Upload
kevin-litten
View
452
Download
0
Embed Size (px)
DESCRIPTION
Constitutional Amendments 2015 CABL
Citation preview
CABLRecommendationson2015ConstitutionalAmendments
October13,2015ThisyeartherearefourconstitutionalamendmentsontheOctober24thballot,farfewerthanthe14thatvotershadtodecideonlastyear.FromCABLsperspective,therearetwothatarehighlysubstantive,andbothdealwithtransportation.Therearetwoothersthat,atleasttosomedegree,involveclarificationsabouttheintentoftheconstitution.Andinterestingly,twoamendmentsmightlookfamiliartovoterswhocastballotslastyear.Oneisverysimilartoanamendmentthatvotersrejected,butsomechangesthathaveoccurredsincethenmaymakethecurrentversionmorepalatable.Theotheronemakessomelanguagechangestothepartoftheconstitutionthatdefinesfiscallegislativesessions.Thesearenewchangestothatsectionrightontheheelsofchangesthatvotersapprovedlastyear.Intheory,theconstitutionshouldbeaframeworkforgovernancewhichtheLegislaturefollowsinenactingstatutes.Butovertheyears,ourconstitutionhasgrowntoincludefartoomanyprovisionsthatrestricttheLegislaturefromdoingitsjob.Partofthis,weacknowledge,stemsfromalackoftrustandafearthatrevenuesthatweregeneratedforoneintentwillbedivertedforusetowardanother.Oneamendmentthisyearmightbeseenasanexampleofthat.Butmercifully,despitethefactthatmorethan60amendmentswereintroducedinthe2015legislativesession,onlythesefourwillbeontheballotonOctober24.Withsomanyotherimportantdecisionstobemadeinracesforgovernor,otherstatewideoffice,theLegislatureandBESE,votersdeservedthisbreakfromthelonglistofamendmentstheyhavegrownaccustomedtoseeingovertheyears.Amendment#1RestructureRainyDayFundandCreateNewFundforTransportationAmendment#1isessentiallydesignedtohelpdirectadditionalresourcestothestateshugeinfrastructureneeds.Itdoesnotraiseanynewtaxes,butitdoesmakechangesinthestatesBudgetStabilizationFund,morecommonlyknownastheRainyDayFund,toredirectsomerevenuestotransportation.Theamendmentitselfissomewhatcomplicated,buttheconceptisfairlysimple.ThestatecurrentlyhasaBudgetStabilizationFundwhichactssomethinglikeasavingsaccountwithacaponit.Itsdesignedtohelpthestateweatherbudgetdownturnssuchastheoneswehadstartingin2009.Thereareanumberofwaysthestatecandepositmoneyinthefund,butoneoftheprimarysourcesisexcessmineralrevenues.
Eachyearwegethundredsofmillionsofdollarsinoilandgasrevenueandsomeyearssignificantlymorethanthat.Statelawsaysgenerallythatwhenthosemineralrevenuesinanygivenyearexceed$950milliontheexcessdollarsmustbedepositedintotheBudgetStabilizationFund.Thatfundhasacaponit,however,andwhendepositsinitreachfourpercentofallstaterevenuereceivedduringthepriorfiscalyear,itisconsideredfullandanyadditionaldollarsflowbackintothestategeneralfund.Amendment#1changesthissignificantly.Ifpassed,itessentiallydoesthreethings:
1. ItchangesthenameoftheBudgetStabilizationFundtotheBudgetandTransportationStabilizationTrust.Withinthatitcreatestwosubfunds:theBudgetStabilizationSubfund,whichismuchlikethecurrentRainyDayFund,andtheTransportationStabilizationSubfund,whichisbrandnew.
2. Italsochangesthecapamountfortherainydayportionofthesubfundfromfourpercentof
staterevenuereceiptsto$500million.ThatamountstoareductionoftheRainyDayFundsdollarcapbecausefourpercentofstaterevenuereceiptsforthecurrentyearwouldbeabout$811million.
3. Whentherainydaysubfundreachesits$500millioncap,excessmineralrevenueswould
thenbegintoflowintotheTransportationStabilizationSubfundforuseoninfrastructureprojects.It,too,iscappedat$500million.
