HLS 12RS-1045 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 547
BY REPRESENTATIVE GEYMANN
BUDGETARY PROCEDURES: Provides relative to the development of the budget
AN ACT1
To amend and reenact R.S. 39:24(A), 34(A), 36(A)(1), 51(A), and 54(A) and to enact R.S.2
39:24(G), 24.1, 24.2, 26(D), and 54(D) and (E), relative to the budget process; to3
require certain contents in the executive budget; to provide for the powers, duties,4
and functions of the Revenue Estimating Conference; to provide for the contents of5
the General Appropriation Bill and other appropriations bills; to provide for6
effectiveness; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 39:24(A), 34(A), 36(A)(1), 51(A), and 54(A) are hereby amended9
and reenacted and R.S. 39:24(G), 24.1, 24.2, 26(D), and 54(D) and (E) are hereby enacted10
to read as follows: 11
§24. Official forecast12
A.(1) The Revenue Estimating Conference shall establish an official forecast13
for each fiscal year which shall be derived and revised only as provided in this Part.14
Each such official forecast shall contain a designation of all money which is15
nonrecurring. The conference shall designate all other money in each official16
forecast as recurring.17
(2) The conference may designate other money as nonrecurring, but shall18
designate the following as nonrecurring:19
(a) Money available for appropriation from any special treasury fund20
received by the state general fund or a dedicated fund in a previous fiscal year.21 HLS 12RS-1045 ORIGINAL
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(b) Money available for appropriation from the state general fund from one1
time transactions, including but not limited to court settlements, the sale of state2
facilities, and the privatization of state operations.3
* * *4
G. The Revenue Estimating Conference estimate shall designate the estimate5
of money to be received by the state general fund and the estimate of money6
available for appropriation from each dedicated fund.7
§24.1. Precertification8
A.(1) The Revenue Estimating Conference shall review the executive budget9
for the next fiscal year prior to its submission to the legislature as required by Article10
VII, Section 10(B)(2) of the Constitution of Louisiana. The Revenue Estimating11
Conference shall determine if the executive budget is balanced, does not exceed the12
official forecast, does not exceed the expenditure limit, does not contain the13
appropriation of any money designated as nonrecurring for purposes other than those14
specifically authorized by Article VII, Section 10(D)(2) of the Constitution of15
Louisiana, and contains no contingent appropriations. The determination shall be16
transmitted by letter to the governor for inclusion in the executive budget submitted17
to the Joint Legislative Committee on the Budget in accordance with R.S. 39:37.18
(2) The Revenue Estimating Conference shall meet as needed to certify an19
appropriation bill as required by Article III, Section 16(B)(2) of the Constitution of20
Louisiana.21
B. The Revenue Estimating Conference may utilize whatever staff,22
information, and technical expertise which it may determine is required to make the23
determination required under Paragraph (A)(1) of this Section.24
C.(1) Except as provided in Paragraph (2) of this Subsection, any conference25
determination pursuant to this Section shall be by unanimous vote of its members.26
(2) If the conference is unable to make a unanimous determination, the27
determination may be made by a three-fourths vote of the conference principals if28
such determination is affirmed by at least two-thirds of the elected member of each29 HLS 12RS-1045 ORIGINAL
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house of the legislature. Such affirmation shall be by concurrent resolution or by1
mail ballot if the legislature is not in session.2
§24.2. Certification of appropriation priorities3
A. Prior to its submission to the legislature, the Revenue Estimating4
Conference shall review the executive budget as required by Article VII, Section5
10(B)(3) of the Constitution of Louisiana. The Revenue Estimating Conference shall6
determine if the budget estimate includes appropriations from the state general fund7
for both higher education and for health care for the next fiscal year to be included8
in the General Appropriation Bill in amounts equal to or greater than the amounts9
appropriated for higher education and for health care in the most recently enacted10
General Appropriation Act. The conference decision shall be transmitted by letter11
to the governor for inclusion in the executive budget submitted to the Joint12
Legislative Committee on the Budget in accordance with R.S. 39:37.13
B. The Revenue Estimating Conference may utilize whatever staff,14
information, and technical expertise which it may determine is required to make such15
determination.16
C.(1) Except as provided in Paragraph (2) of this Subsection, the conference17
determination shall be by unanimous vote of its members.18
(2) If the conference is unable to make a unanimous determination, the19
determination may be made by a three-fourths vote of the conference principals if20
such determination is affirmed by at least two-thirds of the elected members of each21
house of the legislature. Such affirmation shall be by concurrent resolution or by22
mail ballot if the legislature is not in session.23
* * *24
§26. Sessions25
* * *26
D. The Revenue Estimating Conference shall meet at least two weeks prior27
to the submission of the executive budget to the Joint Legislative Committee on the28 HLS 12RS-1045 ORIGINAL
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Budget as required by R.S. 39:37 to determine if the governor's budget estimate can1
be precertified and to make the determination required pursuant to R.S. 39:24.2.2
* * *3
§34. Executive budget4
A. The governor shall cause to be prepared an executive budget presenting5
a complete financial and programmatic plan for the ensuing fiscal year which shall6
