HLS 10RS-696 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 352
BY REPRESENTATIVE NOWLIN
FUNDS/FUNDING: (Constitutional Amendment) Authorizes limited redirection and
transfer of funds supporting allocations and appropriations from the state general
fund and dedicated funds in certain circumstances
A JOINT RESOLUTION1
Proposing to amend Article VII, Section 10(F)(2)(a) and (b) of the Constitution of2
Louisiana, relative to the expenditure of state funds; to authorize the limited3
redirection and transfer of funds supporting appropriations or allocations from the4
state general fund and dedicated funds, including those constitutionally protected or5
mandated, to be used for other nonmandatory purposes under certain circumstances;6
to provide for submission of the proposed amendment to the electors; and to provide7
for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members10
elected to each house concurring, that there shall be submitted to the electors of the state of11
Louisiana, for their approval or rejection in the manner provided by law, a proposal to12
amend Article VII, Section 10(F)(2)(a) and (b) of the Constitution of Louisiana, to read as13
follows:14
§10. Expenditure of State Funds15
Section 10.16
* * *17
(F) Projected Deficit.18
* * *19 HLS 10RS-696 ORIGINAL
HB NO. 352
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(2)(a) Notwithstanding any other provision of this constitution to the1
contrary, adjustments to any constitutionally protected or mandated allocations or2
appropriations, and transfer of monies associated with such adjustments, are3
authorized when state general fund allocations or appropriations have been reduced4
in an aggregate amount equal to at least seven-tenths of one percent of the total of5
such allocations and appropriations for a fiscal year. Such adjustments may not6
exceed five ten percent of the total appropriation or allocation from a fund for the7
fiscal year. For purposes of this Subsubparagraph, reductions to expenditures8
required by Article VIII, Section 13(B) of this constitution shall not exceed one9
percent and such reductions shall not be applicable to instructional activities included10
within the meaning of instruction pursuant to the Minimum Foundation Program11
formula. Notwithstanding any other provisions of this constitution to the contrary,12
monies transferred as a result of such budget adjustments are deemed available for13
appropriation and expenditure in the year of the transfer from one fund to another,14
but in no event shall the aggregate amount of any transfers exceed the amount of the15
deficit.16
(b) Notwithstanding any other provision of this constitution to the contrary,17
for the purposes of the budget estimate and enactment of the budget for the next18
fiscal year, when the official forecast of recurring revenues for the next fiscal year19
is at least one percent less than the official forecast for the current fiscal year, the20
following procedure may be employed to avoid a budget deficit in the next fiscal21
year. An amount not to exceed five ten percent of the total appropriations or22
allocations for the current fiscal year from any fund established by law or this23
constitution shall be available for expenditure in the next fiscal year for a purpose24
other than as specifically provided by law or this constitution. For the purposes of25
this Subsubparagraph, an amount not to exceed one percent of the current fiscal year26
appropriation for expenditures required by Article VIII, Section 13(B) of this27
constitution shall be available for expenditures for other purposes in the next fiscal28
year. Notwithstanding any other provisions of this constitution to the contrary,29 HLS 10RS-696 ORIGINAL
HB NO. 352
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monies made available as authorized under this Subsubparagraph may be transferred1
to a fund for which revenues have been forecast to be less than the revenues in the2
current fiscal year for such fund. Monies transferred as a result of the budget actions3
authorized by this Subsubparagraph are deemed available for appropriation and4
expenditure, but in no event shall the aggregate amount of any such transfers exceed5
the amount of the difference between the official forecast for the current fiscal year6
and the next fiscal year.7
* * *8
Section 2. Be it further resolved that this proposed amendment shall be submitted9
to the electors of the state of Louisiana at the congressional election to be held on November10
2, 2010.11
Section 3. Be it further resolved that on the official ballot to be used at said election12
there shall be printed a proposition, upon which the electors of the state shall be permitted13
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall14
read as follows:15
To authorize adjustments of up to ten percent of constitutionally protected16
and mandated allocations and appropriations if aggregate reductions of17
seven-tenths of one percent of allocations and appropriations from the state18
general fund have been made; to authorize, for the purposes of the budget19
estimate and enactment of the budget for the next fiscal year, that if the20
official revenue forecast for the next fiscal year is at least one percent less21
than the forecast for the current fiscal year, an amount not to exceed ten22
percent of the monies appropriated from any fund established by law or23
constitution shall be available for appropriation in the next fiscal year for a24
purpose other than as specified by law or constitution. (Amends Article VII,25
Section 10(F)(2)(a) and (b))26 HLS 10RS-696 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)]
Nowlin HB No. 352
Abstract: Constitutional amendment proposing to increase authority to reduce or redirect
statutory dedications from 5% to 10% of the fund's appropriation when a deficit is
projected or revenues decrease.
Present constitution authorizes the legislature to establish a procedure to determine a
projected deficit and a method for adjusting appropriations to eliminate the deficit.
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 increases the amount of reductions 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 from 5% to 10%.
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 increases the percentage the legislature is authorized to
reduce the monies appropriated or allocated for mandatory expenditures or allocations from
up to 5% to up to 10%, 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.
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)(2)(a) and (b))