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