HLS 161ES-235 ORIGINAL
2016 First Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 11
BY REPRESENTATIVES SCHRODER AND BARRAS AND SENATOR AL ARIO
BUDGETARY CONTROLS: Creates the Task Force on Structural Change in Budget and
Tax Policy to continue the budget and tax reform evaluations begun in the 2016 First
Extraordinary Session and urges and requests the governor to support and implement
initiatives for structural change introduced in upcoming sessions that will lead to
savings through more efficient and effective state operations
1 A CONCURRENT RESOL UTION
2To create the Task Force on Structural Changes in Budget and Tax Policy to continue the
3 budget and tax reform evaluations begun during the 2016 First Extraordinary
4 Session, to make recommendations of changes to the state's tax laws in an effort to
5 modernize and enhance the efficiency and fairness of the state's tax policies for
6 individuals and businesses, to examine the structure and design of the state budget
7 and make recommendations for long-term budgeting changes, and to report to the
8 legislature by September 1, 2016, and to urge and request the governor to support
9 and implement initiatives for structural change introduced in upcoming sessions of
10 the legislature intended to bring about long term improvements to the programs and
11 services of state government as well as cost savings through more efficient and
12 effective state operations.
13 WHEREAS, the citizens of the state of Louisiana expect and deserve a stable,
14transparent, and effective government that meets the needs of citizens through high-quality
15programs and efficient services; and
16 WHEREAS, the state government of Louisiana has faced deficits annually since
17Fiscal Year 2008-2009; and
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1 WHEREAS, the structure of the state budget continues to limit the ability of the
2legislature and the governor to prioritize critical statewide services, and the brunt of annual
3and mid-year deficits continue to fall on higher education and healthcare; and
4 WHEREAS, the state government of Louisiana is facing a $960 million projected
5budget deficit in Fiscal Year 2015-2016 and a $2.1 billion projected budget deficit in Fiscal
6Year 2016-2017; and
7 WHEREAS, the state general fund expenditures of state government are projected
8to continue to grow in the five-year continuation baseline projection and state revenues are
9not projected to meet those expenditures; and
10 WHEREAS, solving the budget deficits in the coming years and setting the state on
11a path of continued fiscal responsibility requires a through review of all areas of state
12operations and spending; and
13 WHEREAS, there are numerous areas within state government in which reforming
14the current policies and practices will produce savings or additional revenues for the state;
15and
16 WHEREAS, in 2015, the legislature commissioned a tax study to provide the
17legislature with alternatives for a tax structure with predictable and stable revenues, that
18promotes competitiveness, and is fair and simple; and
19 WHEREAS, the legislature began deliberating the long term recommendations
20included in the tax study during the interim and 2016 First Extraordinary Session of the
21Legislature; and
22 WHEREAS, tax policy initiated in the 2016 First Extraordinary Session of the
23Legislature brings short term relief for the projected budget deficits; and
24 WHEREAS, the short term relief serves to bridge the time needed for the legislature
25and stakeholders to continue to work on better budgeting practices and tax policy that can
26be introduced no later than the 2017 Regular Session of the Legislature providing long term
27structural relief from recurring budget deficits; and
28 WHEREAS, the governor is the chief executive officer of the state and in that
29position is responsible for overseeing the operations of the executive branch of government;
30and
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HCR NO. 11
1 WHEREAS, the legislature has the authority to make and change the laws of the state
2and to establish a more stable, fair, and simple tax code and to enact policies that will
3improve the efficiency and effectiveness of state government in order to stabilize the budget
4for future years; and
5 WHEREAS, it will take cooperative action on the part of the governor and legislature
6to ensure that such policies are achieved that can bring about long term structural
7improvements to the tax code and the operations of state government; and
8 WHEREAS, the executive branch, led by the governor, and the legislative branch
9must coordinate on structural changes to avoid the need for unnecessary additional revenues
10or potentially harmful cuts to required state services.
