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Regular Session, 2012
SENATE CONCURRENT RESOLUTI ON NO. 128
BY SENATORS DONAHUE AND ALARI O
FUNDS/FUNDING. Provides the monies in the Budget Stabilization Fund be available for
appropriation in Fiscal Year 2011-2012.(2/3 - CA7s10.3(C)(1))
A CONCURRENT RESOLUTI ON1
To make available for appropriation from the Budget Stabilization Fund the sum of2
$204,700,000 not to exceed one-third of the balance of the Budget Stabilization3
Fund, due to the reduction of the revenue forecast for the current fiscal year in the4
amount of $204,700,000 as adopted by the Revenue Estimating Conference at its5
meeting of April 24, 2012, and as recognized by the Joint Legislative Committee on6
the Budget at its meeting of May 10, 2012.7
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 state has experienced multiple years of mid-year budget reductions;16
and17
WHEREAS, the original budget for Fiscal Year 2011-2012 was enacted based upon18 SCR NO. 128
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the May 18, 2011, Revenue Estimating Conference general fund revenue official forecast1
of $8,253,400,000, which forecast was subsequently decreased by $197,800,000 at the2
December 14, 2011, meeting of the Revenue Estimating Conference; and3
WHEREAS, the mid-year deficit in Fiscal Year 2011-2012 was found to be4
$251,279,477 due to the reduction in the official forecast and an increase in mandated costs,5
and the mid-year deficit was eliminated through a Deficit Reduction Plan proposed by the6
governor which unilaterally cut expenditures by $140,870,649, and which eliminated the7
remaining projected deficit of $110,408,828 through additional reductions presented by the8
governor to the Joint Legislative Committee on the Budget on December 16, 2011; and9
WHEREAS, in the Spring of Fiscal Year 2011-2012, the state's fiscal problems10
persisted, and on April 24, 2012, the Revenue Estimating Conference met and reduced the11
official forecast for Fiscal Year 2011-2012 yet again by the amount of $204,700,000; and12
WHEREAS, the official forecast for Fiscal Year 2011-2012 has been reduced during13
the fiscal year in the total amount of $402,500,000; and14
WHEREAS, on May 10, 2012, the Joint Legislative Committee on the Budget15
received a budget status report and a Monthly Mid-Year Adjustment Report as of April 30,16
2012; and17
WHEREAS, in the event that actual collections of revenue become available in18
Fiscal Year 2011-2012 which exceed the official forecast of revenue available for19
expenditures in Fiscal Year 2011-2012 as promulgated by the Revenue Estimating20
Conference on April 24, 2012, the legislature desires that the difference, not to exceed the21
amount of $204,700,000, should be deposited into the Budget Stabilization Fund; and22
WHEREAS, as a result of the actions of the Revenue Estimating Conference and the23
notification by the Joint Legislative Committee on the Budget, the Fiscal Year 2011-201224
budget will ultimately have to be reduced by the $219,791,000 and there are only one and25
one-half months remaining in the fiscal year to eliminate the deficit which through normal26
budget reductions could cause the closure of certain programs and multiple layoffs and27
furloughs of state employees; and28
WHEREAS, Article VII, Section 10.3 of the Constitution of Louisiana establishes29
the Budget Stabilization Fund in the state treasury and in Subparagraph (C)(2) thereof30 SCR NO. 128
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provides that if a deficit for the current fiscal year is projected due to a decrease in the1
official forecast, an amount equal to one-third of the fund not to exceed the projected deficit2
may be appropriated after the consent of two-thirds of the elected members of each house3
of the legislature; and4
WHEREAS, Article VII, Section 10.3(C)(3) of the Constitution of Louisiana5
provides that in no event shall the amount included in the official forecast for the next fiscal6
year plus the amount appropriated in the current fiscal year exceed one-third of the fund7
balance at the beginning of the current fiscal year; and8
WHEREAS, as reported by the state treasurer, the balance in the Budget Stabilization9
Fund as of July 1, 2011, was $646,129,953.56 and one-third of the balance in the Budget10
Stabilization Fund of $215,376,651.19 is the maximum amount of the Budget Stabilization11
Fund available for appropriation for the Fiscal Year 2011-2012 to address a projected deficit;12
and13
WHEREAS, while the total deficit is $219,791,000, the legislature desires to only14
use $204,700,000 from the fund which is the amount of the deficit as recognized by the15
Revenue Estimating Conference in the official forecast of its meeting on April 24, 2012; and16
WHEREAS, subsequent to obtaining the consent of two-thirds of the elected17
members of each house of the legislature for the use of $204,700,000 from the Budget18
Stabilization Fund, the legislature shall appropriate such amount for use in Fiscal Year 2011-19
2012.20
THEREFORE, BE IT RESOLVED that pursuant to Article VII, Section 10.3 of the21
Constitution of Louisiana and R.S. 39:94, the Legislature of Louisiana does hereby consent22
to make available for appropriation from the Budget Stabilization Fund the sum of23
$204,700,000, not to exceed one-third of the balance of the Budget Stabilization Fund, due24
to the reduction of the revenue forecast for the current fiscal year in the amount of25
$204,700,000 as adopted by the Revenue Estimating Conference at its meeting on April 24,26
2012, and recognized by the Joint Legislative Committee on the Budget at its meeting of27
May 10, 2012.28
BE IT FURTHER RESOLVED that the treasurer is directed after complying with29
the provisions of Article VII, Section 9(B) of the Constitution of Louisiana relative to the30 SCR NO. 128
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allocation of monies to the Bond Security and Redemption Fund, to deposit into the Budget1
Stabilization Replenishment Fund as created in the Act which originated as House Bill No.2
822 of the 2012 Regular Session of the Legislature, the difference between the official3
forecast of revenue available for expenditures for Fiscal Year 2011-2012 adopted by the4
Revenue Estimating Conference on April 24, 2012, and the actual collections of revenue5
available for expenditures in Fiscal Year 2011-2012 as promulgated by the Revenue6
Estimating Conference, not to exceed the amount of $204,700,000. Thereafter, the treasurer7
is directed to transfer the monies in the Budget Stabilization Replenishment Fund to the8
Budget Stabilization Fund in the state treasury.9
The original instrument was prepared by Jay Lueckel. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Martha Hess.
DIGEST
Donahue SCR No. 128
Provides legislative consent to make available for appropriation from the Budget
Stabilization Fund the sum of $204,700,000, not to exceed one-third 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 $204,700,000 as adopted by the Revenue Estimating Conference and
recognized by the Joint Legislative Committee on the Budget at its meeting of April 24,
2012.
Further provides that actual revenues for FY 11-12 in excess of the April 24, 2012, revised
forecast will be deposited into the Budget Stabilization Fund.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Provides that actual revenues for FY 11-12 in excess of the April 24, 2012,
revised forecast will be deposited into the Budget Stabilization Fund.