Louisiana House Bill HB5

Louisiana 2018 3rd Special Session

• Introduced: 6/18/18
• Refer: 6/18/18

Caption

Provides for effectiveness of Section 19.A of Act No. 2 of the 2018 2nd E.S. (General Appropriation Act) (Item #3)

Impact

This change in law reflects a shift towards more responsive budget management, allowing appropriations to be enacted more fluidly as revenue conditions change. By effectively removing the requirement tied to actions taken during the 2018 session, the bill seeks to provide a more direct and timely response to fiscal realities. Importantly, the provision for pro rata funding remains intact, ensuring that if the increased revenues are not sufficient to cover the appropriations fully, the available funds will be distributed equitably among the various appropriations.

Summary

House Bill 5, introduced during the 2018 Third Extraordinary Session, aims to amend Section 19.A of the General Appropriation Act to alter the conditions under which supplementary appropriations become effective. The bill stipulates that these appropriations will now be triggered by a recognition of increased revenue by the Revenue Estimating Conference (REC) for the fiscal year 2018-19, rather than being contingent upon specific legislative actions taken during the session. This adjustment is primarily designed to streamline the appropriations process and ensure that funding is aligned with available resources.

Sentiment

Overall, the sentiment surrounding HB 5 appears to be pragmatic, focusing on the necessity of adapting the state's budgeting procedures in response to economic conditions. Lawmakers seem to recognize the importance of flexibility in fiscal management, thus garnering support across party lines. However, some concerns may exist surrounding the potential for inadequate funding distribution if revenue projections do not materialize as anticipated, which could create challenges for certain programs reliant on these appropriations.

Contention

Notable points of contention may arise from the ongoing debate about revenue estimation accuracy and the potential implications of legislative changes on long-term budgeting strategies. Legislators might express differing views on the wisdom of removing requirements that could encourage diligent fiscal planning and ensure accountability in the appropriations process. As the bill is implemented, it will be crucial to monitor its impact on the availability of funding for essential services and programs across the state.