SLS 11RS-274 ORIGINAL Page 1 of 3 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. 131 BY SENATOR LONG Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. FISCAL CONTROLS. Provides for the governor's interim budget balancing authority, authorizing him to reduce certain state general fund or statutorily dedicated fund appropriations or allocations by an addititonal five percent. (7/1/11) AN ACT1 To amend and reenact R.S. 39:75(C)(2)(b), relative to avoidance of budget deficits; to2 provide for an increase in the authority of the governor to reduce certain3 appropriations or allocations; to provide for an effective date; and to provide for4 related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 39:75(C)(2)(b) is hereby amended and reenacted to read as follows:7 ยง75. Avoidance of budget deficits8 * * *9 C. Upon receiving notification that a projected deficit exists, the governor10 shall have interim budget balancing powers to adjust the budget in accordance with11 the following provisions:12 * * *13 (2)14 * * *15 (b)(i) In accordance with Article VII, Section 10(F) of the Constitution of16 Louisiana, the governor may direct the commissioner of administration to reduce any17 SB NO. 131 SLS 11RS-274 ORIGINAL Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. appropriation or allocation for the executive branch of state government from the1 state general fund and dedicated funds, including any which are constitutionally2 protected or mandated, by an amount not to exceed five percent in the aggregate of3 the total amount appropriated or allocated from that fund for that fiscal year.4 (ii) In addition to the authority provided for in Item (i) of this5 Subparagraph, the governor may direct the commissioner of administration to6 reduce any appropriation or allocation for the executive branch of state7 government from the state general fund and dedicated funds, excluding any8 which are constitutionally protected or mandated, by an additional amount not9 to exceed five percent in the aggregate of the total amount appropriated or10 allocated from that fund for that fiscal year.11 * * *12 Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor13 and subsequently approved by the legislature, this Act shall become effective on July 1,14 2011, or on the day following such approval by the legislature, whichever is later.15 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Jay R. Lueckel. DIGEST Present law provides, relative to the notification that a budget deficit exists in the current fiscal year, that the governor shall have interim budget balancing powers to eliminate the deficit, among others: 1. Reduce executive branch budget unit appropriations by three percent of the total appropriation for the fiscal year. 2..In the event the governor has reduced budgets by seven-tenths of one percent of the total appropriation and the deficit still exists, the governor may make further budget adjustments, as follows: a. The governor may direct reductions of any appropriation or allocation from the state general fund or dedicated funds, including those constitutionally protected or mandated, by an amount not to exceed five percent of the total amount appropriated or allocated for that fiscal year. Proposed law retains present law but authorizes additional authority for the governor to reduce non-constitutionally protected appropriations or allocations from the state general fund or dedicated by another five percent. SB NO. 131 SLS 11RS-274 ORIGINAL Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Effective July 1, 2011. (Amends R.S. 39:75(C)(2)(b))