LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 492 SLS 24RS 1406
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 20, 2024 6:42 PM Author: FESI
Dept./Agy.: Department of Transportation and Development
Subject: Reduces LA1 tolls for certain vehicles Analyst: Deborah Vivien
FEES/LICENSES/PERMITS EN DECREASE GF RV See Note Page 1 of 2
Provides relative to the Leeville Bridge toll fee. (8/1/24)
Current law authorizes the Louisiana Transportation Authority (LTA) to impose tolls on the Leeville Bridge, also known as LA1
tolls. The adopted toll schedule includes three classes of vehicles, primarily delineated by length, which includes anything
being towed, with graduated tolls as the vehicle length increases.
Proposed law direct LTA to adjust LA1 tolls by classifying vehicles that are towing recreational vessels as Class 2 vehicles
(length between 20 and 35 feet), regardless of the actual length of the vessel being towed. The bill would reduce tolls by
half from $21 to $10.50 on vehicle lengths which are greater than 35 feet, including the towed vessel. Recreational vessels
are defined in the bill as vessels used primarily for pleasure or leased, rented or chartered to a person for personal use. The
definition excludes vessels engaged in commercial use or that carry paying passengers.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $161,025 $15,027 $15,826 $16,617 $17,448 $225,943
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. ($60,000) ($60,000) ($60,000) ($60,000) ($60,000) ($300,000)
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 ($60,000) ($60,000) ($60,000) ($60,000) ($60,000) ($300,000)
EXPENDITURE EXPLANATION
According to DOTD, the initial costs of adjusting and operating the toll system to accommodate the changes in the bill are
estimated at $146,670 with annual operating costs of $14,355 that are expected to grow by 5% annually. These costs will
be paid from the Transportation Trust Fund.
The state may face expenses and an uncertain timeline in order to adjust the tolls according to the bill, including possibly
hiring a toll road consultant to prove revenue neutrality and obtaining approval of a toll schedule change through the TIFIA
program.
The state is required to pay the debt service on the LA1 toll bonds while actual toll collections are deposited as a partial
reimbursement (see Revenue Explanation). Any reduction in tolls will lower the reimbursement to the state increasing the
net cost. However, the expenditures are built into the base budget of the state and are not expected to change due to this
bill. It is not clear if this practice will satisfy revenue neutrality after a toll changed.*
REVENUE EXPLANATION
According to DOTD, the bill will reduce toll revenue by an estimated $56,574 in FY 25, expected to grow by 5% annually
(rounded to $60,000 in the table). The figures are based on 104,931 average monthly vehicles paying tolls between May-
August of 2019 for 3 axle vehicles (the old system classification most likely impacted by the bill), which garnered toll
revenue of $2.2M. Of the 104,931 vehicles, 19% were Class 3 and 2.25% were pulling boats, leaving an anticipated 449
vehicles with a toll that is $10.50 less under the bill, should traffic patterns hold. To the extent that vehicles towing
recreational vessels in excess of 35 feet pay lower tolls on the Leeville Bridge, state general fund revenue will decrease by
the amount of the toll reduction. However, should lowering of the toll draw additional traffic, an offsetting impact could
occur. Local vehicles are exempt from tolls.
The state pays the debt service on the TIFIA bonds, and actual toll collections are deposited to the state general fund as a
partial reimbursement. On net, the state provides about $2.3M annually toward toll bond obligations. Any adjustment to the
toll revenue will impact the amount that is reimbursed to the state, which will cause a corresponding decrease in available
SGF revenue, which appears as a component of Bond Reimbursements on the SGF portion of the Revenue Estimating
Conference report.
CONTINUED ON PAGE 2
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
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} Legislative Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 492 SLS 24RS 1406
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 20, 2024 6:42 PM Author: FESI
Dept./Agy.: Department of Transportation and Development
Subject: Reduces LA1 tolls for certain vehicles Analyst: Deborah Vivien
CONTINUED EXPLANATION from page one: Page 2 of 2
* TIFIA bond covenants state that a toll schedule approved by LTA is a binding component of the bond covenants with
specific direction for altering the toll schedule: “...Such toll schedule shall not be amended, revised or modified without the
prior written consent of the Owners of the TIFIA Bonds...” An exception is made if a written certification by a toll road
consultant that the new schedule satisfies certain requirements, namely that projected revenues will not be reduced, to be
based solely on historical traffic transactions and characteristics.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
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} Legislative Fiscal Officer


Statutes affected:
SB492 Original: 47:4(C)
SB492 Engrossed: 47:4(B)(6)
SB492 Reengrossed: 47:4(B)(6)
SB492 Enrolled: 47:4(B)(6)
SB492 Act 361: 47:4(B)(6)