Soinsimplestterms,thisamendmentbasicallylowersthecapontheamountofoilandgasrevenuesthatcangointoourRainyDayFundandredirectsdollarsthatwouldhavebeengoingthereintothetransportationfundforhighwaysandotherinfrastructure.Comment:Louisianaclearlyhashugeinfrastructureneeds.Wehaveneglectedthemaintenanceonourroadsandbridgesformanyyearsandwehavereachedthepointwherethebacklogisintheneighborhoodof$12billion.AndthathasnothingtodowiththenewprojectsweneedtoundertaketorelievecongestioninfastgrowingareasandextendI49northandsouth.Unquestionably,thetimehascometobegintoreinvestinourhighwaysandbridgesandthisamendmentrepresentsanefforttodojustthat.However,wedohaveconcernsaboutit,primarilybecauseoftheimpactithasonourRainyDayFund.Toaddalittlecontext,budgetexpertsacrossthecountrygenerallyagreethatstatesshouldhaverainydayfundsandtheyshouldkeepthemfilledatalevelofaroundfivetotenpercentofstaterevenues.Ourcurrentcapisfourpercent,whichisonthelowendofwhatisrecommended.Ifthisamendmentpassesandthecapischangedto$500million,thatwouldreduceourmaximumrainydayreservestoabout2.5percentandthatpercentagewouldcontinuetodiminisheveryyearasstaterevenuesgrow.RainydayfundsareparticularlyimportantinstateslikeLouisianawheresignificantamountsofrevenuecomefromvolatilesourcesinourcase,oilandgas.Theideaisthatwhenthatrevenue
sourcesurgesexcessdollarsaredirectedtothefundandtheyaresavedtohelpthestateweatherthetimeswhenthereversehappensandrevenuesplunge.Obviously,thefewerthedollarsinthefund,thelesshelpfulthefundcanbeduringafinancialdownturn.Forinstance,ourlawsaysnomorethanonethirdoftherevenuesinthefundcanbeusedinanygivenyeartohelpbalancethebudget.Ifourfundwasfullandwehad$811millioninitasrecommended,thatwouldmeanthatabout$267millionwouldbeavailabletomitigateseverebudgetcutsifthemechanismtousethefundistriggered.Ifthefundiscappedat$500million,thatwouldsignificantlylowerthedollarsavailabletoonlyabout$165million.And,keepmind,thecutswearetryingtomitigatearetypicallydirectedtowardhighereducationandhealthcare.CABLstronglybelievesweneedtoinvestmoreinourinfrastructureandwouldsupportavarietyofapproachestodothat.AtleasttwobillspassedbytheLegislaturethisyearandanotherconstitutionalamendmentonthisfallsballotareproactiveattemptstoaddressourhighwayneeds.Theyrenotthecompletesolution,byanymeans,buttheydomoveinthatdirection.Thisamendmentisalsowellintended,butinthiscasewearewaryofthenotionoffurtherreducingthepotentialrevenuesinourrainydayfundandthefuturerisksthatwouldimposetohighereducationandhealthcare.Weneedabalancedapproachtoallofourbudgetissuesandfeelthisamendmenttipsthatbalancealittlefurtherthanweshouldprudentlygo.OPPOSEAmendment#2AllowtheStatetoInvestinLouisianaInfrastructureBankThisisanotheramendmentdesignedtohelpmeetsomeofthestatesinfrastructureneedswithaparticularfocusonlocalroadprojects.Duringtherecentlegislativesession,lawmakerscreatedsomethingcalledtheLouisianaTransportationInfrastructureBank.Itssimilartoanapproachusedinmorethan30stateswherethebankisallowedtolendmoneytolocalgovernmentsatlowerinterestratestofundlocaltransportationprojects.Itsarevolvingfundsothatthemoneythatisborrowedfromthefundispaidbackovertimeandcanbeusedlatertolendtootherprojects.Theproblemisthatwhilethenewbanktechnicallyexists,ithasnomoneytolend.ThisamendmentgivesthestateTreasurertheoptiontoinveststatefundsinthebanktohelpcapitalizeit,asoneofanynumberofotherpossiblerevenuesources.Comment:Thisissimilartoanamendmentthatwasdefeatedbyvotersonlastyearsballot.Buttheresonehugedifference.Lastyear,theLegislaturehadnotyetcreatedtheinfrastructurebankandvotersappearedwaryofpassinganamendmenttohelpfundabankthatdidntyetexist.Itdoesnow.InfrastructurebankshaveworkedsuccessfullyinotherstatestohelpfundroadprojectsanditsanoptionworthtryinginLouisiana.Theamendmentisnecessarybecausetheconstitutiongenerallyrestrictsloaning,pledgingordonatingstatepropertyorrevenuestootherentities.Thereare,however,anumberofexceptionstothatprohibitionandthiswouldbeanotherone.Thereisnorequirementthatstatedollarsbeinvestedintheinfrastructurebankandiftheyare,theuseofthosedollarstohelpfundlocalhighwayprojectsisclearlyservingapublicpurpose.
