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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
$198,396,069.63, 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, at the August 17, 2009 meeting of the Revenue Estimating Conference,22
the balance in the Budget Stabilization Fund as of July 1, 2009, was certified to be23
$853,719,305.89 with one-third determined to be $284,573,101.96; and24
WHEREAS, in Fiscal Year 2009-2010 the fiscal problems persisted and on25
December 17, 2009, the Revenue Estimating Conference met and the official forecast for26
Fiscal Year 2009-2010 was reduced yet again by the amount of $197,000,000, which27
reduction was recognized by the Joint Legislative Committee on the Budget at its meeting28
of December 17, 2009; and29
WHEREAS, the mid-year revenue shortfall of $197,000,000 and expenditure30 SCR NO. 42
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reductions of $52,000,000 combined for a total mid-year deficit of $248,000,000 in Fiscal1
Year 2009-2010, which was eliminated through a Deficit Reduction Plan proposed by the2
governor, and approved by the Joint Legislative Committee on the Budget on December 18,3
2009, which plan while reducing expenditures in all budget units of the state, again fell4
disproportionately heavily on higher education with an $83,000,000 reduction and a5
reduction in health care funding in the amount of $108,000,000; and6
WHEREAS, at its meeting of April 14, 2010, the Revenue Estimating Conference7
reduced the official forecast for Fiscal Year 2009-2010, for a second time during Fiscal Year8
2009-2010, by reducing the official forecast by an additional $319,000,000; and9
WHEREAS, the official forecast for Fiscal Year 2009-2010, has been reduced during10
the fiscal year in the total amount of $516,000,000; and11
WHEREAS, on April 14, 2010, the Joint Legislative Committee on the Budget12
received a budget status report at its April 14, 2010 meeting, indicating that a projected13
deficit of $319,000,000 exists in the State General Fund for Fiscal Year 2009-2010, based14
on the revised official forecast of revenue available for appropriation adopted by the15
Revenue Estimating Conference on April 14, 2010, compared to total appropriations; and16
WHEREAS, as a result of the actions of the Revenue Estimating Conference and the17
notification by the Joint Legislative Committee on the Budget, the Fiscal Year 2009-201018
budget will have to be reduced by an additional $319,000,000 and there are only two and19
one-half months remaining in the fiscal year to eliminate the deficit which through normal20
budget reductions could cause the closure of certain programs and multiple layoffs and21
furloughs of state employees; and22
WHEREAS, Article VII, Section 10.3 of the Constitution of Louisiana establishes23
the Budget Stabilization Fund in the state treasury and in Subparagraph(C)(2) thereof24
provides that if a deficit for the current fiscal year is projected due to a decrease in the25
official forecast, an amount equal to one-third of the fund not to exceed the projected deficit26
may be appropriated after the consent of two-thirds of the elected members of each house27
of the legislature; and28
WHEREAS, Article VII, Section 10.3(C)(3) of the Constitution of Louisiana29
provides that in no event shall the amount included in the official forecast for the next fiscal30 SCR NO. 42
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year plus the amount appropriated in the current fiscal year exceed one-third of the fund1
balance at the beginning of the current fiscal year; and2
WHEREAS, one-third of the balance in the Budget Stabilization Fund of3
$284,573,101.96 less the $86,177,032.33 incorporated into the Fiscal Year 2009-20104
budget, leaves $198,396,069.63 of the Budget Stabilization Fund available for appropriation5
for the Fiscal Year 2009-2010 projected deficit; and6
WHEREAS, subsequent to obtaining the consent of two-thirds of the elected7
members of each house of the legislature for the use of $198,396,069.63 from the Budget8
Stabilization Fund, the legislature shall appropriate such amount for use in Fiscal Year 2009-9
2010.10
THEREFORE, BE IT RESOLVED that pursuant to Article VII, Section 10.3 of the11
constitution and R.S. 39:94, the Legislature of Louisiana does hereby consent to make12
available for appropriation from the Budget Stabilization Fund the sum of $198,396,069.63,13
not to exceed one-third (1/3) of the balance of the Budget Stabilization Fund, due to the14
reduction of the revenue forecast for the current fiscal year in the amount of $319,000,00015
as adopted by the Revenue Estimating Conference and recognized by the Joint Legislative16
Committee on the Budget at their meetings of April 14, 2010.17
The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Jerry J. Guillot.
DIGEST
Chaisson SCR No.
Provides legislative consent to make available for appropriation from the Budget
Stabilization Fund the sum of $198,396,069.63, 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.
Summary of Amendments Adopted by the Senate
Senate Floor Amendments
1. Increases the amount made available for appropriation from $172,365,064.69
to $198,396,069.63.