The House Committee on Appropriations on April 30 reported House Bill 678 as amended, a measure that would repeal a dedication of certain revenues to a revenue stabilization trust fund and transfer $2,000,000,000 into the state's budget stabilization fund, leaving the rainy day fund with roughly $3,000,000,000 — about 25% of the state general fund.

The change would consolidate specific revenue streams into the budget stabilization fund and remove a prior dedication of mineral revenue into the revenue stabilization trust fund. Committee members adopted Amendment 1986, which the committee staff said clarifies how mineral revenues would be treated for the remainder of fiscal 2027 and makes technical conforming edits to several statutory provisions.

Ms. Little, speaking for committee staff, described Amendment 1986 and said amendments 1, 2, 3, 4 and 8 are technical and conforming. "The action's really confined to 5, 6, and 7," she said, and summarized that Amendment 5 repeals language no longer necessary in Article 10.5, Amendment 6 updates mineral-revenue references in Article 10.16, and Amendment 7 is "designed to alleviate any potential ambiguity with how mineral revenues should be handled for the remainder of fiscal year 27."

Dr. Steven Riccobio, president of the Public Affairs Research Council of Louisiana, testified in public comment that while the proposal would boost the state's rainy day balance in the short term, it does not create a reliable, long-term revenue mechanism to sustain that balance. "You need a long term solution," he said, adding that stabilizing deposits by design should remove unstable revenue from the operating budget and establish predictable targets. Riccobio suggested policymakers consider alternatives such as redirecting some corporate revenue flows into the stabilization account and warned rating agencies will examine whether the fund has durable revenue sources.

Vice Chairman Hughes offered the amendment on the floor; the committee adopted the amendment by unanimous consent after some technical explanation. Vice Chairman Hughes then moved that House Bill 678 be reported favorably as amended. With "no objection," the committee reported the bill as amended.

The committee also noted there is a statutory companion bill that will be amended to align with the constitutional change contemplated by HB 678. Earlier in the meeting, members said HB 678 must pass through multiple referrals, including Ways and Means and Civil Law, as part of the legislative process.

Next steps: HB 678 was reported from the House Committee on Appropriations as amended; further amendments to the statutory companion and referral to additional House panels were discussed but no final disposition beyond the committee report was taken at this meeting.