11 THEREFORE, BE IT RESOLVED that the Louisiana Legislature does hereby create
12the Task Force on Structural Changes in Budget and Tax Policy to continue the budget and
13tax reform evaluations begun during the 2016 First Extraordinary Session of the Legislature,
14to make recommendations of changes to the state's tax laws in an effort to modernize and
15enhance the efficiency and fairness of the state's tax policies for individuals and businesses,
16to examine the structure and design of the state budget and make recommendations for long
17term budgeting reforms, to report to the legislature by September 1, 2016, and to urge and
18request the governor to support and implement initiatives for structural change introduced
19in the upcoming sessions of the legislature intended to bring about long term improvements
20to the programs and services of state government as well as cost savings through more
21efficient and effective state operations.
22 BE IT FURTHER RESOLVED that the Task Force on Structural Changes in Budget
23and Tax Policy is directed to consider all options and alternatives available.
24 BE IT FURTHER RESOLVED that the Task Force on Structural Changes in Budget
25and Tax Policy shall begin meeting during the first week of the 2016 Regular Session of the
26Legislature, and shall report to the legislature no later than September 1, 2016
27 BE IT FURTHER RESOLVED that such report shall contain a specific plan for long
28term tax policy that may be used to introduce legislation no later than the 2017 Regular
29Session of the Legislature.
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1 BE IT FURTHER RESOLVED that the Task Force on Structural Changes in Budget
2and Tax Policy shall evaluate and recommend changes to state budget practices including,
3but not limited to:
4 (1)Best-practice budgeting methods such as budgeting for outcomes, zero-based
5 budgeting and performance-based budgeting practices used in other states.
6 (2)Cost-benefit analysis of dedicated sources of funding that require state
7 general fund to be used for particular functions.
8 (3)A means to review all state spending, regardless of revenue source, to ensure
9 taxpayer dollars and user fees are used appropriately and effectively.
10 (4)The appropriate balance and requirements on the use of state tax dollars for
11 services and operations of local government.
12 (5)Best-practice mechanisms to estimate expenditures and forecast revenues.
13 (6)Improved tools to display the details of state and local spending to the public.
14 BE IT FURTHER RESOLVED that the Task Force on Structural Changes in Budget
15and Tax Policy shall evaluate and recommend changes to tax policy including, but not
16limited to:
17 (1)Personal income tax.
18 (2)Corporate income tax.
19 (3)Property tax.
20 (4)Sales tax.
21 (5)Severance tax.
22 (6)Tax expenditures, including deductions, credits, exemptions, and rebates.
23 BE IT FURTHER RESOLVED that the Task Force for Structural Changes in Budget
24and Tax Policy shall be composed of the following members:
25 (1) The principal on the Revenue Estimating Conference that is a faculty
26 member with revenue forecasting expertise from a public or private
27 university in the state.
28 (2) The secretary of the Department of Revenue, or her designee.
29 (3) A member appointed by the Society of Louisiana Certified Public
30 Accountants.
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1 (4) A member appointed by the Governor.
2 (5) The commissioner of administration, or his designee.
3 (6) One economist or tax specialist appointed by the Speaker of the House of
4 Representatives from a list of nominees submitted by public or private
5 universities in the state.
6 (7) One economist or tax specialist appointed the President of the Senate from
7 a list of nominees submitted by public or private universities in the state.
8 (8) One member of the business community appointed by the Speaker of the
9 House from a list of nominees submitted from Blueprint Louisiana,
10 Committee of 100 for Economic Development, and the Louisiana
11 Association of Business and Industry.
12 (9) One member of the business community appointed by the President of the
13 Senate from a list of nominees submitted from Blueprint Louisiana,
14 Committee of 100 for Economic Development, and the Louisiana
15 Association of Business and Industry.
16 (10)A member appointed by the Public Affairs Research Council of Louisiana.
