LouisianaSenateFinanceCommittee

FY21ProposedBudget

04-147Treasury

June2020

SenatorPatrickPageCortez,PresidentSenatorBodi White,Chairman

FY21ProposedBudgetSchedule04-147— DepartmentoftheTreasury

2

The Department of the Treasury acts as the financial authority of the state by managing state funds throughcash management, investment strategies, monitoring, regulating, and coordinating state and local debtobligations and providing banking services to state agencies.

04-147Treasury

AdministrativeSupportStaff

UnclaimedProperty

FinancialAccountability&ControlCentralizedBanking

FundCreationandDisbursementsCashManagement

DebtManagementStateBondCommission

InvestmentManagementMaximizingreturnswhilemeetingcash

needs

FY21ProposedBudgetSchedule04-147— DepartmentoftheTreasury

3

STATEBONDCOMMISSION(SBC)TreasuryprovidesstaffsupportfortheSBC

• Receivesandanalyzesapplicationsfromparishes,municipalities,specialtaxingdistricts,andotherpoliticalsubdivisionsoftheStaterequestingauthoritytoissuedebtorlevytaxes

• Centralizesandadministerstheincurringofstatedebt

• ContinuallymonitorstheState’sdebtpositionforeconomicopportunitiesandmanagesoutstandingdebt

• ReportstheNetStateTaxSupportedDebtLimitandensuresthattheStateremainswithintheconstraints

• Servesasadepositoryforallofficialbonddocumentation

RecentBondSales

March11,2020

GeneralObligationBondsNewMoney$263.2MRefunding $98.6M

UpcomingBondSales

FixedRateRefundingGas&Fuels $1.6BGeneralObligation $1.3B

VariableRateRefundingGas&FuelsRefunding $424M

Treasury

ChangesinFundingsinceFY12

FY12Actual FY13Actual FY14Actual FY15Actual FY16Actual FY17Actual FY18Actual FY19Actual FY20EnactedFY20aso f

12/1/19FY21Proposed

SGF $- $- $- $- $- $- $- $- $- $- $-

IAT $1,438 ,853 $1,658 ,255 $1,628 ,452 $1,588 ,495 $1,421 ,123 $1,488 ,676 $1,686 ,944 $1,686 ,944 $1,686 ,944 $1,686 ,944 $1,686 ,944

FSGR $8,195 ,085 $7,757 ,281 $8,250 ,602 $8,319 ,502 $8,029 ,294 $8,134 ,796 $7,302 ,148 $7,505 ,298 $9,232 ,496 $9,232 ,496 $9,575 ,478

STATDED $412,875 $460,812 $5,469 ,001 $464,741 $356,029 $353,768 $383,805 $411,821 $811,455 $811,455 $811,455

FED $- $- $- $- $- $- $- $- $- $- $-

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

TotalBudgetbyFiscalYearandMeansofFinance

4

$10.0 $9.9

$15.3

$10.4$9.8 $10.0

ChangefromFY12toFY21is+20.2%.

GeauxPass

TransitionFund

duetothe

discontinuation

oftollsonthe

CrescentCity

Connection.

$9.4$9.6

$11.7 $11.7$12.1

Inthebudget,theTreasuryDepartmentisallowed

toretainbondcommissionfeestoself-seedfor

cashflowearlyinthefiscalyear.InFY20Treasury

retained$1MinFY19bondcommissionfees.

StatewideBudgetAdjustmentsProposedforFY21Treasury

5

StateGeneralFund

(Direct)

