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Regular Session, 2010
SENATE BILL NO. 391
BY SENATOR CHAISSON
FUNDS/FUNDING. Constitutional amendment to authorize limited redirection and transfer
of funds supporting appropriations and allocations from the state general fund and dedicated
funds in certain circumstances. (2/3 CA13s1(A))
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 exclude certain funds in certain circumstances; to specify an election for7
submission of the proposition to electors and provide a ballot proposition.8
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members9
elected to each house concurring, that there shall be submitted to the electors of the state, for10
their approval or rejection in the manner provided by law, a proposal to amend Article VII,11
Section 10(F)(2)(a) and (b) of the Constitution of Louisiana, to read as follows:12
ARTICLE VII13
§10. Expenditure of State Funds14
Section 10.15
* * *16
(F) Projected Deficit.17 SB NO. 391
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* * *1
(2)(a) Notwithstanding any other provision of this constitution to the2
contrary, adjustments to any constitutionally protected or mandated allocations or3
appropriations, and transfer of monies associated with such adjustments, are4
authorized when state general fund allocations or appropriations have been reduced5
in an aggregate amount equal to at least seven-tenths of one percent of the total of6
such allocations and appropriations for a fiscal year. Such adjustments may not7
exceed five ten percent of the total appropriation or allocation from a fund for the8
fiscal year. For purposes of this Subsubparagraph, reductions to expenditures9
required by Article VIII, Section 13(B) of this constitution shall not exceed one10
percent and such reductions shall not be applicable to instructional activities included11
within the meaning of instruction pursuant to the Minimum Foundation Program12
formula. Notwithstanding any other provisions of this constitution to the contrary,13
monies transferred as a result of such budget adjustments are deemed available for14
appropriation and expenditure in the year of the transfer from one fund to another,15
but in no event shall the aggregate amount of any transfers exceed the amount of the16
deficit. Any adjustments pursuant to this Subsubparagraph in excess of five17
percent shall not be effective unless approved by the legislature by a favorable18
vote of a majority of the elected members of each house. Such approval shall19
be by mail ballot, as provided by law, if the adjustments are made while the20
legislature is not in session.21
(b) Notwithstanding any other provision of this constitution to the contrary,22
for the purposes of the budget estimate and enactment of the budget for the next23
fiscal year, when the official forecast of recurring revenues for the next fiscal year24
is at least one percent less than the official forecast for the current fiscal year, the25
following procedure may be employed to avoid a budget deficit in the next fiscal26
year. An amount not to exceed five ten percent of the total appropriations or27
allocations for the current fiscal year from any fund established by law or this28
constitution shall be available for expenditure in the next fiscal year for a purpose29 SB NO. 391
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other than as specifically provided by law or this constitution. For the purposes of1
this Subsubparagraph, an amount not to exceed one percent of the current fiscal year2
appropriation for expenditures required by Article VIII, Section 13(B) of this3
constitution shall be available for expenditures for other purposes in the next fiscal4
year. Notwithstanding any other provisions of this constitution to the contrary,5
monies made available as authorized under this Subsubparagraph may be transferred6
to a fund for which revenues have been forecast to be less than the revenues in the7
current fiscal year for such fund. Monies transferred as a result of the budget actions8
authorized by this Subsubparagraph are deemed available for appropriation and9
expenditure, but in no event shall the aggregate amount of any such transfers exceed10
the amount of the difference between the official forecast for the current fiscal year11
and the next fiscal year. Any adjustments pursuant to this Subsubparagraph in12
excess of five percent shall not be effective unless approved by the legislature by13
a favorable vote of a majority of the elected members of each house. Such14
approval shall be by mail ballot, as provided by law, if the adjustments are15
made while the legislature is not in session.16
(c) Any adjustments pursuant to this Subparagraph which are in excess17
of five percent shall not be applicable to the portion of any fund established by18
law or the Constitution of Louisiana that is derived from the imposition,19
assessment, or collection of a fee or from self-generated revenue. The provisions20
of Subparagraphs (1) and (2) of this Paragraph shall not be applicable to nor21
affect:22
(i) The Transportation Trust Fund as provided in Article VII, Section23
27 of the Constitution of Louisiana.24
(ii) The Conservation Fund as provided for in Article VII, Section 10-A25
of the Constitution of Louisiana.26
* * *27
Section 2. Be it further resolved that this proposed amendment shall be submitted28
to the electors of the state of Louisiana at the statewide election to be held on November 2,29 SB NO. 391
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2010.1
Section 3. Be it further resolved that on the official ballot to be used at said election2
there shall be printed a proposition, upon which the electors of the state shall be permitted3
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall4
read as follows:5
To authorize adjustments of up to ten percent of constitutionally protected6
and mandated allocations and appropriations if aggregate reductions of7
seven-tenths of one percent of allocations and appropriations from the state8
general fund have been made; to require that any adjustment in excess of five9
percent shall be effective only if approved by a majority of the elected10
members of each house of the legislature; to authorize, for the purposes of11
the budget estimate and enactment of the budget for the next fiscal year, that12
if the official revenue forecast for the next fiscal year is at least one percent13
less than the forecast for the current fiscal year, an amount not to exceed ten14
percent of the monies appropriated from any funds established by law or15
constitution shall be available for appropriation in the next fiscal year for a16
purpose other than as specified by law or constitution; to exclude certain17
funds in certain circumstances; to require that any adjustment in excess of18
five percent shall be effective only if approved by a majority of the elected19
members of each house of the legislature. (Amends Article VII, Section20
10(F)(2)(a) and (b))21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Chaisson (SB 391)
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 at least seven-tenths of 1% 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 SB NO. 391
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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 at least seven-tenths of 1% in appropriations from the
state general fund have already occurred from 5% to 10%.
Proposed constitutional amendment requires any adjustments in excess of 5% not be
effective unless approved by a majority of the elected members of each house of the
legislature. Further requires such approval to be made by mail ballot, as provided by law,
if the adjustments are made while the legislature is not in session.
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.
Proposed constitutional amendment requires any adjustments in excess of 5% not be
effective unless approved by a majority of the elected members of each house of the
legislature. Further requires such approval to be made by mail ballot, as provided by law,
if the adjustments are made while the legislature is not in session.
Proposed constitutional amendment provides that any adjustments in excess of 5% shall not
be applicable to the portion of any fund established by law or the constitution that is derived
from the imposition, assessment, or collection of a fee or from self-generated revenue.
Proposed constitutional amendment further provides that sections on adjustments do not
apply to the Transportation Trust Fund nor the Conservation Fund.
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
Louisiana Education Quality Trust Fund; and (5) the Millennium Trust, except for
appropriations from the trust. Proposed constitutional amendment retains present
constitution.
Specifies submission of the amendment to the voters at the election to be held on November
2, 2010.
(Amends Const. Art. VII, Sec. 10(F)(2)(a) and (b))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill.
1. Provides that any adjustments in excess of 5% shall not apply to funds
derived from the imposition, assessment, or collection of a fee or from self-
generated revenue and exempts the Transportation Trust Fund and the
Conservation Fund from being adjusted.
2. Technical amendments.