LABI examined three major factors contributing to Louisiana’s state deficit. The structure of the state budget itself with various forms of locked- up funding that make the prioritization of services virtually impossible. Budget Basics No. Slide 2 of 1. 6Locked- Up Funds in the Louisiana State Budget. Most of Louisiana’s state budget is considered “off- limits” to annual review or reductions. There are three main categories of locked- up spending. The Louisiana Constitution and state law mandate certain spending, such as the Minimum Foundation Program for K- 1.
CLICK HERE FOR INDEX PAGE : V. You will find that a range. Operational transformation (OT) is a technology for supporting a range of collaboration functionalities in advanced collaborative software systems. This category of “non- discretionary” spending was appropriated more than $6 billion in state funds this year. These so- called “self- generated revenues” total $2. Fiscal Year 2. 01. These “stat deds” make up $3. Fiscal Year 2. 01. Roughly $1 billion are generated from fees and assessments, while the remainder are either diversions of tax revenue that would otherwise flow into the State General Fund or consist of legislative appropriations, grants, or other revenue sources. Slide 3 of 1. 6Black Box #1: $6. Explanation of field, degreees, research, industry ties, laboratories, student opportunities, admissions and advising, career options, faculty and staff, alumni, and. ![]() B . However, there is no dedicated funding source for “non- discretionary” spending, so this category of the budget is funded largely with the State General Fund. In Fiscal Year 2. State General Fund and $3. Legislature and the administration. As a result, some of these budget items are essentially funded with little review or debate. When federal and state “non- discretionary” spending is combined, the Louisiana Department of Health and Hospitals relies on “non- discretionary” spending the most of any state department ($4. Department of Education ($3. Other sizeable recipients include the Department of Children and Family Services ($4. Corrections Department ($4. Louisiana Judiciary ($1. It is difficult to calculate growth in “non- discretionary” spending over the past decade because budget documents in Fiscal Year 2. However, a few line items are available in both the Fiscal Year 2. Fiscal Year 2. 01. Of note, various sizeable examples were included in Budget Basics No. State General Fund has been spent, such as the Minimum Foundation Program for K- 1. Other examples include. The cost for salaries of District Attorneys, which has increased from $1. Fiscal Year 2. 00. The growth in the use of State General Fund for “non- discretionary” expenses leaves fewer dollars every year for so- called “discretionary” items in the budget, such as higher education. Slide 4 of 1. 6Is it really . This misnomer leads to a rubber stamp for billions of dollars in state spending on an annual basis even as other areas of the budget suffer disproportionately. While many of these functions and services would likely still require funding, close examination and potential reductions could generate annual savings. In addition, state and local recipients could be encouraged to explore other Means of Finance and free up State General Fund. Furthermore, a constitutionally protected mandate can also be changed. Sending these measures back to the voters for review – in some cases decades after their initial approval – is a legitimate option for the Legislature as well. In short,“non- discretionary” spending should be subject to rigorous review, debate and prioritization against other governmental functions. Slide 5 of 1. 6Black Box #2: $2. B Self- Generated Revenue in State Government. A second major locked- up category within Louisiana’s state budget is so- called “self- generated” revenue ($2. In most cases, the proceeds of the fees or fines is appropriated back to the agencies’ operational budgets in order to perform the functions or services associated with the fee. The main distinction between “self- generated” revenue and fee- driven statutory dedications is that a specific account or fund was simply never established to collect the proceeds of the fee. While there is little visibility on the actual fees, the official State Budget does appropriate self- generated revenues by department, and the Revenue Estimating Conference projects self- generated revenues in the same format. Roughly $1. 3 billion of this total is generated by higher education in tuition and fees. This is self- generated revenue, but it is not projected by the Revenue Estimating Conference, does not affect the state expenditure limit, and does not flow through the Treasury. Higher education aside, the state collects and spends roughly $1 billion in fees and self- generated revenues. The Department of Health and Hospitals collects an estimated $1. Medicaid program. Another $1. 56 million in self- generated revenues are also collected through capital outlay projects, mostly by the Office of Facility Planning. A third major category is in the Executive Department with $1. Louisiana Stadium and Exposition District that operates the Superdome and other state assets. Public Safety Services collects $1. State Police and another $4. Motor Vehicles. The Department of Revenue rounds out the top five state agencies with self- generated revenues at $9. Fiscal Year 2. 