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Regular Session, 2012 ENROLLED
SENATE CONCURRENT RESOLUTI ON NO. 128
BY SENATORS DONAHUE AND ALARI O
A CONCURRENT RESOLUTI ON
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 at its
meeting of April 24, 2012, and as recognized by the Joint Legislative Committee on
the Budget at its meeting of May 10, 2012.
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 state has experienced multiple years of mid-year budget reductions;
and
WHEREAS, the original budget for Fiscal Year 2011-2012 was enacted based upon
the May 18, 2011, Revenue Estimating Conference general fund revenue official forecast
of $8,253,400,000, which forecast was subsequently decreased by $197,800,000 at the
December 14, 2011, meeting of the Revenue Estimating Conference; and
WHEREAS, the mid-year deficit in Fiscal Year 2011-2012 was found to be
$251,279,477 due to the reduction in the official forecast and an increase in mandated costs,
and the mid-year deficit was eliminated through a Deficit Reduction Plan proposed by the
governor which unilaterally cut expenditures by $140,870,649, and which eliminated the SCR NO. 128 ENROLLED
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remaining projected deficit of $110,408,828 through additional reductions presented by the
governor to the Joint Legislative Committee on the Budget on December 16, 2011; and
WHEREAS, in the Spring of Fiscal Year 2011-2012, the state's fiscal problems
persisted, and on April 24, 2012, the Revenue Estimating Conference met and reduced the
official forecast for Fiscal Year 2011-2012 yet again by the amount of $204,700,000; and
WHEREAS, the official forecast for Fiscal Year 2011-2012 has been reduced during
the fiscal year in the total amount of $402,500,000; and
WHEREAS, on May 10, 2012, the Joint Legislative Committee on the Budget
received a budget status report and a Monthly Mid-Year Adjustment Report as of April 30,
2012, indicating that the projected deficit increased from $204,700,000 to $219,791,000 in
the State General Fund for Fiscal Year 2011-2012 due to additional unexpected election
costs in the secretary of state's office and additional TOPS scholarship costs; 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 2011-2012
budget will ultimately have to be reduced by the $219,791,000 and there are only one 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, as reported by the state treasurer, the balance in the Budget Stabilization
Fund as of July 1, 2011, was $646,129,953.56 and one-third of the balance in the Budget SCR NO. 128 ENROLLED
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Stabilization Fund of $215,376,651.19 is the maximum amount of the Budget Stabilization
Fund available for appropriation for the Fiscal Year 2011-2012 to address a projected deficit;
and
WHEREAS, while the total deficit is $219,791,000, the legislature desires to only
use $204,700,000 from the fund which is the amount of the deficit as recognized by the
Revenue Estimating Conference in the official forecast of its meeting on April 24, 2012; and
WHEREAS, subsequent to obtaining the consent of two-thirds of the elected
members of each house of the legislature for the use of $204,700,000 from the Budget
Stabilization Fund, the legislature shall appropriate such amount for use in Fiscal Year 2011-
2012; and
WHEREAS, in the event that actual collections of revenue become available in
Fiscal Year 2011-2012 which exceed the official forecast of revenue available for
expenditures in Fiscal Year 2011-2012 as promulgated by the Revenue Estimating
Conference on April 24, 2012, the legislature desires that the difference, not to exceed the
amount of $204,700,000, should be deposited into the Budget Stabilization Fund.
THEREFORE, BE IT RESOLVED that pursuant to Article VII, Section 10.3 of the
Constitution of Louisiana 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
$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 at its meeting on April 24,
2012, and recognized by the Joint Legislative Committee on the Budget at its meeting of
May 10, 2012.
BE IT FURTHER RESOLVED that the treasurer is directed after complyin g with
the provisions of Article VII, Section 9(B) of the Constitution of Louisiana relative to the
allocation of monies to the Bond Security and Redemption Fund, to deposit into the Budget
Stabilization Replenishment Fund as created in the Act which originated as House Bill No.
822 of the 2012 Regular Session of the Legislature, the difference between the official
forecast of revenue available for expenditures for Fiscal Year 2011-2012 adopted by the
Revenue Estimating Conference on April 24, 2012, and the actual collections of revenue SCR NO. 128 ENROLLED
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available for expenditures in Fiscal Year 2011-2012 as promulgated by the Revenue
Estimating Conference, not to exceed the amount of $204,700,000. Thereafter, the treasurer
is directed to transfer the monies in the Budget Stabilization Replenishment Fund to the
Budget Stabilization Fund in the state treasury.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES