Constitutional amendment to reallocate severance tax to parishes for Parish Transportation Funds. (2/3 - CA13s1(A))
Impact
The amendment to existing laws would enhance the fiscal autonomy of local governments, as they would receive a larger share of severance tax revenues directly related to the activities occurring within their boundaries. By adjusting the financial limits and requirements for expenditure, it aims to ensure that local authorities have the necessary funds to invest in transportation infrastructure, which is critical for community growth and development. The proposed changes could lead to improved roads, bridges, and public transport systems, improving overall economic development within affected parishes.
Summary
Senate Bill 141 proposes a significant constitutional amendment that aims to reallocate severance tax revenues to parishes in which the severance or production of natural resources occurs. Specifically, the bill seeks to increase the maximum amount of severance tax allowed to be remitted to parishes from $850,000 to $2,850,000, thereby providing local governments with more financial resources to address community needs. Additionally, the bill mandates that 100% of any excess severance tax revenues be used exclusively for transportation projects within those parishes, reinforcing the connection between natural resource extraction and local infrastructure development.
Sentiment
The sentiment surrounding SB 141 appears to be generally positive among advocates for local governance, as the bill is viewed as a means of empowering parish authorities. Proponents argue that empowering local governments with more resources can lead to better decision-making tailored to the specific needs of the community. However, there may also be concerns from state-level authorities regarding the centralization of tax resources and the implications it could have on state funding mechanisms, which could lead to polarized views on the effectiveness of the proposed changes.
Contention
While many support the increase in funding and local control over severance tax revenues, potential contentions could arise from differing views on fiscal responsibility and taxation. Critics may argue that increasing funding to local governments without stringent oversight could lead to mismanagement of funds. Additionally, there could be concerns about the sustainability of relying heavily on severance tax revenues, especially in light of market fluctuations in the natural resource sector which may affect funding stability for transportation projects.
(Constitutional Amendment) Increases amounts of severance tax revenues remitted to parishes and requires that portions of these amounts be spent on parish transportation projects (RE -$21,200,000 GF RV See Note)
(Constitutional Amendment) Provides relative to severance tax revenues remitted to parishes in which the associated severance occurs (RE -$46,900,000 GF RV See Note)
Constitutional amendment to remove the "trigger", and instead start on July 1, 2015, the new maximum allocation of certain severance taxes to parishes in which severance occurs and the distribution to the Atchafalaya Basin Conservation Fund of a certain amount of revenues received from severance taxes and royalties on state lands in the Atchafalaya Basin. (2/3 - CA13s1(A)) (7/1/15) (EG -$41,200,000 GF RV See Note)
(Constitutional Amendment) Provides relative to the amount of severance tax collected by the state and remitted to parishes (OR DECREASE GF RV See Note)
(Constitutional Amendment) Provides relative to severance tax revenues remitted to parishes in which the associated severance occurs (EG -$65,000,000 GF RV See Note)
Constitutional amendment to establish a budget stabilization program for Medicaid programs, certain elderly services, rehabilitation services, and other health care services. (2/3-CA13s1(A)) (OR SEE FISC NOTE GF EX)
Requires parishes to use portions of severance tax revenues received from the state for economic development activities and infrastructure projects (EG SEE FISC NOTE GF RV See Note)
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.