Louisiana House Bill HB576

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Creates a special taxing district to provide a supplemental means of financing higher education (OR +$180,000,000 SD RV See Note)

Impact

The legislation allows the district to levy ad valorem taxes up to a maximum of five mills. These taxes would require majority approval from voters residing in the district and will be collected to support higher education institutions. The funds generated from these taxes will be used strictly for academic program enhancements and cannot be allocated for administrative salaries, sports programs, or facility maintenance. Notably, the bill ensures that this new funding source does not replace any existing state financial support for higher education.

Summary

House Bill 576 aims to create the Higher Education Improvement District in Louisiana as a means to supplement the financing of higher education institutions. This bill establishes the district as a special political subdivision within the state, with boundaries coterminous with those of Louisiana. The primary objective is to provide an additional revenue source that would aid public postsecondary education institutions, including law schools, medical schools, and community colleges, in enhancing their academic programs.

Sentiment

The sentiment surrounding HB 576 appears to be generally positive among proponents who view it as a critical step toward improving the resources available for higher education in Louisiana. Supporters argue that enhancing funding in this manner is essential for the long-term viability and competitiveness of public colleges and universities. However, some critics may raise concerns regarding the effectiveness of taxes as a funding mechanism and express skepticism about the potential administrative complexities surrounding a newly created taxing district.

Contention

A significant point of contention may involve the potential impact of this tax on local residents and how it might be perceived as an additional financial burden. Opponents of new taxes often voice concerns about the long-term sustainability of such funding mechanisms and their implications for taxpayers. The need for statewide voter approval for the tax levy might also fuel debate regarding the level of support from various communities within Louisiana.