(Constitutional Amendment) Provides for restrictions to the appropriation of state general fund
Impact
The bill creates the Taxpayers Refund Trust, a fund designed to hold state revenues that exceed the established appropriation limit. Funds in this trust can be utilized under specific circumstances, mainly to cover state costs related to federally declared disasters and to reimburse taxpayers when the trust has a surplus. This mechanism is intended to enhance taxpayer protections and ensure financial resources are available for emergencies while also providing potential tax relief when state revenues are robust.
Summary
House Bill 442 proposes a constitutional amendment to limit the appropriations from the state general fund, establishing stricter budgetary controls within Louisiana’s financial framework. It mandates that annual appropriations not exceed a set limit, determined by a calculated average of economic indicators such as gross domestic product, personal income, and consumer price index changes, alongside population growth from the previous two years. This proposed limit aims to ensure fiscal responsibility and align state spending with economic growth, potentially providing a more stable budgeting environment.
Sentiment
Overall sentiment surrounding HB 442 appears to be mixed, with supporters arguing that it fosters greater financial discipline and transparency in state budgeting, while opponents express concerns regarding possible limitations on state funding for essential programs. Supporters view the bill as a proactive measure to manage public resources effectively, especially in times of budget surpluses. Conversely, critics worry that such restrictions may hinder the state's ability to respond adequately to unforeseen economic needs and emergencies.
Contention
A notable point of contention centers around the balance between fiscal restraint and flexibility in funding state initiatives. Critics caution that the rigid appropriation limits could negatively impact vital sectors such as education and health services, particularly during times of economic downturn. Additionally, the mechanisms for determining the appropriation limits may also spark debate regarding their accuracy and the implications for future legislative budgeting processes, as the limits may constrain legislative appropriations even in times of increased state needs.
(Constitutional Amendment) Limits the amount of State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (EG SEE FISC NOTE GF EX)
(Constitutional Amendment) Limits appropriations from the state general fund and creates the Working Cash Stabilization Fund (OR -$174,400,000 GF RV See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (OR SEE FISC NOTE GF EX)
(Constitutional Amendment) Authorizes limited redirection and transfer of funds supporting allocations and appropriations from the state general fund and dedicated funds in certain circumstances (OR SEE FISC NOTE SD EX See Note)
(Constitutional Amendment) Limits the amount of State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (EG SEE FISC NOTE GF EX)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3-CA13s1(A))
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (RE SEE FISC NOTE GF RV See Note)