Louisiana House Bill HB486

Louisiana 2019 Regular Session

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

Caption

Allows for the use of the Budget Stabilization Fund for the state costs associated with a declared disaster (EG SEE FISC NOTE SD RV See Note)

Impact

The implementation of HB 486 is expected to enhance the state's financial resilience against disasters. By allowing the Budget Stabilization Fund to be tapped for these specific situations, the bill aims to provide quicker access to necessary resources in times of need. Additionally, this legislation poses a structural change in how state funds are forecasted as it allows for federal funds related to disaster reimbursements to be incorporated into state budget forecasts, which may influence future budgeting processes and financial planning.

Summary

House Bill 486 authorizes the use of Louisiana's Budget Stabilization Fund, commonly known as the Rainy Day Fund, for covering state costs associated with federally declared disasters. This legislative change retains existing provisions of how the fund operates but expands its utilization to include funds received from federal sources specifically for disaster recovery. The bill outlines that any appropriation from the fund for disaster relief must have the consent of two-thirds of the legislature, thus ensuring a level of legislative oversight and control over fund usage.

Sentiment

There appears to be a general sentiment of support for HB 486 among legislators concerned about disaster preparedness and response efficiency. Proponents argue that enabling access to the Rainy Day Fund for disaster-related expenditures is a prudent and necessary move to ensure faster recovery and support for affected communities. Conversely, there may be concerns regarding the potential for less stringent oversight over how funds are allocated, which could trigger apprehensions about financial mismanagement or misuse during declared disasters.

Contention

Notable points of contention surrounding HB 486 include discussions about the balance of legislative control versus the executive ability to respond swiftly in emergencies. Critics may voice concerns regarding the risks of over-reliance on the Budget Stabilization Fund, particularly if it diminishes the state’s ability to save for future economic downturns. There are also worries about ensuring that the specified limits on fund utilization are respected and that the authorization process does not lead to bureaucratic delays in disaster response efforts.