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Regular Session, 2011
SENATE BILL NO. 113
BY SENATOR CROWE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
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
and to specify an election for submission of the proposition to electors and provide7
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. 113
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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 or a deficit has been caused by7
a reduction in federal funds. Such adjustments may not exceed five percent of the8
total appropriation or allocation from a fund for the fiscal year. For purposes of this9
Subsubparagraph, reductions to expenditures required by Article VIII, Section 13(B)10
of this constitution shall not exceed one percent and such reductions shall not be11
applicable to instructional activities included within the meaning of instruction12
pursuant to the Minimum Foundation Program formula. Notwithstanding any other13
provisions of this constitution to the contrary, monies transferred as a result of such14
budget adjustments are deemed available for appropriation and expenditure in the15
year of the transfer from one fund to another, but in no event shall the aggregate16
amount of any transfers exceed the amount of the deficit.17
(b) Notwithstanding any other provision of this constitution to the contrary,18
for the purposes of the budget estimate and enactment of the budget for the next19
fiscal year, when the official forecast of recurring revenues for the next fiscal year20
is at least one percent less than the official forecast for the current fiscal year or a21
reduction in federal funds is projected to cause a budget deficit in the next fiscal22
year, the following procedure may be employed to avoid a budget deficit in the next23
fiscal year. An amount not to exceed five percent of the total appropriations or24
allocations for the current fiscal year from any fund established by law or this25
constitution shall be available for expenditure in the next fiscal year for a purpose26
other than as specifically provided by law or this constitution. For the purposes of27
this Subsubparagraph, an amount not to exceed one percent of the current fiscal year28
appropriation for expenditures required by Article VIII, Section 13(B) of this29 SB NO. 113
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constitution shall be available for expenditures for other purposes in the next fiscal1
year. Notwithstanding any other provisions of this constitution to the contrary,2
monies made available as authorized under this Subsubparagraph may be transferred3
to a fund for which revenues have been forecast to be less than the revenues in the4
current fiscal year for such fund. Monies transferred as a result of the budget actions5
authorized by this Subsubparagraph are deemed available for appropriation and6
expenditure, but in no event shall the aggregate amount of any such transfers exceed7
the amount of the difference between the official forecast for the current fiscal year8
and the next fiscal year.9
* * *10
Section 2. Be it further resolved that this proposed amendment shall be submitted11
to the electors of the state of Louisiana at the statewide election to be held on October 22,12
2011.13
Section 3. Be it further resolved that on the official ballot to be used at said election14
there shall be printed a proposition, upon which the electors of the state shall be permitted15
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall16
read as follows:17
To authorize adjustments of up to five percent of constitutionally protected18
and mandated allocations and appropriations if aggregate reductions of19
seven-tenths of one percent of allocations and appropriations from the state20
general fund have been made or if a deficit has been caused by a reduction21
in federal funds; to authorize, for the purposes of the budget estimate and22
enactment of the budget for the next fiscal year, that if the official recurring23
revenue forecast for the next fiscal year is at least one percent less than the24
forecast for the current fiscal year or a reduction in federal funds is projected25
to cause a budget deficit in the next fiscal year, an amount not to exceed five26
percent of the monies appropriated from any funds established by law or27
constitution shall be available for appropriation in the next fiscal year for a28
purpose other than as specified by law or constitution. (Amends Article VII,29 SB NO. 113
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Section 10(F)(2)(a) and (b))1
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
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
be applicable to instructional activities.
Proposed constitutional amendment retains present constitution and authorizes the reduction
in appropriations or allocations from the state general fund and dedicated funds in any fiscal
year in which a deficit has been caused by a reduction in federal funds.
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 retains present constitution and authorizes the reduction
of monies appropriated or allocated for mandatory expenditures or allocations, making those
funds available for other, nonmandatory expenditures if a reduction in federal funds is
projected to cause a budget deficit in the next fiscal 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
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 statewide election to be held on
October 22, 2011.
(Amends Const. Art. VII, Sec. 10(F)(2)(a) and (b))