Provides for the appropriation of incentive expenditures. (7/1/17) (EN SEE FISC NOTE See Note)
Impact
If enacted, SB 98 would have a significant impact on how Louisiana’s budget is prepared and presented. It mandates that incentive expenditures be distinctly stated in the executive budget and related appropriation bills, thus providing legislators and the public with clearer insights into how tax incentives are allocated and their implications on state finances. This change is crucial for the fiscal planning of future state budgets, ensuring that these expenditures are not hidden among operating expenses.
Summary
Senate Bill 98, introduced by Senator Donahue, amends the existing budgetary procedures to more clearly define and appropriate incentive expenditures. The bill aims to ensure that the state's executive budget explicitly includes separate recommendations for appropriations linked to incentive expenditure programs, which are defined as reductions in tax collections benefiting specific businesses and individuals. By integrating these expenditures into the overall financial framework of the state, the bill seeks to promote transparency in budgetary processes and fiscal accountability.
Sentiment
The sentiment around SB 98 appears to be largely supportive among legislators who prioritize transparency and fiscal accountability. Proponents argue that the bill enhances clarity regarding the state’s financial commitments and supports a more systematic approach to budget preparation. However, there might be concerns from critics about the effectiveness of such measures and whether this would sufficiently address the complexities of budget management versus facilitating business incentives.
Contention
Despite its intended benefits, SB 98 may face opposition due to the complexity of incentive expenditures and their impact on state revenue. Some lawmakers may worry that stricter definitions and presentation requirements could limit the state's ability to respond flexibly to economic needs, particularly regarding the distribution of financial aid or tax incentives. Thus, while the bill is positioned as an effort to foster accountability, it also raises important questions about budgetary flexibility and the overarching financial strategy of the state.
Comparison of actual expenditures in forecasted programs to projected spending from prior forecasts required, notice to legislative auditor when actual expenditures deviate required, other budget oversight and accountability provisions modified, and money appropriated.