Louisiana House Bill HB6

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

The bill's amendments will have a significant effect on how funds are allocated within the state budget. By tying appropriations to the REC's revenue forecasts, it enables a more adaptable fiscal approach, allowing state legislators to respond more dynamically to changing economic conditions. This can potentially enhance the efficiency of state financial management, as it mandates that funding decisions be closely aligned with actual projected revenues rather than projections based on past sessions.

Summary

House Bill 6 primarily amends the General Appropriation Act by refining how supplementary appropriations become effective. Instead of being contingent on actions taken during the 2018 Second Extraordinary Session, the bill proposes that these appropriations will become effective upon the recognition of additional revenue by the Revenue Estimating Conference (REC) prior to July 1, 2018. This shift aims to streamline funding processes and ensure that appropriations align with updated revenue forecasts, ultimately providing more clarity in financial planning for the state.

Sentiment

General sentiment regarding HB 6 appears cautiously optimistic among proponents who see it as a necessary update to the funding process involving legislative appropriations. Supporters argue that this bill is a positive step toward fiscal responsibility and transparency in budgeting. However, concerns may arise regarding the reliance on revenue forecasts and the implications for various state programs that depend heavily on timely appropriations.

Contention

The primary contention surrounding HB 6 may center on the reliance on revenue forecasting methods that could lead to either over-optimism or pessimism in funding projections. There could be debates regarding the adequacy of the REC's forecasting methods and concerns about how fluctuations in state revenue might impact services funded by appropriations. Critics could argue that the bill places too much emphasis on uncertain future revenues, potentially jeopardizing essential state programs reliant on stable funding.