Louisiana Senate Bill SB488

Louisiana 2018 Regular Session

• Introduced: 3/26/18
• Refer: 3/27/18
• Report Pass: 4/2/18

Caption

Limits expenditure of motor vehicle license tax proceeds dedicated to State Highway Fund No. 2. (gov sig) (EG SEE FISC NOTE SD EX See Note)

Impact

If enacted, SB 488 will establish the Greater New Orleans Expressway Commission as the sole governmental entity authorized to issue bonds payable from revenues generated specifically by the expressway's operations. This legislative move is designed to prevent conflicts regarding funding sources for future construction and improvement projects. However, it also raises concerns about the financial autonomy of the commission and the implications of restricting access to State Highway Fund No. 2, which could affect various transportation initiatives.

Summary

Senate Bill 488, introduced by Senator Morrell, aims to modify existing laws concerning the funding of projects connected to the Greater New Orleans Expressway. Specifically, the bill limits the expenditure of motor vehicle license tax proceeds that are allocated to the State Highway Fund No. 2 and prohibits the Greater New Orleans Expressway Commission from securing or supplementing toll and refunding bonds with these funds. This change implies a significant shift in how transportation projects funded through tolls will be managed and financed in Louisiana.

Sentiment

The discussion surrounding SB 488 showcases mixed feelings among stakeholders. Supporters argue that it will clarify and strengthen the financing structure for expressway projects, potentially leading to more efficient use of funds. Critics, however, express concerns that limiting the resources available for the Greater New Orleans Expressway Commission may hinder its ability to respond to urgent infrastructure needs, thereby affecting road safety and maintenance in the region.

Contention

Key points of contention focus on the implications of restricting the Greater New Orleans Expressway Commission’s financial strategies and the potential impact on toll users and state residents. As the bill proposes to centralize bond authority and limit funding sources, this could lead to increased financial pressure on the expressway commission, raising questions about the long-term sustainability of toll-funded transport infrastructure in the area.