2016 First Extraordinary Session ENROLLED
SENATE CONCURRENT RESOL UTION NO. 2
BY SENATORS MORRELL, ALARIO AND LAFLEUR
A CONCURRENT RESOL UTION
To make available for appropriation from the Budget Stabilization Fund the sum of
$128,459,663.85 not to exceed one-third of the balance of the Budget Stabilization
Fund as of the beginning of Fiscal Year 2015-2016, due to the second reduction of
the revenue forecast for the current fiscal year in the amount of $570.1 million as
adopted by the Revenue Estimating Conference at its meeting on February 10, 2016,
and as recognized by the Joint Legislative Committee on the Budget at its meeting
on February 13, 2016.
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, the balance in the Budget Stabilization Fund as of July 1, 2015, was
$469,872,014.56, and one-third of such balance was $156,624,004.85, which is the
maximum amount of the Budget Stabilization Fund available for appropriation for Fiscal
Year 2015-2016 to address a projected deficit; and
WHEREAS, on November 16, 2015, the Revenue Estimating Conference met and
adopted a reduction in the Official Forecast for the current fiscal year in the amount of $370
million, which was announced on the Fiscal Status Statement presented to the Joint
Legislative Committee on the Budget on November 20, 2015; and
WHEREAS, the former governor implemented a deficit reduction plan in November
of 2015 to address the November reduction in the Official Forecast of $370 million and the
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prior year's deficit of $117 million; and
WHEREAS, pursuant to a mail ballot, on December 9, 2015, more than two-thirds
of the membership of each house of the legislature approved $28,164,341 from the Budget
Stabilization Fund being made available for appropriation to satisfy the budget deficit; and
WHEREAS, during the current fiscal year the state of Louisiana has experienced a
severe financial crisis due to many factors including declining revenues because of the
national decline in the prices of oil and gas and decreased collections of corporate income
and franchise tax, individual income tax, sales and use tax, and royalty revenues, causing
corresponding decreases in the official forecasts of the Revenue Estimating Conference; and
WHEREAS, in addition to declining revenues the state has experienced expenditure
shortfalls in the current fiscal year which total over $370 million which are mostly
attributable to shortfalls in the Medicaid program, the Louisiana Taylor Opportunity
Program for Students (TOPS), the Minimum Foundation Program, and the Department of
Corrections for local housing of state adult prisoners; and
WHEREAS, on February 10, 2016, the Revenue Estimating Conference met and
reduced the Fiscal Year 2015-2016 Official Forecast by $570.1 million; and
WHEREAS, on February 13, 2016, the Joint Legislative Committee on the Budget
met and recognized for the current year an operating deficit of approximately $570,064,000
and unfunded shortfalls of approximately $373.5 million; and
WHEREAS, the options to eliminate the budget deficit in the last four months of the
fiscal year are significantly reduced, thereby leading to the request to use $128,459,663.85
from the Budget Stabilization Fund for the purposes for which it is intended; and
WHEREAS, subsequent to obtaining the consent of two-thirds of the elected
members of each house of the legislature for the use of $128,459,663.85 from the Budget
Stabilization Fund, the legislature shall appropriate such amount for use in Fiscal Year
2015-2016.
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
$128,459,663.85 not to exceed one-third of the balance of the Budget Stabilization Fund as
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of July 1, 2015, due to the second reduction of the revenue forecast for the current fiscal year
in the amount of $570.1 million as adopted by the Revenue Estimating Conference at its
meeting on February 10, 2016, and recognized by the Joint Legislative Committee on the
Budget at its meeting on February 13, 2016.
BE IT FURTHER RESOLVED that the treasurer is directed, after complying 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 take the appropriate
steps to transfer $128,459,663.85 from the Budget Stabilization Fund to the state general
fund.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
treasurer.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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