Louisiana House Bill HB403

Louisiana 2017 Regular Session

• Introduced: 3/31/17
• Refer: 3/31/17
• Refer: 4/10/17
• Report Pass: 5/1/17
• Engrossed: 5/8/17
• Refer: 5/9/17
• Report Pass: 6/5/17

Caption

Provides for the transfer, deposit, and use of monies among state funds

Impact

The legislation redefines how excess revenues are allocated within Louisiana's state treasury by establishing the Overcollections Fund. According to the bill, any recurring state general fund revenues collected beyond the officially forecasted amounts for Fiscal Year 2017-2018 will be channeled into this newly created fund. The bill restricts the use of these funds to nonrecurring expenditures as outlined by the state's constitution, ensuring that surplus revenues are utilized in a controlled manner for specific purposes.

Summary

House Bill 403, introduced by Representative Henry, aims to modify the management of state financial resources by providing for specific transfers and deposits among various state funds. The bill outlines the transfer of $25 million from the state general fund to the Budget Stabilization Fund, which is intended to enhance the state's financial resilience during economic fluctuations. Additionally, it mandates a transfer of over $7.5 million to the Self-Insurance Fund from the Future Medical Care Fund, further illustrating a strategic approach to state fund management.

Sentiment

The sentiment surrounding HB 403 has been generally positive, focusing on the bill’s potential to provide a structured mechanism for the management of state revenues. Supporters argue that these changes will enhance financial stability and promote more strategic financial planning within the state's budgetary processes. However, some concerns have been raised regarding the implications of reallocating funds, particularly how it may affect ongoing programs reliant on the general fund.

Contention

A notable point of contention is the bill's requirement that any funds deposited into the Overcollections Fund must be appropriated for nonrecurring purposes only. This limitation has triggered debates among legislators about the flexibility of fund usage in response to unanticipated financial needs. Additionally, the broad implications of transferring significant amounts of money to the Budget Stabilization Fund have sparked discussions on transparency and accountability in state fiscal management, with calls for regular reviews and assessments of the impact on state programs.