Appropriates money to the Budget Stabilization Fund from revenues in excess of the January official forecast
Impact
If enacted, HB 131 will directly affect state financial management by reinforcing the Budget Stabilization Fund. Having a robust Budget Stabilization Fund is pivotal for the state, as it provides a buffer against economic downturns, allowing for more consistent funding for essential services during leaner fiscal years. The requirement outlined in the bill that appropriations be reduced if revenue falls short aims to maintain fiscal responsibility and prevent overextension of state financial commitments.
Summary
House Bill 131, sponsored by Representative Edmonds, focuses on making supplemental appropriations to strengthen the Budget Stabilization Fund for the state of Louisiana. Specifically, the bill appropriates $99 million from excess revenues collected during the fiscal year 2016-2017, as determined by the state’s official revenue forecast from January 13, 2017. This measure is intended to ensure that the state has a solid financial foundation amid fluctuating revenue streams, contributing to greater fiscal stability and preparedness for future economic challenges.
Sentiment
The sentiment surrounding HB 131 appears to be generally supportive, as it addresses crucial aspects of fiscal health. While legislative discussions specifically around this bill are not highlighted, appropriating funds to a stabilization fund typically garners bipartisan support. Stakeholders who value financial responsibility and prudent fiscal management tend to favor measures that enhance the state's ability to manage economic challenges.
Contention
There is a potential point of contention regarding the source of the appropriated funds. While the bill capitalizes on excess revenues, there could be debates concerning the sustainability of such funding channels and whether they may lead to future complications if economic conditions change. Critics may argue that relying on fluctuating revenue streams could pose risks to long-term budgeting practices and financial planning.
Excepts deposits in excess of expenditure limit from the temporary suspension of deposits into the Budget Stabilization Fund (EN SEE FISC NOTE SD 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) 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)
Provides for the creation of the Budget and Transportation Stabilization Trust from the Budget Stabilization Fund and provides for use of monies in the fund. (See Act) (EN SEE FISC NOTE SD RV See Note)