InteragencyTransfers

FeesandSelf-generatedRevenues

StatutoryDedications IEB Federal

Funds Total T.O. Adjustment

$0 $1,686,944 $9,232,496 $811,455 $0 $11,730,895 54 FY20ExistingOperatingBudgetasof12-1-19$0 $0 $104,981 $0 $0 $0 $104,981 0 MarketRateClassified$0 $0 $10,279 $0 $0 $0 $10,279 0 RelatedBenefitsBaseAdjustment$0 $0 ($13,450) $0 $0 $0 ($13,450) 0 RetirementRateAdjustment$0 $0 $11,064 $0 $0 $0 $11,064 0 GroupInsuranceRateAdjustmentforActiveEmployees$0 $0 $9,000 $0 $0 $0 $9,000 0 GroupInsuranceRateAdjustmentforRetirees$0 $0 $56,062 $0 $0 $0 $56,062 0 SalaryBaseAdjustment$0 $0 ($57,131) $0 $0 $0 ($57,131) 0 AttritionAdjustment$0 $0 $92,815 $0 $0 $0 $92,815 0 Acquisitions&MajorRepairs$0 $0 ($92,815) $0 $0 $0 ($92,815) 0 Non-recurringAcquisitions&MajorRepairs$0 $0 ($991) $0 $0 $0 ($991) 0 RiskManagement$0 $0 $384 $0 $0 $0 $384 0 LegislativeAuditorFees$0 $0 $472 $0 $0 $0 $472 0 MaintenanceinState-OwnedBuildings$0 $0 $722 $0 $0 $0 $722 0 CapitolParkSecurity$0 $0 ($503) $0 $0 $0 ($503) 0 USPSFees$0 $0 ($1,059) $0 $0 $0 ($1,059) 0 CivilServiceFees$0 $0 ($325) $0 $0 $0 ($325) 0 OfficeofTechnologyServices(OTS)$0 $0 ($1,523) $0 $0 $0 ($1,523) 0 OfficeofStateProcurement$0 $0 $117,982 $0 $0 $0 $117,982 0 TotalStatewideAdjustments$0 $0 $0 $0 $0 $0 $0 0 TotalMeansofFinancingSubstitutionAdjustments$0 $0 $175,000 $0 $0 $0 $175,000 0 TotalNon-recurringOtherAdjustments$0 $0 $50,000 $0 $0 $0 $50,000 0 TotalOtherAdjustments$0 $1,686,944 $9,575,478 $811,455 $0 $0 $12,073,877 54 TotalFY21ProposedBudget$0 $0 $342,982 $0 $0 $0 $342,982 0 TotalAdjustments(StatewideandAgency-specific)

Non-StatewideBudgetAdjustmentsProposedforFY21

AdjustmentstotheDepartmentofTreasuryBudget

6

Non-recurringOtherAdjustmentsStateGeneral

Fund(Direct)

InteragencyTransfers

FeesandSelf-generatedRevenues

StatutoryDedications

FederalFunds Total T.O. Adjustment

$0 $0 $175,000 $0 $0 $175,000 0Administrative — Allows for converting images into the KAPS/Onbase system to allow access to documents for priorunclaimed property claims and holder reports. These images will be housed within KAPS and stored at the Kelmarsecuredatacenter,reducingdatastoredonTreasuryservers.

$0 $0 $50,000 $0 $0 $50,000 0 Administrative—FortheimagesystemthatintegratesdirectlywithKAPS/OnbasetoallowconversiontoapaperlesssystemforUnclaimedProperty.Claimantswilluploaddocumentsthroughasecureportal.

$0 $0 $225,000 $0 $0 $225,000 0 TotalNon-recurringOtherAdjustments

DepartmentofTreasuryFY21ProposedMeansofFinancebyAgency

7

IAT$1.714%

Fees&SGR$9.6079%

StatDeds$0.87%

FY21ProposedTotalMeansofFinance

(InMillions)

Total$12.1M

Interagency TransfersFees for central depository banking services provided by the Treasury to mostagencies in the State

Fees and Self-generated Revenue• $2.0M - State Bond Commission (SBC) fees are an application fee and a percentageof debt at closing paid by public entities and by private companies issuing debtrequiring SBC approval

• $4.7M - Securities Lending Program fees received from protected short-termlending of securities held by Treasury

• $2.9M - Unclaimed property fees as a percentage of collections as determined byprogram needs up to 7%

Statutory DedicationsFees for investment services for the Millennium Trust Fund, and the Medicaid TrustFund for the Elderly and the Louisiana Education Quality Support Fund

TotalFunding FY19Actual FY20Enacted FY20EOBasof12-1-19FY21Proposedasof2-7-20

DifferenceFY20EOBtoFY21Proposed

InteragencyTransfers $1,686,944 $1,686,944 $1,686,944 $1,686,944 $0FeesandSelf-generatedRevenue $7,505,298 $9,232,496 $9,232,496 $9,575,478 $342,982StatutoryDedications $0EducationExcellenceFund $38,249 $97,573 $97,573 $114,240 $16,667HealthExcellenceFund $38,251 $97,575 $97,575 $114,242 $16,667TOPSFund $224,736 $499,093 $499,093 $449,093 ($50,000)LouisianaEducationQualitySupportFund $72,335 $19,640 $19,640 $19,640 $0MedicaidTrustFundfortheElderly $38,250 $97,574 $97,574 $114,240 $16,666TREASURYTOTAL $9,604,063 $11,730,895 $11,730,895 $12,073,877 $342,982

Dept.ofTreasuryCategoricalExpendituresFY19,FY20,andFY21

8

OperatingServicesunderOperatingExpensesincludesoftwarelicensingandmaintenance,dues&subscriptions,dataprocessingequipmentrentals,etc.;ProfessionalServicesincludecontractsforFinancialAdvisor;OtherChargesincludetrustfundhostingcosts,centralbankingfees,andotherdataservices.

ProposedBudgetCategoryas

PercentofTotal

PersonalServices: $6,474,684 $6,908,803 $7,029,608 58% $120,805Salaries $3,899,642 $4,025,357 $4,117,901 34% $92,544

OtherCompensation $459,331 $562,917 $562,917 5% $0RelatedBenefits $2,115,711 $2,320,529 $2,348,790 19% $28,261

OperatingExpenses: $1,070,506 $1,510,520 $1,735,520 14% $225,000Travel $19,884 $103,389 $103,389 1% $0

OperatingServices $1,009,034 $1,349,759 $1,574,759 13% $225,000Supplies $41,588 $57,372 $57,372 0% $0

ProfessionalServices $180,452 $263,147 $263,147 2% $0

OtherCharges: $1,871,997 $2,955,610 $2,952,787 24% ($2,823)OtherCharges $1,389,553 $2,189,873 $2,189,873 18% $0DebtService $0 $0 $0 0% $0

InteragencyTransfers $482,444 $765,737 $762,914 6% ($2,823)$557,533,371Acquisitions&MajorRepairs: $6,424 $92,815 $92,815 1% $0

Acquisitions $6,424 $92,815 $92,815 1% $0MajorRepairs $0 $0 $0 0% $0

TotalExpenditures $9,604,063 $11,730,895 $12,073,877 100% $342,982

ExpenditureCategory FY19Actual FY20EOB(asof12-01-19)

FY21 DifferenceFY20toFY21

DepartmentofTreasuryFY20Enactedvs.FY21ProposedComparisonbyAgency

9

• TheDepartment’stotalFY21ProposedBudgetincreasedby$342,982or2.9%,allduetofeesandself-generatedrevenue.

• TheAdministrativeprogramincreasedbyabout$90,000or1.7%.

• TheFinancialAccountability&Controlprogramincreasedbyabout$210,000or6%.

• TheDebtManagementprogramincreasedbyabout$30,000or2.2%.

• TheInvestmentManagementprogramincreasedbyabout$13,000or0.8%.

FY20EnactedMeansofFinancebyAgency SGF IAT FSGR StatDeds Federal Total

Administrative $0 $0 $5,288,364 $0 $0 $5,288,364FinancialAccountability&Control $0 $1,686,944 $1,833,379 $0 $0 $3,520,323

DebtManagement $0 $0 $1,334,182 $0 $0 $1,334,182InvestmentManagement $0 $0 $776,571 $811,455 $0 $1,588,026

TreasuryTOTAL $0 $1,686,944 $9,232,496 $811,455 $0 $11,730,895

FY21ProposedMeansofFinancebyAgency SGF IAT FSGR StatDeds Federal Total

Administrative $0 $0 $5,378,201 $0 $0 $5,378,201FinancialAccountability&Control $0 $1,686,944 $2,043,110 $0 $0 $3,730,054

DebtManagement $0 $0 $1,364,189 $0 $0 $1,364,189InvestmentManagement $0 $0 $789,978 $811,455 $0 $1,601,433

TreasuryTOTAL $0 $1,686,944 $9,575,478 $811,455 $0 $12,073,877ChangeFY20EnactedtoFY21Proposed $0 $0 $342,982 $0 $0 $342,982

DepartmentofTreasuryFTEs,AuthorizedPositions,andOtherChargesPositions

10

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21Prop

TotalFTEs(asofJuly1ofeachfiscalyear) 60 54 53 52 51 54 51 51 50 -TotalAuthorizedPositions(Enacted) 59 58 57 54 54 54 54 54 54 54AuthorizedOtherChargesPositions - - - - - - - - - -

-

10

20

30

40

50

60

70

TotalFY21ProposedAuthorizedPositionsof54are0.16%ofTotalStateFY21ProposedAuthorized

Positionsof33,999.

