2019 Governmental Seminar November 14, 2019 a s s u r a n c e - - - PDF document
2019 Governmental Seminar November 14, 2019 2019 Governmental Seminar November 14, 2019 a s s u r a n c e - c o n s u l t i n g - t a x - t e c h n o l o g y - p n c p a . c o m Postlethwaite & Netterville, A Professional
a s s u r a n c e - c o n s u l t i n g - t a x - t e c h n o l o g y - p n c p a . c o m
Postlethwaite & Netterville, A Professional Accounting Corporation
November 14, 2019
www.pncpa.com/events
www.pncpa.com/events
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Greg Albrecht Chief Economist Legislative Fiscal Office
2019 Governmental Seminar November 14, 2019
Source: U.S. Dept. of Labor, LA Legislative Fiscal Office 5
State Employment Levels: Better than Aug’16 trough, but just barely
1,200.0 1,225.0 1,250.0 1,275.0 1,300.0 1,325.0 1,350.0 1,375.0 1,400.0 1,425.0 1,450.0 1,475.0 1,500.0 1,525.0 1,550.0 1,575.0 1,600.0 1,625.0 1,650.0 1,675.0 1,700.0 1,725.0 1,750.0 1,775.0 1,800.0 1,825.0 1,850.0 1,875.0 1,900.0 1,925.0 1,950.0 1,975.0 2,000.0 2,025.0 2,050.0 2,075.0 2,100.0 2,125.0 2,150.0 2,175.0 2,200.0 2,225.0 2,250.0 2,275.0 2,300.0 Jan‐08 A pr‐08 Jul‐08 O ct‐08 Jan‐09 A pr‐09 Jul‐09 O ct‐09 Jan‐10 A pr‐10 Jul‐10 O ct‐10 Jan‐11 A pr‐11 Jul‐11 O ct‐11 Jan‐12 A pr‐12 Jul‐12 O ct‐12 Jan‐13 A pr‐13 Jul‐13 O ct‐13 Jan‐14 A pr‐14 Jul‐14 O ct‐14 Jan‐15 A pr‐15 Jul‐15 O ct‐15 Jan‐16 A pr‐16 Jul‐16 O ct‐16 Jan‐17 A pr‐17 Jul‐17 O ct‐17 Jan‐18 A pr‐18 Jul‐18 O ct‐18 Jan‐19 A pr‐19 Jul‐19 U.S. Recession LA_EstEmp_sa LA_CLF_sa LA_HHEmp_sa LA_Priv_sa LA AGGREGATE EMPLOYMENT CONCEPTS: LEVELS Labor Force and Employment ( Establishment & Household) Monthly Observations, Seasonally Adjusted ( sa)
From Jan'08 National Recession Start Employm ent: Household Survey Payroll Total Emp: Establishment -Based Civilian Labor Force: Household Survey Data through Sep( p) '19 Payroll Private Em p: Establishm ent - Based LA Expansion Peak Dec'14, 1.677 m ( + 17 1k) ~ 2.5% Ann Gr LA Recession Trough Aug'16, 1.637 m ( -40k) LA Expansion Peak Dec'14, 2.007 m ( + 131k) ~ 1.75% Ann Gr LA Recession Trough Aug'16, 1.965 m ( -42k) LA Recession Trough Feb'10, 1.506 m ( -70k) LA Recession Trough Feb'10, 1.876 m ( -68k) LA Sep'19 1.666 m ( + 29k ) ~ 0.6% Ann Gr LA Sep'19 2.003 m ( + 38k ) ~ 0.6% Ann Gr
Source: U.S. Dept. of Labor, LA Legislative Fiscal Office 6
State Employment Growth: Take out Construction, and growth not as weak (black bars)
‐4.00% ‐3.50% ‐3.00% ‐2.50% ‐2.00% ‐1.50% ‐1.00% ‐0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Dec‐12 Mar‐13 Jun‐13 Sep‐13 Dec‐13 Mar‐14 Jun‐14 Sep‐14 Dec‐14 Mar‐15 Jun‐15 Sep‐15 Dec‐15 Mar‐16 Jun‐16 Sep‐16 Dec‐16 Mar‐17 Jun‐17 Sep‐17 Dec‐17 Mar‐18 Jun‐18 Sep‐18 Dec‐18 Mar‐19 Jun‐19 Sep‐19
Establishment (payroll) Employment: Yr‐over‐Yr % Growth
Total (blue), Private (red), Government (green)
monthly observations, seasonally adjusted Sept(p)'19 LA_EstEmp_sa LA_Priv_sa LA_Gov_sa LA_Emp‐Cons
Source: U. S. Dept. of Labor, LA Legislative Fiscal Office 7
State Unemployment Rate: Near historical low, but back to historical position > U.S. & South
2.0 2.3 2.5 2.8 3.0 3.3 3.5 3.8 4.0 4.3 4.5 4.8 5.0 5.3 5.5 5.8 6.0 6.3 6.5 6.8 7.0 7.3 7.5 7.8 8.0 8.3 8.5 8.8 9.0 9.3 9.5 9.8 10.0 10.3 10.5 10.8 11.0 11.3 11.5 11.8 12.0 12.3 12.5 12.8 13.0 Jan‐76 Aug‐76 Mar‐77 Oct‐77 May‐78 Dec‐78 Jul‐79 Feb‐80 Sep‐80 Apr‐81 Nov‐81 Jun‐82 Jan‐83 Aug‐83 Mar‐84 Oct‐84 May‐85 Dec‐85 Jul‐86 Feb‐87 Sep‐87 Apr‐88 Nov‐88 Jun‐89 Jan‐90 Aug‐90 Mar‐91 Oct‐91 May‐92 Dec‐92 Jul‐93 Feb‐94 Sep‐94 Apr‐95 Nov‐95 Jun‐96 Jan‐97 Aug‐97 Mar‐98 Oct‐98 May‐99 Dec‐99 Jul‐00 Feb‐01 Sep‐01 Apr‐02 Nov‐02 Jun‐03 Jan‐04 Aug‐04 Mar‐05 Oct‐05 May‐06 Dec‐06 Jul‐07 Feb‐08 Sep‐08 Apr‐09 Nov‐09 Jun‐10 Jan‐11 Aug‐11 Mar‐12 Oct‐12 May‐13 Dec‐13 Jul‐14 Feb‐15 Sep‐15 Apr‐16 Nov‐16 Jun‐17 Jan‐18 Aug‐18 Mar‐19
Unemployment Rates: LA, South, and U.S.
Monthly, Seasonally Adjusted (sa) Data through Sep(p) 2019
U.S. Recession US_UnRate_sa LA_UnRate_sa South_Un_sa LA 4.3% SO 3.6% US 3.5%
Source: U.S. Dept. of Labor, LA Legislative Fiscal Office 8
Relative Employment Performance: La lagging from beginning of national recovery but, at first, that was a government downsizing policy decision. Then LA suffers state oil recession 2015‐2016. Climb out from that has been very slow.
98.0 100.0 102.0 104.0 106.0 108.0 110.0 112.0 114.0 116.0 118.0 120.0 122.0 Feb ‐10 May‐10 A ug‐10 Nov‐10 Feb ‐11 May‐11 A ug‐11 Nov‐11 Feb ‐12 May‐12 A ug‐12 Nov‐12 Feb ‐13 May‐13 A ug‐13 Nov‐13 Feb ‐14 May‐14 A ug‐14 Nov‐14 Feb ‐15 May‐15 A ug‐15 Nov‐15 Feb ‐16 May‐16 A ug‐16 Nov‐16 Feb ‐17 May‐17 A ug‐17 Nov‐17 Feb ‐18 May‐18 A ug‐18 Nov‐18 Feb ‐19 May‐19 A ug‐19 Change From Feb 2010
Louisiana Relative Total Payroll Employment Performance
Feb 2010 = 100, Louisiana Employment Trough During National Recession
LAEmp_index USEmp_index SouthEmp_index Last Observation: Sept 2019 LA = 106.2 U.S. = 117.0 South = 119.1 Benchmarked Through Dec 2018 LA = 105.6 U.S. = 115.9 South = 117.5 Gap due to government employment downsizing Then oil recession of 2015‐16 changed LA trajectory completely
Source: Federal Reserve Bank of Philadelphia, LA Legislative Fiscal Office 9
Philly Fed Coincident Indicators broader than just employment: La lagging from beginning of national recovery. Then suffers state oil recession 2015‐2016. Climb out from that very slow.
{payroll employment, average manufacturing hours worked, unemployment rate, inflation‐adjusted wages & salaries}
100 105 110 115 120 125 130 135 140 145
Feb‐10 Apr‐10 Jun‐10 Aug‐10 Oct‐10 Dec‐10 Feb‐11 Apr‐11 Jun‐11 Aug‐11 Oct‐11 Dec‐11 Feb‐12 Apr‐12 Jun‐12 Aug‐12 Oct‐12 Dec‐12 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14 Oct‐14 Dec‐14 Feb‐15 Apr‐15 Jun‐15 Aug‐15 Oct‐15 Dec‐15 Feb‐16 Apr‐16 Jun‐16 Aug‐16 Oct‐16 Dec‐16 Feb‐17 Apr‐17 Jun‐17 Aug‐17 Oct‐17 Dec‐17 Feb‐18 Apr‐18 Jun‐18 Aug‐18 Oct‐18 Dec‐18 Feb‐19 Apr‐19 Jun‐19 Aug‐19
Louisiana Relative Coincident Indicator Performance Feb 2010 = 100, Louisiana National Recession Trough
LA US South (ex LA) Last Observation: Sept 2019 U.S. = 133.47 South (ex LA) = 141.11 LA = 110.22
South = U.S. Dept of Labor, Bureau of Labor Statistics Southeast Region: AL, FL, GA, KY, MS, NC, SC, TN, +AK, ‐LA
Source: U.S. Dept. of Labor, LA Legislative Fiscal Office 10
MSA Employment Trends: 5 MSAs pulling state up (68% of emp), 4 + Balance pulling down (32%). Shouldn’t we be doing better? Not so much pulling up, as pulling flat?
0.950 0.955 0.960 0.965 0.970 0.975 0.980 0.985 0.990 0.995 1.000 1.005 1.010 1.015 1.020 1.025 1.030 1.035 1.040 1.045 1.050 1.055 1.060 1.065 1.070 1.075 1.080 1.085 1.090 1.095 1.100 Aug‐16 Sep‐16 Oct‐16 Nov‐16 Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18 Jul‐18 Aug‐18 Sep‐18 Oct‐18 Nov‐18 Dec‐18 Jan‐19 Feb‐19 Mar‐19 Apr‐19 May‐19 Jun‐19 Jul‐19 Aug‐19 Sep‐19
MSA Total Payroll Employment Growth, sa Aug'16 = 1, Statewide Trough Last Observation Sep'19
State ALX BTR HAM HMA LAF LKC MON NO S/B Balance
LKC BTR STATE S/B Bal LAF HMA ALX NO MON HAM 3.1% 20.7% 2.3% 4.3% 10.3% 6% 4% 29.4% 9.1% 10.9% Shares as
Source: LA Legislative Fiscal Office 11
State tax revenue history and outlook. FY20 – FY23 likely to be revised up in next few months.
