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Regular Session, 2010
HOUSE BILL NO. 1035
BY REPRESENTATIVE BARROW
FUNDS/FUNDING: (Constitutional Amendment) Limits adjustments to appropriations for
health care and higher education to eliminate a projected deficit
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10(F)(1) and (2)(a) and (b) of the Constitution of2
Louisiana, relative to the expenditure of state funds; to limit adjustments to3
appropriations for health care and higher education; to provide for submission of the4
proposed amendment to the electors; and to provide for related matters.5
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members6
elected to each house concurring, that there shall be submitted to the electors of the state of7
Louisiana, for their approval or rejection in the manner provided by law, a proposal to8
amend Article VII, Section 10(F)(1) and (2)(a) and (b) of the Constitution of Louisiana, to9
read as follows:10
§10. Expenditure of State Funds11
Section 10.12
* * *13
(F) Projected Deficit. (1) The legislature by law shall establish a procedure14
to determine if appropriations will exceed the official forecast and an adequate15
method for adjusting appropriations in order to eliminate a projected deficit. Any16
method for adjusting appropriations in order to eliminate a projected deficit shall17
assure that health care and higher education do not bear a disproportionate share of18
any adjustments. Any law establishing a procedure to determine if appropriations19
will exceed the official forecast and methods for adjusting appropriations, including20 HLS 10RS-1131 ORIGINAL
HB NO. 1035
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any constitutionally protected or mandated allocations or appropriations, once1
enacted, shall not be changed except by specific legislative instrument which2
receives a favorable vote of two-thirds of the elected members of each house of the3
legislature. Notwithstanding the provisions of Article III, Section 2 of this4
constitution, such law may be introduced and considered in any regular session of5
the legislature.6
(2)(a) Notwithstanding any other provision of this constitution to the7
contrary, adjustments to any constitutionally protected or mandated allocations or8
appropriations, and transfer of monies associated with such adjustments, are9
authorized when state general fund allocations or appropriations have been reduced10
in an aggregate amount equal to at least seven-tenths of one percent of the total of11
such allocations and appropriations for a fiscal year. Such adjustments may not12
exceed five percent of the total appropriation from any fund to any health care or13
higher education program and may not exceed five percent of the total appropriation14
or allocation from a fund for the fiscal year. For purposes of this Subsubparagraph,15
reductions to expenditures required by Article VIII, Section 13(B) of this constitution16
shall not exceed one percent and such reductions shall not be applicable to17
instructional activities included within the meaning of instruction pursuant to the18
Minimum Foundation Program formula. Notwithstanding any other provisions of19
this constitution to the contrary, monies transferred as a result of such budget20
adjustments are deemed available for appropriation and expenditure in the year of21
the transfer from one fund to another, but in no event shall the aggregate amount of22
any transfers exceed the amount of the deficit.23
(b) Notwithstanding any other provision of this constitution to the contrary,24
for the purposes of the budget estimate and enactment of the budget for the next25
fiscal year, when the official forecast of recurring revenues for the next fiscal year26
is at least one percent less than the official forecast for the current fiscal year, the27
following procedure may be employed to avoid a budget deficit in the next fiscal28
year. An amount not to exceed five percent of the total appropriations or allocations29 HLS 10RS-1131 ORIGINAL
HB NO. 1035
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for the current fiscal year from any fund established by law or this constitution1
excluding any fund established to provide health care or to support higher education2
shall be available for expenditure in the next fiscal year for a purpose other than as3
specifically provided by law or this constitution. For the purposes of this4
Subsubparagraph, an amount not to exceed one percent of the current fiscal year5
appropriation for expenditures required by Article VIII, Section 13(B) of this6
constitution shall be available for expenditures for other purposes in the next fiscal7
year. Notwithstanding any other provisions of this constitution to the contrary,8
monies made available as authorized under this Subsubparagraph may be transferred9
to a fund for which revenues have been forecast to be less than the revenues in the10
current fiscal year for such fund. Monies transferred as a result of the budget actions11
authorized by this Subsubparagraph are deemed available for appropriation and12
expenditure, but in no event shall the aggregate amount of any such transfers exceed13
the amount of the difference between the official forecast for the current fiscal year14
and the next fiscal year.15
* * *16
Section 2. Be it further resolved that this proposed amendment shall be submitted17
to the electors of the state of Louisiana at the congressional election to be held on November18
2, 2010.19
Section 3. Be it further resolved that on the official ballot to be used at said election20
there shall be printed a proposition, upon which the electors of the state shall be permitted21
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall22
read as follows:23
To prohibit disproportionate reductions in health care and higher education24
when adjusting appropriations to eliminate a projected deficit. To restrict the25
redirection of appropriations from funds dedicated toward health care and26
higher education to avoid a budget deficit in the current or next fiscal year.27
(Amends Article VII, Section 10(F)(1) and (2)(a) and (b))28 HLS 10RS-1131 ORIGINAL
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Barrow HB No. 1035
Abstract: Specifies that methods for adjusting appropriations to eliminate a projected
deficit shall assure that health care and higher education do not bear a
disproportionate share of any adjustments. Prohibits the reallocation of more than
5% of any appropriation from a dedicated fund to health care or higher education to
eliminate a projected deficit in the current or next fiscal year.
Present constitution authorizes the legislature to establish a procedure by law to determine
a projected deficit and a method for adjusting appropriations to eliminate the deficit.
Provides that the law shall not be changed except by specific legislative instrument which
receives a favorable vote of two-thirds of the elected members of each house of the
legislature
Proposed constitutional amendment provides that any method for adjusting appropriations
in order to eliminate a projected deficit shall assure that health care and higher education do
not bear a disproportionate share of any adjustments.
Present constitution authorizes the governor, with legislative approval, to reduce up to 5%
of appropriations or allocations from the state general fund and dedicated funds in any fiscal
year in which a deficit is projected and reductions of 0.7% in appropriations from the state
general fund have already occurred. Further provides that such reductions to the Minimum
Foundation Program (MFP) shall be limited to 1% and shall not be applicable to
instructional activities.
Proposed constitutional amendment further limits adjustments to 5% of the total
appropriated from a fund to any health care or higher education program.
Present constitution authorizes the legislature to reduce the monies appropriated or allocated
for mandatory expenditures or allocations by up to 5%, making those funds available for
other, nonmandatory expenditures if the official revenue forecast for the next year is at least
1% less than for the current year.
Proposed constitutional amendment excludes any fund established to provide health care or
to support higher education.
Present constitution provides that these provisions shall not be applicable to, nor affect (1)
the Bond Security and Redemption Fund or any bonds secured thereby, or any other funds
pledged as security for bonds or evidences of indebtedness; (2) the severance tax and royalty
allocations to parishes (Art. VII, §4(D) and (E)); (3) state retirement contributions; (4) the
La. Education Quality Trust Fund; and (5) the Millennium Trust, except for appropriations
from the trust.
Provides for submission of the proposed amendment to the voters at the congressional
election to be held on Nov. 2, 2010.
(Amends Const. Art. VII, §10(F)(1) and (2)(a) and (b))