Notes:DataforTotalFTEsusesthefirstweeklyemploymentreportpublishedbyStateCivilServiceinJulyatthestartofthenamedfiscalyear.DataforTotalAuthorizedPositionsusesfiscalyearenactedlevels,exceptforFY21Proposed.DataforOtherChargesPositionsarereflectedintheExecutiveBudgetperAct377ofthe2013RegularLegislativeSession(beginninginFY15).

Outofthe$2.3m,$1.4m.areforUALpayments;$0.3m.areforretirees’healthbenefits;andtheremainingamountof$0.7m.aretheemployercontributionstothebenefitsofactive

employees,ofwhich0%areSGF.

FY21ProposedBudgetincludesfundingforrelatedbenefitsofallpositionsintheamountof$2.3m.

FY21ProposedBudgetSchedule04-147— StaffDemographicData

11

The following table shows a breakdown of departmental staff by demographic data.

Gender

Female 76%

Male 24%

Race

Black 30%

White 63%

Other 7%

RetirementEligibleWithin1Year 7%

DepartmentofTreasuryFY19,FY20andFY21FundingandFTEsbyProgram

12

TOTALFUNDING FY19Actual FY20Enacted FY20EOBasof12-1-19

FY21Proposed

DifferenceFY20EOBvs.

FY21Proposed

Administrative $4,578,307 $5,288,364 $5,288,364 $5,378,201 $89,837FinancialAccountability&Control $2,974,238 $3,520,323 $3,520,323 $3,730,054 $209,731

DebtManagement $1,078,247 $1,334,182 $1,334,182 $1,364,189 $30,007

InvestmentManagement $973,271 $1,588,026 $1,588,026 $1,601,433 $13,407

TreasuryTOTAL $9,604,063 $11,730,895 $11,730,895 $12,073,877 $342,982

TotalAuthorizedFTEs 54 54 54 54 0

DepartmentofTreasuryFY21ProposedTotalAuthorizedPositionsbyAgency

13

Administrative2546%

FinancialAccountability&

Control1630%

DebtManagement9

17%

InvestmentManagement

47%

FinancialAccountability&Control- Administersreceipt&disbursementofstatefunds,inter-fundborrowing,andmeetingthecashflowneedsofthestate.

InvestmentManagement-AdministerstheinvestmentandsafekeepingofmoniesondepositintheTreasury.

Administrative- Includespolicydevelopment,communications,legalservices&administrativesupport.

DebtManagement-Administersthemonitoring,regulation,andcoordinationofstateandlocaldebt.

Administrative 25FinancialAccountability&Control 16DebtManagement 9InvestmentManagement 4

TOTAL 54

TREASURY

DepartmentofTreasuryUnclaimedProperty

14

UnclaimedProperty(LRS9:151etseq.)

•Treasuryreceivescashandotherpropertyiftheownercannotbeidentifiedforacertainperiodoftime.

•ThroughFY19,about$4Mincashfundswereheldinescroweachyeartocoveranyclaims.Anycashinexcessofclaimswastransferredtothestategeneralfundattheendofthefiscalyear.BeginninginFY19,theTreasurerchosetoretainallexcess*UnclaimedPropertyfundsinescrow,reducingstategeneralfundby$12MinFY19andabout$25MineachofFY20andFY21(allFY20fundsarecurrentlyrecognizedasSGFintheofficialforecast).

•OnFebruary7,2020,theStatefiledsuitinDistrictCourtagainsttheTreasurertocompelthetransferofunclaimedpropertyexcessproceedstothegeneralfund.ThefirsthearinginthecasewasMondayMarch2,2020,witharulinginfavoroftheState.

•Treasuryisauthorizedtowithhold7%asanadministrativefeetofundeffortstocontactpropertyowners.InFY19,Treasurywithheld3.2%forthispurpose.

*Inexcessofclaimsand$15MinUnclaimedPropertyfundspledgedforbondstoexpandI-49whichisalwaystransferredfordebtservice.

DepartmentofTreasuryHistoricalReversions

15UCP = Unclaimed Property

DepartmentofTreasuryEnactedAppropriationvs.ActualExpenditureAnalysis— FY17toFY19

17

Treasury FY17Enacted FY17Actual FY17DifferenceStateGeneralFund $0 $0 $0InteragencyTransfers $1,488,674 $1,488,676 $2FeesandSelf-generatedRevenues $8,762,768 $8,134,796 ($627,972)StatutoryDedications $811,455 $353,768 ($457,687)Federal $0 $0 $0

TOTAL $11,062,897 $9,977,240 ($1,085,657)

