ENROLLED
2020 First Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 1
BY REPRESENTATIVES ZERINGUE AND THOMPSON
A CONCURRENT RESOL UTION
To authorize the Revenue Estimating Conference to incorporate certain monies available for
appropriation from the Budget Stabilization Fund into the official forecast for Fiscal
Year 2020-2021.
WHEREAS, the state of Louisiana is experiencing an unprecedented financial crisis
due to the COVID-19 virus pandemic; and
WHEREAS, the pandemic has caused many businesses and operations to shut down,
resulting in the state receiving significantly lower sales tax collections and gaming revenues;
and
WHEREAS, additional unprecedented volatility in the world oil market as a result
of global demand weakness from the pandemic and a saturation in global supply resulted in
the state receiving significantly lower severance tax collections; and
WHEREAS, Article VII, Section 10.3 of the Constitution of Louisiana establishes
the Budget Stabilization Fund in the state treasury and in Subparagraph (C)(1) thereof
provides that if the official forecast of recurring money for the next fiscal year is less than
the official forecast of recurring money for the current fiscal year, the difference, not to
exceed one-third of the fund, shall be incorporated into the next year's official forecast only
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, at the May 11, 2020, meeting of the Revenue Estimating Conference,
the official forecast of recurring money for the current fiscal year, namely, Fiscal Year 2019-
2020, adopted by the conference was $9,592,800,000; and
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WHEREAS, at the May 11, 2020, meeting of the Revenue Estimating Conference
the official forecast of recurring money for the next fiscal year, namely, Fiscal Year 2020-
2021, adopted by the conference was $9,139,200,000; and
WHEREAS, the official forecast of recurring money for Fiscal Year 2020-2021 is
$453,600,000 less than the official forecast of recurring money for Fiscal Year 2019-2020;
and
WHEREAS, no monies have been appropriated out of the Budget Stabilization Fund
in the current fiscal year, leaving one-third of the balance available for appropriation; and
WHEREAS, the balance in the Budget Stabilization Fund as of July 1, 2019, was
certified to be $405,283,103.71, and one-third of the balance is $135,094,367.90; and
WHEREAS, $90,062,911, or two-thirds of the available amount, is necessary to
continue government operations while preserving one-third of the available funds for future
emergency use.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
consent to and authorize the Revenue Estimating Conference to incorporate $90,062,911 of
the Budget Stabilization Fund into the official forecast for Fiscal Year 2020-2021.
BE IT FURTHER RESOLVED that the Legislature of Louisiana does hereby declare
its intention to use the funds made available for appropriation as a result of the incorporation
of a portion of the Budget Stabilization Fund into the official forecast for Fiscal Year 2020-
2021.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
treasurer.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
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