include recommendations for appropriations from the state general fund and7
dedicated funds which shall not exceed the official forecast of the Revenue8
Estimating Conference. Except as provided by R.S. 39:75(E), the executive budget9
shall not include recommendations for appropriations from any fund in excess of the10
official forecast of money available for appropriation from that fund.11
* * *12
§36. Contents and format of executive budget; supporting document13
A. The executive budget shall present a complete financial and14
programmatic plan for the ensuing year, and it shall be configured in a format so as15
to clearly present and highlight the functions and operations of state government and16
the financial requirements associated with those functions and operations. The17
executive budget shall be a performance-based budget. It shall include at a minimum18
the following:19
(1)(a) A budget message signed by the governor giving a summary20
description of his proposed financial plan and major programmatic and budgetary21
policies for the ensuing fiscal year and including a statement of the impact that his22
proposed recommendation has on the existing operating budget.23
(b) A letter from the Revenue Estimating Conference certifying that the24
executive budget is balanced, does not exceed the official forecast of the conference,25
does not exceed the expenditure limit, does not contain the appropriation of any26
nonrecurring money for purposes other than those permitted by Article VII, Section27
10(D)(2) of the Constitution of Louisiana, and contains no contingent appropriations.28 HLS 12RS-1045 ORIGINAL
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(c) A letter from the Revenue Estimating Conference determining whether1
appropriations contained in the executive budget include appropriations from the2
state general fund for both higher education and for health care for the next fiscal3
year to be included in the General Appropriation Bill in amounts equal to or greater4
than the amounts appropriated for higher education and for health care in the most5
recently enacted General Appropriation Act.6
* * *7
§51. General Appropriation Bill; other appropriation bills8
A.(1) The governor shall cause a General Appropriation Bill for the ordinary9
operating expenses of the executive branch of state government to be introduced10
which shall be in conformity with the recommendations for appropriations contained11
in the budget estimate as provided by Article VII, Section 11(B) of the Constitution12
of Louisiana. The General Appropriation Bill and the bill appropriating funds for13
ancillary expenses of state government shall each be submitted for introduction at14
the same time required for submission of the executive budget as required by R.S.15
39:37.16
(2) The General Appropriation Bill shall not include appropriations to17
political subdivisions or to public charities, except those authorized by the18
Constitution of Louisiana and by statute, unless the General Appropriation Bill19
includes appropriations out of the state general fund for both health care and higher20
education in amounts equal to or greater than the amounts appropriated in the current21
fiscal year, as determined by the Revenue Estimating Conference in accordance with22
R.S. 39:24.2. The governor may cause one or more bills supplementing the General23
Appropriation Bill to be introduced which shall be in conformity with the24
recommendations for appropriations contained in the budget estimate as provided by25
Article VII, Section 11(B) of the Constitution of Louisiana appropriating to political26
subdivisions and public charities at the same time required for submission of the27
executive budget as required by R.S. 39:37.28
* * *29 HLS 12RS-1045 ORIGINAL
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§54. Limitations on appropriations1
A. Appropriations by the legislature from the state general fund and2
dedicated funds for any fiscal year shall not exceed the official forecast in effect at3
the time the appropriations are made. Except as otherwise provided by R.S.4
39:75(E), appropriations by the legislature from any fund shall not exceed the5
official forecast of money available for appropriation from that fund in effect at the6
time the appropriations are made.7
* * *8
D. In making appropriations for any fiscal year, the legislature shall first9
finally pass the general appropriation bill.10
E. No bill for appropriating money may be received by the Senate, no11
amendment to such a bill may be concurred in by the House of Representatives, and12
no conference committee report concerning such a bill adopted by either house of the13
legislature, except after separate certification by the Revenue Estimating Conference14
that the bill contains no appropriation of nonrecurring money for any purpose other15
than those specifically authorized in Article VII, Section 10(D)(2) of the Constitution16
of Louisiana, contains no contingent appropriation, and would not cause17
appropriations by the legislature to exceed the expenditure limit or the official18
forecast in effect at the time the appropriations are made.19
Section 2. This Act shall take effect and become operative if and when the proposed20
amendment of Article III, Section 16(A-D) and Article VII, Sections 10 and 11 of the21
Constitution of Louisiana contained in the Act which originated as House Bill No. of this22
2012 Regular Session of the Legislature is adopted at a statewide election and becomes23
effective.24 HLS 12RS-1045 ORIGINAL
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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. 547
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); requires a determination of funding levels and
priorities, requires a separate appropriations bill under certain conditions and
requires the General Appropriations Bill be passed prior to other appropriation bills.;
and, provides for the role of the REC in the expenditure of state funds, including
determining what money is designated as nonrecurring.
