Reduces the expenditure limit for FY 2018-2019 (OR SEE FISC NOTE GF EX See Note)
Impact
The resolution's approval indicates an approach to maintaining fiscal prudence in light of the state’s economic environment. It sets a precedent for future fiscal management by the governor and legislature, potentially influencing appropriations and spending allocations for the upcoming years. Furthermore, the reduction in the expenditure limit might compel state agencies to align their budgets accordingly, affecting their operational funding for public services.
Summary
HCR2 is a concurrent resolution that directs the commissioner of administration to reduce the Louisiana expenditure limit for the Fiscal Year 2018-2019 from $14,805,436,238 to $13,500,000,000. This resolution is tied to the stipulations of the state's constitution which allows such adjustments provided they receive a two-thirds majority vote from both houses of the legislature. The intent is to ensure fiscal responsibility and manage the state's overall budget effectively.
Sentiment
Generally, the sentiment towards HCR2 reflects a recognition of the need for budgetary regulations that safeguard the state’s financial stability. While some members of the legislature support the move as a necessary corrective measure against overspending, there are concerns regarding the potential negative implications for public funding and services that could arise from reduced expenditure limits. The discourse highlights a balancing act between economic constraints and the need for adequate public service funding.
Contention
Notable points of contention include concerns from various stakeholders about the extent of reductions and the implications for state-funded programs. Critics may argue that such stringent limits can lead to unintended consequences such as inadequate resources for crucial services following the spending reduction. Additionally, the resolution's language hints at its long-term effects, suggesting that changes will be felt in fiscal years following 2018-2019, which raises questions about future budgetary initiatives and spending strategies.