Louisiana Senate Bill SB6

Louisiana 2018 1st Special Session

• Introduced: 2/20/18
• Refer: 2/20/18

Caption

Provides relative to the 2019 payment of economic damages from the Deepwater Horizon litigation. (Item #17)(gov sig) (OR +$53,333,333 GF RV See Note)

Impact

The bill modifies existing provisions surrounding the Deepwater Horizon Economic Damages Collection Fund. Under current law, economic proceeds from the litigation are partially allocated to budget stabilization and funds aimed at supporting the elderly and healthcare initiatives. By redirecting the 2019 payment into the state general fund, SB 6 might provide immediate fiscal relief to the state but could jeopardize the sustainability of funding for essential services geared towards vulnerable populations.

Summary

Senate Bill 6 focuses on the allocation of economic damages from the Deepwater Horizon litigation, specifically the payment due for the year 2019. This bill proposes that the economic damage payment of $53,333,333 be directed to the state general fund instead of being distributed among previously established funds. Such a shift in allocation is crucial as it may have direct implications for state budgeting and financial planning, particularly for programs reliant on the funding that would have gone to the Trust Fund for the Elderly and the Health Trust Fund.

Sentiment

Overall, the sentiment surrounding SB 6 appears to reflect a balancing act between immediate fiscal needs and long-term obligations. Supporters argue that placing the funds into the general fund allows for greater flexibility in addressing the state's needs, particularly amid budgetary challenges. Conversely, opponents express concern that this decision may undermine dedicated funding sources, which are vital for the elderly and healthcare sectors, posing risks to those depending on such support.

Contention

Notable points of contention include the potential trade-offs involved in the redirection of funds, with critics fearing that it may dilute financial support for programs that require consistent funding. There is also apprehension regarding the adequacy of the general fund to address multifaceted state obligations, especially those related to public health and elder care. Legislative discussions may highlight the need for more comprehensive strategies to ensure that stakeholders' interests are adequately protected while fulfilling the state's financial obligations.