Reduces the expenditure limit for FY 2018-2019 (EN SEE FISC NOTE GF EX See Note)
Impact
The passage of HCR5 directly alters the state’s expenditure limit and thereby impacts how the state allocates and manages its budgetary resources. With this reduction in the expenditure cap, future appropriations from the state general fund and dedicated funds will be restricted to remain within this new limit. Such a measure is aimed at ensuring fiscal responsibility and maintaining sustainable budgeting practices within the state government.
Summary
House Concurrent Resolution 5 (HCR5) addresses the expenditure limit for the Fiscal Year 2018-2019 for the state of Louisiana. It proposes to reduce the official expenditure limit from $14,805,436,238 to $13,591,805,919, which is calculated based on a growth rate of 3% relative to prior fiscal year expenditures. The resolution reflects a legislative effort to realign the state’s budgetary framework with its actual financial conditions and future projections.
Sentiment
Overall, the sentiment surrounding HCR5 appears to lean towards fiscal conservatism, as it encapsulates a priority to curtail state spending in alignment with actual budgetary needs. The unanimous support evident in the Senate vote (28 yeas, 0 nays) indicates that there is a clear consensus among legislators on the importance of maintaining strict control over state expenditures, reinforcing prudent financial management principles.
Contention
While the resolution received unanimous legislative support, potential contention could arise in future discussions regarding the implications of such spending limitations. Critics might argue that stringent expenditure caps could hinder the state's ability to respond to urgent financial needs or crises. Additionally, the potential for reduced funding in various public sectors such as education and health care could generate debate on the balance between fiscal prudence and the need for adequate public service funding.