Louisiana House Bill HCR169

Louisiana 2012 Regular Session

• Introduced: 5/21/12
• Refer: 5/22/12

Caption

Provides that monies in the Budget Stabilization Fund be available for appropriation in Fiscal Year 2011-2012

Impact

If enacted, HCR169 would allow the state to utilize funds from the Budget Stabilization Fund, which is designated for times of fiscal distress. This resolution signifies a legislative consent process that ensures funds are appropriated in a manner aligned with state constitutional provisions. By tapping into this fund, the resolution is intended to prevent closures of certain programs and mitigate the risk of layoffs and furloughs among state employees, thereby sustaining essential services during a difficult fiscal period.

Summary

HCR169, a House Concurrent Resolution, aims to authorize the appropriation of $204.7 million from the Budget Stabilization Fund due to a projected deficit in Louisiana's state budget for the fiscal year 2011-2012. The resolution reflects the state’s response to significant reductions in the revenue forecast, which has been adversely affected by the national economic downturn and the resulting recession. The decision to access the Budget Stabilization Fund comes after the Revenue Estimating Conference's adjustments to the state's financial outlook, emphasizing the urgency of addressing a potential funding shortfall.

Sentiment

The sentiment surrounding HCR169 is generally pragmatic, with legislators recognizing the necessity of addressing the projected budget deficit. Supporters of the resolution argue that accessing the Budget Stabilization Fund is a responsible measure given the economic circumstances of the state. However, there may be concerns regarding the long-term implications of relying on such funds for budgetary stability, indicating broader discussions about fiscal management and economic recovery initiatives in Louisiana.

Contention

Notably, while HCR169 garners support from those who prioritize immediate fiscal remedy, it could provoke concerns among fiscal conservatives about the sustainability of drawing from stabilization funds. The threshold for appropriation, requiring a two-thirds majority consent from elected members, underscores the political and fiscal scrutiny the resolution faces. The successful implementation of HCR169 hinges on securing this legislative consent, reflecting an ongoing debate around budgetary practices and priorities amid a challenging economic landscape.