HLS 10RS-1497 ORIGINAL
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are additions.
Regular Session, 2010
HOUSE BILL NO. 1109
BY REPRESENTATIVE LAFONTA
FUNDS/FUNDING: Provides relative to deposits into and transfers out of the Budget
Stabilization Fund
AN ACT1
To amend and reenact R.S. 39:94(C), relative to the Budget Stabilization Fund; to provide2
for the incorporation of monies in the Budget Stabilization Fund into the official3
forecast for the current fiscal year and the next fiscal year; to direct the treasurer to4
transfer monies from the Budget Stabilization Fund to the state general fund in5
certain circumstances; to suspend deposits into the Budget Stabilization Fund in6
certain circumstances; to provide for an effective date; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 39:94(C) is hereby amended and reenacted to read as follows:10
ยง94. Budget Stabilization Fund11
* * *12
C. The money in the fund shall not be available for appropriation13
incorporation into the official forecast except under the following conditions:14
(1)(a) If the official forecast of recurring money for the ensuing fiscal year15
is less than the official forecast of recurring money for the current fiscal year, the16
Revenue Estimating Conference shall incorporate a specified amount of the fund into17
the official forecast for the ensuing year pursuant to a concurrent resolution adopted18
by a favorable vote of two-thirds of the elected members of each house.19 HLS 10RS-1497 ORIGINAL
HB NO. 1109
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(b) If the legislature is not in session, the two-thirds consent requirement shall1
be obtained as provided in R.S. 39:87.2
(c) The amount of the fund that may be incorporated into the official forecast3
for the ensuing fiscal year shall not exceed either of the following:4
(i) The difference between the official forecast of recurring money for the5
ensuing fiscal year and the official forecast of recurring money for the current fiscal6
year.7
(ii) One-third of the fund balance, determined in accordance with R.S. 39:95,8
at the beginning of the current fiscal year.9
(2)(a) If a decrease in federal financial participation in state assistance10
expenditures for health or social services programs, including Federal Medical11
Assistance Percentages, creates a projected deficit for the next fiscal year, the12
difference between the current fiscal year's federal financial participation and the13
ensuing fiscal year's projected federal financial participation, not to exceed one-third14
of the fund, shall be incorporated into the next fiscal year's official forecast only with15
the consent of two-thirds of the elected members of each house of the legislature. 16
(b) The decreases in the projected federal financial participation and the17
projected deficit shall be incorporated into the continuation and five-year base line18
budget projection for the next fiscal year as presented to the Joint Legislative19
Committee on the Budget.20
(c) If the legislature is not in session, the two-thirds requirement may be21
satisfied by obtaining the written consent of two-thirds of the elected members of22
each house of the legislature in the manner provided by R.S. 39:87.23
(2) (3)(a) If a deficit for the current fiscal year is projected due to a decrease24
in the official forecast of recurring money, the Revenue Estimating Conference shall25
incorporate a specified amount of the fund into the official forecast for the current26
fiscal year pursuant to a concurrent resolution adopted by a favorable vote of two-27
thirds of the elected members of each house.28 HLS 10RS-1497 ORIGINAL
HB NO. 1109
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(b) If the legislature is not in session, the two-thirds consent requirement shall1
be obtained as provided in R.S. 39:87.2
(c) The amount of the fund that may be incorporated into the official forecast3
for the current fiscal year shall not exceed either of the following:4
(i) The amount of the projected deficit.5
(ii) One-third of the fund balance, determined in accordance with R.S. 39:95,6
at the beginning of the current fiscal year.7
(3) (4) In no event shall the amount included in the official forecast for the8
ensuing fiscal year pursuant to Paragraph (1) of this Subsection plus the amount9
included in the official forecast in the current fiscal year pursuant to Paragraph (2)10
of this Subsection exceed one-third of the fund balance, determined in accordance11
with R.S. 39:95, at the beginning of the current fiscal year.12
(5) If two-thirds of the elected members of each house of the legislature give13
consent for a specified amount of the fund to be incorporated into the official14
forecast, the state treasurer shall transfer the amount of monies so authorized from15
the fund to the state general fund.16
(4)(a) (6) No appropriation or deposit to the fund shall be made if such17
appropriation or deposit would cause the balance in the fund to exceed four percent18
of total state revenue receipts for the previous fiscal year. For the purposes of this19
Section, total state revenue receipts shall not include any monies received by the20
state from the Federal Emergency Management Administration or other federal21
sources providing disaster relief assistance.22
(b) (7) Notwithstanding any provision of this Section to the contrary, and23
except pursuant to a specific appropriation by the legislature, no appropriation or24
deposit to the fund shall be made in the same fiscal year in which a specified amount25
of the fund is incorporated into the official forecast or as an appropriation, use or26
withdrawal or transfer is made from the fund or until such time as the official27
forecast exceeds the actual collections of state general fund (direct) revenue for28
Fiscal Year 2008.29 HLS 10RS-1497 ORIGINAL
HB NO. 1109
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are additions.