12 FY19 general fund revenue excess from personal income tax and corporate income & franchise taxes. Federal tax law changes (personal & corporate income), state tax law changes (corporate). Same Story for FY18. The FY19 general fund budget surplus reported as $534M, after all revenue and expenditure items are combined. Source: LA Legislative Fiscal Office
$ Contribution % Significant General Fund Contributors to the FY18 Forecast Balance Positives are under‐forecasts; Negatives are over‐forecasts 127,610,853 $ 26.7% Corporate Income & Franchise Tax Various state legis actions since 2015 189,686,284 $ 5.8% Individual Income tax Federal tax law changes; greater w/holds than expected $317,297,137 > than total bottom line error means all other are net negative FY18 per inc gr only ~2.5%, wages/salaries ~1.1% contributors 306,013,089 $ 3.1% 1% General Fund worth: 98,944,131 $ General Fund 2.6% 1% Total Tax worth: 123,813,115 $ Total Tax
$ Contribution % from Fcst Significant Contributors to the FY19 State General Fund Forecast Balance Positives are under‐forecasts; Negatives are over‐forecasts 230,518,311 $ 36.6% Corporate Income & Franchise Tax Fed tax law changes, state legis actions since 2015 274,165,145 $ 7.4% Individual Income tax Fed tax law changes $504,683,456 nearly = the total bottom line excess means all others combined are nearly net zero contributors 5,705,347 $ 0.2% Sales Tax, General Rate cut by 0.55 % pt; accurately forecast 7,381,371 $ 1.6% Sales Tax, Vehicle Rate cut by 0.55 % pt; accurately forecast 10,438,564 $ 2.0% Severance Tax Higher oil prices, production improvements 14,521,378 $ 8.0% Royalties Higher oil prices, production improvements $24,959,942 (7,300,000) $ ‐48.7% Unclaimed Property Treasury refuses to transfer net receipts to general fund 5,133,099 $ 83.7% General Fund Earnings Earnings net of dedication allocations normalizing (22,625,449) $ ‐2.5% Excise License Tax (tax on insurance premiums) Medicaid expansion, tax increases, ambulance additions (30,833,516) $ All Other (Total Tax and Dedications of those taxes) 487,104,250 $ 4.9% 1% error equals: $100,409,042 General Fund 4.0% 1% error equals: $126,399,453 Total Tax
Source: Division of Administration, Legislative Fiscal Office 13
No more talk of fiscal cliffs. FY20 budget is balanced, and FYs beyond are typical gaps.
FIVE YEAR BASE LINE PROJECTION STATE GENERAL FUND SUMMARY APPROPRIATED
Prior Current Projected Projected Projected Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year REVENUES: 2018‐2019 2019‐2020 2020‐2021 2021‐2022 2022‐2023 Taxes, Licenses & Fees $12,134,900,000 $12,354,400,000 $12,576,200,000 $12,882,900,000 $13,165,400,000 Less Dedications ($2,581,100,000) ($2,629,600,000) ($2,532,200,000) ($2,578,000,000) ($2,615,800,000) Act 10 of the 2018 Second Extraordinary Session ‐ Transfer of Funds $53,333,333 $0 $0 $0 $0 TOTAL REC REVENUES (OFFICIAL FORECAST) $9,607,233,333 $9,724,800,000 $10,044,100,000 $10,304,900,000 $10,549,700,000 ANNUAL REC GROWTH RATE 1.22% 3.28% 2.60% 2.38% Other Revenues: Carry Forward Balances $63,664,831 $87,893,442 $0 $0 $0 Utilization of Prior Year Surplus (FY16‐17) $62,951,760 $0 $0 $0 $0 Utilization of Prior Year Surplus (FY17‐18) $30,805,321 $0 $0 $0 $0 Total Other Revenue $157,421,912 $87,893,442 $0 $0 $0 TOTAL REVENUES $9,764,655,245 $9,812,693,442 $10,044,100,000 $10,304,900,000 $10,549,700,000 EXPENDITURES: General Appropriation Bill (Act 10 of 2019 RS) $8,766,758,058 $8,970,450,938 $9,512,715,227 $9,806,226,224 $10,097,050,986 Ancillary Appropriation Bill (Act 40 of 2019 RS) $0 $0 $17,387,034 $21,201,729 $25,149,939 Non‐Appropriated Requirements $512,650,513 $539,966,015 $554,545,733 $566,766,844 $577,407,318 Judicial Appropriation Bill (Act 60 of 2019 RS) $153,530,944 $151,460,091 $155,074,873 $156,969,300 $158,911,087 Legislative Appropriation Bill (Act 70 of 2019 RS) $62,472,956 $62,472,956 $62,481,451 $62,480,987 $62,480,529 Special Acts $0 $0 $9,017,338 $9,017,338 $9,017,338 Capital Outlay Bill (Act 20 of 2019 RS) $398,000 $0 $0 $0 $0 TOTAL ADJUSTED EXPENDITURES (less carryforwards and surplus) $9,495,810,471 $9,724,350,000 $10,311,221,656 $10,622,662,422 $10,930,017,197 ANNUAL ADJUSTED GROWTH RATE 2.41% 6.04% 