Louisiana Senate Bill SB187

Louisiana 2021 Regular Session

• Introduced: 4/1/21
• Refer: 4/1/21
• Refer: 4/12/21
• Report Pass: 6/6/21

Caption

Provides for the creation, transfer, dedication, deposit, and use of certain funds. (gov sig) (EG NO IMPACT SD EX See Note)

Impact

The creation of the Fiscal Year 2021 Reserve Fund is anticipated to have a significant impact on state fiscal management. By ensuring that unexpended funds remain available in future periods, the state may enhance its financial stability and capacity to manage unforeseen expenses. This provision could lead to improved budgeting practices and offer a safety net that can be utilized for state priorities or emergencies, thereby supporting ongoing fiscal health in Louisiana.

Summary

Senate Bill 187, introduced by Senator White, establishes the Fiscal Year 2021 Reserve Fund as a special fund within the state treasury. This fund allows for the transfer, dedication, deposit, and usage of specified funds as determined by legislative action. The bill emphasizes that any financial resources appropriated to the fund will remain secured and unspent funds will not lapse at the end of the fiscal year. Instead, they will remain in the fund and can be invested by the state treasurer to generate interest, which will also benefit the fund itself.

Sentiment

The sentiment surrounding SB 187 appears to favor its introduction, as it is seen as a proactive approach to financial prudence by creating a reserve fund. Legislative discussions suggest a general agreement on the bill's necessity to prevent funds from being squandered or lost at the fiscal year’s end. However, the effectiveness of such measures in broader financial strategy remains a topic of debate among lawmakers, particularly about how the funds will be allocated and managed in the future.

Contention

While there seems to be overall support for the establishment of the Fiscal Year 2021 Reserve Fund, debates could arise regarding the management of the fund and the specific allocations it might entail. Critics may question the transparency and decision-making process in determining how funds are spent or reserved, emphasizing the importance of accountability to prevent misuse of state resources. Concerns about potential political influences in fund appropriations may lead to discussions on ensuring that the fund's management is insulated from partisan conflicts.