RS 94 - Budget Stabilization Fund
A. There is hereby created in the state treasury a special fund to be designated as the Budget Stabilization Fund, hereafter referred to in this Section as the "fund", which shall consist of all money deposited into the fund in accordance with Article VII, Section 10.3 of the Constitution of Louisiana. Money shall be deposited in the fund as follows:
(1) All money available for appropriation from the state general fund and dedicated funds in excess of the expenditure limit, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E) of the Constitution of Louisiana, shall be deposited in the fund.
(2)(a) All revenues received in each fiscal year by the state in excess of nine hundred fifty million dollars, hereinafter referred to as the "base", as a result of the production of or exploration for minerals, hereinafter referred to as "mineral revenues", including severance taxes, royalty payments, bonus payments, or rentals, and excluding such revenues designated as nonrecurring pursuant to Article VII, Section 10(B) of the Constitution of Louisiana, any such revenues received by the state as a result of grants or donations when the terms or conditions thereof require otherwise and revenues derived from any tax on the transportation of minerals, shall be deposited in the fund after the following allocations of said mineral revenues have been made:
(i) To the Bond Security and Redemption Fund as provided by Article VII, Section 9(B) of the Constitution of Louisiana.
(ii) To the political subdivisions of the state as provided in Article VII, Sections 4(D) and (E) of the Constitution of Louisiana.
(iii) As provided by the requirements of Article VII, Sections 10-A and 10.1 of the Constitution of Louisiana.
(b) The base may be increased every ten years beginning in the year 2014 by a law enacted by two-thirds of the elected members of each house of the legislature. Any such increase shall not exceed fifty percent in the aggregate of the increase in the consumer price index for the immediately preceding ten years.
(3) The greater of twenty-five million dollars from any source, or twenty-five percent of any money designated in the official forecast as nonrecurring as provided in Article VII, Section 10(D)(2) of the Constitution of Louisiana, shall annually be deposited in and credited to the fund.
(4) Any money appropriated to the fund by the legislature including any appropriation to the fund from money designated in the official forecast as provided in Article VII, Section 10(D)(2) of the Constitution of Louisiana shall be deposited in the fund.
(5) An amount equivalent to the money received by the state from the federal government for the reimbursement of costs associated with a federally declared disaster, not to exceed the amount of costs appropriated out of the fund for the same disaster pursuant to Paragraph (C)(3) of this Section.
B. Money in the fund shall be invested by the state treasurer in accordance with law. Earnings realized in each fiscal year on the investment of monies in the fund shall be deposited to the credit of the fund.
C. The money in the fund shall not be available for appropriation except under the following conditions:
(1)(a) If the official forecast of recurring money for the ensuing fiscal year is less than the official forecast of recurring money for the current fiscal year, the Revenue Estimating Conference shall incorporate a specified amount of the fund into the official forecast for the ensuing year pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house.
(b) If the legislature is not in session, the two-thirds consent requirement shall be obtained as provided in R.S. 39:87.
(c) The amount of the fund that may be incorporated into the official forecast for the ensuing fiscal year shall not exceed either of the following:
(i) The difference between the official forecast of recurring money for the ensuing fiscal year and the official forecast of recurring money for the current fiscal year.
(ii) One-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.
(2)(a) If a deficit for the current fiscal year is projected due to a decrease in the official forecast of recurring money, the Revenue Estimating Conference shall incorporate a specified amount of the fund into the official forecast for the current fiscal year pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house.
(b) If the legislature is not in session, the two-thirds consent requirement shall be obtained as provided in R.S. 39:87.
(c) The amount of the fund that may be incorporated into the official forecast for the current fiscal year shall not exceed either of the following:
(i) The amount of the projected deficit.
(ii) One-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.
(3)(a) If there is a federally declared disaster in the state, the Revenue Estimating Conference shall incorporate a specified amount of the fund into the official forecast for the year in which the state incurs costs associated with the disaster pursuant to a concurrent resolution adopted by a favorable vote of two-thirds of the elected members of each house.
(b) If the legislature is not in session, the two-thirds consent requirement shall be obtained by procedures provided in R.S. 39:87.
(c) The resolution or ballot used for the required consent of the elected members of each house shall specify the amount of the fund that will be available for allotment and expenditure by each agency. The amount specified to be received by an agency shall not exceed the amount of costs incurred by the agency associated with the disaster, adjusted for any federal reimbursement received.
(d) The amount of the fund that may be incorporated into the official forecast of the Revenue Estimating Conference for the year in which the state incurs costs associated with the disaster shall not exceed either of the following:
(i) The costs incurred by the state associated with the disaster.
(ii) One-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.
(4) In no event shall the amount included in the official forecast for the ensuing fiscal year pursuant to Paragraph (1) of this Subsection plus the amount included in the official forecast in the current fiscal year pursuant to Paragraph (2) of this Subsection, plus the amount included in the official forecast pursuant to Paragraph (3) of this Subsection, exceed one-third of the fund balance, determined in accordance with R.S. 39:95, at the beginning of the current fiscal year.
(5) No appropriation or deposit to the fund shall be made if such appropriation or deposit would cause the balance in the fund to exceed four percent of total state revenue receipts for the previous fiscal year. For the purposes of this Section, total state revenue receipts shall not include any monies received by the state from the Federal Emergency Management Agency or other sources providing disaster relief assistance.
Acts 1991, No. 439, §1, eff. July 1, 1991; Acts 1993, No. 810, §1, eff. June 22, 1993; Acts 1997, No. 1149, §§1, 2, eff. June 1, 1997, and §4, eff. Nov. 5, 1998; Acts 2004, 1st Ex. Sess., No. 11, §1, eff. March 25, 2004; Acts 2005, 1st Ex. Sess., No. 34, §1, eff. Nov. 29, 2005; Acts 2009, No. 226, §1, eff. July 1, 2009; Acts 2010, No. 633, §1, eff. June 25, 2010; Acts 2013, No. 420, §4, eff. June 21, 2013; Acts 2014, No. 646, §3, eff. July 1, 2014; Acts 2015, No. 257, §1, eff. June 29, 2015; Acts 2015, No. 465, §1, special eff. date; Acts 2016, No. 656, §1, eff. June 17, 2016; Acts 2018, No. 544, §1, see Act; Acts 2020, No. 182, §1, see Act.
NOTE: See Acts 2012, No. 597, §4; repealed by Acts 2013, No. 420, §9.