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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. 39:2(11.1), the introductory paragraph of R.S. 39:75(C), and the2
introductory paragraph of 75(E) and to enact R.S. 39:75(F), relative to the3
expenditure of state funds; to authorize the limited redirection and transfer of funds4
supporting appropriations or allocations from the state general fund and dedicated5
funds, including those constitutionally protected or mandated, to be used for other6
nonmandatory purposes under certain circumstances; to define projected deficit for7
certain circumstances; to provide for an effective date; and to provide for related8
matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 39:2(11.1), the introductory paragraph of R.S. 39:75(C), and the11
introductory paragraph of 75(E) are hereby amended and reenacted, and R.S. 39:75(F) is12
hereby enacted to read as follows: 13
§2. Definitions14
As used in this Chapter, except where the context clearly requires otherwise,15
the words and expressions defined in this Section shall be held to have the meanings16
here given to them.17 SB NO. 114
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* * *1
(11.1) "Deficit" means the excess for any fiscal year of actual expenditures2
paid by warrant or transfer over the actual monies received and any monies or3
balances carried forward for any fund at the close of the fiscal year as such are4
reported by the office of statewide reporting within the division of administration.5
"Projected deficit" means the excess of appropriations and non-appropriated6
requirements over the official forecast for any fund during any fiscal year. For7
purposes of determining if adjustments to any constitutionally protected or8
mandated allocations or appropriations, and the transfer of monies associated9
with such adjustments, are authorized pursuant to Article VII, Section10
10(F)(2)(a) of the Constitution and R.S. 39:75(C) and for purposes of11
determining if an amount not to exceed five percent of the total appropriations12
or allocations from any fund established by law or the constitution shall be13
available for expenditure in the next fiscal year for a purpose other than as14
specifically provided by law or the constitution as authorized in Article VII,15
Section 10(F)(2)(b) of the Constitution and R.S. 39:75(E), "projected deficit"16
shall include a reduction in federal funds when such reduction requires an17
increase in state funding needed to maintain the current level of those state18
assistance expenditures for non-discretionary state general fund expenditures.19
* * *20
§75. Avoidance of budget deficits21
* * *22
C. Upon receiving notification that a projected deficit exists or that a23
decrease in federal financial participation in state assistance expenditures for24
non-discretionary state general fund expenditures in the current fiscal year is25
causing an increase in state funding needed to maintain the current level of26
those state assistance expenditures for non-discretionary state general fund27
expenditures, the governor shall have interim budget balancing powers to adjust the28
budget in accordance with the following provisions:29 SB NO. 114
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* * *1
E. If the official forecast of recurring money for the next fiscal year is at2
least one percent less than the official forecast of recurring money for the current3
fiscal year or if there is a decrease in the federal financial participation in state4
assistance expenditures for non-discretionary state general fund expenditures5
in the next fiscal year causing an increase in state funding needed to maintain6
the current level of expenditures for those state assistance expenditures for non-7
discretionary state general fund expenditures, the governor and the legislature8
may employ the following methods and procedures in the development of the state9
budget for the next fiscal year pursuant to authority granted in Article VII, Section10
10(F) of the Constitution of Louisiana, for the purpose of avoiding a budget deficit11
in the next fiscal year.12
* * *13
F. The decreases in the federal financial participation in state assistance14
expenditures for non-discretionary state general fund expenditures shall be15
incorporated into the continuation and five-year base line budget projection for16
the next fiscal year as presented to the Joint Legislative Committee on the17
Budget.18
Section 2. Section 1 of this Act shall take effect and become operative if the19
amendment of Article VII, Section 10 of the Constitution of Louisiana contained in the Act20
which originated as Senate Bill No. 113 of this 2011 Regular Session of the Legislature is21
adopted at the statewide election to be held on October 22, 2011, and at the same time as22
such proposed amendment becomes effective.23
Section 3. Sections 2 and 3 of this Act shall become effective on July 1, 2011. If24
vetoed by the governor and subsequently approved by the legislature, this Act shall become25
effective on the day following such approval.26 SB NO. 114
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Crowe (SB 114)
Present law defines "proposed deficit" to mean the excess of appropriations and non-
appropriated requirements over the official forecast for any fund during the fiscal year.
Proposed law retains present law but provides that for purposes of determining if
adjustments are authorized by the constitution or statute, "projected deficit" shall include a
reduction in federal funds when such reduction requires an increase in state funding needed
to maintain the current level of those state assistance expenditures for non-discretionary state
general fund expenditures.
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
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.
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 governor receives notification that
a projected exists of that a projected deficit exists for that fund or if there is a decrease in the
federal financial participation in state assistance expenditures for non-discretionary state
general fund expenditures in the next fiscal year causing an increase in state funding needed
to maintain the current level of expenditures for those state assistance expenditures for non-
discretionary state general fund expenditures, the governor shall have interim budget
balancing powers to adjust the budget.
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 there is a decrease in the
federal financial participation in state assistance expenditures for non-discretionary state
general fund expenditures in the next fiscal year causing an increase in state funding needed
to maintain the current level of expenditures for those state assistance expenditures for non-
discretionary state general fund expenditures, 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 there is a decrease in the federal financial
participation in state assistance expenditures for non-discretionary state general fund
expenditures a reduction in federal funds, 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 113 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. 39:2(11.1), 75(C)(intro para), 75(E)(intro para), and adds R.S. 39:75(F)) SB NO. 114
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Revises definition of projected deficit.
2. Removes provisions regarding the budget status report and the official
forecast containing information on the balance of budgeted federal funds.
3. 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.
4. 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.
5. Provides that a decrease in the federal financial participation in state
assistance expenditures for non-discretionary state general fund expenditures
shall be incorporated into the continuation and five-year base line budget
projection for the next fiscal year.
6. Technical amendments.