Provides relative to capital outlay reform (RE DECREASE GF EX See Note)
Impact
If enacted, HB 122 will establish revised parameters regarding the amount of general obligation bond funding available for nonstate projects, capping it at no more than 25% of the state's cash line of credit capacity per fiscal year. Additionally, the bill gives an edge to highway, bridge, flood control, and economic development projects in the funding priority list, thus likely steering state resources towards these areas. The anticipated change aims to foster long-term economic benefits through improved infrastructure while ensuring local governmental accountability in spending state funds.
Summary
House Bill 122 aims to reform the capital outlay process in Louisiana by defining and prioritizing funding for economic development projects. It seeks to enhance the allocation of cash lines of credit for various public works and infrastructure projects, while also instituting more stringent requirements for nonstate entities. The bill delineates a specific framework for how the recommendations for such funding are to be processed and approved, placing oversight responsibility on both the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs before projects reach the State Bond Commission for final consideration.
Sentiment
The overall sentiment surrounding HB 122 appears to be cautiously optimistic among proponents who view it as a necessary restructuring of the funding allocation process to enhance economic development. However, mixed reactions from local governmental entities stress concerns regarding increased bureaucratic oversight and the potential limitations imposed on nonstate projects, particularly from entities outside governmental control. The balance between managing state finances effectively and empowering local entities is a continuing source of debate.
Contention
Notable points of contention highlighted in discussions around HB 122 include the prohibition of capital outlay funding for projects initiated by nongovernmental entities, which critics argue could stifle local initiatives that do not fall under the state purview. Additionally, the preference for state projects may create an inequitable environment that sidelines smaller, community-focused initiatives in favor of larger infrastructure projects. As the bill seeks to amend existing laws on funding oversight, significant dialogues will likely continue regarding the degree of local governance and its role in capital project planning and execution.
Requires the Joint Legislative Committee on Capital Outlay to approve line of credit recommendations for nonstate entity projects (EG NO IMPACT GF EX See Note)
Requires the Joint Legislative Committee on Capital Outlay to approve line of credit recommendations for state and nonstate entity projects (RE NO IMPACT GF EX See Note)
Provides relative to the Dedicated Fund Review Subcommittee of the Joint Legislative Committee on the Budget. (7/1/20) (EN SEE FISC NOTE GF EX See Note)
Requires the Joint Legislative Committee on Capital Outlay to approve line of credit recommendations for nonstate entity projects (RE NO IMPACT GF EX See Note)
Creates a state commission (SCORE) to submit a written plan by January 6, 2012, to reduce and eliminate state income taxes, recommend budget reduction actions, and reduce or eliminate tax benefits; provides that if a concurrent resolution containing the plan is adopted, then the phase-out of income tax over 10 calendar years begins and the governor and the commissioner of administration are directed to take certain budget reduction actions and submit budget reduction legislation. (See Act) (RR1 +$120,000,000 GF RV See Note)
Provides a procedure for the LSU Board of Supervisors and the commissioner of administration to seek approval from the JLCB and the legislature to proceed with the sale of a hospital. (gov sig) (EN SEE FISC NOTE GF EX)