17 (11)A member appointed by the Council for a Better Louisiana.
18 (12)A member appointed by the Speaker of the House of Representatives from
19 a list submitted by the Louisiana Sheriffs' Association, the Louisiana
20 Assessors' Association, and the Louisiana Municipal Association.
21 (13)A member appointed by the President of the Senate from a list submitted by
22 the Louisiana School Boards Association, the Louisiana Budget Project, and
23 the Louisiana AFL-CIO.
24 BE IT FURTHER RESOLVED that the chair of the Task Force on Structural
25Changes in Budget and Tax Policy shall be elected by a favorable majority of the members
26of the task force.
27 BE IT FURTHER RESOLVED that the Task Force on Structural Changes in Budget
28and Tax Policy, for the purposes of conducting its meetings and accomplishing its goals,
29shall be staffed by staff of the Department of Revenue.
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1 BE IT FURTHER RESOLVED that the governor is urged and requested to support
2initiatives introduced in the upcoming sessions of the legislature intended to bring about long
3term improvements in the programs and services of state government as well as cost savings
4through more efficient and effective state operations.
5 BE IT FURTHER RESOLVED that the governor is urged and requested to
6implement as soon as possible any such initiatives passed by the legislature.
7 BE IT FURTHER RESOLVED that the long term structural change that may be
8introduced by the legislature, with support requested of the governor, include, but is not
9limited to, the following:
10 (1)Amend the expenditure limit to ensure government does not grow beyond the
11 revenues from short term tax policies as the long term tax policy is
12 considered.
13 (2)Give the governor and legislature more authority to use dedications when a
14 deficit is projected to cure the budget imbalance.
15 (3)Continued collaboration between the executive and legislative branches to
16 improve the capital outlay process.
17 (4)Institute measures to ensure that agencies are continuing to work towards the
18 most efficient and effective operations possible, including but not limited to
19 an examination of departmental structures, processes, civil service
20 procedures, procurement, and the use of technology.
21 (5)Create a comprehensive plan to improve health outcomes and control costs
22 in the Department of Health and Hospitals, including but not limited to
23 efficiencies and oversight in the administration of programs, enrollment, and
24 enrollee cost sharing, with a focus on the Medicaid program.
25 (6)Higher Education reforms to better prepare Louisiana's students for today's
26 workforce and ensure that the state has the most efficient and effective
27 structure to accomplish that goal.
28 (7)Pension system improvements that will lower Louisiana's unfunded accrued
29 liability and create a more modern system that benefits workers and
30 taxpayers.
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1 (8)Smart-on-crime legislation to save costs while improving public safety that
2 focuses on rehabilitation, re-entry, and workforce training, especially for
3 nonviolent offenders.
4 (9) A review of state boards and commissions to eliminate duplication of
5 functions and services, streamlining operations, and reducing red tape for
6 businesses and citizens alike.
7 (10)Measures to ensure the efficiency and effectiveness of all tax expenditures,
8 including reporting and appropriating.
9 (11)Continue efforts to evaluate contracts in terms of transparency, cost,
10 duplication of work, and effectiveness.
11 BE IT FURTHER RESOLVED that a suitable copy of this Resolution be transmitted
12to the governor.
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)]
HCR 11 Original 2016 First Extraordinary Session Schroder
create the Task Force on Structural Changes in Budget and Tax Policy to continue the budget
and tax reform evaluations begun during the 2016 First Extraordinary Session, to make
recommendations of changes to the state's tax laws in an effort to modernize and enhance
the efficiency and fairness of the state's tax policies for individuals and businesses, to
examine the structure and design of the state budget and make recommendations for long-
term budgeting changes, and to report to the legislature by September 1, 2016, and to urge
and request the governor to support and implement initiatives for structural change
introduced in upcoming sessions of the legislature intended to bring about long term
improvements to the programs and services of state government as well as cost savings
through more efficient and effective state operations.
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