative reaffirmation of the method for financing these obligations, ensuring that funds intended for debt service are not drawn from other constitutional or statutory dedications. It aims to standardize the approach to debt service payments, providing clarity in state budgeting practices.

Sentiment

General sentiment around SR199 appears to be supportive, as it follows established financial practices. Lawmakers are likely to view this resolution positively, seeing it as a necessary measure to maintain continuity in state financial obligations. However, there may be concerns about the potential impact on funding for other state programs due to the prioritization of debt service payments.

Contention

While the resolution reinforces existing practices, it does raise the question of priority in budget allocations. Critics may argue that relying heavily on the general fund for debt service could limit the resources available for other essential services. This discussion reflects broader concerns about fiscal management and the allocation of state resources, although the resolution itself seeks to provide more structured guidance on fulfilling the state's financial commitments.