Diversion Of Dedicated Funds Debated
by MICHELLE MILLHOLLON - Advocate (excerpt)

Legislators began reviewing $582 million in special funds Friday to decide whether the state should continue to set aside money to monitor pest control companies, gas pumps and grocery store scanners. The state is putting $3.9 billion into the funds, making the money off limits for other state government expenses, according to Commissioner of Administration Angèle Davis. About $12 million in racetrack revenue, for example, is diverted every year for agricultural costs. At the same time, the state is struggling with huge budget shortfalls.

State Rep. Jim Fannin, D-Jonesboro, argued at a legislative budget committee meeting Friday that many of the funds are supported by fees that legislators created to pay specific expenses. He said he is opposed to diverting those funds to pay other bills. The committee’s chairman, state Sen. Mike Michot, said many of the funds predate the terms of current legislators. “Sometimes there was a need at a certain point in time and maybe that need is no longer necessary,” said Michot, R-Lafayette.

Gov. Bobby Jindal made the push to start looking at what are called statutory dedication funds — money that legislators at some point decided should be dedicated to a specific expense instead of going into a general pool for appropriation.