Louisiana House Bill HB414

Louisiana 2019 Regular Session

• Introduced: 3/29/19
• Refer: 3/29/19
• Refer: 4/8/19
• Report Pass: 5/1/19
• Engrossed: 5/21/19
• Refer: 5/22/19

Caption

Dedicates certain state sales and use tax revenues for deposit into the Construction Subfund of the Transportation Trust Fund (RE -$200,000,000 GF RV See Note)

Impact

The bill significantly impacts state laws related to budgetary allocations and infrastructure funding. By carefully defining the conditions under which funds can be transferred to the Construction Subfund, HB414 aims to enhance financial resources for transportation projects without compromising the state’s fiscal integrity. It ensures that excess revenues are efficiently reallocated, promoting better roads and infrastructure while adhering to constitutional requirements regarding revenue management. This is crucial for addressing pressing needs in transportation infrastructure, which is vital for the state's economic growth and public safety.

Summary

House Bill 414 establishes a mechanism for allocating certain state sales and use tax revenues to the Construction Subfund of the Transportation Trust Fund. Specifically, the bill dedicates revenues collected from state sales and use taxes that exceed $3.9 billion for two consecutive fiscal years, up to a limit of $250 million. This allocation is designed to bolster funding for critical transportation and infrastructure projects across Louisiana, directly addressing the needs of the state’s expanding infrastructure demands. The implementation is contingent upon the formal publication of the Louisiana Comprehensive Annual Financial Report (CAFR) confirming these revenue levels, followed by notifications from the commissioner of administration.

Sentiment

General sentiment surrounding HB414 is cautiously optimistic among supporters who see it as a necessary step for improving Louisiana's transportation infrastructure. Proponents argue that this bill will provide much-needed financial support for projects that may otherwise face funding shortfalls. However, there are concerns among some stakeholders regarding the predictability of revenue collections and whether they will consistently meet the threshold required for funding allocation. This has led to discussions about the potential volatility of state revenues and the implications for long-term infrastructure planning.

Contention

Notable points of contention include the criteria for determining eligibility for the funding allocation and the potential impact on other budgetary priorities. Critics worry that dedicating such funds to a specific area may reduce flexibility in budgeting, limiting the state’s ability to respond to urgent needs in other domains. Additionally, the discussions highlighted concerns about ensuring that revenue growth aligns with overall economic health, particularly in considering the fluctuating nature of sales tax revenues in the context of economic cycles.