Using extra budget money, Louisiana deposits first $205 million into fund aimed at stability
Louisiana collected enough business taxes during the last budget year to deposit the first $205 million into a never-used, five-year-old trust fund created to curb the state's boom-and-bust cycles of budgeting.
The money may not be spent for years.
Fifty-four percent of voters in 2016 agreed to set up the Revenue Stabilization Trust Fund, to siphon off a portion of the state's oil and gas revenue and corporate taxes when those collections are higher than usual.
The trust fund was designed to help Louisiana respond to the wide fluctuations it's seen in those two sources of state income, seeking to sock away some of the money for infrastructure investments — rather than let it be used for ongoing expenses that might not be affordable in future budget years if those income sources fall again.
"Two of Louisiana government's most volatile sources of funding are mineral revenue and corporate taxes. Unlike steadier sources of revenue like individual income or sales taxes, mineral revenue and corporate taxes can vary wildly," the nonpartisan Public Affairs Research Council of Louisiana wrote in an explanation of the proposal when it went before voters.
Read more: https://www.theadvocate.com/baton_rouge/news/politics/legislature/article_3071319a-3051-11ec-ac3c-83a4f271a78c.html
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