3.02% 2.89% Other Expenditures: Carryforward BA‐7s Expenditures $63,664,831 $87,893,442 $0 $0 $0 Prior Year Surplus (FY16‐17) Expenditures in Capital Outlay Bill $62,951,760 $0 $0 $0 $0 Prior Year Surplus (FY17‐18) ‐ Retirement Systems Contributions $30,805,321 $0 $0 $0 $0 Supplemental Bill (Act 50 of 2019 RS), Funds Bill (Act 362 of 2019 RS) $111,419,130 $450,000 $0 $0 $0 27th Pay Period occuring in FY22‐23 $0 $0 $0 $0 $70,844,235 Total Other Expenditures $268,841,042 $88,343,442 $0 $0 $70,844,235 TOTAL EXPENDITURES $9,764,651,513 $9,812,693,442 $10,311,221,656 $10,622,662,422 $11,000,861,432 PROJECTED BALANCE $3,732 $0 ($267,121,656) ($317,762,422) ($451,161,432) Oil Prices included in the REC forecast adopted on 4/10/2019. $58.96 $59.15 $60.00 $61.71 $62.17
Source: LA Legislative Fiscal Office 14
We appear to have stabilized our revenue situation with the sales tax at 4.45% for seven years (through FY24/25), and with restraint on tax exemptions & credits. Efforts to repeal the 0.45% levy rebuffed, so far. FY19 closes out with a budget surplus (~$534M) largely from the same revenue sources of personal income tax (federal tax law changes) and corporate taxes (economy, federal and state tax law changes), as in FY18. Revenue forecasts for FY20 and beyond will likely be revised up. Income tax growth should be slow, but at a higher level. Corporate higher, but risky. Sales tax slow. Mineral revenue forecasts might go down. Oil price forecasts ranging in the mid‐$50s rather than the mid‐$60s might be advisable. 2020 session likely to see tax cut bills (allowed to repeal taxes, but not create credits, deductions, exemptions, exclusions – rebates apparently okay. Repeal the 0.45% sales tax levy? Or leave it and cut income and/or corporate taxes. A special session allows for anything included in the call. Fed tax law changes gave us back Stelly (in effect). Bills to provide state deductions for charitable giving, home mortgage interest, tax breaks for other good things? More credits for business spending? Calculated general fund continuation budget gap for FY20/21 currently is the $267M. Revenue forecast upgrades will fill that gap to some degree. The drivers of cost growth haven’t gone away. Inflation, step increases, K‐12 child count growth, Medicaid growth, prisoner growth etc. Higher education refunding? Road/bridge backlog? Round two of teacher pay raises?. What if Affordable Care Act declared unconstitutional? National recession fears are rising. There will always be more demands/needs than resources.
Final comments:
Source: Legislative Fiscal Office, U.S. Dept of Commerce: Census Bureau and Bureau of Economic Analysis 15
Lagniappe: Size of LA state government ranked among the 50‐states, by spending relative to economy.
State Financing Only: we rank in the bottom to middle third of states. Recently, near the top of the bottom third. State + Federal Financing: we rank in middle third of states. Recently, rising rank, likely due to federal Medicaid.
5 10 15 20 25 30 35 40 45 50 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
La Rank: State Expenditures, and State + Federal as % of GDP
Top Half Bottom Half Bottom Third Middle Third Top Third
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Postlethwaite & Netterville, A Professional Accounting Corporation
Geoff Smarada Director – System Engineering
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Source 2018 Verizon DBIR
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Source 2018 Verizon DBIR
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540 Million 1.3 Million 3.1 Million 885 Million 100 Million August 2019 . State- sponsored Chinese hackers conducted a spear-phishing campaign against employees of three major U.S. utility companies August 2019. Russian hackers were observed using vulnerable IoT devices like a printer, VOIP phone, and video decoder to break into high- value corporate networks April 2019. Pharmaceutical company Bayer announced it had prevented an attack by Chinese hackers targeting sensitive intellectual property. May 2019. Iran developed a network of websites and accounts that were being used to spread false information about the U.S., Israel, and Saudi Arabia.
