State Capital Outlay News for Jan-June 2024
Through an agreement with LaMATS, former State Capital Outlay Budget Analyst James Purpera provides LMA members with two Capital Outlay newsletters per year and up to one hour of free consultation by phone or email to answer municipalities' questions about any part of the State Capital Outlay process.
Speaking recently on the outlook for State Capital Outlay Funding for the 2024 Legislative Session, Purpera explained that last year, the New General Obligation Bond Capacity (i.e. Cash Line of Credit Capacity available) was $523 Million and likely to increase in the coming year.
"The New General Obligation Bond Capacity is adjusted every year based on construction inflation," he said, "so it is likely that the new amount available for the 2024 Legislative Session will be more than $523 Million."
"In addition to new State General Obligation Bond Capacity each year, there is typically a State Revenue Surplus (cash funding) for the Governor and Legislature to allocate. A 11/8/23 nola.com news article indicated that the latest report from the State Revenue forecasters is that there will be a $330 Million Surplus from the State Fiscal Year that ended on 6/30/23. State Revenue Estimating Conference meets several times throughout the year to update revenue forecasts, so it is likely that additional Surplus Revenue could be recognized before the 2024 Legislative Session concludes action on State Budgets.
"While State General Obligation Bond Capacity can only be used in the Capital Outlay Budget Bill, State Revenue Surplus can be used in both the Capital Outlay Budget Bill and in the Supplemental Appropriations Bill. When you advocate for Capital Outlay funding you might want to also advocate for funding in the Supplemental Appropriations Bill."