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Coding: Words which are struck through are deletions from existing law;
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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) (2/3-CA7s10(F)(1))
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
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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 or described in R.S.9
49:308.5(C), by an additional amount not to exceed five percent in the aggregate10
of the total amount appropriated or allocated from that fund for that fiscal11
year.12
* * *13
Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor14
and subsequently approved by the legislature, this Act shall become effective on July 1,15
2011, or on the day following such approval by the legislature, whichever is later.16
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Long (SB 131)
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 certain non-constitutionally protected appropriations or allocations from the state
general fund or dedicated by another five percent. SB NO. 131
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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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Adds language excluding special funds not required to be deposited in the
treasury pursuant to Art. VII, Section 9(A) of the constitution and certain
other special funds, including court or regulatory agency judgments;
contracts related to the issuance of bonds, notes, or other indebtedness; and
special retirement funds; among others.