WebEOC Incident: 19-020 Cyber Event – Statewide – July 23
ESF‐17 Cybersecurity:
Supp ppor
sonnel – nel – Total: 3 al: 30
Cyber Incident ‐ Impact to State (Current Status) Louisiana State of Emergency Declaration Proclamation Number 115 JBE 2019 (7/24/19)
As o
1200 00 7/29/1 29/19
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96% (estimated)
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External Pen Test
Vulnerability Assessment
to Org. effectiveness
limited Technical Vulnerability Assessment
test existing technical safeguards
Risk Assessment as a part of control testing Cybersecurity Gap Analysis
review
specific control set IT Risk Assessment
dependent on
requirements
existing controls varies IT Risk Assessment with Compliance Requirements
specific regulatory requirements
HIPAA, GDPR, FISMA, PCI, etc.
High Testing of Organizational Maturity Low
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Source 2018 Verizon DBIR
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Preparation Identification Containment Investigation Eradication Recovery Follow‐ Up/Lessons Learned
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Freddy Smith, CPA, CGMA
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Actuarial assumptions – i. Discount rate
ii. Mortality table selected and used in valuation – RP-2000 or RP-2014 – if an earlier one is used then determine why was it selected by actuary
for similar entities
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Date Bond Buyer 20‐Bond GO Index S&P Municipal Bond 20 Year High Grade Rate Index ‐ Quarter End S&P Municipal Bond 20 Year High Grade Rate Index ‐ Following Quarter Beginning Fidelity GO AA 20 Yrs 06/30/2017 3.58% 3.13% 3.10% 3.56% 12/31/2017 3.44% 3.16% 3.18% 3.31% 06/30/2018 3.87% 2.98% 3.45% 3.62% 12/31/2018 4.09% 3.64% 3.60% 3.71% 06/30/2019 3.50% 2.79% 3.36% 3.13%
retirement of a tangible capital asset that is in service
A federal, state, or local law or regulation Contractual requirement Judgment
Contamination – tangible capital asset caused a contamination while in service Non-contamination – can include placing asset into service, permanently abandoning, or consumption of asset usable capacity (i.e. depletion) Just planning to dispose of an asset is not itself an internal obligating event
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turbines
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Initial recognition
Deferred outflow of resources—same amount as the ARO liability ARO liability when incurred and reasonably estimable. Incurrence manifested by both external and internal
Measured based on the best estimate of the current value
Subsequent recognition
Recognize an outflow of resources (expense) in a systematic and rational manner over the estimated useful life of the capital asset. Immediately expense if capital asset is abandoned.
deflation
estimated liability. Change the liability if significant.
Protected from creditors.
arrangement (previously called Agency Funds)
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When should a government report assets in a fiduciary fund?
government should report the assets in a fiduciary fund
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1. The government controls the assets 2. Those assets are not derived either:
a) Solely from the governments own source revenues, or b) From government-mandated nonexchange transactions or voluntary nonexchange transactions with the exception
3. One of the following is met:
a) The assets are administered through a trust agreement or equivalent arrangement in which the government itself is not a beneficiary b) The government does not have administrative involvement and not derived from the government’s provision of goods and services c) The assets are for the benefit of organizations not part of reporting entity
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Leases are financings of the right to use an underlying asset - Therefore, single approach applied to accounting for leases with some exceptions, such as short-term leases
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New Disclosure Requirements
following about all types of debt
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Statements 34 and 62, which were incorporated into the GASB literature by GASB Statement 62 but were not reconsidered in light of the definitions of financial statement elements in GASB Concepts Statement 4
Earlier application is encouraged.
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an investment or as a component and to provide consistent measurement of elements of acquired organizations and 100 percent equity interests in component units.
and potential conflicts in the existing guidance
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and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations
extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures.
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Was held up by
$500k) as of 7/1/19.
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Legislation lowers threshold to $100,000 effective 11/1/19 and report or collect regime is ended.
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places of amusement or clubs, 6) telecommunications; 7) Cleaning; and 8) Repairs to tangible personal property.
Taxable Leases:
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Lela Folse Nnamdi Thompson Jason Akers
(B) Approval of Bonds. No bonds or other obligations shall be issued or sold by the state, directly or through any state board, agency, or commission, or by any political subdivision of the state, unless prior written approval of the state bond commission is obtained.
