LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 189 SLS 20RS 187
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 12, 2020 7:37 AM Author: WHITE, B
Dept./Agy.: Statewide
Subject: Provides for allocation of the FY 19 surplus Analyst: Alan M. Boxberger
FUNDS/FUNDING EG SEE FISC NOTE SD EX See Note Page 1 of 2
Provides for the creation, transfer, dedication, deposit, and use of certain funds in the state treasury. (7/1/20)
Present law provides for the creation, transfer, dedication, deposit and use of certain funds in the state treasury. Proposed
law creates the 2020 Capital Project Fund as a special fund in the state treasury; directs nonrecurring revenues from the FY
19 surplus, subject to legislative appropriation, as follows: transfer 25% of the surplus into the Budget Stabilization Fund,
transfer 10% to the Unfunded Accrued Liabilities of the Louisiana State Employees’ Retirement System and the Teachers
Retirement System of Louisiana on a pro rata basis as provided in Article VII, Section 10(D)(2)(b) of the Louisiana
Constitution, and transfer the remaining 65% to the 2020 Capital Project Fund. Proposed law provides that monies in the
2020 Capitol Project Fund shall be subject to appropriation by the legislature to be used solely and exclusively for one of the
following purposes: 1) provide funding for capital outlay projects in the comprehensive state capital budget, 2) provide for
deposit into the Coastal Protection and Restoration Fund to be used consistently with the Coastal Master Plan as developed
SEE SUMMARY CONTINUED ON PAGE TWO
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
Proposed law creates the 2020 Capital Project Fund and allocates and directs nonrecurring revenues from the FY 19 surplus
in accordance with allowable uses as follows:
- 25% or $133,627,380, allocated to the Budget Stabilization Fund (Rainy Day Fund)
- 10% or $53,450,952, allocated to the unfunded accrued liabilities (UAL) of the Louisiana State Employees’
Retirement System and the Teachers Retirement System of Louisiana on a pro rata basis as provided in Article
VII, Section 10(D)(2)(b) of the Louisiana Constitution
- 65%, or the $347,431,186 balance, to be deposited into the 2020 Capital Project Fund.
Proposed law provides that monies deposited into the 2020 Capital Project Fund shall be used, subject to appropriation by
the legislature solely and exclusively for one of the following purposes:
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 189 SLS 20RS 187
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 12, 2020 7:37 AM Author: WHITE, B
Dept./Agy.: Statewide
Subject: Provides for allocation of the FY 19 surplus Analyst: Alan M. Boxberger
CONTINUED EXPLANATION from page one: Page 2 of 2
SUMMARY CONTINUED FROM PAGE ONE
by the Coastal Protection and Restoration Authority, or 3) provide for new highway construction for which federal matching
funds are available without excluding highway projects otherwise eligible as capital projects under the Louisiana
Constitution. Proposed law provides that monies in the 2020 Capital Project Fund shall be invested in the same manner as
the state general fund, interest earned shall be credited to the fund, and that unexpended and unencumbered monies shall
remain in the fund at the end of each fiscal year.
EXPENDITURE EXPLANATION CONTINUED FROM PAGE ONE
- Providing funding for capital outlay projects in the comprehensive state capital budget.
- For deposit into the Coastal Protection and Restoration Fund to be used for purposes consistent with the Coastal
Master Plan developed by the Coastal Protection and Restoration Authority.
- Providing for new highway construction for which federal matching funds are available, without excluding highway
projects otherwise eligible as capital projects under the Louisiana Constitution.
For informational purposes: surplus nonrecurring revenues have six authorized and allowable uses:
- Deposits into the Budget Stabilization (Rainy Day) Fund – required minimum 25% allocation
- Allocated to pay down the state’s unfunded accrued liability (UAL) – required minimum 10% allocation
- Transportation Projects
- Capital Outlay Projects
- Coastal Projects
- Debt Defeasance
Proposed law allocates the FY 19 surplus to five of the six allowable categories, excluding debt defeasance, and allocates the
minimum percentage to the Budget Stabilization Fund (25%) and UAL (10%).
Creating a new statutory dedication within the state treasury will result in a marginal workload increase for the Department
of Treasury, which can generally be absorbed within existing resources. However, to the extent other legislative instruments
create new statutory dedications, there may be material additional costs associated with the aggregate effort to administer
these funds. The Treasury performs fund accounting, financial reporting, banking and custodial functions for 404 special
funds. When unable to absorb additional workload with existing resources, the Treasury anticipates that it will be required
to add one T.O. position at a total personal services cost of approximately $71,000 plus approximately $2,450 for a one-time
purchase of office equipment. These expenditures are assumed to be SGF in this fiscal note.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director