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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 114
BY SENATOR CROWE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
FUNDS/FUNDING. Authorizes limited redirection and transfer of funds supporting
appropriations and allocations from the state general fund and dedicated funds in certain
circumstances. (2/3-CA7s10(F)(1))
AN ACT1
To amend and reenact R.S. 39:75(A)(1), (B), and the introductory paragraph of (E), relative2
to the expenditure of state funds; to authorize the limited redirection and transfer of3
funds supporting appropriations or allocations from the state general fund and4
dedicated funds, including those constitutionally protected or mandated, to be used5
for other nonmandatory purposes under certain circumstances; to provide for an6
effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 39:75(A)(1), (B), and the introductory paragraph of (E) are hereby9
amended and reenacted to read as follows: 10
ยง75. Avoidance of budget deficits11
A.(1) The division of administration shall submit a budget status report12
monthly to the Joint Legislative Committee on the Budget in a format approved by13
the committee. This report shall indicate the balance of the budget for the state14
general fund and dedicated funds by comparing the official forecast for these funds15
to the total authorized appropriations from each fund. This report shall also16
indicate the balance of budgeted federal funds. The committee shall review the17 SB NO. 114
SLS 11RS-336 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
report and make any changes it deems appropriate to ensure that the report reflects1
the status of the budget for each fund as of the date on the report. The most recently2
approved budget status report shall be the official budget status of the state.3
* * *4
B. If the budget status report indicates that the total appropriation from any5
fund will exceed the official forecast for that fund or that a deficit has been caused6
by a reduction in federal funds, the Joint Legislative Committee on the Budget7
shall immediately notify the governor that a projected deficit exists for that fund.8
* * *9
E. If the official forecast of recurring money for the next fiscal year is at least10
one percent less than the official forecast of recurring money for the current fiscal11
year or if a reduction in federal funds is projected to cause a budget deficit in12
the next fiscal year, the governor and the legislature may employ the following13
methods and procedures in the development of the state budget for the next fiscal14
year pursuant to authority granted in Article VII, Section 10(F) of the Constitution15
of Louisiana, for the purpose of avoiding a budget deficit in the next fiscal year.16
* * *17
Section 2. Section 1 of this Act shall take effect and become operative if the18
amendment of Article VII, Section 10 of the Constitution of Louisiana contained in the Act19
which originated as Senate Bill No. of this 2011 Regular Session of the Legislature is20
adopted at the statewide election to be held on October 22, 2011, and at the same time as21
such proposed amendment becomes effective.22
Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2011. If23
vetoed by the governor and subsequently approved by the legislature, this Act shall become24
effective on the day following such approval.25
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Present law provides that the division of administration shall submit a budget status report
monthly to the Joint Legislative Committee on the Budget which shall indicate the balance SB NO. 114
SLS 11RS-336 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of the budget for the state general fund and dedicated funds by comparing the official
forecast for these funds to the total authorized appropriations from each fund.
Proposed law provides that the budget status report shall also indicate the balance of
budgeted federal funds.
Present law establishes a procedure to determine a projected deficit and a method for
adjusting appropriations to eliminate the deficit.
Present law provides that if the budget status report indicates that the total appropriation
from any fund will exceed the official forecast for that fund, the Joint Legislative Committee
on the Budget shall immediately notify the governor that a projected deficit exists for that
fund.
Proposed law retains present law and provides that if the budget status report indicates that
the total appropriation from any fund will exceed the official forecast for that fund or that
a deficit has been caused by a reduction in federal funds, the Joint Legislative Committee
on the Budget shall immediately notify the governor that a projected deficit exists for that
fund.
Present law 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 law retains present law and provides that if the official revenue forecast for the
next fiscal year is at least 1% less than for the current year or if a reduction in federal funds
is projected to cause a budget deficit in the next fiscal year, the governor and legislature may
follow certain procedures to avoid a budget deficit.
Section 1 of the Act which authorizes the reduction of appropriations or allocations from the
state general fund and dedicated funds if a reduction in federal funds causes or is projected
to cause a deficit, becomes effective and operative if the amendment of Article VII, Section
10 of the Constitution of Louisiana contained in the Act which originated as SB of the
2011 RS is adopted at the congressional election to be held on October 22, 2011, and at the
same time as such proposed amendment becomes effective. Sections 2 and 3 of the Act,
which are the effective date provisions, become effective on July 1, 2011.
(Amends R.S. 39:75(A)(1), (B), and (E)(intro para))