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)]
Harris HB No. 437
Abstract: Requires the Revenue Estimating Conference's official forecast to include a
projection of all state general fund, self-generated revenues, and statutorily dedicated
funds; requires the state treasurer to certify fund balances used to support appropriations;
requires the REC to designate certain funds as nonrecurring; and provides for limitations
on appropriations.
REVENUE ESTIMATING CONFERENCE
Present law sets forth requirements relative to the expenditure of state funds and establishes the
Revenue Estimating Conference (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 retains present law and adds
that the REC shall include a forecast of all funds as defined in Art. VII, ยง10(J) of the Const. of
La., with an estimate of money available for appropriation from each dedicated fund. Proposed
law also provides that the REC must designate as nonrecurring, money available for
appropriation from any source that has not been available for any three consecutive fiscal years.
Proposed law also provides that to the extent that appropriations consist of the balance in any
fund, the conference estimate of such balance shall be certified by the treasurer. (R.S. 39:24(A))
EXECUTIVE BUDGET
Present law requires the governor to prepare an executive budget to include recommendations for
appropriations from the state general fund and dedicated funds which shall not exceed the official
forecast of the REC. Proposed law retains present law and provides that the executive budget
shall not include recommendations for appropriations from any fund in excess of the official
forecast of money available for appropriation from that fund. (R.S. 39:34(A))
APPROPRIATION BILLS
Present law requires, after submitting his executive budget, that the governor then cause to be
introduced a General Appropriation Bill (GAB) for the ordinary operating expenditures in
conformity with the budget estimate. Proposed law retains this provision and provides that the
general appropriation bill and other appropriation bills shall not appropriate any funds which are
not part of the official REC forecast. (R.S. 39:51(A)) EXPENDITURE OF STATE FUNDS
Present law provides that appropriations from the state general fund and dedicated funds shall
not exceed the official forecast. Proposed law retains present law and 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))
Further provides that this proposed law shall take effect and become operative only if HB Nos.
434, 435, and 436 are concurred in by both houses of the legislature and if HB Nos. 456, 474,
571, 620, 653, and 696 of the 2012 Regular Session of the Legislature are enacted into law.
Effective July 1, 2013.
(Amends R.S. 39:24(A), 34(A), 51(A), and 54(A))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Appropriations to the original
bill.
1. Added that to the extent the Revenue Estimating Conference estimate of money
supporting appropriations consists of the balance in any dedicated fund, the
conference estimate of such balance shall be certified by the treasurer.
House Floor Amendments to the engrossed bill.
1. Clarified the definition of nonrecurring funds to be used by the Revenue
Estimating Conference in the determination of the recurring or nonrecurring nature
of revenues. Provided that the conference shall designate as nonrecurring any
money available for appropriation from any source that is not available for any
three consecutive fiscal years.
2. Provided that this proposed law shall take effect and become operative only if HB
Nos. 434, 435, and 436 are concurred in by both houses of the legislature and if HB
Nos. 456, 474, 571, 620, 653, and 696 of the 2012 Regular Session of the
Legislature are enacted into law.