HLS 12RS-906 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 546
BY REPRESENTATIVE GEYMANN
BUDGETARY PROCEDURES: (Constitutional Amendment) Provides relative to the
budget process
A JOINT RESOLUTION1
Proposing to amend Article III, Section 16(A) through (D) and Article VII, Sections 10(B)2
and (E) and 11(A) and (B) and to add Article VII, Section 10(D)(4) of the3
Constitution of Louisiana, to provide relative to the budget process; to require certain4
contents in the budget estimate; to provide for the powers, duties, and functions of5
the Revenue Estimating Conference; to provide for the contents of the general6
appropriation bill and other appropriation bills; to provide relative to legislative7
appropriation procedures; to provide for submission of the proposed amendment to8
the electors; and to provide for related matters.9
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members10
elected to each house concurring, that there shall be submitted to the electors of the state of11
Louisiana, for their approval or rejection in the manner provided by law, a proposal to12
amend Article III, Section 16(A) through (D) of the Constitution of Louisiana, to read as13
follows:14
§16. Appropriations 15
Section 16.(A) Specific Appropriation for One Year. Except as otherwise16
provided by this constitution, no money shall be withdrawn from the state treasury17
except through specific appropriation, and no appropriation shall be made under the18
heading of contingencies or for longer than one year, and no contingent19
appropriation shall be made.20 HLS 12RS-906 ORIGINAL
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(B) Origin in House of Representatives. (1) All bills for raising revenue or1
appropriating money shall originate in the House of Representatives, but the Senate2
may propose or concur in amendments, as in other bills.3
(2) No bill for appropriating money may be received by the Senate, no4
amendment to such a bill may be concurred in by the House of Representatives, and5
no conference committee report concerning such a bill adopted by either house of the6
legislature, except after separate certification by the Revenue Estimating Conference7
that the bill contains no appropriation of nonrecurring money for any purpose other8
than those specifically authorized in Article VII, Section 10(D)(2), contains no9
contingent appropriation, and would not cause appropriations by the legislature to10
exceed the expenditure limit or the official forecast in effect at the time the11
appropriations are made. The conference decision to certify shall be by unanimous12
vote of its members. The legislature by law shall establish a procedure to change the13
unanimous vote requirement for certification. The law establishing such a14
procedure, once enacted, shall not be changed except by specific legislative15
instrument which receives a favorable vote of at least two-thirds of the elected16
members of each house of the legislature.17
(C) General Appropriation Bill; Limitations ; Priorities. The general18
appropriation bill shall be itemized and shall contain only appropriations for the19
ordinary operating expenses of the executive branch of state government, public20
charities, pensions, and the public debt or interest thereon. Appropriations to21
political subdivisions and to public charities, except those authorized by this22
constitution or by statute, shall not be included in the general appropriation bill23
unless such bill includes appropriations from the state general fund for both higher24
education and for health care for the next fiscal year in amounts equal to or greater25
than the amounts appropriated for higher education and for health care in the most26
recently enacted general appropriation bill.27
(D) Other Appropriation Bills; Specific Purpose and Amount. 28 HLS 12RS-906 ORIGINAL
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(1) In making appropriations for any fiscal year, the legislature shall first1
finally pass the general appropriation bill. 2
(2) All other bills for appropriating money shall be for a specific purpose and3
amount.4
* * *5
Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members6
elected to each house concurring, that there shall be submitted to the electors of the state of7
Louisiana, for their approval or rejection in the manner provided by law, a proposal to8
amend Article VII, Sections 10(B) and (E) and 11(A) and (B) and to add Article VII, Section9
10(D)(4) of the Constitution of Louisiana, to read as follows:10
§10. Expenditure of State Funds11
Section 10.(A)12
* * *13
(B)(1) Official Forecast. The conference shall prepare and publish initial14
and revised estimates of money to be received by the state general fund and each15
dedicated funds fund for the current and next fiscal years which are available for16
appropriation. In each estimate, the conference shall designate as either recurring17
or nonrecurring all of the money in the estimate, including money to be received by18
each fund. which is recurring and which is nonrecurring. All conference decisions19
to adopt these estimates shall be by unanimous vote of its members. Changes to the20
unanimous vote requirement shall be made by law enacted by a favorable vote of at21
least two-thirds of the elected members of each house. The most recently adopted22
estimate of money available for appropriation shall be the official forecast. The23
Revenue Estimating Conference may designate other money as nonrecurring, but24
shall designate the following as nonrecurring:25
(a) Money available for appropriation from any special treasury fund when26
such money was received by the state general fund or a dedicated fund in a previous27
fiscal year.28 HLS 12RS-906 ORIGINAL
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(b) Money available for appropriation from the state general fund from one-1
time transactions, including but not limited to court settlements, the sale of state2
facilities, and the privatization of state operations.3
(2) Budget Precertification. The conference shall review the governor's4
budget estimate for the next fiscal year prior to its submission to the legislature to5
ensure that the proposed budget is balanced, does not exceed the official forecast of6
the conference, does not exceed the expenditure limit, does not recommend the7
appropriation of any nonrecurring money for purposes other than those specifically8
authorized in Subparagraph (D)(2) of this Section, and recommends no contingent9
appropriations. The conference decision to precertify the budget estimate shall be10
by unanimous vote of its members. The legislature by law shall establish a11
procedure to change the unanimous vote requirement for precertification. Any law12
establishing such procedure, once enacted, shall not be changed except by specific13
legislative instrument which receives a favorable vote of at least two-thirds of the14
elected members of each house of the legislature.15
(3) Determination of priorities. The conference shall review the governor's16
budget estimate for the next fiscal year prior to its submission to the legislature to17
determine if the budget estimate includes recommendations for appropriations from18
the state general fund for both higher education and for health care for the next fiscal19
year to be included in the general appropriation bill in amounts equal to or greater20
than the amounts appropriated for higher education and for health care in the most21
recently enacted general appropriation bill. This determination shall be by22
unanimous vote of its members. The legislature by law shall establish a procedure23
to change the unanimous vote requirement for this determination. Any law24
establishing such procedure, once enacted, shall not be changed except by specific25
legislative instrument which receives a favorable vote of at least two-thirds of the26
elected members of each house of the legislature.27
* * *28 HLS 12RS-906 ORIGINAL
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(D) Appropriations.1
* * *2
(4) Except as otherwise provided in this constitution, including Paragraph3
(F) of this Section, the amount appropriated out of any fund shall not exceed the4
official forecast by the Revenue Estimating Conference of money available for5
appropriation from that fund for that fiscal year.6
* * *7
(E) Balanced Budget. Appropriations by the legislature from the state8
general fund and dedicated funds for any fiscal year except funds allocated by9
Article VII, Section 4, Paragraphs (D) and (E) shall not exceed the official forecast10
in effect for each fund at the time the appropriations are made.11
* * *12
§11. Budgets 13
Section 11.(A) Budget Estimate. The governor shall submit to the14
legislature, at the time and in the form fixed by law, a budget estimate for the next15
fiscal year setting forth all proposed state expenditures. This budget shall include16
a recommendation for appropriations from the state general fund and from dedicated17
funds, except funds allocated by Article VII, Section 4, Paragraphs (D) and (E),18
which shall not exceed the official forecast of the Revenue Estimating Conference19
and the expenditure limit for the fiscal year. The recommendation shall not contain20
any recommendation for a contingent appropriation or any recommendation for21
appropriations of money designated as nonrecurring for purposes other than those22
specifically authorized by Article VII, Section 10(D)(2). The recommendation shall23
also comply with the provisions of Article VII, Section 10(D). This budget shall24
include a recommendation for funding of state salary supplements for full-time law25
enforcement and fire protection officers of the state, as provided in Article VII,26
Section 10(D)(3) of this constitution. This budget shall include a statement of27
precertification adopted by the Revenue Estimating Conference as required by28
Article VII, Section 10(B)(2). This budget shall include a statement of the29 HLS 12RS-906 ORIGINAL
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determination adopted by the Revenue Estimating Conference as required by Article1
VII, Section 10(B)(3).2
(B) Operating Budget. The governor shall cause to be submitted a general3
appropriation bill for proposed ordinary operating expenditures which shall be4
balanced and in conformity with the recommendations for appropriations contained5
in the budget estimate. The governor may cause to be submitted a bill or bills for6
appropriations to political subdivisions and to public charities, which shall be in7
conformity with the recommendations for appropriations contained in the budget8
estimate, when such appropriations are prohibited by Article III, Section 16(C) from9
being contained in the general appropriation bill. The governor may cause to be10
submitted a bill or bills to raise additional revenues with proposals for the use of11
these revenues.12
* * *13
Section 2. Be it further resolved that this proposed amendment shall be submitted14
to the electors of the state of Louisiana at the statewide election to be held on November 6,15
2012.16
Section 3. Be it further resolved that on the official ballot to be used at the election,17
there shall be printed a proposition, upon which the electors of the state shall be permitted18
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as19
follows:20
Do you support an amendment to change the manner in which state revenue21
is budgeted and appropriated by requiring that the Revenue Estimating22
Conference certify that neither the governor's budget nor a legislative23
appropriation contains any nonrecurring money except as specifically24
provided by law, contain any contingent appropriation, exceed the25
expenditure limit, or exceed the official forecast for the next fiscal year; and,26
in those years when the budget proposes a decrease in appropriations to27
higher education and health care, to preclude the general appropriations bill28
from including any appropriation to a political subdivision or any public29 HLS 12RS-906 ORIGINAL
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charity, except if authorized by law, but rather requiring that any such1
appropriation be included in a separate bill which, along with all other2
appropriation bills, cannot be passed by the legislature prior to passage of the3
general appropriation bill; and, to prohibit an appropriation out of any fund4
that would exceed the official forecast for that fund; and, to require that the5
Revenue Estimating Conference review each dedicated fund in addition to6
state general fund to determine if its available money is recurring or7
nonrecurring; and, to provide a definition of nonrecurring revenue that8
includes fund money remaining from previous years and money from one-9
time transactions such as court settlements, the sale of state facilities, or the10
privatization of state operations? (Amends Article III, Section 16(A) through11
(D) and Article VII, Sections 10(B) and (E) and 11(A) and (B); Adds Article12
VII, Section 10(D)(4))13
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Geymann HB No. 546
Abstract: Changes the manner in which state revenue is budgeted and appropriated.
Requires budget precertification and certification of appropriations by the Revenue
Estimating Conference (REC) and with respect to the vote requirement for such
determinations; requires a determination of funding levels and priorities, requires a
separate appropriations bill under certain conditions, and requires the general
appropriation bill be passed prior to other appropriations bills. Provides for the role
of the REC in the expenditure of state funds, including determining what money is
defined as nonrecurring.
BUDGET PRECERTIFICATION
Present constitution requires the governor to submit to the legislature a budget estimate for
the next fiscal year setting forth all proposed state expenditures. The budget must include
a recommendation for appropriations from the state general fund and from dedicated funds
which do not exceed the official forecast of the Revenue Estimating Conference (REC).
Proposed constitutional amendment retains this present constitutional provision and prohibits
including in the budget estimate any recommendation for a contingent appropriation or an
appropriation from nonrecurring money, except as authorized by the constitution. Proposed
constitutional amendment also adds that the governor's budget estimate must first be
submitted to the REC which shall review and precertify that the governor's budget estimate
is balanced, does not exceed the official forecast of the conference, does not exceed the
expenditure limit, does not contain any nonrecurring money for purposes other than those
specifically authorized by present constitution, and does not recommend any contingent HLS 12RS-906 ORIGINAL
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appropriation. The proposed constitutional amendment requires that the REC's
precertification be included in the governor's subsequent submission of his budget estimate
to the legislature. (Art. VII, §11(A) and Art. VII, §10(B)(2))
Present constitution requires, after submitting his budget estimate to the legislature, that the
governor then submit to the legislature a general appropriations bill (GAB) for the ordinary
operating expenditures in conformity with his budget estimate. Proposed constitutional
amendment retains this provision. (Art. VII, §11(B))
CERTIFICATION OF APPROPRIATIONS
Present constitution provides, generally, for the appropriation of money and specifically
provides that all appropriation bills must originate in the House. Proposed constitutional
amendment retains this provision and adds that no appropriation bill can be received by the
Senate, no amendment to such a bill can be concurred in by the House, and no conference
committee report on such a bill can be adopted, unless at each such point in the process, the
REC certifies that the bill contains no prohibited appropriation of nonrecurring money or
contingent appropriation and would not cause the expenditure limit or the official forecast
in effect at the time the appropriations are made to be exceeded. (Art. III, §16(B)(2))
DETERMINATION OF FUNDING LEVEL & PRIORITIES
Proposed constitutional amendment requires the REC to also review and determine if the
governor's budget estimate contains a recommendation for appropriations to both higher
education and health care that is equal to or greater than the amounts appropriated in the
prior fiscal year. Also requires that the governor's budget estimate include a statement of
the REC determination. If the general fund appropriations in the general appropriation bill
for both higher education and health care are less than in the most recently enacted general
appropriation bill, then proposed constitutional amendment limits the GAB to only
appropriations for the ordinary operating expenses of the executive branch and requires that
any appropriation to political subdivisions or public charities, except those authorized by
present constitution, be made in a separate appropriation bill. (Art. III, §16(C) and Art. VII,
§§10(B)(3) and 11(B))
Proposed constitutional amendment additionally requires that the legislature must first pass
the GAB before passing any other bill appropriating money for any given fiscal year. (Art.
III, §16(D))
VOTE REQUIREMENT OF REC
With respect to budget precertification, certification of an appropriation, and the
determination of funding levels by the REC, proposed constitutional amendments require
that the REC's actions be by unanimous vote. Proposed constitutional amendment further
provides that the legislature may establish a procedure to change the REC's vote requirement
but once established, the procedure cannot be changed except by 2/3 vote of the legislature.
(Art. III, §16(B)(2) and Art. III, §10(B)(2) and (3))
EXPENDITURE OF STATE FUNDS
Present constitution sets forth requirements relative to the expenditure of state funds and
establishes the REC to prepare and publish initial and revised estimates of money to be
received by the state general fund and dedicated funds for the current and next fiscal years
which are available for appropriation, the most recent of which is called the official forecast.
In each estimate, the REC must also designate money as either recurring or nonrecurring.
Proposed constitutional amendment retains present constitutional provisions and specifies
that the REC must designate as recurring or nonrecurring all of the money in the estimate
including money to be received by each fund and specifically provides that the REC must
designate as nonrecurring money available for appropriation from any special treasury fund HLS 12RS-906 ORIGINAL
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that was received by the state general fund or a dedicated fund in the previous fiscal year and
money from one-time transactions such as court settlements, the sale of state facilities, and
the privatization of state operations. (Art. VII, §10(B)(1))
Proposed constitutional amendment also specifies that unless otherwise provided in the
constitution, the amount appropriated out of any fund shall not exceed the official forecast
of money available for appropriation from that fund. (Art. VII, §10(D)(4) and (E))
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 6, 2012.
(Amends Art. III, § 16(A)-(D) and Art. VII, §§10(B) and (E) and 11(A) and (B); Adds Art.
VII, §10(D)(4))