HLS 201ES-18 ENGROSSED
2020 First Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 1
BY REPRESENTATIVE ZERINGUE
FUNDS/FUNDING: Provides for monies in the Budget Stabilization Fund to be available
for appropriation in Fiscal Year 2020-2021 (Item #14)
1 A CONCURRENT RESOL UTION
2To authorize the Revenue Estimating Conference to incorporate certain monies available for
3 appropriation from the Budget Stabilization Fund into the official forecast for Fiscal
4 Year 2020-2021.
5 WHEREAS, the state of Louisiana is experiencing an unprecedented financial crisis
6due to the COVID-19 virus pandemic; and
7 WHEREAS, the pandemic has caused many businesses and operations to shut down,
8resulting in the state receiving significantly lower sales tax collections and gaming revenues;
9and
10 WHEREAS, additional unprecedented volatility in the world oil market as a result
11of global demand weakness from the pandemic and a saturation in global supply resulted in
12the state receiving significantly lower severance tax collections; and
13 WHEREAS, Article VII, Section 10.3 of the Constitution of Louisiana establishes
14the Budget Stabilization Fund in the state treasury and in Subparagraph (C)(1) thereof
15provides that if the official forecast of recurring money for the next fiscal year is less than
16the official forecast of recurring money for the current fiscal year, the difference, not to
17exceed one-third of the fund, shall be incorporated into the next year's official forecast only
18after the consent of two-thirds of the elected members of each house of the legislature; and
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HCR NO. 1
1 WHEREAS, Article VII, Section 10.3(C)(3) of the Constitution of Louisiana
2provides that in no event shall the amount included in the official forecast for the next fiscal
3year plus the amount appropriated in the current fiscal year exceed one-third of the fund
4balance at the beginning of the current fiscal year; and
5 WHEREAS, at the May 11, 2020, meeting of the Revenue Estimating Conference,
6the official forecast of recurring money for the current fiscal year, namely, Fiscal Year 2019-
72020, adopted by the conference was $9,592,800,000; and
8 WHEREAS, at the May 11, 2020, meeting of the Revenue Estimating Conference
9 the official forecast of recurring money for the next fiscal year, namely, Fiscal Year 2020-
102021, adopted by the conference was $9,139,200,000; and
11 WHEREAS, the official forecast of recurring money for Fiscal Year 2020-2021 is
12$453,600,000 less than the official forecast of recurring money for Fiscal Year 2019-2020;
13and
14 WHEREAS, no monies have been appropriated out of the Budget Stabilization Fund
15in the current fiscal year, leaving one-third of the balance available for appropriation; and
16 WHEREAS, the balance in the Budget Stabilization Fund as of July 1, 2019, was
17certified to be $405,283,103.71, and one-third of the balance is $135,094,367.90; and
18 WHEREAS, $90,062,911, or two-thirds of the available amount, is necessary to
19continue government operations while preserving one-third of the available funds for future
20emergency use.
21 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
22consent to and authorize the Revenue Estimating Conference to incorporate $90,062,911 of
23the Budget Stabilization Fund into the official forecast for Fiscal Year 2020-2021.
24 BE IT FURTHER RESOLVED that the Legislature of Louisiana does hereby declare
25its intention to use the funds made available for appropriation as a result of the incorporation
26of a portion of the Budget Stabilization Fund into the official forecast for Fiscal Year 2020-
272021.
28 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
29treasurer.
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HCR NO. 1
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 1 Engrossed 2020 First Extraordinary Session Zeringue
Authorizes the Revenue Estimating Conference to incorporate $90,062,911 of the certified
balance of the Budget Stabilization Fund into the official forecast for FY 2020-2021 so that
such monies will be available for appropriation.
Declares intention to use the funds made available for appropriation.
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