Treasury FY18Enacted FY18Actual FY18DifferenceStateGeneralFund $0 $0 $0InteragencyTransfers $1,686,944 $1,686,944 $0FeesandSelf-generatedRevenues $8,897,329 $7,302,148 ($1,595,181)StatutoryDedications $811,455 $383,805 ($427,650)Federal $0 $0 $0

TOTAL $11,395,728 $9,372,897 ($2,022,831)

Treasury FY19Enacted FY19Actual FY19DifferenceStateGeneralFund -$ -$ $0InteragencyTransfers 1,686,944$ 1,686,944$ $0FeesandSelf-generatedRevenues 9,140,969$ 7,505,298$ ($1,635,671)StatutoryDedications 811,455$ 411,821$ ($399,634)Federal -$ -$ $0

TOTAL $11,639,368 $9,604,063 ($2,035,305)

Note1– Negative

Difference numbersshowexcessbudgetauthorityor

lessrevenuethan

anticipated.

Note2— Cellshighlighted

inyellowmeanmore

fundingwasneededor

thatafundingsourcewas

underbudgeted.

Inanygivenyear,the

TreasuryDepartment

tendstobeoverbudgeted

infeesandself-generated

revenueandstatutory

dedications

The following charts show Enacted vs. Actual budget comparisons for the specified fiscal years. Rarely are these totals exactly the same. The

differences can be attributed to a number of reasons: revenue that was not collected, and therefore, expenditures that could not be made;

unanticipated revenue shortfalls that may require a supplemental appropriation; expenditure authority that was anticipated to be needed

but the expense never materialized; etc.

ImpactsfromCOVID-19DepartmentofTreasury

18

TheDepartmentwillreceivenodirectrevenuefromtheFederalreliefpackage.

OperationalImpacts

• Redirectedpersonneltodevelopandimplementremotebankingandstatewideaccountingproceduresandstatewide,assistinguidanceonfederalreliefmeasures,andidentifypotentialbudgetreliefalternatives

• InstitutednumerousonlineStateBondCommissionmeetingswithpublicaccessallowingforbusinesscontinuity

FinancialImpacts

• Thedelayofbondrefundings maypushsomefeesthatwereanticipatedtoarriveinFY20intoFY21.NewfeesinFY21aredependentuponlendingactivity,whichwillbecomemorecertainwithtime.

• Treasuryhasidentifiedabout$42,000inestimatedCOVIDrelatedspending,includingpayrollredirection,sanitationeffortsandremoteaccessforemployeesandSBCmeetings.Theseexpenseswillbeabsorbedinthecurrentyearbudget.Atthistime,thereisnoanticipatedincreaseinappropriationrequiredfortheseexpensesinFY21.

StateTreasurerHouseAppropriationsAmendmentstoHB105

19

HB105StateGeneral

FundInteragencyTransfers

FeesandSelf-generatedRevenues

StatutoryDedications

Federal TOTAL

Original $0 $1,686,944 $9,575,478 $811,455 $0 $12,073,877

AppropriationsAmendments:StateGeneral

FundInteragencyTransfers

FeesandSelf-generatedRevenues

StatutoryDedications

Federal TOTAL

Administrative $0 $0 $446,062 $0 $0 $446,062FiscalAccountability&Control $0 $0 $0 $0 $0 $0DebtManagement $0 $0 $0 $0 $0 $0InvestmentManagement $0 $0 $0 $0 $0 $0

Engrossed $0 $1,686,944 $10,021,540 $811,455 $0 $12,519,939DifferenceHB105OriginaltoHB105Engrossed $0 $0 $446,062 $0 $0 $446,062

FY21Proposed $0 $1,686,944 $9,575,478 $811,455 $0 $12,073,877DifferenceHB105OriginaltoFY21Proposed $0 $0 $0 $0 $0 $0DifferenceHB105EngrossedtoFY21Proposed $0 $0 $446,062 $0 $0 $446,062

HouseAmendmentstoHB105

HouseAppropriationsCommitteeincreasedfeesandself-generatedrevenuetofund7additionalpositionsincludingrelatedexpensesintheUnclaimedPropertyactivity.TheTreasurerisauthorizedtoretainupto7%ofunclaimedpropertycashtransfers,whichiswherethesefeeswillbesourced.AtMay11REC,UnclaimedPropertytransferswereremovedfromtheFY21forecast.

TherewerenoadditionalHouseamendmentstoTreasuryfortheFY21budget.

HB1OriginalfundingisthesameasHB105Re-engrossedat$12,519,939.