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TO: The Honorable Charles E. Kleckley, Speaker of the House of Representatives
Honorable Members of the House of Representatives
FROM: John D. Carpenter, Legislative Fiscal Officer
Evan J. Brasseaux, LFO Staff Director
DATE: May 20, 2015
SUBJECT: House Rule 7.19, HB 1 Engrossed, FY 17 Financing Replacement
Pursuant to House Rule 7.19, the Legislative Fiscal Office (LFO) is required to submit a report to
the House of Representatives, which indicates whether the appropriation bill appropriates one-
time money within the Engrossed version of HB 1. The LFO is providing this list for HB 1 –
Engrossed and a discussion of the FY 17 financing decisions that will have to be made in FY 17 as a
result of the current structure of the FY 16 operating budget.
If you have any questions about any of the information presented in this memo, please contact me
by email at carpenterj@legis.la.gov or by phone at 225-342-7233.
HR 7.19 One-Time Money List
Pursuant to HR 7.19(C)(2), the threshold calculation is the difference between the FY 16 SGF
forecast of $8,596.3 B and FY 17 SGF forecast of $8,812.7 B, which equates to $216.4 M of SGF
revenue growth. The amount of one-time funds, as defined by HR 7.19, allowed to be appropriated
in HB 1 for FY 16 expenditure is approximately $216.4 M. After Adopted House Appropriations
Committee amendments to HB 1 and HB 566, there is no ($0) one-time money as defined in
House Rule 7.19 in HB 1 Engrossed.
FY 17 Replacement Financing Decision List
Although HR 7.19 contains a definition of “one-time money,” the rule itself is not indicative of the
financing decisions that will have to be made in FY 17 relative to the current structure of the FY 16
operating budget. Due to this issue, the LFO is not only providing the HR 7.19 list to comply with
the House Rule, we are also providing you with a list of the significant potential FY 17 financing
replacements that will have to made as a result of the proposed FY 16 budget. See Table 1 below for
a listing of resources being utilized in FY 16 that will likely require another revenue source in FY
17. The $440 M of financing needs are in addition to any other continuation budget requirements
not yet resolved in the FY 16 budget. These additional funding requirements will likely result in an
FY 17 anticipated funding shortage that could exceed $440 M. The $440 M of potential financing
replacement in FY 17 is a significant reduction compared to the amount of FY 16 financing
replacement of approximately $1 B.
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! STATE OF LOUISIANA
Legislative Fiscal Office
BATON ROUGE
Post Office Box 44097
Capitol Station
John D. Carpenter Baton Rouge, Louisiana 70804
Legislative Fiscal Officer Phone: 225.342.7233
Fax: 225.342.7243
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Legislative Fiscal Office May 20, 2015
*The Table above assumes that the Revenue Estimating Conference (REC), as part of the overall sales tax revenue
forecast, will recognize the SGF generated from HCR 8.
Note: The supplementary section of HB 1 Engrossed that appropriates $245.3 M of expenditures with revenues not
yet recognized by REC is not included within this analysis.
TABLE 1
State AgencyPotential Financing
Replacement in FY 17FY 16 Funding Sources
Medicaid Program$50,000,000 2013 Tax Amnesty Fund
Medicaid Program$52,856,978 Overcollections Fund (Various Sources)
Debt Defeasance - SGF$124,958,094 FY 14 Cash Position
Bond Premium - SGF$29,041,496 Net Premium from 2014 D Sale
Bond Premium - SGF$37,720,878 Net Premium from 2015 A&B Sale
WISE$24,300,000 CDBG Hurricane Disaster Recovery Funds
Hospital Outlier$3,783,000 CDBG Hurricane Disaster Recovery Funds
N.O. Community Health
Connection$8,000,000 CDBG Hurricane Disaster Recovery Funds
FQHC$6,075,000 CDBG Hurricane Disaster Recovery Funds
HCR 8 - SGF*$103,000,000
Suspends business utilities exemptions from
adoption to 60 days after the 2016 Regular
Legislative Session.
TOTAL$439,735,446