Legislation is nearing the finish line that will allow state agencies and departments to spend up to $300,000 to repair and maintain its properties without going through Louisiana’s capital outlay process, the annual statewide bonding program for construction projects. The bill, by Sen. Yvonne Colomb, D-Baton Rouge, also permits state entities to engage in more expensive acquisitions and building projects under certain conditions.
This comes during a session when state Senators have been resistant to other capital outlay changes. For example, the upper chamber spiked HB 122 by Rep. Phillip DeVillier, R-Eunice, which would not require local government help in funding some projects but also gave lawmakers greater control over which projects end up on the Bond Commission agenda. Currently, the governor’s office makes that call.
The House Committee on Ways and Means Monday moved favorably on Colomb’s bill without objection, paving the way for state agencies to execute bigger, more expensive projects with their own money—and outside the state’s capital outlay budget. The bill not only would allow state agencies to purchase land, buildings or facilities but also doubles the spending allowance to $300,000 per year.
Every year the capital outlay budget contains a glut of construction projects far greater than what the state can afford. So while the Legislature approves the capital outlay bill, HB 2, it’s the State Bond Commission that determines which projects get funding—and which do not.
Sen. Regina Barrow, D-Baton Rouge, said the new proposal would “help” departments execute projects they cannot achieve on their own under the old $150,000 cap. Also, current law allows agencies to make repairs and renovations only on current property.
Colomb’s bill would allow for the purchase or construction of new buildings, leading to confusion among some committee members. “Before we could make repairs on certain facilities, but now we can buy certain facilities?” asked Rep. Jay Morris, R-Monroe.
Division of Administration Assistant Commissioner Mark Moses, who testified in support of the bill, responded that the ability to purchase property is more akin with the statutory definition of capital outlay. “There’s not a whole lot they (the agencies) can do with $150,000 any longer,” said Moses, adding that the bill allows them to execute the projects “without being in the capital outlay bill.”
Proponents of the legislation say it would expedite projects under $300,000 by avoiding the capital outlay process. Following the vote, Moses said he knows of no agencies seeking projects that exceed $150,000, adding Colomb’s bill was inspired by legislation awaiting the governor’s signature that, if approved, would allow the Department of Wildlife and Fisheries to spend up to $500,000 within its own budget on similar purchases.
Colomb’s bill initially allowed other state agencies to also spend $500,000, but the Senate Finance Committee whittled that down to the current proposal of $300,000.
