LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 40 HLS 21RS 150
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 12, 2021 11:57 AM Author: WRIGHT
Dept./Agy.: Department of Transportation and Development
Subject: Limits the TTF from paying certain DOTD expenses Analyst: Alan M. Boxberger
FUNDS/FUNDING EG +$31,007,763 GF EX See Note Page 1 of 2
Limits certain monies from being used to pay for certain Dept. of Transportation and Development expenses
Present constitution requires monies deposited into the Transportation Trust Fund (TTF) to be appropriated and dedicated solely and
exclusively for costs associated with construction and maintenance of roads and bridges of the state and federal highway systems, the
Statewide Flood-Control Program, ports, airports, transit and the Parish Transportation Fund. Present law provides for certain limitations
on appropriations and utilization of the TTF. Proposed law adds the following limitations to utilization of the TTF by DOTD: beginning in
FY 23 and each year thereafter, DOTD shall not use the TTF to pay for benefits of retired employees; beginning in FY 24, DOTD shall not
use TTF monies to pay for more than 5/6 of the total benefits and annual salaries costs for current employees; beginning in FY 25, for
more than 2/3 of total benefits and salaries; beginning in FY 26, for more than 1/2 of total benefits and salaries; beginning in FY 27, for
more than 1/3 of total benefits and salaries; beginning in FY 28, for more than 1/6 of total benefits and salaries; and beginning in FY 29,
benefits and salaries of current employees shall be prohibited expenses for the TTF. Proposed law allows for an exception if these
expenses are authorized in the general appropriation bill.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $31,007,763 $88,256,770 $146,308,000 $205,185,519 $470,758,052
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 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 will result in an increase in SGF expenditures beginning in FY 23 and increasing annually through FY 29
related to a phased prohibition of utilizing the Transportation Trust Fund-Regular (TTF-Regular) to pay for certain
department operating expenses, unless authorized in the general appropriation bill (GAB). Should proposed law be
enacted, DOTD will require a recurring funding source to offset the inability to utilize the TTF-Regular for existing expenses.
For purposes of this fiscal note, those expenditures are assumed to be SGF and departmental operations are assumed to
remain at current staffing levels. In the event the GAB authorizes the use of TTF-Regular in any given fiscal year, the
impacted expenditures would still be paid from the statutory dedication instead of SGF, alleviating the impact detailed in this
fiscal note for that corresponding appropriation year.
The expenditure impact on the SGF will be comprised of the following components:
FY 23 FY 24 FY 25 FY 26
(1) Post-Retirement Benefits $31.01 M $31.01 M $31.01 M $31.01 M
(2) Percentage of Annual Salaries (current employees) $37.19 M $74.39 M $111.58 M
(3) Percentage of Related Benefits (current employees) $20.06 M $40.91 M $62.60 M
*Total Impact $31.01 M $88.26 M $146.31 M $205.19 M
FY 27 FY 28 FY 29
(1) Post-Retirement Benefits $31.01 M $31.01 M $31.01 M
(2) Percentage of Annual Salaries (current employees) $148.77 M $185.97 M $223.16 M
(3) Percentage of Related Benefits (current employees) $85.13 M $108.54 M $132.86 M
*Total Impact $264.91 M $325.52 M $387.03 M
*See page 2
SEE EXPENDITURE IMPACT CONTINUED ON PAGE TWO
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Christopher A. Keaton
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: HB 40 HLS 21RS 150
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 12, 2021 11:57 AM Author: WRIGHT
Dept./Agy.: Department of Transportation and Development
Subject: Limits the TTF from paying certain DOTD expenses Analyst: Alan M. Boxberger
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE IMPACT CONTINUED FROM PAGE ONE
*DOTD estimated expenditures for FY 23 through FY 29 as follows:
(1) Post-retirement benefits are based on FY 20 actual expenditures and are not adjusted annually. These figures may
increase or decrease as a result of the number of DOTD employees receiving post-retirement benefits in any given fiscal
year. A large number of employees are retirement eligible or will be within the fiscal note’s window, but the impact is
indeterminable.
(2) DOTD reported salaries based on FY 20 actual expenditures but did not reflect annual civil service market rate
adjustments. If the LFO assumed a 3% annual growth in salaries due to the civil service market rate adjustments between
FY 23 and FY 29 in an effort to reflect the maximum potential expenditure exposure, the potential expenditures would
increase for salaries and total by the following amounts (salaries are not impacted until FY 24, however growth is applied to
each intervening fiscal year between FY 19 and FY 28 for this calculation):
FY 24 - $4.67 M increase to $92.92 M Total Impact
FY 25 - $11.85 M increase to $158.16 M Total Impact
FY 26 - $21.65 M increase to $226.84 M Total Impact
FY 27 - $34.20 M increase to $299.11 M Total Impact
FY 28 - $49.61 M increase to $375.13 M Total Impact
FY 29 - $68.01 M increase to $455.04 M Total Impact
These salary adjustments assume 3% growth applied to FY 20 actual salary expenditures without regard to
retirements, new hires, training series adjustments, attrition rates, or other potential salary adjustments.
The actual expenditures may be greater or lesser depending on these factors.
(3) Related benefits expenditures are based on FY 20 actuals and a 2% annual increase is applied.
NOTE: The LFO assumes the restriction of TTF-Regular for ongoing personnel services costs would facilitate an equal
increase of non-personnel services and capital outlay expenditures out of the TTF-Regular. This does not allow the
drawdown of additional federal match monies, as DOTD already matches its full allotment. However, DOTD projects
potentially being unable to meet its full match requirement at some time in the near future absent any changes to federal
allocations and proposed law may delay the inability to match the full federal allotment indefinitely.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Christopher A. Keaton
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer