Louisiana Senate Bill SB202

Louisiana 2015 Regular Session

• Introduced: 4/2/15
• Refer: 4/2/15
• Refer: 4/13/15
• Report Pass: 5/19/15
• Engrossed: 5/26/15
• Refer: 5/27/15
• Report Pass: 6/1/15
• Enrolled: 6/8/15
• Chaptered: 7/1/15
• Passed: 7/1/15

Caption

Constitutional amendment to rename the Budget Stabilization Fund to the Budget and Transportation Stabilization Trust and to provide for use of monies in the fund. (2/3s CA 13s 1 (A)) (EN SEE FISC NOTE SD RV See Note)

Impact

The proposed amendment will have a significant impact on the organization and control of the state's fiscal resources. By creating a Transportation Stabilization Subfund alongside the Budget Stabilization Subfund, SB202 sets forth a structured approach to managing mineral revenues over time. The intention behind this amendment is to ensure that Louisiana can effectively respond to budget deficits while also prioritizing funding for transportation initiatives. This could lead to improved infrastructure and financial stability within the state's economy by ensuring that sufficient funds are maintained for emergencies and long-term projects.

Summary

Senate Bill 202 aims to amend the Constitution of Louisiana in relation to special treasury funds. Specifically, it proposes to rename the existing Budget Stabilization Fund to the Budget and Transportation Stabilization Trust. This bill introduces adjustments regarding appropriations and allocations related to mineral revenues, establishing specific subfunds for budget stabilization and transportation initiatives. The legislation seeks to enhance the management of state funds, particularly those derived from mineral activities, by funneling excess revenues into designated trust accounts meant for future state requirements and infrastructure projects.

Sentiment

The reception of SB202 appears to be largely positive, especially among legislators focused on economic development and infrastructure. Supporters argue that the bill effectively sets a framework for managing future fiscal needs and aligns resource allocation with strategic state goals. However, there may also be concerns from fiscal conservatives about increasing reliance on mineral revenues and the appropriateness of diverting funds from other potential uses. Overall, the sentiment reflects a belief that structured fund management can lead to better outcomes for the state.

Contention

One notable point of contention surrounding SB202 could involve how it impacts existing funding mechanisms and the prioritization of public spending. While the bill aims to secure funds for the transportation sector, skeptics may argue that it risks limiting flexibility in budget appropriations for other urgent needs. The amendment's provision to allow for scheduled increases in the mineral revenue base every five years could also raise discussion on the management of state resources, particularly concerning how such increases would interact with economic conditions and funding requirements over time.