SLS 18RS-3382 REENGROSSED
2018 Regular Session
SENATE CONCURRENT RESOL UTION NO. 101
BY SENATOR DONAHUE
BUDGET PROCEDURE. Regards a budget plan that provides funding established by a
standstill budget and includes priority programs.
1 A CONCURRENT RESOL UTION
2 To present a budget plan that reflects the reduction of Louisiana's sales taxes, includes the
3 impact of federal tax policy, and provides funding established by a standstill budget
4 and includes priority programs.
5 WHEREAS, the official forecast for Fiscal Year 2017-2018 incorporates the
6 collections of an entire fifth penny in sales and use tax which, when combined with other
7 sources of revenue collections, support the Fiscal Year 2017-2018 state budget enacted by
8 the Legislature of Louisiana after three sessions of deliberations, and which budget currently
9 includes funds for the scholarships for the Taylor Opportunity Program for Students, as well
10 as the delivery of services by the Louisiana Department of Health, and funding for the
11 medical schools and the public-private partnerships, all in accordance with Act 3 of the
12 Second Extraordinary Session of 2017, the general appropriations act for Fiscal Year 2017-
13 2018; and
14 WHEREAS, House Bill No. 1 of the 2018 Regular Session, the general appropriation
15 bill for Fiscal Year 2018-2019, does not contain full funding for eligibility categories for the
16 disabled and elderly under the Medicaid program, medical education, supplemental
17 Medicaid payments to the public-private partnership hospitals, the Taylor Opportunity
18 Program for Students scholarships, local housing of state prisoners, the district attorneys and
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SLS 18RS-3382 REENGROSSED
1 the assistant district attorneys, higher education base funding, and GO Grants; and
2 WHEREAS, the governor of Louisiana, in accordance with the Constitution of
3 Louisiana presented a Fiscal Year 2018-2019 executive budget allocating only those
4 revenues contained in the then current official forecast of the Revenue Estimating
5 Conference which totaled $8.6 billion; and
6 WHEREAS, the standstill budget for Fiscal Year 2018-2019, as modified for the
7 inclusion of additional means of financing, would total $9.75 billion; and
8 WHEREAS, the governor identified approximately $995.4 million in expenditures
9 that did not receive funding in his executive budget that, if funded, would bring his budget
10 to $9.5 billion which is less than a modified standstill budget; and
11 WHEREAS, the programs and amounts which did not receive funding in the
12 executive budget are, as follows:
13 Program State Portion of Unfunded
FY 2019 Cost
14 LDH-Mostly Medicaid $ 656,612,820
15 TOPS Program $ 233,342,683
16 Local Housing/State Prisoners $ 40,408,330
17 District Attorneys/Assistant District Attys $ 26,314,182
18 Higher Education Base Funding $ 25,680,922
19 Go Grants $ 13,000,000
20 TOTAL $ 995,358,937
21 WHEREAS, if the Louisiana Department of Health does not receive the amount of
22 funding set forth above, many, if not all, of the public-private partnerships have indicated
23 that they will terminate their agreements with the state, which will eliminate their
24 responsibility to make lease payments to the state which will result in a loss of state revenues
25 and economic activity and cause fiscal instability; and
26 WHEREAS, since the time the Executive Budget was submitted to the legislature,
27 the Revenue Estimating Conference increased the official forecast by $346 million as a
28 result of changes in federal tax policies, thereby reducing the projected deficit for Fiscal
29 Year 2018-2019 to $650 million.
30 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana can consider
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SLS 18RS-3382 REENGROSSED
Penny Cleaning-Existing Levies 4% Rate
1 reducing the current collection of five pennies of sales and use tax by the state to four and
2 one-half cents, or some portion thereof, which would reduce the tax burden on the citizens
3 of the state and yet maintain a portion of the sales tax by generating approximately $402
4 million of the original $806 million, and further closing the gap between the estimated Fiscal
