(Constitutional Amendment) Phases out the revenue sharing fund over 10 years (OR INCREASE GF RV See Note)
Impact
If enacted, the bill will significantly alter the way local governments receive financial support, particularly in relation to funding meant to compensate for lost tax revenue from the homestead exemption. Local parishes currently rely on this revenue sharing fund to support various services and obligations, including retirement systems and tax-related expenditures. Reducing this funding could place additional fiscal pressure on local authorities, potentially resulting in budget deficits or alterations in the level of services provided to constituents.
Summary
House Bill 441 proposes a constitutional amendment that phases out the state's annual allocation to the revenue sharing fund over a ten-year period. This fund is currently utilized to offset revenue losses experienced by local governments due to the homestead exemption. Under HB441, the allocation, which stands at $90 million per year, will be reduced by $9 million each fiscal year starting from FY 2018-2019 until the fund is fully eliminated. This modification aims to adjust the financial structure of state funding mechanisms in light of changing budgetary constraints.
Sentiment
The sentiment surrounding HB441 appears to be divided among legislators and stakeholders. Proponents argue that the phase-out of the revenue sharing fund is necessary to alleviate pressures on the state budget and that local governments should find alternative funding solutions without the reliance on state allocations. Conversely, opponents express concern that the elimination of this fund could undermine local governance and fiscal independence, as many parishes depend on this revenue to maintain essential services, thereby potentially exacerbating local financial difficulties.
Contention
Key points of contention are likely to arise regarding the adequacy of local funding and the impact on community services. Critics argue that a significant reduction in state funding undermines the local governments' ability to manage and deliver essential services effectively, particularly in jurisdictions where the homestead exemption constitutes a substantial portion of the tax base. In addition, there are concerns about the long-term implications of this policy on local governance and community welfare, which may fuel further debate regarding the equitable distribution of state resources.
(Constitutional Amendment) Modifies disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and deposits of certain revenue streams into the Budget Stabilization Fund (RRF INCREASE GF RV See Note)
(Constitutional Amendment) Increases the maximum annual amount of severance tax revenues that may be remitted to parishes in which the associated severance occurs (OR SEE FISC NOTE GF RV)
(Constitutional Amendment) Limits the amount of State General Fund (Direct) revenues that may be appropriated in a fiscal year for recurring expenses and restricts use of such revenues above that limit (EG SEE FISC NOTE GF EX)
(Constitutional Amendment) Provides relative to severance tax revenues remitted to parishes in which the associated severance occurs (OR1 SEE FISC NOTE GF RV)
(Constitutional Amendment) Provides relative to severance tax revenues remitted to parishes in which the associated severance occurs (EG -$65,000,000 GF RV See Note)
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
(Constitutional Amendment) Provides for the election of constitutional convention delegates and vote requirements necessary for the adoption of a new constitution (RR SEE FISC NOTE GF EX)
(Constitutional Amendment) Modifies disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and deposits of certain revenue streams into the Budget Stabilization Fund (RRF INCREASE GF RV See Note)
(Constitutional Amendment) Provides relative to the application of state monies to the unfunded accrued liability of the Teachers' Retirement System of La. (EN DECREASE SD RV See Note)
Proposing An Amendment To Article Xvii, Section 3 Of The Hawaii Constitution To Specify That The Standard For Voter Approval Of A Constitutional Amendment Proposed By The Legislature Is A Majority Of All The Votes Tallied Upon The Question.