Lawmakers dedicate savings money to aerospace programs, sound systems

(The Center Square) — Louisiana lawmakers moved $800 million out of the state’s Revenue Stabilization Trust Fund and carved out $81 million for a new fund that is being used to pay for hundreds of local and statewide projects.The new fund, called the Strategic Investments Across Louisiana Fund, includes roughly $77.8 million spread across more than 300 local projects, according to budget documents.The spending comes as lawmakers declined to put additional money into the state’s LA GATOR education savings account program, which would have received an extra $44 million, and as teachers are set to lose a $2,000 stipend they received in recent years after voters rejected Amendment 3 last weekend.The projects funded through the new strategic investment fund range widely.To name just a few, the amendments include: $1 million for the LSU AgCenter, $400,000 for arts and festivals through the Cultural Development Program; $400,000 for start-up costs at a behavioral health Crisis Center in Shreveport; $425,000 for a sound system for McNeese State University’s athletic department; $2 million for welding and manufacturing programs at the Louisiana Community and Technical College System; and $1 million in start-up costs for an aerospace program at Nunez Community College; $2 million for the Ellis Marsalis Center for Music in New Orleans and $5 million for Feeding Louisiana, a statewide food bank network.Other line items include money for playground upgrades, boat ramps, conference room renovations, athletic complexes, parking lot and security improvements at high schools, a helicopter landing pad, summer youth activities and many more local projects.The money originated in the Revenue Stabilization Trust Fund, one of the state’s savings funds. Under the state constitution, the fund is generally restricted until its balance exceeds $5 billion. But lawmakers can authorize use of the money through a separate legislative instrument with a two-thirds vote.Rep. Jack McFarland, R-Jonesboro told The Center Square that the Legislature has used that process in recent years to access a portion of the fund and direct money toward capital projects and other one-time expenses. He said lawmakers can authorize use of up to about a third of the fund through the required vote.This year’s budget plan would move $800 million out of the fund and into several special-purpose funds, including transportation, economic development, higher education, public safety, emergency response and the Strategic Investments Across Louisiana Fund.McFarland said the state would still keep more than $3 billion in combined reserves between the Revenue Stabilization Trust Fund and the state’s rainy day fund. He argued that threshold was important to Louisiana’s improved bond rating.With the $800 million transfer, McFarland said the Revenue Stabilization Trust Fund should still have “around $3.25 billion.” He also said future corporate tax collections would continue replenishing the fund.