RÉSUMÉ DIGEST
ACT 367 (HB 267) 2020 Regular Session Gary Carter
Existing constitution establishes the Budget Stabilization Fund and provides for the fund to
be used only under the following conditions, after consent of 2/3 of the elected members of
each house of the legislature:
(1)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 1/3 of the fund, shall be incorporated into the next year's official forecast.
(2)If a deficit for the current fiscal year is projected due to a decrease in the official
forecast, an amount equal to 1/3 of the fund, not to exceed the projected deficit, may
be appropriated.
Proposed constitutional amendment provides for the use of the fund for the state costs
associated with a federally declared disaster, not to exceed an amount equal to 1/3 of the
fund, after consent of 2/3 of the elected members of each house of the legislature.
Existing constitution provides for various deposits into the fund including 25% of any
nonrecurring revenues and mineral revenues collected by the state over a certain base
amount.
Proposed constitutional amendment adds the deposit of an amount equivalent to the federal
funds received by the state for the reimbursement of disaster costs, not to exceed the amount
of the costs appropriated out of the fund.
Prior constitution prohibited the amount included in the official forecast for the next fiscal
year and the amount appropriated for the current fiscal year from exceeding 1/3 of the fund
balance at the beginning of the current fiscal year. Proposed constitutional amendment
prohibits the combined amount of the fund incorporated in the official forecast in the next
fiscal year, in the current fiscal year, and as a result of a federally declared disaster from
exceeding 1/3 of the balance at the beginning of the current fiscal year.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2020.
(Amends Const. Art. VII, §10.3(C)(3) and (4); Adds Const. Art. VII, §10.3(A)(5) and (C)(5))