Prohibits changes in budget authority that would allow certain federal funds to be used on ordinary recurring expenses of state government (OR SEE FISC NOTE GF EX)
Impact
The proposed law would amend R.S. 39:73, which governs public expenditures. Under this amendment, the commissioner would be restricted from accessing federal funds that have not been consistently available for the past two fiscal years or are not expected to be available for the next two years. It ensures that state finances are not adversely affected by fluctuating federal allocations, thereby promoting a more robust budgetary framework.
Summary
House Bill 845, sponsored by Representative Geymann, introduces significant changes to how Louisiana manages its budget and appropriations. The bill specifically prohibits the commissioner of administration from approving any increase to an appropriation or granting new authority to expend public funds if the funds in question are federal, nonrecurring, and intended for ordinary recurring expenses. This aims to safeguard against dependency on unstable federal funding sources for regular state expenses.
Sentiment
The sentiment around HB 845 appears to be mixed. Proponents argue that it provides fiscal responsibility and protects state budgets from being adversely influenced by unpredictable federal funds. Critics, however, may express concerns that it could limit the state’s ability to effectively utilize federal funding for services that could benefit the public and might hinder the support for programs that could require immediate funding during economic downturns.
Contention
A key point of contention lies in the definition of 'ordinary recurring expenses.' Lawmakers may debate the implications of this classification and whether it would unduly restrict the state's financial flexibility. Additionally, the exclusion of federal funds payable on a reimbursement basis from this prohibition could create a division in how varied funding sources are treated under state law, leading to potential complexities in fiscal governance.
Limits the amount of recurring State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (RE SEE FISC NOTE GF EX)