BUDGET PRECERTIFICATION
Present law requires the governor to submit an executive budget to the legislature at each
regular session presenting the governor's recommended, complete financial plan for the year.
(R.S. 39:2(14)) Requires the executive budget be submitted to the Joint Legislative
Committee on the Budget no later than 30 days prior to the regular session of the legislature
in the first year of a term and 45 days prior otherwise. (R.S. 39:37(A)) 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 law retains present law and adds that the executive budget shall be
reviewed by the REC two weeks prior to its submission to the Joint Legislative Committee
on the Budget. The REC is charged under the proposed law with reviewing and
precertifying 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 enumerated in the
constitution, and contains no contingent appropriations. The proposed law requires that the
REC's precertification be included in the governor's subsequent submission of his executive
budget to the legislature. (R.S. 39:24.1, 26, and 36)
Present law requires, after submitting his executive budget, that the governor then cause to
be introduced a General Appropriations Bill (GAB) for the ordinary operating expenditures
in conformity with the budget estimate. Proposed law retains this provision.
CERTIFICATION OF APPROPRIATIONS
Proposed law provides that an appropriation bill can only be received by the Senate,
concurred in by the House, or adopted by conference if, at each point in the process, the REC
certifies that the bill contains no prohibited appropriation of nonrecurring money or
contingent appropriations and would not cause the expenditure limit or the official forecast
in effect at the time the appropriations are made to be exceeded. (R.S. 39:54(E))
DETERMINATION OF FUNDING LEVEL & PRIORITIES
Proposed law 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.
Proposed law also requires that the governor's executive budget include a statement of the
REC determination. If the general fund appropriations in the GAB for both higher education
and health care are less than in the most recently enacted GAB, then proposed law 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 HLS 12RS-1045 ORIGINAL
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authorized by present constitution or present law be in a separate appropriation bill. (R.S.
39:24.2 and 51(A)(2))
Proposed law additionally requires that the legislature must first pass the GAB before
passing any other bill appropriating money for any given fiscal year. (R.S. 39:54(D))
VOTE REQUIREMENT OF REC
With respect to budget precertification, certification of an appropriation, and the
determination of funding levels by the REC, proposed law requires that the REC's actions
be by unanimous vote. If the REC is unable to make a unanimous decision on any action
required by proposed law, such action may be made by a 3/4 vote of the conference
principals if such decision is affirmed by at least 2/3 of the elected members of each house
of the legislature. Such affirmation shall be by concurrent resolution or by mail ballot if the
legislature is not in session. (R.S. 39:24.1(C) and 24.2(C))
EXPENDITURE OF STATE FUNDS
Present law 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 nonrecurring. Money not designated as
nonrecurring is designated recurring. Proposed law provides that the REC must designate as
nonrecurring estimates of money available for appropriation from any special treasury fund
received by the state general fund or a dedicated fund in the previous fiscal year and from one
time transactions such as court settlements, the sale of state facilities, and the privatization
of state operations. (R.S. 39:24(A))
Proposed law also specifies that unless otherwise provided by present law permitting the use
and transfer of funds to avoid a projected deficit, the amount appropriated out of any fund
shall not exceed the official forecast of money available for appropriation from that fund.
(R.S. 39:54(A))
Effective if and when the proposed amendment of Article III, §16(A-D) and Article VII, §§
10 and 11 of the Constitution of La. contained in the Act which originated as House Bill No.
of this 2012 R.S. is adopted at a statewide election and becomes effective.
(Amends R.S. 39:24(A), 34(A), 36(A)(1), 51(A), and 54(A); Adds R.S. 39:24(G), 24.1, 24.2,
26(D), and 54(D) and (E))