Authorizes the securitization of the economic damage portion of the Deepwater Horizon income stream. (Item #30)(gov sig) (OR INCREASE SG EX See Note)
The bill's adoption is expected to significantly affect state infrastructure by providing a structured mechanism for financing projects through the sale of bonds. It outlines a clear path for revenue allocation from the Deepwater Horizon litigation settlements, with funds directed towards the Medicaid Trust Fund for the Elderly, the Health Trust Fund, and transportation projects. The legislation also emphasizes that any economic damages covered under this bill will not constitute a public debt of Louisiana, thereby legalizing the corporation's financial instruments without implicating state funds.
Senate Bill 21 establishes the Louisiana New Roads and Infrastructure Corporation, aimed at managing and deploying the state allocation of economic damages from the Deepwater Horizon oil spill. The corporation is designed as a special purpose, independent public entity that will issue bonds backed by these economic damage revenue assets. This funding strategy aims to facilitate infrastructure projects in Louisiana, particularly those related to transportation, while ensuring that all financial maneuvers adhere to stringent state oversight.
Overall sentiment around SB21 appears supportive among state officials, who emphasize its potential to revitalize Louisiana's infrastructure with a flexible financing model. However, there are concerns regarding transparency and accountability given the corporation's independent status and the substantial sums of public money involved. The sentiment is largely characterized by a mix of optimism for economic recovery through infrastructure investment and caution regarding the governance of this new entity.
Key points of contention include the risk of financial mismanagement due to the corporation's independence from direct legislative oversight, raising questions about accountability. Additionally, stakeholders in community health and welfare worry that prioritizing infrastructure funding may undermine ongoing commitments to social services as funds are allocated away from other essential services in the wake of the economic damage settlements. The importance of maintaining checks on the corporation's access to state revenue is central to discussions surrounding SB21.