Section 2. Section 1 of this Act shall take effect and become operative if the1
amendment of Article VII, Section 10.3(C) of the Constitution of Louisiana contained in the2
Act which originated as House Bill No. of this 2010 Regular Session of the Legislature3
is adopted at the statewide election to be held on November 2, 2010 and at the same time as4
such proposed amendment becomes effective.5
Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2010. If6
vetoed by the governor and subsequently approved by the legislature, this Act shall become7
effective on the day following such approval.8
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
LaFonta HB No. 1109
Abstract: Permits the Budget Stabilization Fund to be used if a decrease in FMAP creates
a projected deficit. Prohibits deposit into the fund in the same fiscal year in which
a portion of the fund is incorporated into the official forecast. Requires the treasurer
to transfer the amount of monies authorized to the state general fund if 2/3 of the
elected members of each house give consent for a specified amount to be
incorporated into the official forecast.
Present law establishes the Budget Stabilization Fund and provides for the monies to be
deposited into the fund.
Present law permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of
each house of the legislature, to be incorporated in the next fiscal year's official forecast if
revenue estimates for the next fiscal year are less than the official forecast for the current
fiscal year. Present law provides that if the legislature is not in session, the 2/3 requirement
may be satisfied by obtaining the written consent of 2/3's of the elected members of each
house of the legislature in a manner provided by law.
Proposed law permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of
each house of the legislature, to be incorporated in the next fiscal year's official forecast if
a decrease in federal financial participation in state assistance expenditures for health or
social services programs, including Federal Medical Assistance Percentages(FMAP), creates
a projected deficit for the next fiscal year. The amount that may be incorporated shall be the
difference between the current fiscal year's federal financial participation and the ensuing
fiscal year's projected federal financial participation, not to exceed 1/3 of the fund.
Proposed law further provides that the changes in the projected federal financial participation
and projected deficit shall be incorporated into the continuation and five-year base line
budget projection for the next fiscal year as presented to the Joint Legislative Committee on
the Budget.
Present law further permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3
approval of each house of the legislature, to be appropriated for the current fiscal year budget
if a deficit for the current fiscal year is projected due to a decrease in the official forecast. HLS 10RS-1497 ORIGINAL
HB NO. 1109
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are additions.
Proposed law permits up to 1/3 of the Budget Stabilization Fund, subject to 2/3 approval of
each house of the legislature, to be incorporated into the current fiscal year's official forecast
if a deficit for the current fiscal year is projected due to a decrease in the official forecast.
Proposed law provides that if 2/3 of each house of the legislature approves a portion of the
Budget Stabilization Fund to be incorporated into the official forecast, the state treasurer
shall transfer the amount of monies so authorized to the general fund.
Present law provides that no appropriation or deposit to the fund shall be made if such
appropriation or deposit would cause the balance in the fund to exceed four percent of total
state revenue receipts for the previous fiscal year. Further provides that total state revenue
receipts shall not include any monies received by the state from the Federal Emergency
Management Administration or other federal sources providing disaster relief assistance.
Proposed law retains present law.
Present law provides that except pursuant to a specific appropriation by the legislature, no
appropriation or deposit to the fund shall be made in the same fiscal year as an appropriation,
use or withdrawal is made from the fund or until such time as the official forecast exceeds
the actual collections of state general fund (direct) revenue for Fiscal Year 2008.
Proposed law provides that except pursuant to a specific appropriation by the legislature to
the fund, no appropriation or deposit to the fund shall be made in the same fiscal year in
which a specified amount of the fund is incorporated into the official forecast or an
appropriation or transfer is made from the fund. Delete present law regarding FY 2008
collections.
Section 1 of the Act becomes effective and operative if the amendment of Article VII,
Section 10.3(C) of the Constitution of Louisiana contained in the Act which originated as
HB of the 2010 RS is adopted at the statewide election to be held on November 2, 2010,
and at the same time as such proposed amendment becomes effective. Sections 2 and 3 of
the Act, which are the effective date provisions, become effective on July 1, 2010.
(Amends R.S. 39:94(C))