(A) No parish, municipality, … or any other political subdivision, taxing district, political or public corporation, created under or by the constitution and laws of the state shall have authority to borrow money, incur debt, or to issue bonds, or other evidences of debt, or to levy taxes, or to pledge uncollected taxes or revenues for the payment thereof, where they are authorized by the constitution or laws of the state so to do, without the consent and approval of the State Bond Commission.
(A) Any contract, debt,
bond,
evidence
indebtedness whatsoever, incurred or issued … without the consent and approval of the [state bond commission] shall be null and void, and no court of this state shall have jurisdiction to enforce the payment thereof, or of any suit or other proceeding affecting or involving the same.
(B) Any person or any officer, agent, or employee of any governmental agency … who violates this Part, or who counsels, aids, or abets the violation thereof … or who engages or attempts to engage, in the borrowing or lending of, or any attempt to borrow or lend any money, the calling of any election, the incurring of any debt, the issuing or negotiation or sale of any bond or other evidence of debt whatsoever, the levying of any tax, the mortgaging of any land, building, machinery, and equipment, or the pledge of any tax, income,
the [state bond commission], shall be fined not less than one hundred dollars and not more than five hundred dollars, and imprisoned for not more than six months.
Application forms and Requirements are available on website at
www.treasury.la.gov/state-bond-commission
meeting.
All meetings are held at 10:00 am (8:00 am during legislative session) in Senate Committee Room A unless posted otherwise.
Meeting Date Applications Due 10 Day Deadline E lection Date
January 16, 2020 De c e mbe r 11, 2019 De c e mbe r 27, 2019 F e bruary 20, 2020 January 22, 2020 F e bruary 5, 2020 May 9, 2020 Marc h 19, 2020 F e bruary 18, 2020 Marc h 4, 2020 April 16, 2020 Marc h 17, 2020 Marc h 31, 2020 May 21, 2020 April 22, 2020 May 6, 2020 No vembe r 3, 2020 June 18, 2020 May 19, 2020 June 3, 2020 July 16, 2020 June 16, 2020 June 30, 2020 August 20, 2020 July 22, 2020 August 5, 2020 Se pte mbe r17, 2020 August 18, 2020 Se pte mbe r 1, 2020 De c e mbe r 5, 2020 Oc to be r15, 2020 Se pte mbe r16, 2020 Se pte mbe r 30, 2020 No vembe r 19, 2020 9c to be r 17, 2020 No vembe r 2, 2020 De c e mbe r 17, 2020 No vembe r 16, 2020 De c e mbe r 2, 2020 Marc h 20, 2021 January 21, 2020 De c e mbe r16, 2020 January 5, 2020
meeting
scheduled meeting
Monday prior meeting
What elections require State Bond Commission approval?
What elections don’t require State Bond Commission approval?
… [A]ny unit of local government … authorized by law to perform governmental functions, as well as any political subdivision creating same, shall notify the [state bond commission], in writing, whenever: (1) Transfers to any funds required to be established by resolution authorizing the issuance of bonds, certificates of indebtedness, or otherwise authorizing the incurring of indebtedness, have not been made timely. (2) Principal, interest, premiums, or other payments due on outstanding indebtedness have not been made timely. (Similar provision also found in La. R.S. Section 39:510)
to review the financial stability of political subdivisions.
is capable of meeting its financial obligations in a timely manner as they become due without substantial disposition of assets outside the ordinary course of business, substantial layoffs of personnel, or interruption of statutorily or other legally required services of the political subdivision, restructuring of debt, revision of operations, or similar actions.
to direct all fiscal operations of the political subdivision and to take whatever action he deems necessary to return the political subdivision to financial stability.
subdivision shall be borne by the political subdivision.
his own request or for fraud, negligence, or misconduct.
State Bond Commission Contact Info: Physical Address: Louisiana State Capitol Building 900 North Third Street, Third Floor Baton Rouge, LA 70802 Mailing Address: P.O. Box 44154 Baton Rouge, LA 70804 Phone Number: 225-342-0040 https://www.treasury.la.gov/state-bond-commission
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