01. One category in the state budget actually reports $0 in self- generated revenue: the Louisiana Judiciary. It is unclear why court filing fees, fines and other self- generated revenue is neither appropriated nor reported – not even for the Louisiana Supreme Court and the appellate courts, where operations are funded by the state in the annual budgeting process of the Legislature. In part driven by tuition, fees and self- generated revenue have grown more than any other Means of Finance in the state budget over the past decade. In Fiscal Year 2. Legislature appropriated $1. In the current fiscal year, that figure is $2. Much of this growth in actual dollars is in higher education due to tuition increases (9. Louisiana still remain below the Southern average for tuition rates. Of note, the most growth in self- generated revenue in state government actually occurred in the Department of Revenue (1. State Police (1. 06 percent), which outpaced tuition growth over the past decade. Note: Above and beyond the $2. Office of Group Benefits, whereby each state agency collects and remits retirement contributions to the Office. Technically, this is also self- generated revenue, but it is not appropriated and categorized as such because it simply transfers between state agencies. Slide 6 of 1. 6Who is generating the ? Act 1. 00. 1 of 2. Division of Administration and the Legislature to establish a plan and schedule for the Joint Legislative Committee on the Budget to review and approve all state fees at least once every five years beginning in 2. An annual report is required that must include a policy determination as to whether or not each fee is set at the appropriate amount to fund the activity in whole or part. It is unclear if any such report has ever been produced. State law also requires agencies that charge fees as part of their operating budgets to post the method of fee calculation on the agency website. It is also unclear if state agencies are in compliance with this transparency provision. Nearly all self- generated revenue appears to be statutory and not enshrined in the Constitution. Again, as with “non- discretionary” spending that is only required in statute, the Legislature has the authority to make changes to these fees and associated functions. For example, the Legislature could review fees and fines to determine if they are set at the appropriate level to fully fund the costs of the affiliated services and make adjustments accordingly. If the function is deemed to have broad state benefit, the Legislature has the authority to convert the fee to a tax and thereby allocate the revenue for general operations. In any event, state law should be followed and the spending associated with fees and fines should be regularly reviewed and transparent to the public that pays them. Slide 7 of 1. 6Black Box #3: $3. B Statutory Dedications. An estimated $3. 8 billion of budget dedications were appropriated for Fiscal Year 2. This includes dedications created in the Constitution and funds created by statute subject to the authority of the Legislature and the Governor. These dollars were appropriated to about 3. To help address the significant deficits of the late 1. Roemer administration and the Legislature abolished more than 1. Since then, dedications have been created year after year, slowly locking away billions of dollars in state tax revenue for specific functions of state and local government. Since Fiscal Year 1. Slide 8 of 1. 6Black Box #3: $3. B Statutory Dedications Includes Winners and Losers. The dollar amount in statutory dedications is also on the rise. Just 1. 0 years ago, in Fiscal Year 2. Some dedications of state revenue are not for the state at all, but for local government. A percent of state hotel/motel sales taxes, for example, are dedicated back to each local government. This figure grew 8. State General Fund in Fiscal Year 2. At the state level, some statutory dedications have grown dramatically as a revenue source for certain agencies. For example, the Department of Culture, Recreation and Tourism relied on just $4. Fiscal Year 2. 00. Similarly, the Attorney General’s Office has seen statutory dedications grow 2. Fiscal Year 2. 00. The Department of Transportation and Development saw its statutorily dedicated revenue increase by $1. The Department of Education also saw growth in dedicated revenue by more than $7. State General Fund for K- 1. Both of these agencies have seen substantial budget growth overall in the past decade. The Department of Wildlife and Fisheries nearly doubled its dedicated revenue over the past decade from $6. Fiscal Year 2. 01. The dedications within the Department of Public Safety grew by more than $7. Growth of dedications in both of these agencies is particularly interesting because self- generated revenue also grew at a significant rate in the last decade, combining to grow agency budgets significantly. On the flip side, several agencies have relied less on dedications. The Secretary of State received $4.
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