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Regular Session, 2010 ENROLLED
SENATE CONCURRENT RESOLUTI ON NO. 42
BY SENATOR CHAISSON
A CONCURRENT RESOLUTI ON
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.
WHEREAS, the state of Louisiana has been and continues to experience a severe
financial crisis due to the national economic downturn and the recession occurring within
the United States; and
WHEREAS, the state has made extensive budgetary reductions in response to the
national economic downturn and recession; and
WHEREAS, economic conditions have resulted in the state receiving significantly
lower revenues causing corresponding decreases in the official forecasts of the Revenue
Estimating Conference; and
WHEREAS, the original budget for Fiscal Year 2008-2009 was enacted based upon
the May 9, 2008, Revenue Estimating Conference general fund revenue official forecast of
$9,705,500,000, which forecast was decreased by $340,900,000 at the December 15, 2008
meeting of the Revenue Estimating Conference; and
WHEREAS, the mid-year deficit of $340,900,000 in Fiscal Year 2008-2009, was
eliminated through a Deficit Reduction Plan proposed by the governor, and approved by the
Joint Legislative Committee on the Budget on January 9, 2009, which plan while reducing
expenditures in all budget units of the state, fell most heavily on the largely discretionary
budgets of higher education and health care; and SCR NO. 42 ENROLLED
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WHEREAS, the Revenue Estimating Conference at its meetings of December 15,
2008, February 18, 2009, and May 21, 2009, did reduce the Fiscal Year 2009-2010 official
forecast by a total of $156,700,000; and
WHEREAS, the balance in the Budget Stabilization Fund as of July 1, 2008, was
certified to be $775,593,291.05 with one-third determined to be $258,531,097.02; and
WHEREAS, two-thirds of the elected members of each house of the legislature did,
pursuant to House Concurrent Resolution No. 236 of the 2009 Regular Session, authorize
the Revenue Estimating Conference to incorporate $86,177,032.33 from the Budget
Stabilization Fund into the Fiscal Year 2009-2010 official forecast of recurring money to
offset proposed budget reductions in excess of $200,000,000 to higher education; and
WHEREAS, in the 2009 Regular Session, the legislature did authorize the Revenue
Estimating Conference to incorporate $86,177,032.33 from the Budget Stabilization Fund
and did enact other cost saving measures including reductions to higher education and health
care, such that the state of Louisiana began Fiscal Year 2009-2010 with a budget in balance
with the Revenue Estimating Conference official forecast; and
WHEREAS, at the August 17, 2009 meeting of the Revenue Estimating Conference,
the balance in the Budget Stabilization Fund as of July 1, 2009, was certified to be
$853,719,305.89 with one-third determined to be $284,573,101.96; and
WHEREAS, in Fiscal Year 2009-2010 the fiscal problems persisted and on
December 17, 2009, the Revenue Estimating Conference met and the official forecast for
Fiscal Year 2009-2010 was reduced yet again by the amount of $197,000,000, which
reduction was recognized by the Joint Legislative Committee on the Budget at its meeting
of December 17, 2009; and
WHEREAS, the mid-year revenue shortfall of $197,000,000 and expenditure
reductions of $52,000,000 combined for a total mid-year deficit of $248,000,000 in Fiscal
Year 2009-2010, which was eliminated through a Deficit Reduction Plan proposed by the
governor, and approved by the Joint Legislative Committee on the Budget on December 18,
2009, which plan while reducing expenditures in all budget units of the state, again fell
disproportionately heavily on higher education with an $83,000,000 reduction and a
reduction in health care funding in the amount of $108,000,000; and SCR NO. 42 ENROLLED
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WHEREAS, at its meeting of April 14, 2010, the Revenue Estimating Conference
reduced the official forecast for Fiscal Year 2009-2010, for a second time during Fiscal Year
2009-2010, by reducing the official forecast by an additional $319,000,000; and
WHEREAS, the official forecast for Fiscal Year 2009-2010, has been reduced during
the fiscal year in the total amount of $516,000,000; and
WHEREAS, on April 14, 2010, the Joint Legislative Committee on the Budget
received a budget status report at its April 14, 2010 meeting, indicating that a projected
deficit of $319,000,000 exists in the State General Fund for Fiscal Year 2009-2010, based
on the revised official forecast of revenue available for appropriation adopted by the
Revenue Estimating Conference on April 14, 2010, compared to total appropriations; and
WHEREAS, as a result of the actions of the Revenue Estimating Conference and the
notification by the Joint Legislative Committee on the Budget, the Fiscal Year 2009-2010
budget will have to be reduced by an additional $319,000,000 and there are only two and
one-half months remaining in the fiscal year to eliminate the deficit which through normal
budget reductions could cause the closure of certain programs and multiple layoffs and
furloughs of state employees; and
WHEREAS, Article VII, Section 10.3 of the Constitution of Louisiana establishes
the Budget Stabilization Fund in the state treasury and in Subparagraph(C)(2) thereof
provides that if a deficit for the current fiscal year is projected due to a decrease in the
official forecast, an amount equal to one-third of the fund not to exceed the projected deficit
may be appropriated after the consent of two-thirds of the elected members of each house
of the legislature; and
WHEREAS, Article VII, Section 10.3(C)(3) of the Constitution of Louisiana
provides that in no event shall the amount included in the official forecast for the next fiscal
year plus the amount appropriated in the current fiscal year exceed one-third of the fund
balance at the beginning of the current fiscal year; and
WHEREAS, one-third of the balance in the Budget Stabilization Fund of
$284,573,101.96 less the $86,177,032.33 incorporated into the Fiscal Year 2009-2010
budget, leaves $198,396,069.63 of the Budget Stabilization Fund available for appropriation
for the Fiscal Year 2009-2010 projected deficit; and SCR NO. 42 ENROLLED
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WHEREAS, subsequent to obtaining the consent of two-thirds of the elected
members of each house of the legislature for the use of $198,396,069.63 from the Budget
Stabilization Fund, the legislature shall appropriate such amount for use in Fiscal Year 2009-
2010.
THEREFORE, BE IT RESOLVED that pursuant to Article VII, Section 10.3 of the
constitution and R.S. 39:94, the Legislature of Louisiana does hereby 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.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES