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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 SENATORS LONG, ALARIO, APPEL, BROOME, CHABERT, CHAISSON,
CHEEK, CROWE, DONAHUE, GUILLORY, MARTINY, MICHOT,
MOUNT AND WALSWORTH
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 additional authority of the governor to reduce certain appropriations or3
allocations; to provide for an effective date; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 39:75(C)(2)(b) is hereby amended and reenacted to read as follows:6
ยง75. Avoidance of budget deficits7
* * *8
C. Upon receiving notification that a projected deficit exists, the governor9
shall have interim budget balancing powers to adjust the budget in accordance with10
the following provisions:11
* * *12
(2)13
* * *14
(b)(i) In accordance with Article VII, Section 10(F) of the Constitution of15
Louisiana, the governor may direct the commissioner of administration to reduce any16
appropriation or allocation for the executive branch of state government from the17 SB NO. 131
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words in boldface type and underscored are additions.
state general fund and dedicated funds, including any which are constitutionally1
protected or mandated, by an amount not to exceed five percent in the aggregate of2
the total amount appropriated or allocated from that fund for that fiscal year.3
(ii) In addition to the authority provided for in Item (i) of this4
Subparagraph, the governor may direct the commissioner of administration to5
reduce any appropriation or allocation for the executive branch of state6
government from the state general fund and dedicated funds, excluding any7
which are constitutionally protected or mandated or described in R.S.8
49:308.5(C), by an additional amount not to exceed five percent in the aggregate9
of the total amount appropriated or allocated from that fund for that fiscal10
year. Such reductions authorized by this Item shall require the prior approval11
of a majority of the elected members of each house of the legislature. If the12
legislature is in session, the approval shall be by resolution or Act. If the13
legislature is not in session, approval shall be obtained using the same mail14
ballot procedure used to obtain such approval of action of the Interim15
Emergency Board.16
* * *17
Section 2. This Act shall become effective on July 1, 2011; if vetoed by the governor18
and subsequently approved by the legislature, this Act shall become effective on July 1,19
2011, or on the day following such approval by the legislature, whichever is later.20
The original instrument was prepared by Jay Lueckel. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Ann S. Brown.
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. The governor may direct reductions of any appropriation or allocation SB NO. 131
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Coding: Words which are struck through are deletions from existing law;
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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.
Proposed law requires legislative approval by a majority of the elected members of each
house prior to any additional reductions authorized by proposed law. Such approval shall
be granted by resolution or Act (if legislature is in session) or by mail ballot (if legislature
is not in session).
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.
Senate Floor Amendments to engrossed bill.
1. Provides that the authorized budget adjustments must be approved by a
majority of each house of the legislature and specifies procedures for such
approval.