Louisiana House Bill HB40

Louisiana 2016 1st Special Session

• Introduced: 2/14/16
• Refer: 2/14/16

Caption

Repeals the Student Assessment for a Valuable Education (SAVE) credit program (Item #14) (OR NO IMPACT GF RV See Note)

Impact

The repeal of the SAVE program is poised to significantly affect how students finance their education by removing one of the financial aids designed to lessen the impact of educational costs. By eliminating these tax credits, the state may be hindering certain students' ability to afford college, potentially leading to decreased enrollment and increased student debt. Discussions around this repeal centered on the overarching implications for higher education funding in Louisiana, signaling concerns about accessible education for low-income families.

Summary

House Bill 40 proposes the repeal of the Student Assessment for a Valuable Education (SAVE) credit program, which was established to provide tax credits to students enrolled in public institutions of higher education. The existing program allows students to receive a credit against various taxes, including income and sales taxes, based on their SAVE assessment, with a total annual limit on credits applicable of $350 million. The intended goal of the SAVE program was to enhance accessibility and affordability for higher education by alleviating some of the tax burdens on students.

Sentiment

Overall, the sentiment surrounding HB 40's repeal of the SAVE tax credit is mixed. Proponents of the repeal argue that it eliminates a program that they believe may no longer be effective or necessary. In contrast, opponents express concern that repealing such a program will disproportionately affect students who rely on these credits for financial support. The debate reflects broader conversations regarding state investments in education and the importance of supporting students financially as they navigate their college years.

Contention

The most notable points of contention revolve around the balance between state budget management and the need to support higher education funding. Critics of the repeal warn that it sends the wrong message regarding state priorities, particularly in a time when education is seen as essential for economic advancement. Moreover, there's an underlying debate about the state's commitment to making higher education accessible, which often weighs heavily against budgetary constraints, suggesting that the repeal may have ramifications that extend beyond simple fiscal calculations.