May 31, 2011
| Budget Battle Moves To Senate | ||
HB 1, Fannin, the appropriations bill that funds state government for the next fiscal year, was considered over a two-day period late last week. All predicted a contentious fight between the fiscal conservatives who think government should be shrunk to fit and those who seek to provide needed funding for health issues and education. The $24 billion plus executive budget, of which $8 million is funded through general fund revenues, originally contained “contingency” funding for higher ed, Health & Hospitals, and other general fund programs. House conservatives argued that the executive budget was not “balanced” and contingency funding was removed by the House Appropriations Committee and replaced by cuts to DHH, and cuts in salaries, travel, etc. However, there was still some use of one-time moneys that would be used for recurring expenditures. Then it got weird. Just a couple of days prior to the House receipt of HB 1, a house rule was adopted that could forever change the way the state budget is considered. HR 27, Rep. Geymann, provides that certain limits on one-time money used for recurring expenses, and requires a two-thirds vote of the House when those limits are exceeded. The limit was exceeded by $ 92 million, so additional cuts were made to DHH for the House to be able to consider HB 1. The Jindal administration objected strenuously to the additional cuts, as well as the way the House redid the bill, generally. HB 1 was passed by the House with the cuts and now goes to the Senate Finance Committee, where the Jindal administration will try to restore funding that was cut by the House. If they restore the funding, however, and the bill exceeds the threshold under which one-time funds are used, it will go to conference and HR 27 requires a two-thirds vote again, to consider the amended bill. |
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| LAGC Package Advances | ||
HB 427, Guinn, that removes antiquated language from the State Contractors’ Licensing Law, providing that contractors bidding on certain federal-aid work not be required to be licensing until the time that they would be performing the work, was approved by the Senate Transportation Committee and awaits final passage by the Senate. HB 356, Howard and HB 378, Ellington, the prompt pay law through mandamus proceedings, has been approved by the House of Representatives and awaits a hearing in the Senate Transportation Committee. SB 242, Appel, relative to change orders and splitting of profits, fees, and commissions in public contracts was heard by the Senate Transportation Committee and Senator Appel amended the bill extensively. The bill would now prohibit a public official from receiving a profit, fee, or commission from a public contract. Each change order in excess of ten percent of the original contract or at least $10 thousand would be required to be recorded by the public entity, and changes orders aggregating more than 20 percent of the original contract likewise shall be recorded. The office of Facility Planning and State Purchases were eliminated from the bill, but at the request of Senator McPherson, DOTD was not. Old affidavits that caused much consternation are gone. |
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| Capital Outlay Preserved | ||
HB 2, Greene, the state’s capital outlay bill, was passed later in the day. There was an effort made earlier to cut new funding for capital outlay, where Priority 5 projects would normally be moved into Priority 1, which makes these projects available for sale of bonds. A grass roots effort by LAGC took place prior to the House Ways & Means Committee consideration of the bill. The bill’s author and W & M Chairman Greene announced the cuts would not be made as it was learned that adequate funding would be available for the projects during this fiscal year, and the bill advanced. LAGC argued that the cuts were unnecessary as adequate funding would be available, and that the industry would be crippled by the cuts. |
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| PLA Prohibition Advances & Indeminification Appears Dead | ||
| SB 76, Martiny, prohibiting project labor agreements, has been passed by the Senate and will be heard by the House Labor Committee this Thursday. The Senate vote on HB 76 was 27-4. LAGC supports the legislation. HB 490, Abramson and HB 447, M. Jackson, legislation introduced at the request of the Louisiana Chemical Association, to gut anti-indemnification legislation enacted in 2009, appear dead for the session. LMTA and LAGC, joined by ABC this time, argued that the legislation should not be considered by the legislature as the LCA has sued the state over the law. Normally the legislature doesn’t consider legislation while litigation over the law is pending in the courts. LAGC opposes the legislation. |
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| And Rounding Out The Week | ||
HB 132, HB 59, HB 238, Lambert, clarifies exactly what funds from truck vehicle registration fees goes into the Road Improvement Fund, at $40 million. It has been approved by House Appropriations and awaits final passage by the House. Some tried to peg the amounts due annually to $19 million but this legislation corrects the “confusion”. HB 543, Leger, allows ports to avail themselves of design-build opportunities under certain circumstances, has passed the House and awaits Senate Committee review. HB 551, Connick, set up a special commission to review CCCD and the efficacy of continuing tolls past 2012, was put to rest by Rep. Connick, in the House Transportation Committee. |
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| Inside this issue | ||