Louisiana Senate Bill SB15

Louisiana 2018 2nd Special Session

• Introduced: 5/23/18
• Refer: 5/23/18
• Report Pass: 5/28/18
• Engrossed: 6/1/18

Caption

Provides for annual incentive expenditure program analysis. (Item #21) (gov sig) (EG +$109,600 GF EX See Note)

Impact

The passage of SB 15 would lead to enhanced scrutiny of existing incentive expenditure programs in Louisiana. By centralizing the analysis of these programs, the bill seeks to stabilize annual expenditures associated with tax incentives. It requires that the Commissioner review the results and make informed recommendations, which could include modifications, eliminations, or the establishment of new expenditure structures. This creates a systematic approach to evaluating the effectiveness of tax incentives in the state budget process.

Summary

Senate Bill 15, introduced by Senator Donahue, aims to establish a process for the annual analysis of tax incentive programs within the state. This bill mandates the Louisiana Department of Revenue to perform a comprehensive return on investment analysis for all incentive expenditures and to report findings to the Commissioner of Administration by October 15 each year. This reporting includes a ranking of the incentive programs based on their return on investment, thereby adding a layer of accountability and evaluation to state tax incentive programs.

Sentiment

Overall, sentiment around SB 15 appears supportive among those prioritizing fiscal responsibility and accountability in state expenditures. Advocates argue that this bill will aid legislators in making data-driven decisions regarding tax incentives, potentially leading to better resource allocation. Conversely, there may be concerns regarding the potential impact on businesses relying on these incentives, particularly if programs are phased out or modified significantly based on analysis outcomes.

Contention

Noteworthy points of contention include the proposed authority the bill gives the Commissioner of Administration to recommend program eliminations or modifications, which could directly affect businesses reliant on certain tax incentives. Opponents may argue that such centralized decision-making could undermine previously established agreements or expectations of reliability for businesses. The debate reflects a tension between the need for fiscal oversight and the need for a supportive business environment.