Louisiana House Bill HB853

Louisiana 2018 Regular Session

• Introduced: 4/3/18
• Refer: 4/4/18
• Report Pass: 4/30/18

Caption

Dedicates certain state sales and use tax revenues for deposit into the Construction Subfund of the Transportation Trust Fund under certain circumstances (EG DECREASE GF RV See Note)

Impact

If enacted, HB 853 would effectively reallocate a significant portion of state revenue towards transportation infrastructure projects. It aims to enhance the financial resources available for construction, thereby potentially improving the state's transportation systems. This dedication of funds could lead to a more sustainable financial model for supporting critical infrastructure, as it ties funding directly to the performance of state sales tax revenues.

Summary

House Bill 853 proposes to allocate certain state sales and use tax revenues for deposit into the Construction Subfund of the Transportation Trust Fund. This would occur under specific circumstances, namely when state 'General Revenues from Sales and Use Taxes' exceed $4 billion for two consecutive years. The bill sets forth a protocol for notification from the commissioner of administration to the governor, legislature, and state treasurer regarding the threshold being met, ensuring transparency and accountability in the funding process.

Sentiment

The sentiment around HB 853 seems to be generally supportive among those who prioritize infrastructure development and economic growth. Supporters argue that the bill is a proactive measure to ensure ongoing investment in transportation, which is vital for the state's economic health. However, there could be concerns regarding the impact of such dedicated funding on other areas of the budget, especially if state revenues do not meet the projected thresholds in future fiscal years.

Contention

Notable points of contention could arise regarding the implications of dedicating sales tax revenues to a specific fund. Critics may argue that it creates rigidity in the state budget, potentially limiting funds available for other essential services such as education or health care. Furthermore, there are concerns about the reliance on fluctuating sales tax revenues, as economic downturns could affect the availability of funding for transportation projects, undermining the intent of the bill.