Lawmakers learn the ropes
Hours-long briefing on state’s finances prepares legislators for budget debate
Legislators got a crash course Monday in the complex mechanics of the state’s finances.
Veteran and new legislators descended into the basement of the State Capitol for an hours-long briefing on where the state gets its revenue, how to make construction project funding requests and other issues.
“You feel like you’re learning the secret handshakes and how government works,” newly elected state Rep. Jeff Thompson, R-Bossier City, said after the gathering broke for lunch.
The briefing fell just days before Gov. Bobby Jindal is scheduled to unveil his proposed state operating budget for the fiscal year that starts July 1.
From the briefing, state Rep. Jim Fannin, D-Jonesboro and the budget bill’s sponsor, left to meet with the governor on the state spending plan.
The governor will present his proposal to the Joint Legislative Committee on the Budget Thursday.
The spending plan, which will be filed as House Bill 1, then will be debated by the House Appropriations Committee and the full House before moving to the state Senate.
State Rep. Jim Morris, a member of the House Appropriations Committee, said he attended Monday’s briefing to get the latest state budget figures.
“For me, it’s just refreshing, having served on Appropriations,” said Morris, R-Oil City.
An $895 million shortfall is projected for the upcoming state fiscal year, partly because one-time money was used to balance the current year’s $25 billion state operating budget.
One-time money is revenue that only materializes once rather than year to year.
House fiscal staff warned legislators Monday that the shortfall excludes:
- A possible need for increased basic state aid to public schools because of growing student enrollment.
- A $251 million deficit in the current year’s budget, some of which could carry over into next year’s budget.
- Forcing state agencies to shoulder the cost of merit pay raises, retirement cost increases and inflation without giving them the dollars to pay for them.
House aides fielded questions about tax credits, royalties from offshore drilling and the loss of sales tax revenue in Internet sales.
Legislators sat in committee room seats normally occupied by members of the public.
Patrick Goldsmith, the new director of the House fiscal division, bounded about the room with a microphone so legislators’ questions could be heard.
Alison Pryor, who works for the House Committee on Ways and Means, told legislators that the state constitution prohibits any tinkering with tax credits in an even year such as 2012.
The House Committee on Ways and Means handles the state construction budget and reviews any proposals dealing with taxes or tax breaks.
Pryor said the constitution is silent on tax rebates, which offer taxpayers cash back for eligible expenses.
The topic of how to submit state construction, or capital outlay, requests generated a number of questions.
The state construction budget sorts capital outlay funding into priorities which determine when funding is received.
Pryor characterized the complicated process as confusing.
Generally, funding requests must be submitted to the Division of Administration by Nov. 1 with a letter of support from the legislator in whose district the project is located.
However, applications can be accepted after the Nov. 1 deadline if certain criteria apply.
“As soon as I tell you there is a rule, I’m going to tell you there’s an exception to it,” Pryor said.
After the meeting, state Rep. Major Thibaut, D-New Roads, said he wanted to review the basics as he prepares to join the House Committee on Ways and Means.
“I guess I’m here today because I want to make sure I don’t miss anything,” Thibaut said.
Fannin, who chairs the House Appropriations Committee, said the briefing hit the highlights. He said real knowledge comes from observing the process in motion.
“This is helpful as an overview, but you’ve just got to participate,” he said.