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Regular Session, 2011
SENATE BILL NO. 113
BY SENATORS CROWE, ADLEY, ALARI O, APPEL, BROOME, CLAI TOR,
DONAHUE, DORSEY, ERDEY, GAUTREAUX, GUILLORY,
HEITMEIER, JACKSON, LONG, MARTINY, MICHOT, MILLS,
MOUNT, MURRAY, NEVERS, PERRY, QUINN, SHAW, SMITH,
THOMPSON, WALSWORTH AND WILLARD-LEWIS
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) and to add Article VII, Section2
10(F)(4)(g) of the Constitution of Louisiana, relative to the expenditure of state3
funds; to authorize the limited redirection and transfer of funds supporting4
appropriations or allocations from the state general fund and dedicated funds,5
including those constitutionally protected or mandated, to be used for other6
nonmandatory purposes under certain circumstances; to prohibit the limited7
redirection and transfer of certain funds; and to specify an election for submission8
of the proposition to electors and provide a ballot proposition.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, for11
their approval or rejection in the manner provided by law, a proposal to amend Article VII,12
Section 10(F)(2)(a) and (b) and to add Article VII, Section 10(F)(4)(g) of the Constitution13
of Louisiana, to read as follows:14
ARTICLE VII15
§10. Expenditure of State Funds16
Section 10.17 SB NO. 113
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* * *1
(F) Projected Deficit.2
* * *3
(2)(a) Notwithstanding any other provision of this constitution to the4
contrary, adjustments to any constitutionally protected or mandated allocations or5
appropriations, and transfer of monies associated with such adjustments, are6
authorized when state general fund allocations or appropriations have been reduced7
in an aggregate amount equal to at least seven-tenths of one percent of the total of8
such allocations and appropriations for a fiscal year or when there is a decrease in9
recurring federal financial participation in state assistance expenditures for10
nondiscretionary state general fund expenditures. Such adjustments may not11
exceed five percent of the total appropriation or allocation from a fund for the fiscal12
year. For purposes of this Subsubparagraph, reductions to expenditures required by13
Article VIII, Section 13(B) of this constitution shall not exceed one percent and such14
reductions shall not be applicable to instructional activities included within the15
meaning of instruction pursuant to the Minimum Foundation Program formula.16
Notwithstanding any other provisions of this constitution to the contrary, monies17
transferred as a result of such budget adjustments are deemed available for18
appropriation and expenditure in the year of the transfer from one fund to another,19
but in no event shall the aggregate amount of any transfers exceed the amount of the20
deficit.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 or25
when there is a decrease in recurring federal financial participation in state26
assistance expenditures for nondiscretionary state general fund expenditures,27
the 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 SB NO. 113
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for the current fiscal year from any fund established by law or this constitution shall1
be available for expenditure in the next fiscal year for a purpose other than as2
specifically provided by law or this constitution. For the purposes of this3
Subsubparagraph, an amount not to exceed one percent of the current fiscal year4
appropriation for expenditures required by Article VIII, Section 13(B) of this5
constitution shall be available for expenditures for other purposes in the next fiscal6
year. Notwithstanding any other provisions of this constitution to the contrary,7
monies made available as authorized under this Subsubparagraph may be transferred8
to a fund for which revenues have been forecast to be less than the revenues in the9
current fiscal year for such fund. Monies transferred as a result of the budget actions10
authorized by this Subsubparagraph are deemed available for appropriation and11
expenditure, but in no event shall the aggregate amount of any such transfers exceed12
the amount of the difference between the official forecast for the current fiscal year13
and the next fiscal year.14
* * *15
(4) The provisions of Subparagraphs (1) and (2) of this Paragraph shall not16
be applicable to, nor affect:17
* * *18
(g) The Medicaid Trust Fund for the Elderly created under the19
provisions of R.S. 46:2691 et seq.20
* * *21
Section 2. Be it further resolved that this proposed amendment shall be submitted22
to the electors of the state of Louisiana at the statewide election to be held on October 22,23
2011.24
Section 3. Be it further resolved that on the official ballot to be used at said election25
there shall be printed a proposition, upon which the electors of the state shall be permitted26
to vote FOR or AGAINST, to amend the Constitution of Louisiana, which proposition shall27
read as follows:28
To authorize adjustments of up to five percent of constitutionally protected29 SB NO. 113
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and mandated allocations and appropriations if aggregate reductions of1
seven-tenths of one percent of allocations and appropriations from the state2
general fund have been made or when there is a decrease in federal financial3
participation in state assistance expenditures for non-discretionary state4
general fund expenditures; to authorize, for the purposes of the budget5
estimate and enactment of the budget for the next fiscal year, that if the6
official recurring revenue forecast for the next fiscal year is at least one7
percent less than the forecast for the current fiscal year or when there is a8
decrease in federal financial participation in state assistance expenditures for9
non-discretionary state general fund expenditures, an amount not to exceed10
five percent of the monies appropriated from any funds established by law11
or constitution shall be available for appropriation in the next fiscal year for12
a purpose other than as specified by law or constitution; to prohibit13
adjustments of allocations and appropriations from the Medicaid Trust Fund14
for the Elderly. (Amends Article VII, Section 10(F)(2)(a) and (b) and adds15
Article VII, Section 10(F)(4)(g))16
The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Michelle Broussard-Johnson.
DIGEST
Crowe (SB 113)
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 when there
is a decrease in recurring federal financial participation in state assistance expenditures for
non-discretionary state general fund expenditures.
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 SB NO. 113
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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 when there is a decrease in recurring
federal financial participation in state assistance expenditures for non-discretionary state
general fund expenditures.
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.
Proposed constitution amendment retains present constitution and adds the Medicaid Trust
Fund for the Elderly to the list of funds that are exempt from adjustment.
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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Authorizes adjustments in current year when there is a decrease in federal
financial participation in state assistance expenditures for non-discretionary
state general fund expenditures rather than when a deficit is caused by a
reduction in federal funds.
2. Authorizes procedure to avoid budget deficit in next fiscal year when there
is a decrease in federal financial participation in state assistance expenditures
for non-discretionary state general fund expenditures rather than when a
deficit is caused by a reduction in federal funds.
3. Exempts the Medicaid Trust Fund for the Elderly from any adjustments.
Senate Floor Amendments to engrossed bill.
1. Clarifies that federal financial participation only applies to recurring federal
money.