5 Year 2018-2019 revenues and expenditures.
6 BE IT FURTHER RESOLVED by the Legislature of Louisiana that it shall continue
7 to work together with the governor to identify additional expenditure reductions in the
8 standstill budget where possible and revenue reduction options:
9 Revenue Source Current Tax Paid Savings from Tax
Reduction
10 5
th
Penny $ 904 Million
11 Reduce Penny Tax by 3/4 $ 678 Million
12 Reduce Penny Tax by ½ $ 452 Million
13 Reduce Penny Tax by 1/4 $ 226 Million
14 BE IT FURTHER RESOLVED that the Legislature of Louisiana may consider sales
15 and use tax exemptions and exclusions, currently provided by law, as follows:
16
17 Retain limited
18 exemptions and exclusions on R.S. 47:302 2% sales tax levy
19 (HB 25 2018 1
st
ES)
20 *MM&E is currently exempt from this levy
21 *Nonresidential utilities are taxable under this levy
$149 Million/year
22 Existing limited exemptions and exclusions on the R.S.
23 47:321 1% sales tax levy
24 *MM&E is currently taxable under the levy
25 *Nonresidential utilities are exempt
$29 Million/year
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SLS 18RS-3382 REENGROSSED
1 Existing limited exemptions and exclusions on the R.S.
2 47:331 1% sales tax levy
3 *MM&E is currently exempt from this levy
4 *Nonresidential utilities are exempt after nine months of FY
5 2019
$12 Million in FY19
$49 Million in FY 20
6 BE IT FURTHER RESOLVED by the Legislature of Louisiana that standstill
7 requirements shall be in effect for all expenditures contained in HB 1, and the following
8 reductions to Incentive Expenditures below shall achieve a standstill budget for Fiscal Year
9 2019-2020 and thereafter, which reductions shall be achieved through creating maximum
10 expenditure authority for each program until otherwise authorized, as follows:
11 Maintain Standstill Incentive Expenditure
12 Budget
Limitation
on Program
Based on FY
2018
Savings to
further
replace
remaining
portion of
the 5
th
Penny
13 Atchafalaya Trace Heritage Area Development Zone
14 Cane River Heritage Tax Credit
15 Tax Credit for Rehabilitation of Historic Structures$61,587,240$16,412,760
16 Brownfields Investor Tax Credit $31,583 $8,417
17 Louisiana Community Economic Development Act
18 Port of Louisiana Tax Credits
19 Motion Picture Investor Tax Credit $142,124,400$37,875,600
20 Research and Development Tax Credit $6,316,640$1,683,360
21 Digital Interactive Media and Software Act $23,687,400$6,312,600
22 Louisiana Motion Picture Incentive Act
23 New Markets Tax Credit $789,580 $210,420
24 University Research and Development Parks
25 Industrial Tax Equalization Program $3,158,320$841,680
26 Exemptions for Manufacturing Establishments
27 Louisiana Enterprise Zone Act $31,583,200$8,416,800
28 Sound Recording Investor Tax Credit $157,916 $42,084
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1 Urban Revitalization Tax Incentive Program
2 Technology Commercialization Credit and Jobs
3 Program
$78,958 $21,042
4 Angel Investor Tax Credit Program $1,579,160$420,840
5 Musical and Theatrical Productions Income Tax
6 Credit
$6,158,724$1,641,276
7 Retention and Modernization Act $3,947,900$1,052,100
8 Tax Credit for Green Jobs Industries
9 Louisiana Quality Jobs Program Act $78,958,000$21,042,000
10 Corporate Headquarters Relocation Program
11 Competitive Projects Payroll Incentive Program $315,832 $84,168
12 Louisiana Capital Companies Tax Credit Program
13 Procurement Processing Company Rebate Program $9,080,170$2,419,830
14 Rebates for Donations to School Tuition
15 Organizations
$5,684,976$1,515,024
16 TOTAL $375,240,000$100,000,000
17 BE IT FURTHER RESOLVED that the Legislature of Louisiana shall endeavor to
18 allocate all revenue adjustments recognized since January 1, 2018, in a manner that ensures
19 stability to the citizens of the state by funding for eligibility categories for the disabled and
20 elderly under the Medicaid program, medical education, supplemental Medicaid payments
21 to the public-private partnership hospitals, the Taylor Opportunity Program for Students
22 scholarships, local housing of state prisoners, the district attorneys and the assistant district
23 attorneys, higher education base funding, and GO Grants.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
SCR 101 Reengrossed 2018 Regular Session Donahue
Regards a budget plan that provides funding established by a standstill budget and includes
priority programs.
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