Louisiana Senate Bill SB354

Louisiana 2018 Regular Session

• Introduced: 3/2/18
• Refer: 3/2/18
• Refer: 3/12/18

Caption

Provides for the transfer, dedication, use, investment, and appropriation of funds in the state treasury. (gov sig)

Impact

The enactment of SB 354 is anticipated to provide a structured approach to managing state funds, particularly those that exceed projections. By creating a mechanism for overcollections, the bill aims to enhance deficit management strategies and ensure that resources are effectively utilized for fiscal responsibilities. This could lead to a more stable fiscal environment, as funds can be earmarked and invested in alignment with the state's financial goals.

Summary

Senate Bill 354, introduced by Senator LaFleur, establishes the Fiscal Year 2018-2019 Overcollections and Deficit Management Fund in the state treasury. This special fund is designed to manage excess revenues collected during fiscal operations and allocate funds for state budgetary needs. The bill allows for the appropriation, transfer, and investment of funds within this special treasury fund, directing that any earned interest be credited to the state general fund, thus potentially bolstering state finances.

Sentiment

Overall, the sentiment surrounding SB 354 appears favorable among fiscal policymakers and advocates for sound financial management. Proponents argue that a designated fund for surplus revenues is a proactive measure in addressing potential budget shortfalls in future fiscal years. However, some critics question the flexibility of such funds, suggesting that earmarking may limit resource allocation to urgent needs that arise unexpectedly.

Contention

One notable point of contention could arise from discussions about the appropriateness of the state legislature's control over such funds. Critics may argue that strict regulations surrounding the fund could hinder the ability to respond to changing fiscal conditions. The balance between structured fund management and the need for responsive governance may be a key area of debate as the bill progresses through legislative scrutiny.