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)]
HB 562 Engrossed 2015 Regular Session Havard
Abstract: Requires the Revenue Estimating Conference to designate certain general fund money
from mineral revenue as nonrecurring based on the projected price of oil and requires that
such money be spent on payments towards the UAL.
Proposed law requires the Revenue Estimating Conference (REC) to disclose in the official forecast
for each fiscal year the price per barrel of oil used to determine mineral revenues in the official
forecast (forecast price) and the highest actual price per barrel of oil in the prior calendar year
(highest actual price).
Proposed law requires the REC to designate certain revenues as nonrecurring if the official forecast
of recurring state revenues for the fiscal year in which the determination provided for in this Section
is made is equal to or more than the continuation budget for the same fiscal year, and the forecast
price is greater than 90% of the actual price. Revenues estimated to be available to the state general
fund (direct) based on the forecast price in excess of 90% of the highest actual price shall be
designated as nonrecurring.
Present law provides for the uses of nonrecurring revenue. 25% of nonrecurring revenue shall be
deposited into the Budget Stabilization Fund until the balance of the fund is equal to 4% of total state
revenue receipts for the previous fiscal year. Authorized nonrecurring revenue may be used for the
unfunded accrued liability (UAL) of the La. State Empoyees' Retirement System (LASERS) and
Teachers' Retirement System of La. (TRSL) for application to the balance of the UAL as of June 30,
1988. Present law specifies that, for FY 2015-16, at least 10% of nonrecurring money shall be
appropriated towards the balance of the UAL of LASERS and TRSL as of June 30, 1988.
Proposed law requires the executive budget and appropriations to reserve the money designated as
nonrecurring by the REC under proposed law that is not reserved for the Budget Stabilization Fund
to appropriations towards the balance of the UAL of LASERS and TRSL as of June 30, 1988.
(Adds R.S. 39:24(G), 34(B)(3), and 54(B)(2)(d))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Add requirement that for the REC to designate certain revenues as nonrecurring according to proposed law, the official forecast of recurring state revenues for the fiscal
year is equal to or more than the continuation budget for the same fiscal year.