Louisiana Senate Bill SB660

Louisiana 2012 Regular Session

• Introduced: 4/2/12
• Refer: 4/3/12

Caption

Provides for the administration of sales tax increment financing. (7/1/12) (OR DECREASE GF RV See Note)

Impact

The changes introduced by SB 660 are significant for state laws governing economic development financing. By ensuring that local entities can directly submit projects to the JLCB if the state’s Department of Economic Development fails to act within 60 days, the bill attempts to streamline the approval process for local initiatives. This includes an important stipulation that any funding or agreements related to state sales tax increments must receive prior approval from the State Bond Commission, thereby reinforcing fiscal responsibility while also facilitating local economic growth through more immediate project approvals.

Summary

Senate Bill 660 provides amendments to the administration of sales tax increment financing relevant to local economic development projects in Louisiana. The bill enables local entities to dedicate state sales tax increments to pay for revenue bonds related to these projects, ensuring that this dedication aligns with the overall revenue expectations from such initiatives. It stipulates that any proposed project must first be submitted for review and approval by the Joint Legislative Committee on the Budget (JLCB), accompanied by a thorough evaluation of anticipated revenue increases from the project. This procedural requirement aims to provide a structured assessment of the financial implications of local projects.

Sentiment

Sentiment surrounding SB 660 reflects a general support for bolstering local economic initiatives while expressing a cautious optimism about the reforms in funding mechanisms. Supporters argue that this bill encourages local governments to pursue economic development actively, as it provides them with a clearer path to access needed funding. Critics, however, may raise concerns about the potential for misallocation of funds if local entities do not correctly anticipate revenue increases, leading to possible financial strain on state resources.

Contention

Notable points of contention within the discussions around SB 660 include the balance between local autonomy and state oversight in budgetary matters. While proponents emphasize the benefits of empowering local governments, opponents may fear that rapid project approvals could lead to hasty decisions without proper fiscal scrutiny. Some legislators might also highlight the importance of maintaining a unified approach to state revenues to prevent discrepancies among various local projects, which could complicate overall revenue management at the state level.