Louisiana House Bill HB884

Louisiana 2014 Regular Session

• Introduced: 3/10/14
• Refer: 3/10/14
• Report Pass: 4/22/14
• Engrossed: 5/13/14
• Report Pass: 5/29/14

Caption

Provides with regard to dedications of certain excess mineral revenues and deposits into the Budget Stabilization Fund (RE1 SEE FISC NOTE GF RV See Note)

Impact

The implementation of HB 884 will likely enhance financial support for transportation projects in Louisiana by ensuring a dedicated funding stream from excess mineral revenues. This could lead to improved highway infrastructure and maintenance over a projected ten-year period from July 1, 2015, until June 30, 2025. It establishes a clear connection between mineral resource revenues and their use for public benefit, particularly in enhancing statewide transportation priorities.

Summary

House Bill 884 aims to modify the allocation of excess mineral revenues in Louisiana. Specifically, the bill mandates that the first $50 million derived from mineral revenues above the established base amount must be deposited into the Transportation Trust Fund (TTF) before any remaining funds are directed to the Budget Stabilization Fund. This initiative is designed to bolster funding for vital transportation infrastructure projects administered by the Department of Transportation and Development.

Sentiment

The overall sentiment surrounding HB 884 has been largely supportive, particularly among legislators concerned with infrastructure development. The bill is viewed as a practical approach to ensure that excess mineral revenues directly contribute to enhancing Louisiana's transportation infrastructure. This positive sentiment is countered, however, by some concerns regarding the prioritization of funds, as the deposit into the Transportation Trust Fund could mean less availability for the Budget Stabilization Fund, which serves as a financial safety net for the state during deficit periods.

Contention

Debate around HB 884 centers on the balance between funding needs for infrastructure and maintaining a robust Budget Stabilization Fund. Critics argue that the allocation of such significant amounts to the TTF could jeopardize the fiscal stability that the Budget Stabilization Fund provides in times of economic downturn. Proponents counter that investing in transportation is essential for long-term economic growth and stability, ultimately benefiting the state as a whole.