(Constitutional Amendment) Allows for the use of a portion of the Louisiana Education Quality Trust Fund when there is a projected deficit (EG INCREASE SD EX See Note)
Impact
If passed, this constitutional amendment will relax the current restrictions on appropriating funds from the Louisiana Education Quality Trust Fund, which has traditionally been protected from such appropriations. The amendments will allow the legislature to address fiscal deficits proactively by tapping this source of funding, thereby potentially stabilizing education funding during economic downturns. However, appropriations will still be tied to specific conditions and require legislative consent, thus maintaining a level of accountability and oversight over fund usage.
Summary
House Bill 577, proposed during the 2016 Regular Session, seeks to amend the Louisiana Constitution to allow the appropriation of up to 10% of the annual investment income from the Louisiana Education Quality Trust Fund to address projected budget deficits in education. This proposal, which requires a two-thirds vote from both houses of the legislature for approval, aims to enable the state to utilize a portion of this fund during fiscal shortfalls, particularly to replace deficiencies in funding for elementary and secondary education as well as higher education. The bill responds to ongoing financial challenges within the state's educational system by proposing a mechanism for direct financial support.
Sentiment
The sentiment surrounding HB 577 reflects a mix of support and concern. Proponents argue that the ability to access the trust fund is a crucial step toward ensuring continuous educational funding and preventing drastic cuts in times of economic hardship. They view the bill as a necessary reform to safeguard long-term educational goals and the welfare of students amidst financial uncertainty. On the other hand, opponents express apprehension regarding the implications of using the trust fund, fearing that it sets a precedent for unrestricted access to state entities designed for long-term educational stability.
Contention
A notable point of contention is the careful balance that this amendment proposes between immediate financial relief and the long-term implications for the trust fund itself. Critics caution that allowing appropriations from the fund could undermine its intended purpose, which is to serve as a permanent source for education funding. Furthermore, discussions during committee meetings raised concerns about ensuring that the use of these funds does not lead to complacency regarding broader budget reforms or fiscal responsibility. The debates highlight the intricate dynamics between maintaining educational quality and properly managing state resources.
Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. (2/3-CA13s1(A)) (OR INCREASE GF RV See Note)
Provides that the Louisiana Education Quality Trust Fund shall be known as the "Kevin P. Reilly, Sr. Louisiana Education Quality Trust Fund." (gov sig)
Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. (2/3-CA13s1(A)) (OR INCREASE GF RV See Note)
(Constitutional Amendment) To require the legislature to appropriate no less than fifty percent of nonrecurring state revenues for application to certain state retirement system unfunded accrued liability (RR SEE FISC NOTE GF EX See Note)
(Constitutional Amendment) Relative to management of postsecondary education, abolishes the Board of Regents and the management boards and transfers their powers, duties, and responsibilities to a newly created La. Postsecondary Education Board of Trustees (RE INCREASE GF EX See Note)