2018 Regular Session ENROLLED
SENATE CONCURRENT RESOL UTION NO. 101
BY SENATOR DONAHUE
A CONCURRENT RESOL UTION
To present a budget plan that reflects the reduction of Louisiana's sales taxes, includes the
impact of federal tax policy, and provides funding based on the existing operating
budget and includes priority programs.
WHEREAS, the official forecast for Fiscal Year 2017-2018 incorporates the
collections of an entire fifth penny in sales and use tax which, when combined with other
sources of revenue collections, support the Fiscal Year 2017-2018 state budget enacted by
the Legislature of Louisiana after three sessions of deliberations, and which budget currently
includes funds for the scholarships for the Taylor Opportunity Program for Students, as well
as the delivery of services by the Louisiana Department of Health, and funding for the
medical schools and the public-private partnerships, all in accordance with Act 3 of the
Second Extraordinary Session of 2017, the general appropriations act for Fiscal Year 2017-
2018; and
WHEREAS, House Bill No. 1 of the 2018 Regular Session, the general appropriation
bill for Fiscal Year 2018-2019, does not contain full funding for eligibility categories for the
disabled and elderly under the Medicaid program, medical education, supplemental
Medicaid payments to the public-private partnership hospitals, the Taylor Opportunity
Program for Students scholarships, local housing of state prisoners, the district attorneys and
the assistant district attorneys, higher education base funding, and GO Grants; and
WHEREAS, the governor of Louisiana, in accordance with the Constitution of
Louisiana presented a Fiscal Year 2018-2019 executive budget allocating only those
revenues contained in the then current official forecast of the Revenue Estimating
Conference which totaled $8.6 billion; and
WHEREAS, the existing operating budget of Fiscal Year 2017-2018 at the time the
governor presented the executive budget, less carryforwards, was $9.44 billion, which was
$841 million greater than the official forecast for Fiscal Year 2018-2019 at the time; and
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WHEREAS, if the Louisiana Department of Health is not funded at an amount which
exceeds that recommended in the executive budget, many, if not all, of the public-private
partnerships have indicated that they will terminate their agreements with the state, which
will eliminate their responsibility to make lease payments to the state which will result in a
loss of state revenues and economic activity and cause fiscal instability; and
WHEREAS, since the time the Executive Budget was submitted to the legislature,
the Revenue Estimating Conference increased the official forecast by $346 million as a
result of changes in federal tax policies, thereby reducing the shortfall from the Fiscal Year
2017-2018 existing operating budget, exceeding carryforwards, to $495 million; and
WHEREAS, during the Extraordinary and Regular Sessions conducted in calendar
years 2017 and 2018, the members from both the House of Representatives and the Senate
introduced a number of bills designed to bring long-term solutions to chronic challenges in
the state's budget and tax policies, including tax reform proposals to make permanent
reductions to tax credits, exemptions, exclusions, and rebates, to broadening and unifying
the state's sales and use tax bases, and proposals relative to the state sales and use tax rate,
and budget reform proposals to re-base the expenditure limit, transparency in state
expenditures, and proposals to grant the legislative auditor greater access to certain
information to enhance the audit of state programs; and
WHEREAS, the House of Representatives and Senate shall continue to work towards
long-term budget and tax reform efforts.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana can consider
reducing the current collection of five pennies of sales and use tax by the state to four and
one-half cents, or some portion thereof, which would reduce the tax burden on the citizens
of the state and yet maintain a portion of the sales tax by generating approximately $402
million of the original $806 million, and further closing the gap between the estimated Fiscal
Year 2018-2019 revenues and expenditures.
BE IT FURTHER RESOLVED by the Legislature of Louisiana that it shall continue
to work together with the governor to identify additional expenditure reductions in the
budget where possible and revenue reduction options:
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Penny Cleaning-Existing Levies 4% Rate
Revenue Source Current Tax Paid Savings from Tax
Reduction
5
th
Penny $ 904 Million
Reduce Penny Tax by 3/4 $ 678 Million
Reduce Penny Tax by ½ $ 452 Million
Reduce Penny Tax by 1/4 $ 226 Million
BE IT FURTHER RESOLVED that the Legislature of Louisiana may consider sales
and use tax exemptions and exclusions, currently provided by law, as follows:
Retain limited
exemptions and exclusions on R.S. 47:302 2% sales tax levy
(HB 25 2018 1
st
ES)
*MM&E is currently exempt from this levy
*Nonresidential utilities are taxable under this levy
$149 Million/year
Existing limited exemptions and exclusions on the R.S.
47:321 1% sales tax levy
*MM&E is currently taxable under the levy
*Nonresidential utilities are exempt
$29 Million/year
Existing limited exemptions and exclusions on the R.S.
47:331 1% sales tax levy
*MM&E is currently exempt from this levy
*Nonresidential utilities are exempt after nine months of FY
2019
$12 Million in FY19
$49 Million in FY 20
BE IT FURTHER RESOLVED that the Legislature of Louisiana may consider
reductions to Incentive Expenditures to provide additional savings as follows:
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Maintain Standstill Incentive Expenditure
Budget
Limitation
on Program
Based on FY
2018
Savings to
further
replace
remaining
portion of
the 5
th
Penny
Atchafalaya Trace Heritage Area Development Zone
Cane River Heritage Tax Credit
Tax Credit for Rehabilitation of Historic Structures$61,587,240$16,412,760
Brownfields Investor Tax Credit $31,583 $8,417
Louisiana Community Economic Development Act
Port of Louisiana Tax Credits
Motion Picture Investor Tax Credit $142,124,400$37,875,600
Research and Development Tax Credit $6,316,640$1,683,360
Digital Interactive Media and Software Act $23,687,400$6,312,600
Louisiana Motion Picture Incentive Act
New Markets Tax Credit $789,580 $210,420
University Research and Development Parks
Industrial Tax Equalization Program $3,158,320$841,680
Exemptions for Manufacturing Establishments
Louisiana Enterprise Zone Act $31,583,200$8,416,800
Sound Recording Investor Tax Credit $157,916 $42,084
Urban Revitalization Tax Incentive Program
Technology Commercialization Credit and Jobs
Program
$78,958 $21,042
Angel Investor Tax Credit Program $1,579,160$420,840
Musical and Theatrical Productions Income Tax
Credit
$6,158,724$1,641,276
Retention and Modernization Act $3,947,900$1,052,100
Tax Credit for Green Jobs Industries
Louisiana Quality Jobs Program Act $78,958,000$21,042,000
Corporate Headquarters Relocation Program
Competitive Projects Payroll Incentive Program $315,832 $84,168
Louisiana Capital Companies Tax Credit Program
Procurement Processing Company Rebate Program $9,080,170$2,419,830
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Rebates for Donations to School Tuition
Organizations
$5,684,976$1,515,024
TOTAL $375,240,000$100,000,000
BE IT FURTHER RESOLVED that the Legislature of Louisiana shall endeavor to
allocate all revenue adjustments recognized since January 1, 2018, in a manner that ensures
stability to the citizens of the state by funding for eligibility categories for the disabled and
elderly under the Medicaid program, medical education, supplemental Medicaid payments
to the public-private partnership hospitals, the Taylor Opportunity Program for Students
scholarships, local housing of state prisoners, the district attorneys and the assistant district
attorneys, higher education base funding, and GO Grants.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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