LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 857 HLS 24RS 2104
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 31, 2024 2:18 PM Author: CARTER, ROBBY
Dept./Agy.: Statewide
Subject: Capital Outlay - Local Match Exemptions Analyst: Kimberly Fruge
CAPITAL OUTLAY EN DECREASE LF EX See Note Page 1 of 1
Expands the class of parishes eligible for a waiver of a matching funds requirement for capital outlay projects
Current law requires nonstate entities applying for capital outlay funding to provide a match of not less than 25% of the total
project cost except, amongst other things, a project undertaken by a municipality with a population of less than 6,000 or a
parish with a population of less than 7,500 which has demonstrated its inability to provide a local match.
Proposed law changes the parish exemption to those parishes with less than 12,000 which has demonstrated its inability to
provide a local match.
Proposed law requires the calculation of population exclude the number of correctional facility inmates.
Proposed law applies to projects included in the capital outlay budget for fiscal year commencing on or after July 1, 2025
and ending on or before June 30, 2027.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 DECREASE DECREASE DECREASE DECREASE $0
Annual Total $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law is anticipated to reduce local expenditures given that it expands the criteria for exception from the 25% local
match requirement for certain local capital outlay projects. The amount of this decrease is indeterminable as it depends on
the number of approved local projects and the project’s total cost. However, the enactment of the proposed law may
encourage more parishes to apply for capital outlay funds since they may be exempt from the 25% match requirement.
Note: Proposed law has no impact on state expenditures since the number of capital outlay projects and the amount of
capital outlay spending are functions of the state’s available debt capacity, which is not impacted by the proposed change to
non-state entity projects. The line of credit for nonstate entity projects is currently limited to no more than 25% of the cash
line of credit for projects. Therefore the same total amount will be appropriated for nonstate entity projects. However, this
may impact how the total line of credit for nonstate entity projects is allocated on a per-project basis and/or may reduce the
number of projects funded through the capital outlay program.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB857 Original: 39:112(E)(2)
HB857 Engrossed: 39:112(E)(2)
HB857 Reengrossed: 39:112(E)(2)
HB857 Enrolled: 39:112(E)(2)
HB857 Act 741: 39:112(E)(2)