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Regular Session, 2010
SENATE CONCURRENT RESOLUTI ON NO. 42
BY SENATOR CHAISSON
FUNDS/FUNDING. Provides that monies in the Budget Stabilization Fund be available for
appropriation in Fiscal Year 2009-2010. (2/3 - CA7s10.3(C)(1))
A CONCURRENT RESOLUTI ON1
To make available for appropriation from the Budget Stabilization Fund the sum of2
$172,365,064.69, not to exceed one-third (1/3) of the balance of the Budget3
Stabilization Fund due to the reduction of the revenue forecast for the current fiscal4
year in the amount of $319,000,000 as adopted by the Revenue Estimating5
Conference and recognized by the Joint Legislative Committee on the Budget at their6
meetings of April 14, 2010.7
WHEREAS, the state of Louisiana has been and continues to experience a severe8
financial crisis due to the national economic downturn and the recession occurring within9
the United States; and10
WHEREAS, the State has made extensive budgetary reductions in response to the11
national economic downturn and recession; and12
WHEREAS, economic conditions have resulted in the state receiving significantly13
lower revenues causing corresponding decreases in the official forecasts of the Revenue14
Estimating Conference; and15
WHEREAS, the original budget for Fiscal Year 2008-2009 was enacted based upon16
the May 9, 2008, Revenue Estimating Conference general fund revenue official forecast of17
$9,705,500,000, which forecast was decreased by $340,900,000 at the December 15, 200818 SCR NO. 42
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meeting of the Revenue Estimating Conference; and1
WHEREAS, the mid-year deficit of $340,900,000 in Fiscal Year 2008-2009, was2
eliminated through a Deficit Reduction Plan proposed by the governor, and approved by the3
Joint Legislative Committee on the Budget on January 9, 2009, which plan while reducing4
expenditures in all budget units of the state, fell most heavily on the largely discretionary5
budgets of higher education and health care; and6
WHEREAS, the Revenue Estimating Conference at its meetings of December 15,7
2008, February 18, 2009, and May 21, 2009, did reduce the Fiscal Year 2009-2010 official8
forecast by a total of $156,700,000; and9
WHEREAS, the balance in the Budget Stabilization Fund as of July 1, 2008, was10
certified to be $775,593,291.05 with one-third determined to be $258,531,097.02; and11
WHEREAS, two-thirds of the elected members of each house of the legislature did,12
pursuant to House Concurrent Resolution No. 236 of the 2009 Regular Session, authorize13
the Revenue Estimating Conference to incorporate $86,177,032.33 from the Budget14
Stabilization Fund into the Fiscal Year 2009-2010 official forecast of recurring money to15
offset proposed budget reductions in excess of $200,000,000 to higher education; and16
WHEREAS, in the 2009 Regular Session, the legislature did authorize the Revenue17
Estimating Conference to incorporate $86,177,032.33 from the Budget Stabilization Fund18
and did enact other cost saving measures including reductions to higher education and health19
care, such that the state of Louisiana began Fiscal Year 2009-2010 with a budget in balance20
with the Revenue Estimating Conference official forecast; and21
WHEREAS, in Fiscal Year 2009-2010 the fiscal problems persisted and on22
December 17, 2009, the Revenue Estimating Conference met and the official forecast for23
Fiscal Year 2009-2010 was reduced yet again by the amount of $197,000,000, which24
reduction was recognized by the Joint Legislative Committee on the Budget at its meeting25
of December 17, 2009; and26
WHEREAS, the mid-year revenue shortfall of $197,000,000 and expenditure27
reductions of $52,000,000 combined for a total mid-year deficit of $248,000,000 in Fiscal28
Year 2009-2010, which was eliminated through a Deficit Reduction Plan proposed by the29
governor, and approved by the Joint Legislative Committee on the Budget on December 18,30 SCR NO. 42
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2009, which plan while reducing expenditures in all budget units of the state, again fell1
disproportionately heavily on higher education with an $83,000,000 reduction and a2
reduction in health care funding in the amount of $108,000,000; and3
WHEREAS, at its meeting of April 14, 2010, the Revenue Estimating Conference4
reduced the official forecast for Fiscal Year 2009-2010, for a second time during Fiscal Year5
2009-2010, by reducing the official forecast by an additional $319,000,000; and6
WHEREAS, the official forecast for Fiscal Year 2009-2010, has been reduced during7
the fiscal year in the total amount of $516,000,000; and8
WHEREAS, on April 14, 2010, the Joint Legislative Committee on the Budget9
received a budget status report at its April 14, 2010 meeting, indicating that a projected10
deficit of $319,000,000 exists in the State General Fund for Fiscal Year 2009-2010, based11
on the revised official forecast of revenue available for appropriation adopted by the12
Revenue Estimating Conference on April 14, 2010, compared to total appropriations; and13
WHEREAS, as a result of the actions of the Revenue Estimating Conference and the14
notification by the Joint Legislative Committee on the Budget, the Fiscal Year 2009-201015
budget will have to be reduced by an additional $319,000,000 and there are only two and16
one-half months remaining in the fiscal year to eliminate the deficit which through normal17
budget reductions could cause the closure of certain programs and multiple layoffs and18
furloughs of state employees; and19
WHEREAS, Article VII, Section 10.3 of the Constitution of Louisiana establishes20
the Budget Stabilization Fund in the state treasury and in Subparagraph(C)(2) thereof21
provides that if a deficit for the current fiscal year is projected due to a decrease in the22
official forecast, an amount equal to one-third of the fund not to exceed the projected deficit23
may be appropriated after the consent of two-thirds of the elected members of each house24
of the legislature; and25
WHEREAS, Article VII, Section 10.3(C)(3) of the Constitution of Louisiana26
provides that in no event shall the amount included in the official forecast for the next fiscal27
year plus the amount appropriated in the current fiscal year exceed one-third of the fund28
balance at the beginning of the current fiscal year; and29
WHEREAS, one-third of the balance in the Budget Stabilization Fund of30 SCR NO. 42
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$258,531,097.02 less the $86,177,032.33 incorporated into the Fiscal Year 2009-20101
budget, leaves $172,354,064.69 of the Budget Stabilization Fund available for appropriation2
for the Fiscal Year 2009-2010 projected deficit; and3
WHEREAS, subsequent to obtaining the consent of two-thirds of the elected4
members of each house of the legislature for the use of $172,354,064.69 from the Budget5
Stabilization Fund, the legislature shall appropriate such amount for use in Fiscal Year 2009-6
2010.7
THEREFORE, BE IT RESOLVED that pursuant to Article VII, Section 10.3 of the8
Constitution and R.S. 39:94, the Legislature of Louisiana does hereby consent to make9
available for appropriation from the Budget Stabilization Fund the sum of $172,365,064.69,10
not to exceed one-third (1/3) of the balance of the Budget Stabilization Fund, due to the11
reduction of the revenue forecast for the current fiscal year in the amount of $319,000,00012
as adopted by the Revenue Estimating Conference and recognized by the Joint Legislative13
Committee on the Budget at their meetings of April 14, 2010.14
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Chaisson SCR No.
Provides legislative consent to make available for appropriation from the Budget
Stabilization Fund the sum of $172,365,064.69, not to exceed one-third (1/3) of the balance
of the Budget Stabilization Fund, due to the reduction of the revenue forecast for the current
fiscal year in the amount of $319,000,000 as adopted by the Revenue Estimating Conference
and recognized by the Joint Legislative Committee on the Budget at their meetings of April
14, 2010.