Currently,oneofthetreasurerschiefresponsibilitiesistomakejudgmentsregardingallkindsofinvestmentsofstatedollars.Heorsheshouldhavetheoptionofconsideringthiskindofinvestment,too,ifitappearstomakegoodsenseforthestate.SUPPORTAmendment#3ClarifySubjectMatterRegardingFiscalLegislativeSessionsLouisianabasicallyhastwokindsofregularlegislativesessions:1)ageneralsessionwhichtakesplaceinevennumberedyears,and2)afiscalsessionwhichtakesplaceinoddnumberedyears.Inageneralsessionabillcanbasicallybeintroducedonanysubjectmatterexceptmostissuesdealingwithraisingtaxesorfees.Thefiscalsessionisprettymuchtheopposite.Lawmakerscanintroduceonlyfivebillsapiecedealingwithgeneralsubjectmatters,otherwisetheyarerestrictedtodealingwithmattersofthebudget,raisingtaxesorfees,dedicationofrevenues,etc.Inotherwords,mostlyfiscalmatters.Butovertheyears,asissuesandterminologieshavechanged,theconstitutionallanguagerestrictinglegislationinfiscalsessionshassometimesgrowntoorestrictiveitself.Forinstance,lawmakerscouldbedealingwithapackageofchangesinoneareaofthelawdealingwithtaxation,onlytofindthatthatacertainitemthatclearlyfitsintothatdiscussionisnotexplicitlymentionedasoneofthesubjectmattersallowedinafiscalsession.Thisamendmentgenerallyremovessomeofthemorespecificandrestrictivelanguagedealingwithtaxationandtaxdedicationsandreplacesitwithbroaderwordingthatallowslawmakerstolegislatewithregardtotaxesanddedications.Thislanguageismoreappropriatefortheconstitution.Italsoidentifiesrebatesasoneoftheallowablesubjectmattersforafiscalsession,asitshouldbe.Comment:Thisamendmentisbasicallyclarifyinglanguagewhichisneededtomakeupfortheconfusioncausedbysomeoftheexistinglanguageintheconstitutiondealingwiththevariousfiscalissuesthatcanbedebatedduringafiscalsession.Yes,ifyoucountthefivegeneralsubjectmatterbillslawmakerscanintroduceinafiscalsession,onecouldarguetheresnoneedforthisamendmentbecause,inessence,byusingsomeofthemanyissuecanactuallybedebated.Thatstrue.Butlawmakersoftenusethosefivegeneralbillstotakecareofotherneedsandtheresnoreasontoevenhavetheeveryotheryearfiscalsessionsifthefiscalmattersthatcaneasilybedebatedinthemareinadvertentlyleftoffthetable.Thatwasnevertheintent.Thisisyetanotherofthosecaseswherewehaveputsomuchspecificityintothelanguageintheconstitutionthatwehavetorepeatedlycomebackandfixit.Thisisanotheroneofthosefixes.Giventhat,perhapsitstimetoconsiderwhetherthepolicyoftwodifferentkindsoflegislativesessionshasworkedoutthewayitwasintended,orifanotherapproachwouldmakebettersense.SUPPORTAmendment#4DefinePublicPropertyasitRelatestoLocalPropertyTaxesThisamendmentdealswithwhatappearstobeanextremelylimitedcircumstance.Localgovernmentsareallowedtocollecttaxesonvariouskindsofpropertywithintheirjurisdictions,buttheconstitutionspecificallyexemptspublicpropertyusedforpublicpurposesfromthattaxation.
Thats,ofcourse,sothatthestateanditsparishesandmunicipalitiesarentspendingalotoftheirtimeandresourcespayingandcollectingtaxestoandfromeachother.ButwhoknewthatthecityofMemphiswasstoringnaturalgasapublicpropertyinafacilityinWestCarrollParishandthattheparishhadleviedataxonit?Thematterwenttocourtandsofartwojudgmentshaveupheldtheviewthatwhentheconstitutionexemptspublicpropertyfromtaxation,itmeanspublicproperty.Theresultisthat,fornow,thecityofMemphisdoesnotowetheparishthe$400,000itwasassessed.Thisamendmentwouldreversethatsituationtosaythatlandorpropertyownedbyanotherstateoracityinanotherstateisnotexemptfromlocalpropertytaxes.Comment:Thisamendmentarrivestovotersfromthecourtsanditshouldstaywiththecourts.Wedontknowpreciselywhatthearchitectsofourconstitutionmeantwhentheytalkedaboutexemptingpublicpropertyfromtaxation,buttheyclearlydiditandthatswhywehavecourtstodecidematterslikethese.Onepointthathasbeenmadebyothersisworthmentioning.Ifthisamendmentpasses,otherstatesandtheirpoliticalsubdivisionswouldbesubjecttolocalpropertytaxes.Buttheamendmentissilentonwhetherthepublicpropertyofforeigncountriesistaxable.Basedonthecourtrulings,itwouldappearthatforeignpropertywouldbeexemptfromtaxesandonewondersifthatisactuallythestatespublicpolicyintentwiththisamendment.Bethatasitmay,anextra$400,000wouldclearlymeanalottoaplacelikeWestCarrollParish,butthatsnotreallytheissuehere.Itsnotgoodpolicytochangetheconstitutionforisolatedsituationsorwhenacourtrulingresultsinadifferentoutcomethansomewouldlike.Thatsactuallyoneofthereasonswehavesomanyconstitutionalamendments.Iftheresalargerpolicyatplayhere,itsnotapparentandthisparticularamendmentdoesntseemtoresolveallthepertinentquestionsthatthediscussionofthisissuehasraised.OPPOSE