Louisiana Senate Bill SCR128

Louisiana 2012 Regular Session

• Introduced: 5/22/12
• Refer: 5/22/12
• Report Pass: 5/28/12
• Passed: 5/29/12
• Engrossed: 5/30/12
• Refer: 5/31/12
• Report Pass: 6/1/12

Caption

Provides the monies in the Budget Stabilization Fund be available for appropriation in Fiscal Year 2011-2012.(2/3 - CA7s10.3(C)(1))

Impact

The resolution directly influences how state finance management is handled during a period of economic downturn. By permitting the appropriation from the Budget Stabilization Fund, lawmakers aim to fortify the current budget to prevent program closures and layoffs of state employees, all of which are pressing issues given the state's financial crisis and past mid-year budget reductions. This measure seeks to stabilize essential services and avoid exacerbating the impact on citizens reliant on state-funded programs.

Summary

SCR128 is a Senate Concurrent Resolution that addresses fiscal challenges faced by Louisiana by allowing the state legislature to appropriate a sum of $204,700,000 from the Budget Stabilization Fund for the Fiscal Year 2011-2012. This amount is intended to address a projected deficit arising from a reduction in the revenue forecast as determined by the Revenue Estimating Conference. The resolution emphasizes that the appropriation will not exceed one-third of the Fund's balance, which is controlled by state constitutional provisions regarding state finances.

Sentiment

The sentiment around SCR128 appears to stem from a necessity to act due to fiscal constraints rather than ideological disagreements. Lawmakers acknowledged the financial emergency; thus, there is bipartisan support for the bill as it seeks to provide immediate relief. However, the measure may also raise concerns about long-term reliance on stabilization funds and whether such appropriations compromise future fiscal flexibility.

Contention

While there has not been notable contention specifically regarding SCR128, discussions among lawmakers reflect a broader anxiety about the state's economic recovery. The legislative intent focuses on responsibly addressing deficits while ensuring the sustainability of the Budget Stabilization Fund. Key points raised include the implications of continued budget deficits and whether using reserve funds could lead to deeper financial issues down the line, representing a balancing act of fiscal responsibility versus immediate needs.