HLS 12RS-4346 ORIGINAL
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Regular Session, 2012
HOUSE CONCURRENT RESOLUTI ON NO. 157
BY REPRESENTATIVE HARRISON
BUDGETARY CONTROLS: Requests various state entities to provide information relative
to existing statutory dedications and tax deductions, exclusions, and credits, and to
report findings and recommendations to the legislature
A CONCURRENT RESOLUTI ON1
To authorize and request the state treasurer to coordinate with various state agencies the2
identification and classification of all statutory dedications, to determine the amount3
of revenue lost or diverted due to such dedications and all tax exemptions, to gather4
performance measurers on all nongovernmental entities receiving revenue pursuant5
to a statutory dedication, to gather economic impact indicators on such tax6
exemptions, and to provide a report and recommendations to the Louisiana7
Legislature.8
WHEREAS, like other states, the state of Louisiana continues to experience a9
reduction in revenue; and10
WHEREAS, for Fiscal Year 2011-2012 the state has realized an additional $219.811
million budget deficit in its $25,590 billion budget and for Fiscal Year 2012-2013 the12
Revenue Estimating conference has further estimated a revenue reduction of $303.7 million13
in its $25,529 billion budget; and14
WHEREAS, the state of Louisiana has an estimated three hundred statutory15
dedications which redirect more than $3.5 billion away from the state general fund; and16
WHEREAS, not all revenue subject to statutory dedication is deposited and credited17
to the Bond Security and Redemption Fund in the Department of Treasury thereby excluding18
such statutory dedications from being reported in the $3.5 billion and further excludes them19
from possible reduction in times of economic hardship; and20 HLS 12RS-4346 ORIGINAL
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WHEREAS, while not signaling out any one industry, there is no one state entity1
which compiles or reports upon the millions of dollars generated by the gaming industry in2
this state and while this industry is highly regulated, there are statutory dedications which3
flow outside of the state treasury; hence, are never considered when across-the-board budget4
cuts affect other statutory dedications equally as worthy of funding; and5
WHEREAS, once enacted, statutory dedications are seldom reviewed by the6
legislature so the need for such dedications continue indefinitely and unchecked; and7
WHEREAS, all tax credits, deductions, exceptions, and exclusions (hereinafter tax8
exemptions) provide more than $10 billion in tax breaks; and9
WHEREAS, most if not all tax exemptions are comprehensively reported on by the10
Department of Revenue and for the Fiscal Year 2011-2012 the more than $10 billion of tax11
exemptions are classified as follows: $4 billion in sales tax (34.3% of percentage of tax loss),12
$3.5 billion in individual income (32.1% of percentage of tax loss), $1.4 billion in corporate13
income (88.1% of percentage of tax loss), $1.2 billion in severance tax (36.1% of percentage14
of tax loss), $623 million in petroleum product (1.8% of percentage of tax loss), and $7415
million in corporate franchise (10.8% of percentage of tax loss); and16
WHEREAS, like statutory dedications, once enacted, tax exemptions are seldom17
reviewed by the legislature so the need or economic return on these tax exemptions go18
unchecked; and19
WHEREAS, various state entities such as the Department of Economic20
Development, Department of Revenue, the Department of Treasury, the Gaming21
Enforcement Division of the Louisiana State Police, the Louisiana Gaming Control Board,22
and other state entities have valuable information regarding statutory dedications and tax23
exemptions.24
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby25
urge and request the state treasurer to coordinate the identification and classification of all26
statutory dedications and tax exemptions, to determine the amount of revenue lost or27
diverted due to such dedications and exemptions, to gather performance indicators on all28
nongovernmental entities receiving revenue pursuant to statutory dedications, and to gather29 HLS 12RS-4346 ORIGINAL
HCR NO. 157
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economic impact indicators on such tax exemptions, and to make recommendation to the1
Louisiana Legislature.2
BE IT FURTHER RESOLVED that all state entities fully cooperate with the state3
treasurer in the identification of all statutory dedications of revenue generated by any4
industry under their respective jurisdiction and the identification and classification of any5
tax exemptions inuring to the benefit of any entity or industry under their respective6
jurisdiction and to assist in the collection of performance and economic indicators resulting7
from these dedications and exemptions.8
BE IT FURTHER RESOLVED that the state treasurer is urged to limit and prioritize9
his review to one or more classifications of statutory dedications or tax exemptions which10
can be suitably examined and reported upon to the legislature on or before February 1, 2013,11
and every other year thereafter to review other classifications of dedications for examination12
and reporting to the legislature on or before February first of such odd-numbered year until13
such time as all dedications and exemptions have been reviewed.14
BE IT FURTHER RESOLVED that the state treasurer shall thereafter develop a15
schedule for the continuous review of all existing and future statutory dedications and tax16
exemptions.17
BE IT FURTHER RESOLVED that a suitable copy of this Resolution be transmitted18
to the state treasurer.19
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)]
Harrison HCR No. 157
Authorizes and requests the state treasurer to coordinate with various state agencies the
identification and classification of all statutory dedications, to determine the amount of
revenue lost or diverted due to such dedications and all tax exemptions, to gather
performance measurers on all nongovernmental entities receiving revenue pursuant to a
statutory dedication, to gather economic impact indicators on such tax exemptions, and to
provide a report and recommendations to the La. Legislature.